A Toast to Payday!

About a year ago I had almost $3800 in debt.  Of course it was in my line of credit – which has a lower interest rate than a credit card.  None the less, it was a debt and I owed it.   Mom, if you are reading this – no comments.  I know that’s hard to do because I have a daughter too, and I make too many comments to her.  Just saying that I know what’s on the tip of your tongue.

To be honest, I’ve been working on the debt issue for several years – especially motivated by Dave Ramsey and his Debt Snowball and the blog, Get Rich Slowly – and I finally managed to get rid of the whole kit and kaboodle this summer.  I’d been steadily whittling away at the sum, paying a chunk every pay cheque, observing the total diminishing, as did the amount of interest I was paying on the debt.  It felt good.  Finally, this summer I had to make another work adjustment at Co-op and they paid out my vacation pay!!!!!!!!!!!!  It was a huge chunk of change and enough to bring the figure under $400.  By September it was done.

Now in theory the amount of money I was no longer feeding to my debt account should have gone into a savings account.  I mean, after all, the next savings step is 3 – 6 months of expenses, right?  Well, let me tell you that it didn’t and probably for many people doesn’t go quite as planned.  There’s a sense of freedom and release when everything is in the black – and somehow saving gets forgotten – or at least it did by me.   And then this picture started making the rounds on Facebook:

52-week-savings-planIt’s pretty basic and it’s been shared by several blogs, but I got this image from Survival Mom.  Several of my friends posted it, and I sure hope they follow through.  There is a lot less stress when you have savings – even when you are in debt.  However, I wanted to crank up my savings rate just a little, so about two weeks ago I opened another savings account.  (I bank with President’s Choice so this is pretty easy to set up online).  And because I am fortunate not to have any debts at the moment, no young children at home, and no major expenses in the future, I am starting at the top of the chart and staying there.  $52 per paycheque gets transferred to my “pay yourself first” fund and because I usually have a payday every Friday, I can do this every week.

I am sure that many people want to save more money than they are currently saving.  Starting small and working your way up is a great way to start.  Maybe I should even start adding a dollar a week in the new year.  Just thinking of saving $100 per week is a little scary for me at the moment- I need to think about that.  On the other hand we could just keep increasing that dollar a week or paycheque until it was just too hard and stay at that number for a while.

I’ve set a goal of saving $5000 this year – and flying to Toronto twice.  I’ll keep  you posted.

I wonder if I could add a savings thermometer to this blog!

Have a wonderful day!  And a Happy New Year!

Marcia

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Filed under GREEN: Money matters that matter.

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