My Dear John to Dear Mohela

My Dearest Mohela, 

You came around during college. You were kind enough to help me pay for my freshman year of room and board. I didn't know how I would ever repay you. 

We lost touch after freshman year and we didn't run into each other again until 6 months after graduation. You showed up in my mailbox as a monthly payment. You stuck around for 4 more years. You brought with you interest rates and even overdraft fees when you caught me off guard.

You've been a part of my life for so long, but we just can't be together anymore. Even though you helped me get through the best four years of my life, your balance has just grown too small for me to keep you around. I'll miss your auto-withdrawal confirmations in my inbox and watching all that interest accrue. Let's not make this hard. The pay off has been calculated and processed. Goodbye, Mohela. 

Your Borrower,

Amy Parsons

Student Loan Debt-Free

The Game Plan for Financial Freedom

If you read my last blog, you know that my first goal for 2016 is to get out of some debt and become more financially stable. To achieve any goal, you have to have a game plan. I want to share with you guys my first three strategies to save money and keep track of my spending. 

Step 1: Make a Budget

This year I have created a budget binder to keep track of our bills and other payment priorities. Some people budget for the whole month, but I find that budgeting bi-weekly works better for us since we get paid bi-weekly. Whatever needs paid in that two weeks gets put into our budget for that paycheck. As much as I'd like to say I plan out every dollar, I just don't think that's possible. Life happens and sometimes I just want a .79 polar pop from the gas station. Can I get a hallelujah? I leave a little cushion in our bank account for those moments. Anything extra gets put into savings and/or to pay off a debt. 

Step 2: A cash envelope system

My husband is anti-Dave Ramsey and laughs at this way of watching our spending. But just in the month of January I have paid off a credit card and even found the money to start paying on the new windows we decided to finance. So who's laughing now? 

So why use cash when you have a debit card? Because it is so much easier to see where your money is going! I have created a cash envelope system for the following categories: groceries, gas, eating out, entertainment, horseback riding lessons, and blow money. Whatever I budget for that week gets put into the envelope in cash and when it's gone you just have to make due. 

If there is money leftover, discuss what you want to do with it. Save it? Pay off some debt? Buy yourself something nice? (Hey, you earned it!) Usually, I will take that money and redistribute it back into the cash envelopes for the following two weeks so we either have more cushion or more money to pay debts or bills in the bank account. 

This is a work in progress. Every week I find I could use more money here and less money there. My husband also requested a little personal spending money, so he could spend or save it however he chose so that will also become part of our budget. But practice makes perfect and it's all about planning and finding something that works for you. 

Step 3: Shop at Aldi

Groceries shopping is always one of the first things you can cut back on to save money. You wouldn't believe what you'll save by shopping at Aldi. My husband, the King of Brand Snobs, has even adjusted (and even likes) the meals I make from the groceries I buy at Aldi's. They even have a Double Guarantee where if you don't like the product you can return it for another product AND get your money back. I love when people stand behind their products! Just remember to bring a quarter and your own shopping bags! 

Share with me some of your best tips for better spending and saving! 

 

2016 Goals!

I wanted to start off this new year and new blog by sharing with you guys my goals for 2016. I do realize that it's already February, but let's just consider January as a "trial month." I wouldn't want to start the new year off by being prompt or productive, would I? 

This year I am setting goals and not resolutions because, let's face it, resolutions are those hopes and dreams we vow to achieve and forget about as soon as we crack that beer open after ringing in the New Year or give up on as we dive into that box of Valentine's Day chocolates from our hubbies. Goals are serious business. And without further ado, I give you my goals for 2016!

1. Get out of some debt! 

I was so set on eliminating a huge portion of our debt back in November of 2015. Then a surprise hospital visit due to a faulty gallbladder in December 2015, put us another $6,000 into debt. But I am still making it a goal to eliminate SOME debt this year. I know it won't be ALL of our debt, (Thank you Rose Hulman and your ridiculous student loans!) but paying off credit cards and these outrageously priced triple pane windows we decided to finance is totally achievable. So even though it's not a specific goal, I want to take a step towards financial freedom this year. 

2. Enjoy The Time I Have With My Son

My son is now 13 months old, and I've spent every day with him since he was born. And I just wonder where my little newborn has gone. When did he start walking? Where did he learn to make that mean face? How does he know the hand motions to Itsy Bitsy Spider? He is growing up so fast, and even though I've been with him every step of the way I still feel like I missed it. I was too worried about doing the dishes or checking up on Facebook. I had to get the laundry done. And what kind of wife would I be if dinner wasn't ready when my husband got home? All of these distractions took my attention away from my son, and that's time I won't get back. So this year, I'm not going to sweat the small stuff. I want to let the house get dirty. I want to make sandwiches for dinner because we were too busy building a fort. I want to immerse myself into making memories with my son. 

3. Grow a garden. 

This may seem like a strange goal, but you have to understand that my thumb is blacker than coal. I tried to plant tomato plants at the first house I rented and realized a month or so in that I had one lonely green bean growing on my tomato plants. Maybe I should have labeled those little black trays, but hindsight is always 20/20. This year I want to be able to successfully grow something. I'm not picky. If it's edible and remotely resembles the picture on the seed packet, I'll be happy! 

Comment below and share with me some of the goals you are setting this year!