Moving Forward

Three years ago give or take a few weeks I was 7 months pregnant and got laid off from a university program I helped create. My daughter was born and sometime later we had that nasty economic downturn. I resurfaced a year later and jobs were scarce so I had an idea of how to expand what I was already doing to a secondary school. I was trained as a secondary teacher so it was a very good fit.

I signed up for a wonderful self employment program that taught valuable small business skills but encouraged rather unrealistic profit goals. Maybe it was a good thing, because if you had told me I would work for 1.5 years essentially for free and plunge my family into debt like we have never experienced before, I am quite sure I would have never made the plunge.

Here I am after a number of set backs finally taking in deposits and starting to move forward. Personally I have 2 credit cards (1 business related), one family line of credit, a smaller business line of credit, and a small, old student loan. Up until this venture we had a credit card we always paid off and a line of credit we dipped into. Once or twice we fell further into the line of credit and used bonuses, small inheritances, or tax returns to pull ourselves back out. So this debt is very new to me.

Funnily the fact I am finally making $ is inspiring me to cut back. I really want to pay off the debt ASAP. My technique is generally the domino debt relief technique with some modifications.

1) create a small buffer of $500 in savings per month (at $200 this month).
2) pay minimum plus a little more on larger credit card.
3) pay off smaller credit card this month.
4) pay larger credit card next finishing in September.
5) pay line of credit off in early October.
6) pay student loan off in October.
7) save work line of credit for next year.
8) save holiday money in November.
9) start emergency savings, rrsp, travel, tax savings in November.

Here is what I am doing and need to still improve on top cut back:

1) cancelled cleaner for savings of $2400 a year
2) cancelled home phone for savings of $40 a month
3) daycare drop on price because daughter in 3-5 program savings $350 per month
4) menu planning for week savings yet unknown
5) Costco shopping for coffee,staples, milk, almond milk, cheese
6) stopped ordering pizza and make at home
7) start homemade yoghurt, soy milk, almond milk (or at least try)
8) repair and better maintain clothes (so far jeans and shoes)
9) limit clothes shopping to a few tops (purchased good quality sunglasses) because don't need anything else
10) stop buying cleaning products except dish detergent and laundry detergent. Did buy a few staples like vinegar, baking soda, oxy bleach, hydrogen peroxide, essential oils and glycerin.
11) stop buying creams and makeup unless needed (mascara soon), simplify routine.
12) use simple inexpensive environmental shampoo. And only every other day. Using corn starch as dry shampoo.
13) collecting yoghurt containers to freeze berries (need to buy deep freeze)
14) cutting back on meat in meals
15) using whole grains more
16) growing vegetables we eat regularly
17) starting to make home made bread (very easy with adapted pizza dough recipe!)
18) limiting magazine purchase to current subscriptions (2) and Sunset
19) cancelled newspaper (reading online)
20) got a bike trailer to use for gym, pool trips, and getting around locally on weekends

Still lots more we can do but this is a good start.