Scheduling helps make it happen...

"To make sure you get around to it, schedule it". I heard this in a video seminar I watched a few weeks ago and it really hit me. The point was that there are so many things you could do at any given point in time. So, you really need to figure out what you want to focus on and then formally schedule it. By putting it on your schedule, you're less likely to flake out on it. I thought about this for a little bit then realized how true it was. Think about when you get invited to a party or some event that you RSVP to, you put it on your "schedule"....and most likely you make it. Think about your work schedule, you have meetings that you attend because they are on your schedule. Conversely, think about all the "work" you procrastinate on and you really don't have anything to remind you or hold you accountable...because it's not on a formal schedule. It's kind of like just because you have something jotted down on your schedule, you make an unconscious commitment to doing it. I use my Microsoft Outlook calendar as my master schedule but you can use anything...even if it's just a scratch piece of paper.

I still struggle to figure out what priority to give things. I mean, there's just so many things to do and it feels like not enough time to do them in. Let's take this blog for example, I really wanted to start making it a priority. But then my day job started sucking up major hours...and when I got home to hang out with my family for a bit....I needed get to bed for a few hours of sleep before doing it all over again. But you know what I found out, all the things that I actually put on my calendar got done. Even with putting more hours in at work and preparing for a big family weekend....EVERYTHING I jotted down to do on my calendar was accomplished. So, maybe there really is something about this scheduling theory. Anyway, one thing I'm going to start doing is scheduling time to post on this blog. I'm hoping this allows me to get into a nice cadence for continuing to share my thoughts on my debt free journey.

So, how does scheduling apply to the debt free journey? Well, I'm sure you've heard of many personal finance books telling people to make it "automatic". This refers to scheduling certain financial transactions to execute automatically so you can't change your mind and prevent it from happening. This refers to things like direct deposit of your paychecks into savings accounts so that you don't even get a chance to spend the money. Or investing in your company's 401k plan by taking pre-tax dollars our of your paychecks. Or paying yourself first by stashing away a percentage of your income every month before you pay any other bill or spend on anything else. Bottom line, the idea is to setup certain transactions that will help protect you...from yourself. If you never see the money, you'll never be able to spend it...is the theory.

Besides making things automatic, you should utilize your schedule to help facilitate your debt free journey. We've decided to make weekly budgets and withdraw our cash for expenses according to that schedule. We scheduled our first staycation in which we chatted a lot about our debt free journey accomplishments and future endeavors. I highly recommend scheduling these staycations/planning sessions/strategic offsites....whatever you want to call them. For one, it's a great escape which allows you to re-charge your batteries and more importantly, it allows you and your spouse to have focused discussions around the debt free journey. Speaking of which, we need to put our next event for the upcoming quarter.

The debt free journey can be long and tiring. To make sure you keep up with it, scheduling certain things can definitely help you stay focused along the way.

Losing money doesn't help you become debt free

With this post, I will fulfill my monthly posting quota. It's a self imposed quota but I also made a wager with a friend of mine to help motivate me to regularly post on this blog. This month was pretty rough at work, so I sadly have not posted nearly as much as my original goal. But I hope to change that in the upcoming month. I'm going to actually follow my own advice and schedule time to make this blog a priority (see last post on scheduling).

Although the bet I have riding on this blog isn't for that much money in the grand scheme of things, it's still never a good idea to lose money....ever. So, here I am, typing to not lose money. :) All this talk of betting reminds me of one of my favorite past times. I really enjoy gambling. Now, I've never been a big time high roller or anything like that....but I used to really enjoy my visits to Vegas (even if it meant that I made my share of contributions towards their high electricity bills). "Putting money on it" always makes things more interesting and exciting for me. From blackjack to craps to March Madness to Fantasy Football...heck, even pickup basketball games at the park. OK, I admit it, I've been known to purchase the occasional lottery ticket as well....even though I know it's truly a tax on the poor or at least a tax on the people who don't understand probability. :)

I bring up "gambling" because it's a topic that people can easily relate to, in terms of situations where people lose money. Because I'm not a big time gambler, I don't lose a whole bunch of money doing it. But the point of this post is that everyone has their own "gambling" fix...something that makes them lose money. I think my main things are eating out and travelling/attending events. Yours could be shoes, clothes, gadgets, cars, etc.... Whatever it is, you need to identify it and take control. Because in the debt free journey, losing money on things you don't need really makes it difficult to achieve your goals.

Save For A Rainy Day?

When I first started my debt free journey (and I mean really started), lots of things made me nervous. How was I going to reduce my spending if I didn't really think I spent that much? Will I really be able to stick with the program for the long haul? Can I really rely on used cars since I can barely change a tire, let alone fix up a broken car? Is it worth it to sell off my stuff just to pay down debt (especially if it feels like it's not even making a dent into the overall debt)? How would I handle emergencies that require immediate payment? Of all the excuses I just rattled off, it's that last question which really prevented me from diving into the debt free journey at first. It's also the same concern that prevents many people from cutting up all of their credit cards. I think we've all been conditioned to think that credit card debt is bad but that it's sometimes a necessary evil in the event of an emergency. This is the lesson I was taught way back when; "Don't use your credit card unless it's an emergency!"

So, I did what I was taught. I carried a credit card for emergencies. But like most people, my emergencies weren't true emergencies. Couple that with the fact I wasn't following a budget...and what you get is crazy debt. It's funny to think back on what I used to think were "needs" and "emergencies". It's amazing how easy it is to talk yourself into buying something you don't really need. Have you ever said, "I really need to take this trip because it's a once in a lifetime experience?" Or how about "I need to get this really high quality but very expensive (fill in the blank with clothing item, furniture piece, electronic thingy, etc...) because I'll cherish it for a long time. And my all-time favorite, "I need to go out and have a nice dinner and drinks with family and friends sometimes. I need to go out and to live life and that forces me to spend money sometimes." Now, don't get me wrong...I'm not saying that you shouldn't travel and enjoy special events. I'm also not saying that it's bad to purchase high quality things. And I'm wholeheartedly not saying that you should lock yourself in your home and never do anything fun. But what I am saying is that you need to realize that those things are truly "wants", not "needs". And more importantly, you should only be doing these things when you can truly afford them (i.e. GETTING INTO DEBT FOR THESE THINGS IS TOTALLY NOT WORTH IT).

OK, so now that we've defined what's NOT an emergency, what is? Well, what do we really need to live? I'm sure there are a lot of definitions out there but the one that my family has adopted is "SHELTER, FOOD, TRANSPORTATION, CLOTHING". These are the buckets we've identified in which we will focus on in time of need. That means that if something unfortunate were to happen to our financial situation (i.e. layoff, firing, major illness, etc..), our family knows to focus on the 4 categories for survival. That's right, cell phones, cable, entertainment, etc....just didn't make the survival list. Although, I was at one point trying to convince myself that internet should make the list...I mean, how am I going to post to my blog? :) So, after you define your survival needs, you need to figure out how much it would cost to buy that stuff a month. That's your true living expenses. And I'm sure most everyone has heard that "experts" recommend that you save about 3-6 months of living expenses as an emergency fund. This is the dollar amount you should target to stash away for rainy days. This is the money you will be able to use instead of credit cards and debt...when real needs come your way.

One last point on the emergency fund....if you're like me, you're probably wondering what to put your money towards first during your debt free journey. My family has adopted Dave Ramsey's model in which we saved up a mini-emergency fund then put every other penny towards paying down debt. This has worked out great for us because the mini-emergency fund has taken care of true emergencies as we continue to aggressively pay down our debt. Once we are completely debt free, we will focus on completing the 6 month emergency fund. We chose 6 months as it gave us more piece of mind to have a bigger emergency fund. But there's nothing wrong with just keeping a 3 month fund. And I've even read/heard of others that go in the opposite direction and want the piece of mind of a 9-12 month emergency fund. I guess whatever tickles your fancy....the most important thing is just to HAVE an emergency fund. This will allow you to be prepared for any rainy day!

I'M BACK!

Man, it's been awhile since I've posted something on this blog. I have all the excuses in the world...I've been working crazy hours; I've been trying to spend every other minute hanging out with my family; when I come home from work the last thing I want to do is open up my laptop and start typing again, etc.... All of those are valid excuses in my mind. But the fact of the matter is that I just didn't make this blog a priority. We all have to prioritize things in our lives because we can't do everything all at the same time.

So, I was becoming content with my accomplishment of starting this blog, getting it out there and even maintaining a daily post for at least the first month of the year. Hey, that's probably the most I've ever stuck with a New Year's resolution. :) I just chalked this blog up to the countless number of ideas and "things" that I've started and abandoned. Man, if I had a nickel for every great idea that I had....I would be a very rich person. But specifically over the past couple of weeks, I've realized that this blog is different. It's actually something that I want to keep going for a number of reasons:

1) It allows me to realize the struggles I've gone through in my journey and reminds me of all the success that's been achieved.

2) I've seen/heard first hand from people that were positively impacted by the content I've posted.

3) I'm passionate about this!

It's very important to me that I'm reminded of the hardships that I've endured and am currently experiencing throughout this debt free journey. I don't want to forget all of the obstacles I've overcome because that helps ensure that I won't repeat them. There have been many times that I've stopped to think to myself....wow, I used to do/think 'that.' The outcome of this debt free journey is not just to have zero debt....but more importantly, the outcome is to result in a different mindset. And for me, having reminders as to where I used to be and how I used to think....really helps me realize that my mindset has changed. I am no longer embarrassed to drive a beat up Honda Civic and I don't feel deprived when I can't buy the newest/shiniest toy. My mind is set on only buying things I can truly afford and never borrowing again. Another benefit of rehashing my journey is that it reminds me of all the things I've accomplished. It's so important to remember all of the success that has been accomplished along the way and use that to push forward along the journey. Someone the other day reminded me that I got rid of $100,000 of debt in one year....if that's not motivation to keep going...I don't know what is.

Just in the last couple of weeks, I've talked to several people about my blog who were totally unrelated to each other. And I wasn't the one who brought up the subject. This really hit me the other day when I realized that my posts were being read by all kinds of people, and in fact, impacting them in a positive way. Someone told me that they would open up my blog everyday to see if a new post had come in. Another person told me that they now talk to their spouse about their financial future together. And probably the best story I heard was that someone said my blog inspired them to begin their own journey and they've already gotten rid of over $20,000 worth of debt.

So, that's my story. Making priorities is all part of the debt free journey. I promise to keep this blog going. And I'm not just promising you, the readers, but, hey, I'm also promising myself.