I've lost count of how many times I have written this same post. In short, the story goes: Matt and I used to be the kind of people who paid our credit card bill in full every month. Then we had a rough year where several expenses piled up (voluntary and involuntary). Now we have a sizable chunk of credit card debt that we still haven't paid off, despite the fact that we have a budget plan that enables us to pay it off. We simply don't stick to our budget each month, mainly because we love eating out and buying things from Amazon and Target.
This past week, I had another wave of motivation wash over me. We absolutely need to get out of debt. Sure we could transfer the balance to a 0% credit card for the first 20 months. Or we could do a home equity loan for a lower interest rate. But really we just need to tighten our belts and get the heck out of debt.
I tried to get Matt to come up with a game plan with me about how to stick to our budget. He wasn't in the mood and wanted to postpone the conversation. It caused a bit of a kerfuffle because I felt so urgent about making a plan. He stormed off and I sat down to make the plan myself.
Basically, it comes down to a couple areas: we need to absolutely stick to our individual allowances ($115/month). Matt spends his on junk food from the gas station. He then goes over by eating lunch out. We also hemorrhage money by eating out as a family. We budget to eat out on Friday and Saturday night (Matt and I both really hate cooking). However, we've been adding things to our meals (like drinks, appetizers, ice-cream after dinner) that have been causing us to go over our budget.
Finally, we need to stop buying things just because we want it (like
this book I recently ordered off of Amazon).
When Matt finally cooled off, we decided that we would give him $115 in cash at the start of the month to help him stick to his budget. We also committed to talking to each other before we buy anything. Finally, I looked through our credit card bill to analyze which restaurants help us eat within budget. We also got the boys involved; they know that we have a certain budget for each meal out. If we come in under the amount, then the "extra" goes into a little fund that we can use for extra treats, like trips to the ice-cream store.
I'm crossing my fingers that it works this time!