Today our family starts compacting. We did this a couple of years ago and it worked out quite nicely. Compacting takes it's name from the Mayflower Compact, the document the pilgrims came up with to govern themselves when they chose to land in MA instead of further south in Virginia. Compacting today has to do with being very conscious about any spending you do. For us, we promise not to eat out, go to movies, or purchase any item that is not needed to replace an item. (So a new loaf of bread, major appliance, medication are all covered. A new dvd, shirt, or junk food is not.) Each family that is compacting makes up their own rules. For us, we're still taking the girls ice sketing again, throwing Em a birthday party and doing stuff for Valentine's Day and our Anniversay. But everything else is on hold. We'll compact until we get ready to leave for our trip back East this summer. When one of our stops will be- Plymouth, where we'll visit Plymouth Rock and Plimouth Plantation- where actors show you what living with the real Mayflower compact was really like.
So, feel free to join us with your own compact or to help us with ours- we'd love to borrow movies, book and games from friends and feel free to ask if the stuff in our carts are REALLY needed when you run into us at the store.
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Good luck with that! We definately need to cut back on the eating out thing - no more top-it-Tuesdays or taco-Tuesdays (we'll see)...
That's a great place to start. I have to go cold turkey or else I just start sliding. Maybe Tuesday could be pasta Tuesday or crockpot Tuesday- something very easy to make Tuesdays less hectic. And hey, for me it's also a great diet b/c top it Tuesday becomes cold cereal tuesday when I just can't face cooking. (Since Shawn's not home until after dinner tonight, the kids are having spaghettios :) )
I think that Eric and I are going to do something similar, but we have to figure out exactly what we are going to cut out!
It's really hard to decide what to cut out, but it's a lot easier if you have a goal for the money. The girls are excited about our trip to Boston, so it's easier for them to pass up McDonalds and movies. i'm not sure about video rentals, we might do like 2 times a month or something like that- especially if all of our friends stop buying them- (either b/c of compacting or the fact that they do blu-rays now....)
That is a good idea. I am starting a "Get out of unnessary debt" campaign for myself. I started this the first of the year. Going out to eat is a huge expense (even though I barely go grocery shopping). SO here is what my plans are. I finally after 34 years of not having a savings account, opened one. Each time I want to go out to eat, I go online and transfer the estimated amount I would spend on eating out, into my savings. Anything that is unnessary cost will be transfered before I purchase. I give myself two times a week to eat out for lunch....
I am pretty much excited about this especailly with obessing with Suze Orman and Dave Ramsey, my back on track teachers!
ANN
Ann, that is a great place to start. Since I started working this fall, Shawn, Lily and I have started eating out way too much. (Though I'm sure you could guess based on the # of times you've seen us at China Star)
I also love Suze Orman and Dave Ramsey as well. Your money or your life by Joe Dominguez and Vicki robin is also a very good one as well. good luck and post so we can cheer you on!
Another great place to get financial insights is Cindy's porch at www.cindysporch.com Her motto is shop at home first and she is kind of like the financial flylady so if you like flylady you will like cindy, if you hate flylady you may still like cindy, but she's worth checking out.
Thanks to Yoli, for sharing Your Money or Your life, cindy's Porch, and Compacting with me several years ago. We're getting there....slowly
I love your terminology! The summer vacation sounds like a lot of fun!
I am pretty happy about doing this. I am going another semester to school (yea for student loan check)- (normally I wouldn't use a studnet loan for debt as it is one, however, the interest rates are alot lower than credit card interest as well as other interest on other debt) and the use of my taxes, will also assist me out of debt. When I lived in the basement apartment, making the same amount now, I was always out of money, having no clue where my money was going (rent was only $350). Now with owning a house and mortgage is $750 a month (not includeing taxes and insurance), I now see where every penny goes...most days :).
What is most diffcult for me is I don't go out for fun, I barely spend money on me, barely go shopping...not even for clothes. I don't get to enjoy entertainment as I can afford it...The only thing I have that I would consider entertainment is satalite tv and internet. Other than that, I don't do nothing else. Sometimes, not having money to spend going out to socialize has caused me to become anti-social. I have to perserve gas for work and school. My co-worker Nolan says I have to get out and do more and have some fun. I told him I don't do bars, primarly for the fact I don't drink and generally those that go to bars are there to drink and most times get drunk...not my thing. Heck, I don't even go to the movies....cost too much for me.
And so, now I look back on 2008 and wonder where I went wrong with my $$. And I see that I used credit cards on things that where nessasary, but was spending cash on things that were unnessasary. So now I have to turn that around and pay off my debt while at the same time not spending anything on unnessasary things.
I created my debt, now I must lie in it...and clean it up. My goal is to be out of unnessasary debt by June. That is if I don't die of bordem. I also sell on ebay, buy crap cheap and sell it and hopefully make a profit...most of the time I do, but even listing has gotten expesive.
I emotionally can't afford a second job. I am already stressed with the one I have..but loving my job at the same time. Plus with going back to school, I rather live in a non-spending zone with good grades than to mess up school for me with a second job.
The one thing I may spring for down the road soon is a message. An entire hour of one. Might be the best $50 I could spend right now...I could consider that a medical expense :), yea see, this isn't good, justisfing....Mmmmmm, well, getting out of debt will be a weight lifted off my shoulders....
I will check out your other suggestions for getting out debt.
Thanks!
ANN
We call it doing without. This term comes from the first giant depression in the 20's and 30's. My mom used it a lot since that depression era was her era. I grew up doing without a lot.Then the Clinton Era came and I learned to do WITH. Ha! Back to the beginning. Your plan sounds a lot more beneficial than Doing without. Best of Luck!
Grandma
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