That’s right boys and girls, end of year bonuses will soon be upon us! Wheeeee!
You can feel the magic in the air and see the twinkle in everyone’s eyes because when you’re a working stiff like most of us are, receiving a month (or two!) of your salary as a bonus is the thing dreams are made of.
While the impulse would be to spend a huge chunk or all of your bonus to celebrate Christmas, I personally see my upcoming windfalls as the best way to make 2018 easier by allocating majority of it towards debt payment. This year has been financially taxing, but with the careful allocation of this year’s bonuses, I can make sure that 2018 will not be as financially difficult and will be the year I shift my efforts from mostly Debt Payment to Security/Safety.
And on that note, here’s where I currently stand when it comes to non-mortgage debts:
Budgets come in all sorts of variants and permutations, but the best type of budget is the one that actually works for you.
The strictest budget that I know of is the zero-sum budget. With it, you have to “spend” every cent you make or to be more precise, you give every cent you make a job to do since money that isn’t allotted will only be spent mindlessly. My preferred budget though is the anti-budget by Paula Pant of Afford Anything where you save/invest a pre-determined percent of your income per month. It pretty much goes like this: take out money, save/invest accordingly, and spend the remainder of your monthly income as you please. Easy peasy.
Unfortunately, it will take me a while before I can use the anti-budget since I still have consumer and mortgage debts to deal with, necessitating that I micro-manage my money until I can completely wipe out my debt.
I used to make regular net worth updates and then post them here on my blog. I still regularly track my net worth, although I just don’t post them here anymore because, honestly, I’m disappointed with myself and my failure to dramatically increase my net worth.
But since this is a personal finance blog after all and I would like to be held accountable for my actions, instead of my net worth, I am going to publish how much debt I’m in and then track that. I have a feeling I’m going to regret this airing of dirty laundry, but what the heck, I never claimed to be a personal finance rockstar. So here we go: