Finally, it’s July!
Where did time go? It’s really unbelievable that time went by faster than we have anticipated. However, I’m happy to share the progress I made for the past six months. It isn’t perfect. It was full of ups and downs.
Before I started this journey, my finances was a mess.
A REAL MESS! I don’t know where to start but I did start it anyway.
Starting this journey isn’t easy at all. Reaching the point in my life where I am so done of being sick and tired about the cycle of just working to pay bills and not getting ahead. I finally wanted to end my worries of how am I going to pay my bills if I don’t get paid early.
Before I started, I’m always stressed about money. To be honest, I make around $54,000 a year but I’m broke. Yes, this is reality. I always relied on my paycheck. And this is because I don’t really know how to manage our finances.
Reading personal finance books, and blogs has helped me a lot. I have taught myself with basic personal finance that I haven’t learned at school. Finding a very supportive community has been the best thing that have happened in my journey because they simply know what you’re going through.
10 STEPS THAT LED ME TO MY FINANCIAL PROGRESS
1.Find your why.
Knowing your reason gives you more motivation to keep going. If you’re just doing it just because you want to do it, you’ll fail in no time.
2. Save an emergency fund.
Start by putting a certain amount each month until you meet your goal amount. Some starts with a $1000, others have more. This totally depends on you so don’t be bothered. The amount of your emergency fund is something where you’re comfortable at.
3. Use a budgeting method.
I began to use a budgeting method that allows me to stick to it. A method that gave me enough freedom to save, have fun and enjoy the little pleasures and pay off debt at the same time. Thanks to The Budget Mom for sharing her budgeting method. It really worked for us.
4. Start using cash.
The past six months I have learned to ditch credit cards and started to use cash. We also cash flowed unexpected expenses since my main focus is to pay off credit card debts due to high interest rates.
5. Needs vs. wants.
The real life changing for me in this journey is being able to distinguished NEEDS vs. WANTS. I am a spender and for me every want seems like a need that I have to purchase. But overtime, I have curbed my spending habits and have taught myself a lot of not spending money on wants while on this journey.
6. Practice delayed gratification.
This is something that I have working on too. I have learned this the hard way but knowing my why kept me grounded and it allowed me to grow as a real adult. Knowing what I really want in the long run helped me stay focus on my end goal for this journey.
7. It’s all about priorities.
Our basic needs is always our priorities. We learned to enjoy the things that we have instead of looking for things that we don’t. We’re able to have fun just by finding free recreation at home and spend more family time around our dinner table playing cards after supper and watching movies at home.
8.We traded FOMO to JOMO.
It’s been a life changing for us to just embrace the joy of missing out. Our family has been enjoying our time together doing what we love at home and not minding what’s the latest clothing trend or the most recent electronic gadget. We’ve been talking more about what we want in the future and just enjoying the simple pleasures of life rather than focusing about others.
9. Live below our means.
I love that I’m finally awake from the cold hard truth that I can’t go on with a life spending money that I don’t have. Yes, I’m that woman who use to live way above her means. Shopping for clothes and shoes that I won’t even wear. In short, I have stopped keeping up with the Joneses.
10. Practice contentment and be grateful.
These are the two things that I am trying to keep on learning everyday.
EVERY. SINGLE. DAY.
I know that it’s hard not to complain when things aren’t going the way we wanted them to be but there’s a joy in every struggle that we have. And there’s always something to be grateful of. The problem is that we just want comfort and not suffering. It is hard but practice makes it better.
These ten steps I have taken brought me to a better level in my finances. I was able to save an started emergency fund, pay off one credit card, a friend loan and also I am half way done with my last credit card debt.
If not for these steps, I have probably given up and just remain in debt for most of my life. However, I made the right decision and that is to become a real adult and start tackling debt to become financial independent soon.
MY DEBT PAY OFF UPDATE
AS OF DECEMBER 2018 AS OF JUNE 2019
CAR LOAN – $ 18,900.20 ————————————– $ 15,863.37
CAPITAL ONE – $ 3,255.91————————————-$ 1,500.00
PC MASTERCARD – $ 1,000.00 ——————————–$ 0
PERSONAL LOAN – $ 5,270.00 ——————————–$ 4,250.00
FRIEND LOAN – $ 500.00 ————————————–$ 0
TAX- $ 0 ———————————————————–$ $348.58
TOTAL : $ 28, 426. 11 TOTAL: $ 21, 961.95
Seeing my progress makes me happy and motivated to keep going.
Don’t make giving up as an option!
Nope! Don’t pick it up as an option.
Remember that progress is a progress no matter how slow you’re going. Bear this in mind that this journey is not a race. It is a marathon! You’ll get there.
Don’t compare yourself to others. Keep owning your debt free journey and stay focused. Your success depends on you alone so stop comparing yourself.
I know that it is hard not to! I totally get that. But listen my friend, we may be on the same journey of becoming debt free but your struggles and your circumstances aren’t the same. So stop comparing!
” Don’t wait until you’ve reached your goal to be proud of yourself. Be proud of every step you take toward reaching that goal.”