It's easy to say that you're going to take control of your life. But what are the steps? How do you get from where you are to where you want to be?
First, I think you need to know exactly where you are. You have to take an intelligent, sensible look at yourself and your circumstances. For me, I started with my finances.
Over the years, I made some terrible mistakes with credit cards. I tell you right now that I think they're flat out evil. And I'm only kinda kidding. I have several credit cards with a lot of unsecured debt. I used this link to calculate how long it would take to pay them off at my present payment schedule. I had never looked at these figures before, and I was frankly depressed to see them. It's going to take way too long, folks. So, my primary financial thrust will be to pay them off and free up my life from those monthly payments. Not having them would open up new avenues in terms of employment. I wouldn't have to keep my job just because I need a salary at that level to keep pace with my bills.
My secondary thrust is to build up my savings. I have a tiny saying account. I'd like to have six months of living expenses. At present I have two months. Of course, paying off those credit cards will reduce my monthly expenses and stretch the purchasing power of that account.
Also, something I need to work on is to get some health insurance that I can afford. I currently do not have a plan, and my company doesn't offer one. My IBD makes it nearly impossible to find a health plan that will take me, much less one that I can afford. I need a group policy where they have to take pre-existing conditions. That may have to come with other employment someday in the future.
There are other financial goals that I would like to work on, such as retirement and investments, but those first three goals will be enough for now. If I take on too much, I will be overwhelmed and give up.
Next I'm going to look at ways to maximize my income and reduce my outgo. And then later on, I'm going to rid the world of disease ...
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6 comments:
Re: finances.
You can do it!
Tech, don't try to do it all at once. Take one at a time and pay it off and cut it up. Go to the next, pay it off and cut it up. Keep one or two that you can pay off monthly. When you stand over the trash can and cut them up it will give you satisfaction that you have completed something monumental. Keep the faith, you can do it.
Hooray, Tech!!
I've been living debt-free for several years now. You are 100 percent right that credit (especially credit cards) are evil! Those simple slips of plastic are the devil's tools of bondage!
The day you make the last payment on the last card will be a huge day of liberation! After all that hard work, building up your savings will be a joy.
Just to give you some hope: When I got divorced, my ex left me in a really bad spot financially. He wanted a car after we got married, and for some reason I cannot explain, we bought a BRAND NEW 1988 ... um, Yugo. Yes, I admitted it out loud. It was a YUGO. Long story short, he wrecked it the first week he had it and of course we couldn't get it repaired until we could track down a salvage car. Finally got that done. Then as our marriage disintegrated, he didn't bother to tell me he was no longer making payments and had allowed the insurance to lapse.
Eventually I dug my way out of the pit, paid off all my credit cards and loans and bought an old house at a bargain price through a bond program. I paid it off in five years. Now I am completely debt free. My only expenses are utilities and daily living expenses and insurance (which is a bear.)
Even though it was hard for a long time, I've managed to go two years now as a non-typical worker. Sure, I miss the company benefits, but as a free-lancer most of my time is my own.
I can't go like this forever, but this has been a great season in my life. There's an unexplainable peace that comes from living more simply to maintain these options. Originally I planned to do this for just one year but I've been blessed to have that time doubled.
Tech, did I mention already that we have so much in common? We decided last December to get out of debt. We cut up our credit cards and started a real effort of changing our lives for the better. (I too believe the credit card companies are evil empires of capitalism in the worst degree.) It is going to take us awhile to pay everything off, but I think within 5 years we should be debt free. I am proud that you have made those decisions. Trixie is an inspiration to us all. She is where I hope to be in a few years. I won't be able to quit my job, because of the retirement and insurance benefits, but just being able to be debt free will be the biggest weight off my shoulders!
The insurance issue is pretty big, I hope you can find a job that offers a plan you can use. Good Luck! susan2
Take steady steps and you will get it done. I might suggest you change the order up a bit. If you rid the world of disease that health care problem will solve itself.
Randall
Trixie, I applaud you. I was fortunate that we had plenty of life insurance on my husband when he passed away. He left me provided for. I still have to work, but I don't have any debt. My house is paid for. My husband was a man gifted with foresight, and he purchased an insurance policy long before he became ill. I recommend life insurance to anyone who has dependents. It's a loving thing to do.
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