since i started this project one year ago, i have paid off a lot of debt:
- student loans: $177,741 in december 2008 to $156,466 in december 2009 = $21,275 = 12% of my student loan debt paid off
- credit cards: $15,737 in december 2008 to $11,670 in decemer 2009 = $4067 = 26% of my credit card debt paid off
- auto loan: $1,167 in december 2008 to $0 in december 2009 = $1,167 = 100% of my auto loan paid off
over the year i learned to live within my means (mostly). i no longer have to run home after every trip to the bar or to dinner to put my receipts into my budget immediately so that i know how much i have left to spend. i have learned what it feels like to not overspend and i continue to do that. i drink cheap beer (and actually i drink less overall which is good for my health too). i eat smaller meals and take advantage of specials. i sometimes choose eating out over grocery shopping, but i'm allowed to do that so i don't feel bad.
over the holidays i went clothes shopping for really the first time in the past year. i have picked up a few things here and there (a bathing suit when i was going to new orleans, new black shoes when i wore out my old ones, etc.) but had not done a full shopping trip. things were getting bleak and i was wearing sweaters with holes in them to work. i waited so long because i was scared that i would go into a store and overspend and freak out. but it turns out i was just fine. i was shopping after christmas so there were tons of sales.
i went in knowing what i needed to buy and did not buy anything that was too expensive (i really wanted some awesome, fit me perfectly $99 seven jeans from nordstrom rack but resisted) or that was not something i loved (i said no to some cute super cheap $12 sneakers because i wasn't crazy about the color) or that did not fit me exactly right (i walked away from an adorable, originally $200+ marked down to $40 ann taylor gray and white houndstooth jacket because it was a little too big). none of this would have happened before. i was very proud of myself and i did not feel sick afterwards which is a good sign.
my financial goals this year are to continue paying off my debt and to continue to refine my budget. i have learned that i have to be realistic about certain things... while i wish i lived in a world where i was only going to spend $50 per month on household items/toiletries/etc., or that i never had to pay for big car repairs, or that i never had to go to the doctor, but i do not live in that world and i need money allotted for those un-fun things.
i have also decided that i am going to set aside $100/month for a vacation. i have not had a real vacation since i went to mexico in august 2008 and while i was going to try to wait until the end of this whole credit card paying off ordeal to do it, i have realized it is going to take me longer than i expected and if i don't have any fun in there anywhere, i'm not going to make it. where will i go? i'm hoping for hawaii in december 2010 and china/japan in august 2011. plans are in the works and i just have to get my finances in order. i am still aiming to pay off $5000 of credit card debt this year so budgeting is key.
happy new year to any readers out there. how did 2009 go for you? and what are your financial goals this year?
