First Entry!

I plan on this being a public blog and hopefully at some point get member participation into this. This blog has been inspired by the movie "Maxed Out", which my husband and I watched last night together. America is on a debt roller coaster and it doesn't just hit the citizens. The government is just as bad and just as stupid on their money management.

Here is my backstory and the reason I felt making this blog was so important.

Age 18 - The first credit card

I remember this card and how happy I was to have it. I had a low limit - $300 and thought that I was just the coolest person ever because of it. I paid it off every month and racked it all back up again. I then got a balance increase letter! They upped my limit to $500! I thought I must be super responsible with money because they wouldn't give me more to spend otherwise. When I moved to KY I paid it off and closed the account.

Age 19 - The second credit card

This was my Providian card. I had this card all the way up until this year when it was paid off. This was my college play money card and boy did I rack it up. I think at the end, my credit limit was 15k. I never took it past 5k (which is still an extreme amount) but I thought I was so cool to have that limit.

Age 19-24 - The merry go round of cards

This is around the time I got lots of cards! I had a Lane Bryant, Old Navy, Victoria Secret, Discover, Providian, and a Fifth Third card. Oh and a Best Buy card. It was horridly easy to get credit in college. I don't think I was ever denied a card that I applied for. I fell into the debt trap. Whenever I needed something and didn't have the money, I knew I could always fall onto the cards.

Age 25- I woke up

Last year is when I got angry at them for how I had been living. I wasn't married yet so my income was still mine and I only took care of myself. I was paying minimums on all the cards I had and was scraping at the end of the month. I'd hide a card so I couldn't use it, only to have to dig it back out again for something I needed.

I went out and got a second job, I had to. I paid off the Victoria Secret in a month. I then started tackling the Providian. I hated that card as that was the one that secured me the highest amount of money and therefore caused me the most problems. I opened the Discover card to transfer as much of the Providian I could for a lower payment. In all, I was almost 8k in credit card debt. It almost makes me want to cry just admitting that.

The only reason I got out this year as quickly as I did, was because of my husband. He is staunchly no debt and knew before we got married that I had some CC debt. Once married he told me to pay them off and to swear to never go into the debt again. The smartest decision I have ever made.

The other debt

The debt right now that we're tackling is the student loan debt. In total it was 21k. I desperately want to go back to school, but I have to pay off the loan first. Joe and I have been putting 2k a month or more on it. Currently we are at 10k on this loan.

The ugly truth about our income

People seem to have this impression that we make a lot of money. We aren't sure where or how this came to be. We are middle class workers only. We make together about 45k a year. There, there is how much we are both bringing in. Almost all of that money is Joe's income, he brings in the big bucks. Because we obviously do not have alot of money, how in the world are we putting 2k a month on a debt and survive?

The Budget

Oh these crazy things. We have a combined checking account. We both have a debit card that is linked into the account. We can't spend without either of us knowing. We got married in June, so this has been working for us for 6 months. I have a budget book on our liquor cabinet. Every month we fill out the budgeted numbers in the budget column. As the month goes on we fill in what we spend. It's like a register but it only has room for numbers. I'll take a picture of it and post it here so that you can see it better.

As we spend, each spent dollar goes into a grouping in the book. It gets logged in our checking register, and then also gets cleared online through the bank. At the end of the month we add up everything in the budget book and compare to the written budget to see where we overspent. Last month, for example, we overspent in food and entertainment.

We both get 2 paychecks a month. The first paycheck is the "essentials" paycheck. This covers the house payment, utilities, and food. This is the check we need to survive with that month. The second check is then the "debt" paycheck. This goes to our insurance payment, the student loan, and savings. If there is anything left over, it goes to the loan.

The fun stuff

Joe and I have taken a staunch frugal stance. If it isn't broke don't fix it is our motto. We by used on almost everything we own. We relish hand-me-downs. This month for example we have a strict no eating out pact. Neither of us can go out to eat unless somebody else pays for it. Next month we may buckle down on the extra money we have come in during the month that we use for ourselves. (nah ;) )

We also buy everything with cash. If we can't pay cash for it, we don't want it. We will also save for it if we really want it or go to work for it. (gasp) We paid cash for our cars, cash for our furniture, and cash for all of our toys.

The student loan takes presedence over all fun things in our lives. We want that beast gone. It has become the most important thing in our marriage right now. I want to go back to school next fall and we can't if I still have the loan. We can pay cash for my schooling next year (as long as all other factors stay steady) and I can be on my way.

So there is the long intro to our money life. I hope this blog will be insightfull, have meaning, and help others. I may even add in random frugal recipes I've come up with and insights on how to live. Might. Here goes this train ride!