Q: How do you eat an elephant??
A: One bite at a time
Looking at all the things I want to accomplish is overwhelming. In fact it is so overwhelming I sometimes feel like a failure and that I will never catch up and stay abreast of my personal goals. I decided to remind myself of the Elephant Eating Principle. I will take one item and focus the majority of my energy on that specific goal.
First Focus item: Finish funding my EF. I currently need $100 to complete this baby step.
I receive mileage at work. Each payday, I take the entire amount of reimbursed mileage from my paycheck in cash, depositing the rest of the paycheck.
I have envelopes for monthly expenses I offset with my mileage.Out of the mileage check, I first deduct what I expect to pay for gas. I estimate high in order to avoid surprises. I put this amount in an envelope and put one of those big office clips on it. The clip is to remind me this is for GAS, not eating out or what-have-you.
I then deduct insurance. My insurance is $60 a month for two cars. I put that amount aside in an envelope. My insurance is payable every six months. When the insurance is due, I already have the funds to cover it. I also receive a discount for paid in full :). I use to pay it annually, but the company I am with currently does not allow annual payments. I am happy with the price so I am willing to accept 6 month payment intervals. For those wondering, I am with Progressive.
After the first two expenses, I have been deducting $200 a payday toward my EF. As of this Paycheck ( 2nd this month) I will have a fully funded EF. I will continue to deduct $200 each payday. This $200 will now go toward my Stupid Debt. Let's see, $200 a month into a $5000 = 25 months. EEK I need this paid off by the end of the year. sigh....one bite at a time, one bite at a time.- At least in 5 months I will have $1000 of the $5000 Plus an additional $1000 from my budget for a total of $2000. Just have to do a POA for the remaining $3000.
I also have a hidden from myself EF. At my former job I had $25 a payday deposited in an account at a credit union. I believe there may be $600 in that account. For convenience and as a back up EF, I choose to ignore that account and to allow the interest to accrue. You will hear more at a later time about how I plan to creatively continue painless deposits to that account.
More on my mileage plan:
The next item I deduct from my mileage check is maintenance. I currently allot $25 for maintenance monthly. This covers my oil change. What could a reasonable person deduct from this system??
A person would be correct on all points.
Some of you may be thinking, "She is really wearing her car out. What is she gonna do when her car(s) wears out?" I have plan for that also. After my debt has become more manageable, I will have a "New to Me Car Account. ( I am thinking about one of those ING direct accounts)" This acount will be funded through all mileage reimbursements after deducting fuel, insurance and maintenance. After all, Mileage is designed to cover those expenses and the wear and tear on the car itself.And since, I plan to stay debt free for the most part, I feel this will work.
At the point I become debt free, I will have a more agressive "new to me car" plan. This plan works in continual motion. Always have a paid for car, Always have a savings plan for the car and Always get the best deal on the most appropriate car. Drive that car, well maintained as long as realistically possible. Plan B: I also have a second car that will spend more time as a work vehicle as necessary.
First course in the Elephant meal: finish EF. ( I am down to the last bite for that course)
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