Tuesday, October 2, 2012

Debt Diet

Unfortunately over the years we have gotten into debt. Since we are a one income family it has been tough paying down what we owe. We are not very extravagant but still need to find more ways to cut back on spending so we can eventually be debt free Inshallah.
The game plan is to make October a no spend month. We like to eat out about 2 times a week and I probably get lunch out more than that. If I start eating at home I could probably save about $100 a week. That is $400 a month! That is my car payment!
Yesterday I took an inventory of what is already in the freezer and am trying to make meals out of what's already there. I will be doing my grocery shopping this week, which will include what I need for the whole month. But after that no more spending for the rest of October. I do have some exceptions though. I can buy milk, eggs, oil, flour, sugar and bread if we need it. Things can be purchased with coupons and gift cards. I hope to save about $150. All money saved this month will be applied towards our debt.
I have always heard that the first step in taking control of your finances is to actually see what you owe.  Well this morning I checked both mine and my husbands accounts and added everything up.  I was shocked at how deep we are in debt.  I honestly didn't think it was this bad.  OK so between credit cards and hospital bills we owe $10,966.13.  The car we still owe $17,976.97.  I owe my mom $3,270 and I think my student loans are about $7,000.  I am not even going to bother adding our mortgage.
Fortunately we are refinancing our mortgage this month and will be saving another $300 a month YAY! I already stopped going to the chiropractor and getting electrolysis which is saving me $250 a month.
Wow! I am overwhelmed, but I am excited to see how much I can get these totals down!

In Tirmidhi a hadith is narrated that:
"Whoever dies free from three things arrogance, cheating and debt will enter Paradise."

No comments:

Post a Comment