October is a month of revamping finances. For the past few days I've been taking a good look at my income and expenses, debts, etc. A long-awaited revamping will be taking place over the next few days.
First of all, I'm eliminating ALL credit cards. Those that have balances are being cut up as we speak, and I will continue to pay on them till balances are zero. Cutting them up prevents me from using them in the meantime. Can you imagine how hard that is for me? LOL But it's sooooooo necessary. My bank cards can serve as Visas for booking and travel. I'll live on a cash basis.
My spending has got to be cut back to zilch. I am not buying any more home decor, furnishings, etc. No more collectibles. While accounting for my purchases over the past few months to get an idea of where my money has been going ... I was surprised at the amount I spent on "stuff and collectibles" for my house. That ain't gonna happen any more. I have more than I need as it is. In fact, I could open a shop with all my "stuff." (not a bad idea) So, no more "treasure hunting" sprees. No more reckless spending.
I've already cut back entertainment and dining out. It's next to nothing as it is. So no problem there. The two majors have been credit card spending and buying "stuff."
AND buying electronics ... my downfall. Electronics and online purchases - websites, website related services, books, etc. All that is stopping. It has stopped!
I'm going to live within my fixed income ... that's income I receive not counting royalties and revenue generated through my publishing companies or freelance writing. I want to be able to live on the basic income, the rest that comes in goes into savings.
So are you aware of where your money goes? It's mind-awakening, believe me, once you start checking it out. I was shocked when I began studying my finances. WOW! No more shocks for me.