Today I'm more interestingly cheerful and joining the linky at Becky's Lakes Single Mum. DD has gone to a friend and I'm making practical plans for tackling that 30,000 debt I wrote about yesterday. Here's what I've come up with so far.
This is key because it frees up any extra income to go towards debt repayment. Accounting for all fixed income to cover all monthly costs and allow for a certain amount for debt repayment every month.
Tomorrow I'm going to open a Bat Mitzvah bank account with the monthly amount automatically transferred.
Spending On Wants
The only two places to cut monthly costs are food and spending on wants. I have no more wants after going clothes shopping a couple of weeks ago. There is a certain amount set aside for DD's wants and for entertainment like going to the pool and other summer stuff.
After a year of buying far too much convenience food, I'm determined to switch to more cooking from scratch. Yesterdays's weekly shop was full of fruit and vegetables. And today I'm going to make a batch of pizza dough to divide and freeze. It's more time consuming. Last night I cut up a fruit platter for DD whereas I never have to help her grab a packet of crisps or a biscuit. It's also a health thing so I'm excited about it.
The money saved doesn't directly add anything further to the debt repayment but it will help to make the budget balance so that everything else is covered by fixed income.
All extra income from occasional work, tax returns, and the annual Single Parent Education Grant, will go towards debt repayment.
The 10 Shekel Jar
I'm not cutting up my credit card and living out of cash jars like Gail Vaz-Oxlade advises her clients. we're doing a reverse jar savings. Every time I have a 10 shekel coin in my purse at the end of the day, it goes into the jar. I thought of doing it with coppers or 1 shekel coins but I'd end up with a full jar worth not very much. I'm hoping the 10 shekel jar will eventually add up to 1,000 shekels.
That's it so far. So far so good.