Tips like these helped us pay off $127K in debt. You can read our story in Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After.
“Confession of errors is like a broom which sweeps away the dirt and leaves the surface brighter and cleaner. I feel stronger for confession.” – Mahatma Gandhi
We all make mistakes with money. I make mistakes with money. It would be easy for you to believe that I live in a spotless house where the children and I have morning conversations about the best investment funds and all laugh cheerfully as I pack their monogrammed lunch boxes with the highest nutritional foods I was able to coupon for free. Our teeth gleam with shimmering white and our clothes are pressed with perfect creases.
There is nothing about that scenario that is even remotely true. Except for maybe the packing the lunch box part. However, the lunch boxes are from last year’s clearance.
In an effort to sweep the dirt away, I wanted to share with you my biggest shortcomings right now when it comes to managing and spending money and what I am doing this year to overcome those problem areas. Just because we paid off $127K doesn’t mean we are perfect, friends. Keeping it real with some problem areas. Here are my biggest money mistakes and how I’m struggling to combat them.
Leaving Leftovers on the Counter Over Night
We pack our lunches every day in our house. Food is a precious commodity but for the love of all if I can only remember to put the crockpot into the refrigerator after we are done having dinner I will feel like I have accomplished the greatest feat this year. Not only is it a wasteful habit, it brings me great angst when I get up to pour the coffee in the morning, starting my day off on the worst foot.
What I’m doing to combat the problem:
Setting a daily reminder on my laptop and asking my family to also help me remember. It might benefit me to also to place plasticware on the counter as I’m cooking dinner so that I can box things up well. The timer has worked miracles for me in the last three months and rescued more than one dish. I can count a few times that I’ve flubbed up but I am doing better.
Using My Debit Card Too Much
I know what you’re thinking. What’s the big deal with using a debit card? At least it’s not a credit card. Surely spending money isn’t such a big deal if there are funds in the bank. However, studies show that when we use plastic over cash we almost always overspend. I can’t even imagine how crazy I’d go with Google Pay. Using cash sets off a pain center in our brains and builds a hedge around your budget. When it’s gone, it’s gone. On top of the overspending, tracking expenses becomes much more of a hassle and receipts can fall through the cracks.
My new solution:
Return to my cash envelope system beginning first with the grocery budget. I am always tempted to make too much change too quickly so claiming that I am going to go cash in all areas of spending will not be sustainable. Only a week or two into the new year, I could see a difference in my spending due to this switch. However, I fell off the boat again, reverting to Mr. Debit card. Time to get back at it (again).
Paying Paper Bills On Time
I can rock an online bill like nobody’s business. But for the love of all if I don’t remember to pay a bill that needs to be mailed until the day it is actually due. Because it’s not grossly overdue, it rarely incurs a late charge (but I have been guilty of that, too); however, it drives me a little insane and feels incredibly irresponsible.
How I plan on improving:
Again, I’m going to use the notification system in my laptop’s calendaring program but you could set a reminder on your phone or simply circle a date in red on your paper calendar. I also think I might need to reward myself on this one when I am successful in some small way, not a night out on the town but perhaps reading a favorite book for fifteen minutes, a small piece of delicious dark chocolate or brewing that special tea that I always keep in the cabinet but never want to use.
These three mistakes are only the first to pop into my mind, probably because I’ve made them so recently. I make many other small gaffes everyday. While we would never take on $127K in debt again, there are always ways to improve upon the way we give, save, and spend our money and manage our resources. Floor swept clean. And now I am feeling much stronger.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free
This post contains an affiliate link. That means when you get a great deal or maybe even something for free, you also help our family pay off our mortgage early. And for that, we royally thank you!
Love the post! I’m on my own journey to get out of debt. I’m blogging about my daily issues and struggles and am happy I’m not the only one! Again thank you for sharing!
Good for you Rob! Beginnings are important. Be sure yo write down the date because someday it will be important to celebrate. You are NOT alone. Just because we paid off $127K doesn’t mean we’re perfect and don’t flub up with money from time to time. I wanted to be honest about the dumb mistakes I make and the ways that I’m working toward doing a better job.
Yes I like the phrase “out of sight, out of mind and that’s when interest will add up” .. ok I added that last bit but it’s true! =)