Career & Finance: Debt Management

Why do you want to do this?

I was a shopaholic a few years ago, once I started working. It was fun, I had a great time to buy and keep the stuff I like. However, it is time to yield, because life isn't going what we wanted sometimes. We need to face reality. I always use my debt or credit card to shop, however, I didn't know or maybe care for the payment rule that they have in the bank. Without knowing it, I got trapped with overdraft fee so many times two years ago. I bet I can buy a new Coach purse from there. Last year, I had set this as a goal for myself. However, it didn't work well sometimes, especially I opened another new bank account. I get myself confused with which bank account to use. I didn't happen as bad as before. Probably 2-3 times accidently overdrafted =(. Therefore, we will try no more at this year! =) As for credit card, I am doing a better job than before to at least remember the day to pay the bill. However, shopping too much remains the same amount lol. Therefore, I wanted to pay everything off this year! Goalllllll~

What three things will you need to make this happen?

Cashbook Watch over what am I spending on, especially when using the bank card. I always try to keep the receipts and want to calculate at the end of that day or that week or month. Never work, since I guess I have too much stuff needs to organize after moved in or maybe too lazy to keep track. So, I am gonna bring my cashbook with me in the purse, try to keep track immediately on that day. To record the cashflow on the day!

Budget Plan well with my money usage. Limited on the stuff I actually don't need, then don't buy. Use money budget planner as a tool- make a plan to change my spending habit http://www.schwabmoneywise.com/resources/budgeting-tools/monthly-budget-calculator.php

Due date on the credit card Currently I am doing okay to pay off ahead each month with at least the minimum amount. However, I would like to increase that amount. Maybe double amount, do the calculations and make it work! Everything needs to done at the end of the year. =)

What is the biggest barrier to your achieving this?

I need to constantly tell myself to think of the long term investment! The biggest challenge is.....allure (short term that what is in front of me, that I like, I want) Think of need and want! However, I have control my desire on stuff better than before. I don't go shop very often like used to. Sometimes I tried to sell some stuff to earn some cash. Or if I want to buy more, I need to recycle some clothings in order to do so. **Keep the good habit. Use less. Save up to travel!