A budget now is definitely easier to follow than before.

[MomToTwoBoys]

It's three months into 2009. We've been budgeting since May 2008. That's ten months' worth of budgeting practice, perfection and outright chaos that we've been working through to get to where we are now.

I can safely say that our budget's at the best it's ever been.

We paid off two nagging accounts since January. Wells Fargo was paid off in February, Best Buy in March. Thank God too because I was about to wring someone's neck out of pure frustration over having those accounts with any balance whatsoever. 28.8% and 28.9% APR?! Talk about a lapse in judgement. The Wells Fargo account took five years to pay off. The recent Best Buy balance (due to DH's new computer) took us five months. The Best Buy balance before this past balance (because of not one, but two TVs in the last four years) took us a couple of years to pay off. Whoever thought that financing was a great part of business needs their head examined. In total, I'd say we paid close to $3k in three months to get rid of those two debts alone.

So fast forward to today: bills are paid and debts are handled. We paid $1640.31 on the Best Buy account, $1304.47 on VISA and then $255.39 on Mastercard... all yesterday. Now we're down to five bills every two weeks (except for the mortgage and the automatic withdrawals because those get paid for us). The only thing we have to concern ourselves with as far as the automatic withdrawals is budgeting that in every month and not counting it as our total income to pay the rest of the bills.

Enmax (water, natural gas, electricity, sewer and waste management)
Shaw Cable (cable, phone and internet)
Rogers Wireless (two cell phones - one contract ends in December, the other in January/February)
BMO Mastercard (my card)
TD Canada VISA (DH's card)

That's all I have to concern myself with when I sit down at the table every two weeks to pay bills. I stopped trying to pay some when I got money and then when DH got paid because it all happens at four to five times every month. I figure that if I just let the cash that I get sit in the account until DH gets paid, then I can paid all of the bills at once every two weeks.

Each bill is divided in half and then paid. If Shaw is $150/mo, we pay $75 one week and then $75 the second week. We always keep due dates in mind and shift payment amounts if we're close to the due date. For example, I forgot to pay Rogers on February 5th and in turn, I had to pay the entire bill amount the week before it was due. What did I learn from all of this? Double-check the budget to make sure that I'm paying every bill before it is due.

We now also have $135 extra each month to add to the debt snowball. The $135 comes from $53 out of the old Wells Fargo account and $82 from Best Buy. Instead of letting that cash sit in our accounts, it might as well go to the VISA to get that paid off faster. That brings the grand total monthly payment on the VISA to $344. We're being charged $147 for financing on it (which is what's killing us), so if we pay half of the $344 then that covers those charges. The rest? It goes right onto the principle amount. With VISA being $4300 or so, that definitely makes our budget breathe a bit easier.

The moral of all of this?

Once you pay off your smaller debts, you have less bills to pay each time you pay them. It really takes the stress off and increases your positive outlook on killing off the rest of your debt.

[Ceashels]

Nice going! I can agree with the sense of relief a person can get from those mini achievements. You'll continue to see those bills dwindle!!!!

[Greebo]

Excellent post, and you're 100% right - it only gets easier as you get practiced!

[frugalbabe]

I completely agree. When I started on this journey we had 7 major areas of debt we had to pay on every month (not counting utilities, food etc) we are down to 4 now. 2 are our vehicles that will be PIF on next January and 2 are our mortgage and a student loan. So next January we will have our mortgage and 1 student loan that's only 2!! The relief that comes with that is awesome! And you're right this budgeting, counting pennies thing gets waaaaay easier with time!

[Contrary Housewife]

I agree! I started by paying off the smaller debts and it greatly reduced the stress. It was a relief to know I was getting somewhere, and it made bill paying easier to deal with every month.

[Maine Girl]

It is a very freeing feeling when you pay off even the smallest bill. Also you feel very motivated towards your next debt.

[TinyDancer]

Thanks for your post! I just started budgeting in September 2008 and I get frustrated every now again (a/k/a every pay day). I love reading people's success stories because if give me hope and inspiration to stay the course. Thanks again!