I am an organizational freak with my finances.

I over-organize everything when it comes to money.  I have so many charts, budgets, graphs, and lists; you would not believe it. I spend entirely too much time thinking about money.  So what’s my point? Feeling organized helps me stay motivated.  Looking at the numbers helps to remind me of what I’m doing and why I’m doing it.  I really like making visuals that show my progress.  Seeing how far I’ve come already is a little self esteem booster, and helps me get motivated to make more money.

Here’s an example of one of my favorite Excel charts, created by yours truly.

Just click on the pic to download it!

 So, do you  like to keep your finances extremely organized, or can you do without all of the charts and graphs?  What helps keep you motivated financially?

This means I will be able to pay off the rest of my credit card debt within the next 6 months or so.  I’m so psyched about having ZERO credit card debt!  It seemed like an impossible task just a year ago, but I’ve kicked ass in the last 9 months and paid off $7,500 in non-student loan debt.

Once I’m done with my credit card debt, I am going to build up a small emergency savings fund.  After that, I am throwing everything I have at my student loans.  I am finally starting to feel like I have everything under control regarding my finances.

I found this great Debt Reduction Calculator at the Vertex42 site.  This spreadsheet gives you an excellent idea of your debt payments, including estimated pay off dates for every account!

Photo credit: Daveybot

Last month I felt paralyzed by my debt. I felt like I was getting nowhere.  I was worried and stressed out all the time.  I had over $20,000 of student loans entering repayment, and a monthly budget that was already stretched to the max.  After recalculating my budget and making a few cuts here and there I would be able to make all of my minimum payments, with a measly $50 extra to put towards my credit card debt.  Things were not looking good.

This happens to everyone at some point. The situation:  You’ve been paying off as much as you can towards your debt every month, and you feel like you should be making progress. Instead, you feel like you’re getting nowhere. Like me, you feel completely defeated by your debt.

This is probably the hardest part of getting out of debt. At some point, you’re just going to want to throw in the towel. That won’t make your debt go away, and it certainly won’t help. 

Here are some ideas:

Have a goal – Want to buy a home someday? Take a trip around the world? Whatever your goal is, keep it in mind.  I like to keep pictures of my goals near my desks at work and at home.  They are a good reminder that what you’re doing today is helping you reach your goal even faster!

Visualize – Think ahead- imagine yourself as being completely debt free! Calculate how much you’re paying towards your debt every month, and imagine being able to put all of that towards your goals each month!

Reward yourself – Now, when I say this I don’t mean to go and spend $200 on a trip to the spa. Treat yourself to something small, but something that you can take time to enjoy. Important Note: this tip only works for some people. I don’t do it because I don’t have the greatest self control when shopping. 

Switch to the Debt Snowball Method – If you’re not using this method already, it will work great for boosting your confidence! How does it work?

1. Order your debts from the lowest balance to the highest balance.

2. Pay the minimum on everything except for your debt with the lowest balance.

3. Pay as much as you can afford to pay towards that lowest balance debt, and before you know it you’re wiping out one debt after another!

How does this method work? While it won’t necessarily save you the most money on interest, it will definitely give you the boost of confidence that you need! Seeing results faster really gets you pumped about paying off your debts, and keeps you going strong on your road to financial freedom!

Here is some more info about Dave Ramsey’s Debt Snowball Method.

Do Something Extreme to Boost Your Payments- This one is tough to implement, but will definitely have some big results.  That nice new car you got last year: do you really need it?  How about satellite TV?  Your gym membership?  I’m not telling you to get rid of everything, but some things just aren’t necessary.  You have to step back from your situation and ask yourself if you’re truly living within your means.

I realized that my plan was just not working for me. While I was spending less than I make, it was way too close for comfort.   So of course, being the silly person that I am, I chose to do something extreme.

Here’s what I’ve done in the last month to get ahead:

1.  The BF and I postponed our trip to Cali  (I was bummed, but I knew that we would end up spending more than we had saved up.)

2.  I found someone to move into my bedroom, and I will move into BF’s bedroom  (I’m fairly sure we won’t end up killing each other, and it will save each of us $115 per month)

3.  I had a rummage sale  (This was definitely a great choice.  We got rid of a lot of our junk we didn’t want anymore, and made a few hundred bucks!)

4. I canceled my membership to the YMCA (I got a good deal through work, but when I can run outside for free it just didn’t make sense to keep paying for the membership.)

And finally,

5.  I SOLD MY CAR  (My precious Honda Civic is gone.  Yes, I cried a little after I sold it, but there will be others.  The worst part was that the guy who bought it was planning on driving it to California.  Dammit!  I was supposed to be the one driving my car to California!  Boo.)

So now I regularly ride the bus for $28 per month, and use my BF’s old junker car to get around when I need to.  I didn’t get to take my nice 2 week vacation to sunny California, but I will survive.

Doing that stuff was difficult, but now I can say that it was totally worth it.  I can easily make all of my monthly payments, and now I have a lot more extra money to put towards my debt!  I paid off my auto loan, and two of my highest interest credit cards since these changes.  I’m on a roll

 I’d like to hear your stories.  What have you done to boost your debt payments?  Was it something extreme?  Let’s hear it!