Each month, I record the balances on my debt obligations. Beginning this month, I’ll start sharing my debt balances here. The amounts shown reflect the balance as of the end of the previous month. See below for the figures as of September, 2019.
If I include the debt owed to Mom, August’s debt total was $330,477.49. The difference between August and September’s debt total is $1,943.67. For someone facing the extreme amount of debt that I am, a reduction of just under $2,000 each month isn’t significant. At this rate, I’ll be in debt for the next 14 years (literally, it’s 169 months!). This is not acceptable to me at all. I intend to make quantum leaps in my debt repayment. Stay tuned.
My focus right now is in developing the habits that will ensure my long-term financial health. These habits include: (1) budgeting, (2) expense tracking, and, of course (3) a more austere lifestyle. I’ve cut a lot of luxuries over the last several months. Cable was cut in 2018. I haven’t gotten a mani-pedi since last year. I no longer have a gym membership. I don’t pay for car washes (I can get it washed at the dealership for free). I decreased my grocery budget to not exceed $120 per month (i.e., no more than $30 per week). Eating out and consuming pre-prepared foods has been significantly reduced (I do eat out on dates or when I have a business meeting). I don’t go to nearly as many events as I used to in the past. I haven’t bought any clothing or accessories in several months. Though I can’t say that I don’t ever get some fries off the $1 menu, that I won’t reinstate my gym membership, or that I won’t buy any clothing again until I’m debt free, I have definitely made significant cuts in lifestyle.
Additionally, I’m focused on increasing my income. According to my budget for October, I should be able to pay off much more than $2,000.