August 2014 Budget & Goals.

Its taken a lot of thinking and looking around for the right budget template, however I found a fantastic one at www.blondeonabudget.com and I just finished my monthly budget for August 2014. A mistake I've made in the past 2 months was overspending what I didn't have even moreso than I usually do and now I'm ready to crack down and defeat this debt monster.

Since I last quit my last job around 5 months ago, I have stopped putting payments to the BOMAD (Mom & Dad) for my rent and cell phone bills- so from now until September is the time I can really try to work more and put more money towards my debt repayment. I'm currently in the process of finding another job so I calculated how my budget would be very loosely on my current income which is min. $1000-1300 monthly.

I probably shouldn't really be eating out at ALL given my current situation.. but seeing as I usually work quite early and am frankly too exhausted to cook at times- I did allocate myself a bit of freedom in that department because I have an obsession with Starbucks Coffee and takeout food.

As you can see, I didn't put anything aside for my Personal Loan #2 because that one is a bit more flexible in terms of repayment and is also interest free. Before I start attacking that monster, I should focus on the other more important repayments first with the money I am currently making ATM versus money I think I will be earning in the next few weeks. (Which is still an eh right now.)

As for my August 2014 Goals...

1) Decluttering my clothes, make up and just STUFF.

2) Attempting to read the "Art of Juicing" and one other cookbook I bought eons ago.

3) Declutter my laptop and phone.

4) Find a secondary job.

5) Go to the gym at least once every two weeks.

6) Make at least one green juice per week.

7) Only buy Starbucks once every two weeks.

Hopefully most of these will be conquered though I do expect a few slip ups for the next three months of beginning this journey of mine..

How were you guys in your first month of budgeting? Were you more successful than you thought?

-average girl.

So...I landed a job interview! :)

Just a short update on my current job situation. As you all may know.. I am currently working a part time position however I am looking for more a full time position. Usually it takes me around 2-3 weeks of applying before I even get a call for a job, however..today seemed like my lucky day! In a matter of 20 minutes of applying to 4 jobs, I got a call back from one of them and am going to an interview for it on Thursday! :)

I hope to have 2 part time jobs so I can have more hours and be able to rake in around $1000+ each week versus my current $250-300 per week. I will definitely keep you guys updated on what happens from here on out!

-average girl.

Knowing when you've hit rock bottom.

As a (used to be) frugal shopper, I always used to save more than 80% of my paycheques and put them towards my savings, only spend about 10% on myself..and the last 10% will usually go into my "Emergency Rainy Day" fund. However, as years have gone by.. I've found that as I started to go out more..whether it be a networking event, a friends birthday or even just a simple dinner out with my parents- that my income has slowly started depleting because I simply CHOSE not to work more and that my budget kept going up as the months rolled on by.

I remember when I first got my ever first RBC Visa Cashback Card at the young age of 19, I was ecstatic because who wouldn't be? I thought to myself, "Wow! That means I can finally shop online without having to ask my parents for their card, or buy a visa prepaid!"  BOY, was I ever wrong. Having a credit card with what seemed like endless amounts of "free" money, ($1000 limit but still.), was the start of something that would cost me a lot in the next few years. (To be fair, alot of the debt was from dentist visits costing me over $1000)

For the next few years, many purchases were made on this card..however no payments were ever really made even with every paycheque that went into my hands biweekly. Only minimum payments were made, more money was spent rather than saved and I slowly started going into debt.

I had thought I had hit rock bottom when I had NOT one, NOT two, but...had THREE credit cards all maxed out and a personal loan from my parents on me. At the time, I had decided to quit school to work on repaying my debt for 6 months. I moved back home and focused on finding a full time job.

Fast forward another year- and more debt has been added to the existing one. I actually had paid of all three cards with the help of the parents however... silly me- not cutting up my cards was the worse thing I could ever do. In less than 3 months after fully paying off my cards- I was maxed out again. On all THREE cards.

Lets fast forward another 6 months and then add a personal loan from a friend who had attempted to help me in that time. Thinking I had finally hit rock bottom with 2 personal loans, 3 maxed out credit cards and 1 student loan.. I thought I would get off my ass and decide to put 90% of my income towards debt repayment.

...... 8 weeks ago was when I had finally realized I had hit rock bottom. I had no job, no income, or any sort of money coming in yet I was still spending frivolously on my SO's money or on any money that was given from my parents. I had $0.10 in my chequing account, $0.23 in my TFSA account and more than $10, 000 in debt. I had no money for groceries, way to get to work or even money to pay hydro.

For two weeks, I just wanted to cry myself to sleep because I didn't know what to do. I had no job..have been going to every interview possible but still hadn't received a call and had minimum payments that were coming up. My personal loan was creeping on me as well and I started getting sick because of all the stress I had going on.

I had never felt this way before, like I had no control over what was going to happen in my life.. how things were going to look in the next few months with my lease ending.. how I was going to deal with my relationship..things were not looking good.

I think what really helped me get back up on my feet was definitely the support I got from my SO, being able to see that I'm not in this alone.. that other people have been in similar situations as I had, (Cait from www.blondeonabudget.ca) and etc. With those people in mind, I started looking for a job.. and have currently found a part time for now.

I am really motivated to putting aside 90% of my income into debt repayment every month and hope you all can provide me some support as well. I will be starting a budget plan for the next 6 months and hope I will be able to achieve that. :) It can only go up from here and I only hope that I will be able to repay everyone in the next year, be debt free and have a giant weight off my shoulders..and finally be able to enjoy just not owing ANYONE any money.

Have any of you hit so rock bottom that you don't know what you're going to do? What did you do to deal with it?

-average girl. 

A bit of a problem?

As of 2:22 am on this fine monday morning, I have realized that I don't know if I will be able to pay off $11, 000 of debt in 6 months because of 5 big reasons.

1.) I currently only work part time hours for a (supposed) full time job I have. (I work a max of 25 hours per week.)

2.) With these part time hours that I currently have.. it would mean I only benefit from receiving a maximum of $550 biweekly- (Unless I suddenly decide I want to pick up other peoples shifts- which would only increase my paycheque up to $620 biweekly which is rare.)

3) I currently have 3 big credit cards to pay off, first having a -$1, 999.44 balance, next having a -$2,000.00 balance..and finally..the last one having a -$1,544.00 balance. That's almost a -$6k debt not including the personal loans I have as well. :( (All my minimum payments each month for these credit cards usually equal to around $150 per month)

4) My rent each month is $570 + 50 = $620 per month..and as I only make around $550 biweekly..means that more than 1 of my paycheques will have to go to my rent alone. :(

5) ... I try to eat healthily, however eating this way means that I usually have to spend more every week..aka spending at least $50 dollars at the grocery stores each week. :(

... $620+150+200= $970 per month.. and I only make around $1,100 per month which means that I would only have $130 to pay off my credit cards (not the min payment) AND not going home at ALL, go out, or be able to do anything. :(

.... The struggle is definitely real and I'm not even sure if I should try to attempt at getting a second job- given my first job has my availability as marked as being everywhere. (I've given my boss a full availability which is one of the main reasons she's hired me.)

First of many.

Hello,

This marks the first post of my budget blog- where I will be sharing my experiences and plans to go from -$11, 000 in debt to hopefully a $0 in 6 months. I was pretty inspired by www.blondeonabudget.ca and since reading her entire blog in one day, I have slowly started planning my aggressive budgeting financial plan for the next month.

I just hope to be able to share my journey with you all, maybe gain some tips from everyone as well and for those who are also on this aggressive journey to being debt free- best of luck to you as well!

:)

Let this journey begin!