Turquoise Trumpet I would have made the same choice to pay off the CC if I were in your shoes.  Congrats on your amazing month!

Dazed Thanks!  I've been reading a lot about the FI movement lately, and I've been super motivated to move full speed ahead as a result.   I'm so excited to be moving toward FI, one small step at a time!!

Dazed I get quarterly bonus and before I started YNAB in January it just melted away into my spending categories. I'm so excited to actually have a plan for it in place i.e. savings and debt. Congratulations!!

Aquamarine Storm (67697f3db38d) That's a great feeling!  I'm getting that same feeling of security when I fund my True Expenses goals.  It's like a weight is being inched off my shoulders.  I do have a $1k emergency fund, that I use monthly to bridge me from one paycheck to the next.  I expect the True Expenses buffer will help to alleviate the need to do that going forward.

Checking in for April. We paid $1,269.99 towards our debts this month. Since we are paying the minimums, I gotta say it is hard calculating everything out but I think that this is amazing. We are losing 1/3 our income after this month so we will see how it goes. Perseverance will prevail in the face of long-suffering. 

pureneon I’m also dreaming of new tyres and had to push them back. They’re now in line behind a new battery which I can’t afford either. Frustrating. 

Keith Borders I totally love your charts and I am so stealing this idea for my personal spreadsheet :)

kayjenx Me too!

Dazed kayjenx   Thank you, both!  Steal away!  Seeing the bars decrease each month really helps in the motivation department!

Khaki Python Oh Khaki Python, You are writing my story too! Literally - I have $21 K left in CC debt, want to pay at least 2K per month (in payments),  have a (wonderful) partner who doesn't want to talk about finances, and get a big (dissociative) hit from spending. Clearing my CC debt by the end of the year for me is possible if I can show some self-control. 

So - what gets in your way? How do you plan to make the changes that will make your "dream come true"?

I ask in hopes to support you, and also learn something that will help me!

Aquamarine Horse (26da1ee4a41a) I've been asking myself the same question! I think its a combination of laziness and weakness.  We just need self-control.  I have to remind myself that my actions are setting an example for my husband.  If I  slip a bit he'll take an in inch and turn into a mile. I know he'll get annoyed with me, but I have to keep forging onward with my end goal in mind. If I can't use cash then I just can't make a purchase.  Also checking into YNAB and this forum helps keep me in check. When it's out of sight it's out of mind and I fall back into old habits. 

Also, being blatant honesty with my peers has been working recently. I'll tell them my plan to get out of debt. I have to make some sacrifices now to be financially free. 

kayjenx  What things are keeping you from sticking to your food budget? Is it anything you can short-circuit with a little planning, or have you tried to cut it too much to make your budget fit your debt paydown plan?

WairereRose Well... I typed up that message 3 times and deleted it because I didn't want to bad mouth my spouse but he LOVES to eat out / order out and often claims that there is "nothing" to eat in the house even when we have a meal plan and bought everything and/or there is food in the fridge and cupboard because he doesn't want to eat what we have. If I say it's not in the budget just means I will get the "you take all my money on pay day. What do you do with it?" talk. He feels like we are "rolling in it" especially now that I have set up funds which means that we just "have the money when we need it". 😓

kayjenx that’s really tough. I hope he has a lightbulb moment soon that helps him come on board, and I hope it’s not too tough for you to get through. 

I don’t suppose you could have an “eating out” category, and a “rest of the month” food category to help him differentiate? I really don’t know what to suggest. I feel for you. Hang in there. At least you aren’t completely alone in your budgeting journey with us here to support you.

kayjenx That $400 surprize kind of sucks; property taxes aren't normally paid by the renter.  I hope the rent is a good deal and it is just a simple misunderstanding.  I suggest making sure there aren't any more surprises like that. 

Also make sure you and your in-laws both have the right insurance in place.  Renters insurance for you to cover your belongings and they should have Rental Property Insurance to cover the property.  The insurance (and any deductible from a claim) should be on them, not you.

MartyH My in-laws built the house just for us to live in (with their funds because we couldn't get another mortgage) and we are paying them "rent" to repay them. I don't mind paying the property tax because it's a sweet deal but I just wish they didn't wait till the month it was due to "hint" something.

WairereRose We have a "dining out" budget and both that and groceries will be over because if we run out of one thing, and have to go to the store again, we will end up buying more things even if I say no. Really frustrating because I would say we can't afford something and when I'm at the counter I'll notice the cashier adding it to my tally. I often consider doing the shopping on my own, but my toddler loves to go with me and it's hard to shop and watch her, but sometimes I really think it would be better for us.

kayjenx It does sound like just a misunderstanding.  But do make sure the insurance is all in line.  I'm glad your inlaws are generous enough to do that for you.

boodles8 So many congratulations!

boodles8 WTG! Congratulations. So looking forward to getting to my goal this year.

boodles8 Great job! I bet that feels so good!!

boodles8 

Nice job!  Okay, so is it time to mosey on over to the savings challenge and put those dollars to work on a new goal?  When I transitioned from paying off debt to saving, I also reviewed my categories and adjusted quite a few up a little for life-style and enjoyment.

boodles8  Congratulations! 

ISuckatMaths I have two quick thoughts about your questions:

1. If the borrowed money is from your mom then pay her back.  Regardless of math, relationships matter more and you need to be respectful of her and her stress.

2. Go for the lower interest rate instead of the travel benefits until you get to zero.  At this point debt reduction should be prioritized over travel unless travel is an absolute necessity.   Get aggressive with reducing spending or increasing income so you can make your debt go away and start travelling again :)

ISuckatMaths Just so I’m clear...

The Air Points gave you $109, and you’ve paid the full amount of purchases this month plus an additional $100, and you’re still going backwards with the interest?

If this is the case then those potential air points are costing you dearly - are they worth the emotional stress?

 I agree with the previous poster, get your Mum sorted ASAP. Relationship is more important. I know it’s hard when you see an opportunity to get ahead, but short term gain won’t win if you’re still making mathematically unsound decisions, and if you haven’t paid her back she will be less willing (or possibly unable) to help you out again in the future.

Sometimes sacrificing the “rewards” actually frees you from the debt they’re designed to keep you in. I do hear you on this though, as I still have my reward card - but it’s on ice while I get the balance back to being able to be paid in full each month while it’s in use (I have a 6 month course being charged on it, 3 more payments/months to go). It’s hard to give up these perceived rewards even when the math shows clearly that they aren’t worth as much as we value them.

You could consider a 0% transfer to another organisation, and keeping your existing card for everyday use (but lower the limit), and use the 0% period to pay off the balance in total. Just be really careful playing that game, it has the potential to turn really bad really fast. Cut up the 0% card the moment it arrives in the mail so you aren’t tempted to use it at all for anything.

Turquoise Trumpet Thank you for you words of wisdom. As much as it hurts, I will not transfer the 1k to the credit card. And I found a cc that does 0% balance transfer for 12 months. So if I get approved I will transfer the lot there, use the travel credit card for regular spending and pay it off and still get the points. If I don't get approved I will move the card to a lower interest card.

WairereRose Thank you as well for your words of wisdom. I probably didn't see the math not working out as in the last three months I got over $300 back. But without you pointing it to me I would not have looked at the rewards v. the interest charges.

The 0% card idea is great, I completely forgot there is a great 0% for 12months cc, so I've applied for it and will find out if I qualify.( I've done the 0% game before so I know the rules and have already planned to have the funds cleared in about 8-10 months, but good point to be very careful, thank you). If I do not qualify, I will move the card to a lower interest card and let go of those potential points.

ISuckatMaths Glad to hear you have a good plan moving forward!