I spent the last year working to clean up my finances, get things organized, and change my financial life. I thought I would show the difference in numbers.
Before
- At the beginning of 2013 about 77% of my expenses were already allocated towards expenses before my check landed in my checking account.
- 16 Line items in my monthly budget
- 5 of those line items were towards debt repayment=
- 2 Line Items were towards Savings
- 4 Credit Cards basically maxed out
- $270 Average amount spent each month shopping for clothes=$3240 a year
- $30-$50 Spent on Products=$600
- Going to the grocery story several times a week. $3387 I’m trying to lower this number!!
- Net worth-$57014* Please note-this is a combination of my retirement and condo minus my student loans. If I didn’t have the student loans I would have a substantial Net Worth. Nope, I’m not satisfied with this number-but, I’LL TAKE IT! I also have a Life Insurance Policy but I won’t include that number…’cause I WANT TO LIVE 🙂
- Mortgage payment=15% of my gross take home pay, and 20% of my net. Please note: my place is 495 square feet…smallest place in a great neighborhood.
- Car=Nope
- Emotions=stressed the hell out. Seriously. I was experiencing a lot of anxiety, emotionally eating, and feeling trapped.
- 35 pounds overweight (really-I carry it well)
- Time checking Mint.com for accuracy in labeling of expenses-1 hour a month, maybe 2 hours
- Roth IRA-don’t have one. This is stupid of me. But, I had so much debt I wasn’t saving beyond my 403 (b)
After
- At the beginning of 2014 about 57% of my check is allocated towards expenses before my check hits my account.
- 12 Line items in my total budget. Dealing with fewer entities.
- $670 extra dollars found from paying off credit cards and getting stuff out of storage for the past 10 years and not shopping for clothes
- 2 Line items towards debt-Mr. Chubbs the last credit card, Tiny and El Gordito-the Student Loans (consolidated)
- 3 Line items allocated towards savings goals
- Stopped spending on product-using my sh$t. It has taken a little over a year to use up the bulk of my body products. I am now using the samples and will approach purchasing products in a completely different way. You don’t need as much as you think in your pantry.
- 20% decrease in financial obligations in one year
- Going to the grocery store on the weekends, planning meals, and using what’s in my pantry.
- 30 pounds overweight-working on this this year!
- Time on Mint.com-I set aside 1/2 Â an hour a week to look at my Mint.com account to make sure everything is being allocated correctly
- Net worth: $82,487
- How do I feel-A heck of a lot better! Things aren’t perfect, but, they are getting better. Slowly, emphasis on slowly.
The point of this post is to show that 1 year can make a big difference. I have focused, worked hard, succeeded at times, and sometimes failed. I realize that this year will be the same. So, I will focus and keep my eye on the prize. I want to encourage other people who are dealing with debt and feel like giving up-please don’t!
Debt repayment is a journey. Maybe that’s why so many people just stick with the status quo? I don’t expect the journey to get any easier, I’m just going to continue to try my best.
How have your finances changed in the past year?
What steps are you taking to improve, grow, or maintain your financial growth?
Any Suggestions?
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This is so inspiring. For the first half of 2013, I really didn’t spend a ton of money and I didn’t buy a single clothing item/product. In the last half of 2013 I went a bit crazy. I enjoyed it but now I need to buckle down again..
Daisy, f.y.i the Net Worth amounts are different 🙂 I do love that the amounts are ticking up and I’m feeling pretty good about things. I will be shopping soon but my shopping philosophy has changed so that will make shopping a bit more challenging.
It’s great to watch your net worth grow, isn’t it? OK I first read this this morning but didn’t have time to comment…was the net worth amount different this morning or am I losing my mind. In any case, it’s always good to having a measuring point of where you started and then one to show how far you’ve come. Helps you head in the right direction and prioritize things.
LOL!! Tonya, yes, the amount was different. I am super, super sick right now and realized that the debts weren’t subtracted from the assets 🙂 These numbers are the correct numbers. I’m home right now resting. Yes, the amounts are a HUGE difference!! I love seeing everything ticking upward and once I pay of the mortgage that will be huge.
Woot woot! That’s amazing progress.
2013 was nutso on the finances front (wedding, travel, sabbatical) so I’m not even gonna go there.
It would be even better if I didn’t owe on the Student Loans!! But, I’m feeling pretty good about things. Just trying to stay focused and not get overwhelmed.
I spent a ton of $ (in the four figures. Yikes!) for my sister’s wedding last year and for some reason, a ton of money on clothes. I have no idea why and really no good explanation for it. This year, I’m cutting down on clothes shopping big time. I’ve recently signed up for a mint account and I love how it gives you reminders about payments and bills and it’s great visually for highlighting which areas you’re spending the most on. I’ve been going old school and using an excel spreadsheet to track my finances. I’ll still use the spreadsheet, but now I have the mint account to complement it.
I love MINT.com but it’s a lot more affective when using it weekly and putting the time into it. I also spent a lot on travel (destination wedding). This year I will be spending on clothing. My shopping philosophy has changed quite a bit so I might end up spending more initially. That’s a conversation for another post.
Congratulations! That’s quite a difference after a single year.
I have an urge to chuck a whole bunch of the stuff under the bathroom sink! All those samples and such. I have spouse working through a few of them and I have been trying to use some up too, even instead of the regular stuff I have, just to get rid of them and declutter!
Thanks! I am almost done using everything. It has taken more than a year to do that which is really, really shocking.