Counting Pennies

I’m broke. That’s the short version.

The long version includes details about trips, changing apartments, avoiding obligations and being sick. I’ll spare you.

In an effort to get back on my feet, I’m working out a plan that includes both earning more money and paying off my debt. While you probably don’t want to hear the details, here’s a general breakdown of how it’s going to work:

-         I’m setting daily and weekly goals, rather than a general one. That gives me a greater chance of actually meeting them and controls the stress and anxiety level.

-         I’m focusing on one debt at a time. I know lots of people believe in snowballing debt (paying a little bit here and a little bit there), but two of my three debts have no interest attached to them, so I’m paying off the most important one first.

-         I’m tracking down my expenses to the penny. I need to know where my money is going if I expect to change anything.

-         I’m setting a savings goal as well, which will only start running next week, after I pay for my move. Even with the large debts, I still need to make sure I save enough to be able to cover a large personal expense that is coming up in February.

So that’s it. Seems rather general here, but I have the steps worked out on my mind (and on paper!). I’ll update everybody on how I’m doing and let you know if I come with any important revelations along the way.

Trackback URI | Comments RSS