Monday, July 22, 2019

R2BC - Tackling That Debt

Reasons 2B Cheerful is late because we didn't do very much anything last week. As most of DD's friends were still busy with some type of day camp, we mostly hung out and went to gymnastics. There were a couple of teas out where DD loves one particular cake (the butterscotch cheese cake) but there was also one day when a horrendous heatwave sent the temperature soaring to over 100०F. (About 36०C in Jerusalem but over 100 sounds so much more heroic.) We were very cheerful home-bodies but it wasn't interesting to write about.

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.

1
Budget
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.

2
Debt Repayment
Tomorrow I'm going to open a Bat Mitzvah bank account with the monthly amount automatically transferred.

3
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.

4
Food
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.

5
Extra Income
All extra income from occasional work, tax returns, and the annual Single Parent Education Grant, will go towards debt repayment.

6
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.


4 comments:

  1. As a former debt counsellor, I admire you for acknowledging and then coming up with a plan of action. But I did also get distracted by the sound of that cheesecake! #R2BC

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    1. Thank you and sorry about the cheesecake. I hope it didn't send you scurrying to the fridge. (Btw, you do know that it's an imaginary debt? See the previous post.)

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  2. I love this idea! Under new credit system here I am about £100 a month worse off so I need to work out how to live more frugally too..

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    1. Last time I had to do it it became a sort of game and I ended up quite enjoying it.

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