Financial Plan Step 1

One of my goals for 2019 is to get rid of credit card debt but overall to become financially stable. This is a broad, huge, scary goal for me. With 27,000 dollars and counting of debt in student loans and over 3,500 dollars of debt on credit cards, the idea of taking care of this is overwhelming. So I decided to start small. First, I will knock out the credit card debt. The student loans will have to wait.

Step one: lower my cost of living somehow. I had to find a way to lower my bills so that I could save more money and in the long run pay off more credit card debt. I spend many a day with headaches from pondering this problem. I’ve already cut extraneous spending out of my habits. So I was forced to take a look at our bills.

One bill that I knew had to go away if possible was my monthly payment for student loans. Yes, that is part of my debt, but I want to knock out my credit card debt first. So I called my student loan servicer. I found out that thanks to me receiving WIC I can defer my student loan payments for up to 36 months for a year at a time. While I know many wouldn’t recommend taking this option, I decided to take it. That means that the 30-50 dollars that went towards student loans monthly could go to credit card debt and savings. That is at the least amount 360 dollars for the entire year relocated to a different avenue. $360 may not sound like a lot of money to most, but that is a huge thing for my family. $360 is what makes the difference for a lot. $360 covers 2 of our monthly bills.

Another thing we are making sure to do is turn off all lights as soon as we leave a room. I am especially bad about leaving lights on 24/7. We are working to lower our electricity bill as much as possible. Money is money. I’ve been telling myself that I am going to have a hand in everything that happens to me this year. This means taking more responsibility and being more purposeful with my actions.

I’m going to be sure to look for the cheapest option in the grocery store and use coupons as often as possible. I’ve also been trying to do a lot of my shopping at dollar general to help with cost. Anywhere I can save a dollar or two in the bills is a dollar or two I can relocate to credit card debt and savings.

Doing these things are just a small step, but it’s a step in the right direction. Taking things little by little is what I need to do to achieve my goal. Plus if I work in my current job for 10 years and make 120 payments on my student loans I qualify for loan forgiveness! Here’s for planning for the future!

What are you doing for your future today?

2 thoughts on “Financial Plan Step 1

  1. I’m actually starting to take steps to pay off my student loans – they’ve been sitting there collecting dust (and interest >_< ) for years, so hopefully I can pay them off in a few years and be able to start investing. That would be awesome.

    It is definitely scary – I know I need to cut a lot of things out, like Netflix and Birchbox and….booze. But if it improves my quality of life and sets me up for a more stable future, I think it's worth it.

    Best of luck in your goals!

    Liked by 1 person

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