5 Tips on Budgeting and Debt From Someone Who Really Just Likes To Research

As someone with a lot of anxiety issues, I have a tendency to stress out a little bit more about paying bills on time and things like that. Over time, I’ve managed to build up a lot of debt through schooling, job problems, etc. etc. But there is one thing I have going for me, and one thing that my family has always been pretty good at – we know how to manage debt. I may be overwhelmed now, but I have a plan, and I’m on my way to getting out of it. But anyway, my anxiety paired with my being a librarian-research nut has caused me to look up and read a lot of different ways to make life easier by budgeting and paying down your debt in different ways. Again – I am by no means a financial expert, but I do have a few tips (and resources/guides from others) that might help you in managing your debt.. and help keep you a little less stressed!

1. Get a free credit report. This can help you figure out if there are any cards, inquiries, or late payments, and ultimately give you your credit score. Sometimes your bank or credit card company will have your FICO credit score updated every month, and it should be visible on your account page.Two other places that offer free credit reports are:

  • FreeCreditReport.Com 
  • Credit Karma (also available as an app)
    • For me, this one has my score lower than pretty much every other score system out there, so it may be a good benchmark for your “worst case scenario.”
  • Your banks and credit card websites! Most banks and credit card companies have the option to view your credit score for free each month online. Just browse through your account page, and you should find something for it. I know for a fact that Wells Fargo, Discover, Chase, Barclay, American Express, and CapitalOne have the option.

2. Keep track of your spending. There are a lot of ways to do this, but it is one of the most important ways to help keep track of your finances. Have you ever taken a step back and looked to see how much you’re spending on food? I know that the first time my husband and I both had full time jobs, we went a little nuts and ate out constantly. Before I realized it, we were spending well over a thousand dollars a month on food alone! It’s important to take note of your needs first so that you can have money to focus on your needs when you can’t anymore (which is how we learned the hard way and racked up a bunch of debt).

  • Daily Worth has a great guide on several different budgeting apps and spending trackers out there. I managed to find a great one for me early on, so I haven’t experienced too many others.
  • Mint
    • I personally am a huge fan of Mint and have been using them for years. Mint allows you to sync all of your accounts (even 401(k)s, student loans, car payments, and if you list your car info it will even calculate it’s worth!)
    • It will have a list of all of the transactions from every single account. It categorizes them already, but you have the option to change or add the category for each item.
    • It has a bill pay section where you can pay your bills directly from the app (or desktop site).
    • It has a budgeting option, where you can physically make your budget. You insert in about how much income you get each month (if it’s not fixed, aim for a lower amount). Then you can put amounts for each of the different categories of spending – rent, credit cards, food, auto insurance, etc. The bars will fill up as you spend in those categories, and you can even have it alert you if you have spent too much in a category.
      • You can set a savings goal, and add this goal as part of your budget.
      • You can also set other goals like “vacation” or “pay down your debt.”
    • There is a spend analyzer which shows you how much you have a tendency to spend in each category, which can help you figure out where you’re spending too much.
    • It also gives you a credit score that keeps updating.
    • Because it keeps track of your transactions from all of your different counts, you can also search through your transactions for all of the ones from a specific place: for example, I try to keep track of how much I spend at doctor’s offices via this method.
    • The only problem that I’ve had with Mint so far is that it has problems linking certain accounts sometimes. It can’t link my 401(k) or USAA accounts for security reasons, even though it did at one time. But that’s a minor flaw.
  • Bullet Journaling. I mentioned how I recently got really into this in a previous post, but bullet journaling is a great way for you to be mindful of your life and can also be a creative way to keep track of your spending. There are many ways to include budgeting in your bullet journal, whether it be writing down what you purchase each day or making different budgeting charts.
    • Apartment Therapy has a great guide with some awesome Instagram images of budget layouts for bullet journals.

3. Debt Consolidation. Consolidating your debt into one area can be one good way to reduce your monthly payment, save on interest, and pay down debt faster. There are many ways for you to do this.

  • Open up a new credit card with a free balance transfer option and zero interest for the first year. Transfer over your highest interest cards to this account, and pay it off as fast as you can.
    • Chase Freedom is one of the many options that you can use. I just got one with a free balance transfer offer. If you click on my link, you will get a $150 bonus after spending your first $500 in 3 months.
  • Take out a personal loan, and transfer your debt to this loan. You can do this through many places, including banks.
    • I suggest first writing down all of your current interest rates and averaging them out (add all the percentages of each card together and then divide by the number of cards). When you apply for a loan, you will want to make sure that it is less than this number, or else you will not be saving on interest.
      • Ex. Chase – 22.49%, American Express – 18.49%, Discover- 17.99%, Barclay 24.49%, Citi – 24.49% (22.49+18.49+17.99+24.49+24.49 divided by 5 = 21.59%)
    • If you are approved for the loan at a decent interest rate (so for the above example, if you got any offer under 21.59% you would be saving money), this will allow you transfer your chosen amount of debt and make only ONE payment, instead of payments on several different cards. This can help you pay debt down faster and accrue less interest.

4. Debt Reduction Calculators / Snowball & Avalanche Methods. Do you have a lot of credit cards, loans, etc. and you don’t know which to pay off first? There are many different methods of making payments that can help reduce how much you pay in the long run. Making minimum payments just won’t cut it sometimes, and if you can even add in an extra $100 a month, you can make a huge difference on how much interest you pay over time. But where should you put that $100? Maybe I’m just a nerd, but I find debt reduction calculators to be a lot of fun and really fascinating.

  • The best tool I have found (and use myself) is an excel sheet debt-calculator available here.
    • It may look complicated, but it’s fairly easy to use and can ultimately give you a list of how much to pay on each card each month, and then how long it will take you to pay off each item.
    • It only allows you up to 9 (it says 10, but only 9 seem to work for me) different items, but you can pay $9.95 to increase it to 20 items. I suggest just using the free one and just entering in your 9 highest interest items.
    • How to Use:
      1. Find and write down all of your cards, loans, etc. with their interest rates, minimum payments, and current balances. If you can’t find the interest rate and minimum payment amount, they are normally located on your account statements.
      2. Fill in the top section of the excel sheet with the information you just collected about each item and today’s date.
      3. In the “Monthly Payment” area, put how much you are willing to spend each month on these cards/loans.
      4. Select which strategy you would like to use. If you want to save the most money over time, choose the Avalanche method. If you want to see results faster, select the Snowball method. You can also do custom methods if there’s a specific order that you would like to pay the accounts off.
      5. The chart will then calculate the bottom box and table for you with payoff dates, interest paid, etc!
      6. If you click the next sheet tab (at the bottom of excel) that says “Payment Schedule”, you will see a sheet with exactly how much you will need to pay for each card each month (so cool!) The chart will show you exactly when you will pay off all your debt.
  • You don’t have to use an actual tool to pay down your debt if you don’t want to, but it is generally best to put more money on one payment rather than spreading it out among payments. The interest rates play a big part in your card’s balance. If you pay off the highest interest card first with only the minimum payments for the other cards (Avalanche method), you will be paying much less over time.
  • The Avalanche method mathematically is the most effective way to pay down your debt, but some say that it is not the best way. Another way is the Snowball method (which Dave Ramsay, a pretty well known Financial Advisor, suggests using), which involves paying off the lowest amount first. Some say that this works better because you’re more motivated when you see that a card is paid off and are more likely to continue the process.

5. The Envelope Method. One simple way to aid in budgeting and to make sure you’re not spending too much on specific things (like food) is by using the “envelope method.”

  • To use this method, figure out how much you can spend each month, and then divide your expenses into categories. Get some envelopes and write the category names on them.Then allot an amount for each category, withdraw cash, and put the amount of cash for each category in its respective envelope.
  • Now when you go to pay for things, you can take the cash out of it’s specific envelope. This way, if you notice you only have $50 left in your food envelope and you still have 10 days left in the month, you will know that you can’t eat out and need to plan your meals.
  • You can make an envelope for all sorts of things, and you can either choose to place the leftover money in next month’s envelope to “roll it over” or you can potentially even place it in a new envelope as savings for something!
  • Just a note – my husband and I have found a lot of success with this method especially when used for food spending; though we aren’t very good at following it perfectly, it definitely does the job of helping us decrease our monthly spending on food.

This all may seem a little overwhelming, but it’s really not as much as it seems. You can look into stuff little by little and maybe you’ll get just as excited by it as I was when I first discovered half of it! I hope some of this is somewhat helpful. If you’ve got any questions or comments… or even suggestions and complaints, please comment! I’ll eventually be posting another finance-related post on couponing and stuff once I get the chance, so keep your eyes open 🙂

New Reviewer and a New Obsession

Hallllloo everyone! So I know I’ve pretty much overloaded the blog with recipes and reviews, but hey, that’s what it’s supposed to mostly be about. And with that being said, I had an idea. After talking with a friend after her and her husband came to visit us in Oregon last weekend, I figured it would probably be a good idea to have somebody else write book reviews (and other stuff if she wants) as well! That way we can have more than one opinion, and even more book options! So my friend Heather will be joining the Shelf-Righteous team 🙂 We have very similar taste, but she has read a lot more than me lately, especially in the sci-fi world. I asked her if she would be interested, and she said she’d always wanted to but just didn’t want to do it by herself and her other friends had no interest. So this is perfect! I’m not sure when she will start posting, but I think I’ve got her all set up! It’d be helpful if you know.. my web-developer husband actually helped me more with this like he told me he would, but whatever, I’ve been wanting to re-learn some things anyway.

So on a completely different note, I wanted to talk a bit about my new obsession: bullet journaling. I literally just started my journal yesterday, so I’m no expert, but I’ve spent hours upon hours on pinterest and google, looking at other peoples’ ideas on page layouts. So what is a bullet journal? 

The Bullet Journal is a customizable and forgiving organization system. It can be your to-do list, sketchbook, notebook, and diary, but most likely, it will be all of the above.

So why am I all of a sudden so into these? Well, I mentioned in the intro that I have a slew of mental illnesses. One of these is ADHD, and another is Borderline Personality Disorder. I have a really hard time focusing on things, and I have a really easy time getting obsessed with things (ha). I make a bunch of lists, notes, and have a lot of random thoughts that I constantly forget all the time. So I figured after happening upon these one day, why not try to organize some of my thoughts and life and do it in a creative way? Not only will it help me track things like taking my medication and other daily tasks that are totally necessary but sometimes very hard for me to do, but I can also make goals for myself, track my moods, and write down what’s going on in my brain. Sometimes my therapist asks me what was going on right when my mood flipped, and most of the time I can’t really figure it out. Maybe my bullet journal will encourage me to write it down. I also read this one article about having a “fuck box” in the journal, where you just rant about the things that piss you off – the things that make your mood jump horribly. I’m not really sure if it will help with anything, but I might as well try, right? It can also do a lot for me in terms of tracking my weight loss and food goals and even financial stuff. If you know me well, you know that I can get pretty obsessive when it comes to paying bills and using debt reduction trackers and stuff online. Honestly, writing it down and having it easily accessible at all times would probably make me feel a lot better and hopefully encourage me to do a lot better financially. There are so many things you can do with bullet journals, and I’m really excited to start this journey. So maybe you’ll get some blips of my journal throughout the blog, or maybe not. We shall see.

Here are some pictures of my bullet journal pages so far. I’ve messed up A LOT. So you definitely have to play around before things turn out the way you want them to.

9 Month Calendar (Here’s a pretty Mess-Up! It was supposed to be a 12 month… and I accidentally did a lot of wrong numbers and had to glue another sheet over the top!)

October Front Page and Monthly Tracker

Here’s a partial-weekly segment. It’s a wholeeee lot of messed up.

As for other updates, I’m in the middle of reading Linsey Miller’s The Mask of Shadows, so be prepared for a review of that at some point. I got my next book from Blogging for Books as well, so that will probably be coming soon too. I’ll try to post where I get all my books at some point as well.

Sometimes My Brain Doesn’t Let Me Read

Like almost everyone, I go through phases with books. I’ll get really into Goodreads and find about 5000 books that I want to read, and then I’m pumped and ready to read. Then I go to actually pick up that first book and it just sits there on my desk for about a month. I keep thinking about how much I really want to read, but it’s like my brain literally won’t let me pick up the book. I absolutely hate this feeling. It’s probably one of my least favorite periods of time in life because my entire world revolves around books. I mean, I’m a librarian – I literally deal with books as a job. And then when I go to relax and try to get my brain to stop for a second by immersing myself into another world through a lighthearted fantasy or romantic page turner, I just can’t.

As a kid, I was that dorky little Shirley Temple-haired girl who pretty much had to be forced to go outside and play with her friends because she’d rather read. I distinctly remember dreading having friends over. I remember spending weekends laying all over the living room couch immersed in books. I remember not really ever having a bed time because I was just spending that extra time reading. When I was old enough to truly participate in the Accelerated Reader (AR) programs at school, it then became a competition to me. I wanted to read as many books as possible – even the “hard” ones – just so I could earn the most points. 4th grade was particularly intense because it was essentially one other girl (ohhh Carrie Christensen! I remember you!) and myself competing for the top amount of AR points. She ended up beating me, unfortunately, but I still got to use my points to “buy” a super cool lava lamp at the end of the school year. Pretty sure I worshiped that lamp until early high school.

I don’t have as many memories of reading the next few years because a lot of stuff happened in my life that sent me in one of my “my brain doesn’t let me read” modes. I didn’t really notice until later in life, but I realized that this inability to read occurred when I was going through particularly heavy bouts of depression. When I’m really depressed, I have a tendency to go one of two ways. I either can’t focus enough to pick up a book at all, or I get so obsessive over something – usually a series (whether that be book or TV) that I literally don’t want to do anything else. I much prefer the obsessive modes, but lately for me it’s been the unfocused ones. And it sucks.

For the past 9 or so months, I’ve been stuck in “my brain doesn’t let me read” mode, with an occasional time period where I can read maybe a book or two. It’s had a serious effect on my books read count — I normally average between 50 and 70 books, but it’s September and I’m not even at 15. But I have my reasons – I know why my brain is malfunctioning. I’ve had a bunch of medical issues and a series of medication changes, and I think that maybe I’m finally crawling out of the pit. I’m hopeful that my upswing continues and I get back to full on book hoarding (not that this ever really stopped) and book bingeing. Here’s to hoping!