I admit that I have a problem. I love to shop. I love shopping so much that I even enjoy shopping at the grocery store. I love to go down the aisles and check out the prices and look at the produce and other products. It’s an issue that has gotten me into debt over the years. I could blame it on the fact that I did not learn how to manage money when I was young, but at 30, I really can’t blame the past for my ongoing mistakes.
I am very blessed that I do not have any educational debt or a car note at the moment. I think I have used the fact that I have no educational debt as a rationale to have credit card debt. But I am determined to change this. I started this year by investing 5% of my income in a 401K. I work for a college that does a match up to 5% and also gives you an institutional bonus. So I am doing good on the saving for the future part.
Now I need to address the current issues. Paying off my credit card debit. My dear L recommended that I read “The Richest Man in Babylon” by George Clason. This book is a quick read, in fact I finished it while I was waiting in the Laguardia Airport for my shuttle back to New Haven. It gives some pretty straight forward tools on how to get out of debt and to increase “thy Gold”:
1. Pay yourself first- 10% of your earnings should go to you. Place it in a savings account
2. Live off of 70% of your income.
3. 20% of your income should go to paying off of your debt.
Simple right? It also gave tips on how to increase your earnings, but for now I am going to focus on these three things until I get out of debt. The book also talks about delayed gratification. If want you want can’t come out of the 70% that you are living off of, you do not need to get it at that moment. You should save for it. For this reason, I have placed myself on a clothing buying ban. I can only buy things I truly need. Well, except a pair of leather boots that I promised myself before I decided on this.
I will definitely keep you up to date with my progress. I recommend that anyone who is in debt like me should read the book! You can get it for under $10 and it is a great investment. It will change the way you think about money.