- Not quite sure how I'm going to approach this blog - I think I will update my net worth each month, but record my expenses each week.
- So far this month, I've spent too much money on groceries, and had a lot of medical expenses. November will also be a very expenses month for medical expenses, as I'm having surgery at the end of October.
- I need to do my tax return. In Australia, taxes are due at the end of October each year. I'm due a large refund, so I really should get all my paperwork together - once I do that it really won't take me very long to do it.
Monday, October 10, 2011
Monday, October 3, 2011
Last weekend was my birthday, and a friend took me to see The Lion King, which has recently been released in 3D. I’m not a huge fan of 3D movies – in the sense that if a movie is in both 2D and 3D, I will usually see it in 2D. But I’m a huge kid at heart, love Disney, and had never seen The Lion King at the movies when it was originally released.
One part of the movie that I love is Timon and Puumba, and the song “Hakuna Matata”. In fact, I had to promise my friend I wouldn’t spend the rest of the day bursting out in song.
Now, if you have seen the movie (and possibly even if you haven’t), you will know that Hakuna Matata means “no worries”. The first verse of the song goes like this:
What a wonderful phrase
Ain't no passing craze
It means no worries for the rest of your days
It's our problem-free philosophy
The problem with this “problem-free” philosophy is that it doesn’t work in real life. (And why should it – it’s a Disney movie!). But starting this blog, I realise how much I’ve been using this philosophy in regards to my debt. It’s actually very odd. I have always thought of myself as a worrier. On numerous occasions I’ve been told I’m highly strung, stressed out, anxious, a worry wart, etc. etc. And that is true. But my debt is one area where I’ve taken a “Hakuna Matata” head-in-the-sand approach. Some things I would tell myself: ·
I’ll pay it off eventually.
Really? How? So far every time I’ve started to make a concerted effort to pay of my debt, I go gung-ho for a few months and then stop, and revert back to my old habits of spending more than I earn.
As long as I’m making the minimum repayments, who cares.
Sure, this is great if I want to be in debt for years and years and years to come. And, it obviously isn’t working if each month I’m making the minimum repayment I’m also using the card to make purchases.
I have a secure job.
This is actually true. I have a good job with a decent salary (which makes the fact I’m in so much debt all the more concerning). But we can’t see the future. In the past year I’ve had quite a few health issues, and in a few weeks I’m having surgery. I’m lucky that I have still been able to work, and have a job that has excellent sick leave. But what would happen if my health got worse and I couldn’t work? What would happen if my Mum suddenly got sick and I wanted to take time off to take care of her? (She is actually much healthier than I am, but had me very late in life so is getting the age where health problems are to be expected).
Not facing up to your problems is not going to make them go away. It will just make them worse. Starting this blog is a way I’m trying to face up to my problems and to hold myself accountable for what I’m spending.
Sunday, October 2, 2011
Friday, September 30, 2011
Bank accounts: $1,712.46
Savings accounts: $426.67
Emergency fund: $2,020
Notes: The emergency fund will be largely depleted due to surgery I'm having at the end of October.
As this blog is focusing on my 'liquid' assets and my credit card debt, this does not include: a house I co-own (mortgaged but has equity in it), my superannuation (currently just over $30,000), car and personal effects.
Deep breath, here goes:
Credit card 1: $24,767.86
Credit card 2: $22,194.71
Credit card 3: $10,173.35
Credit card 4: $9,826.36
Credit card 5: $6,970.48
Credit card 6: $2,282.41
This does also not include $2,000 I have borrowed from a friend (who is not charging me interest). It's funny, I'm almost more embarrassed about borrowing the money from the friend than the credit card debt I have.
If you look at my profile, I originally "set up" this blog in January. At that point, being credit card debt free by September 2012 seemed achievable. Since then, what I have done? Added more and more debt to my name, and realistically, unless I win the lottery (which I don't play), I will not be credit card debt free by the time I turn 30. But, I'm going to get my debt as low as possible by my 30th birthday.