on with it

I started this blog to talk about dating and money so I suppose I should get on  with it, and start talking about those very things.

I’ll start with money.

My spending habits are something I’ve been fighting with for years. You see I’ve always been very responsible when it comes to my fixed expenses; I always pay my rent on time, always pay my phone and internet with time to spare, but savings and unfixed expenses like credit cards, I have a huge problem with. If I have extra money, I spend it. If I have room on my credit cards, I fill it. God knows on what, I don’t have a car or a house or extravagant taste, I just spend like a maniac and I really have to stop. I have to take control of my finances and set a goal. So here it is, my all grown up and shiny new goal is that this time next year I will be debt free with a brand new baby savings account all ready to be filled up.

My only debt is is the form of 2 credit cards. Both were obtained about 5 years ago and have been constantly maxed out ever since. I’m sure many of you know how it goes, pay a bit off then spend again, pay a bit more off and then spend again. A vicious cycle, revolving credit. Definitely not all it’s cracked up to be.

I’ve tried many times to make a budget and stick to it. Mint.com came in quite handy and actually did raise my level of awareness when it comes to what I spend but unfortunately it has done little to improve my net worth. I’ve also tried putting a set amount into a savings account every pay cheque but I can’t seem to save more than $200 before it vanishes. I had an RRSP which grew to over $3000 but then I lost my job and had to cash it in. I’ve tried cutting up my credit cards but that only works for shopping in person (thanks, Pay Pal!).
I’ve tried freezing them in a lump of ice which seems ingenious until you realize that all you have to do is run that lump of ice under some hot water and 30 seconds later voila, spending spree! I’ve also tried to get a consolidation loan but apparently the banks don’t like ‘fair’ credit scores so to hell with that idea, I hate The Man anyway. Now I’m done trying. I have finally realized my debt, like many other things, will not disappear by simply going all Dexter on its ass or by making it cold. Nor will some magical website come along to sweep my debt off its feet. Nope, it will only disappear after I look deep within myself and find my inner financial goddess. Sounds beautiful right? Well it’s not. It sucks. Now I have to bite the bullet, admit my mistakes, learn from them and make them right or I will be stuck in that revolving door forever. I have failed miserably up to this point so I’m here with a fresh new approach and I am dead set on making it work. Here it is: instead of looking for some ‘miracle cure’ or tackling both cards at once, which I clearly cannot do, I’ve decided to take them down one at a time. Pay down one, then the other, then start a savings account. Baby steps. One little chubby baby step at a time. Simple idea, I don’t know why I didn’t think of it sooner.

I’m starting with the MasterCard that has the highest interest rate (because that what Gail Vas-Oxlade says to do). That card, we’ll call her Lil’ Silver, has a whopping 19.99% interest rate and on a $4K balance, that usually equals an interest payment of $95/month! Absolute joke and I am an idiot! I’ve been maxed out for at least 4 years…that’s so much interest!!! I’m feeling nauseous just thinking about it. What have I been thinking!?! Ugh. I need a glass bottle of wine.

Anyway, Lil Silver and I, we have had such good times. She saved my life when I moved back to Toronto from South Korea and was unemployed for 4 months. She bought me groceries, paid my phone bill, entertained me, wined me and dined me. Recently she took me to Cuba, and before that, Arizona. She has comforted me and helped me see the world and It’s unfortunate that it has come to this but I can’t keep living my life feeling like I owe her something for all that she gave me. It’s time to pay her back so we can move forward and have a healthy relationship, one all the other kids are jealous of.

I made my last purchase on September 26th, 2012. $47.00 well spent at Shoppers Drug Mart, bringing my balance up to $3998. With less than $2.00 of available credit left, I cut her up that day and threw away the pieces. I deleted her number from Pay Pal and Groupon and now all that’s left of her is my monthly statement. Since then I am proud to say that I have reduced my balance to $3174, as of this very day. That means I have just over $800 dollars available to me! Good thing too cause I really need some new winter boots and some work pants…

…kidding! Well, not really but I will resist the urges. I will be happy with the boots I have; some people don’t have any. I will be happy with the pants I have; the fact that they’re 2 sizes too big is a wonderful reminder that I whipped my ass into shape this summer. I will not order a replacement card because it is not my money and should not spend it on things I do not need. And I will not depend on my available balance for anything other than (real) emergencies. Wish me luck.

My other card, who we’ll call Lil Blue, she’s nesting comfortably in my wallet basking in the glow of her 12.9% interest rate. I’ll continue the usual routine with her for now, she’s getting me a rental car for a week over the holidays and I know for a fact that she’d be hella offended if I tried to return it.

Vroom vroom.