How did it get this bad?

Welcome to the Frugal Bookworm! Since late 2007, I have been on a quest to improve my personal finances and pay off my consumer debt. I started logging in entries on my Myspace page, which most of my friends found helpful, so I decided to start this blog to see if I can help more people through my example. So I hope one of my little ideas (or ideas I've gained elsewhere) can help you battle the beast too!

How did I get in this mess? Well, for the past few years, instead of saving for the things I wanted, I just went ahead and bought them and paid with my credit card. It's a messy downward spiral, people, messy. By the end of 2007, I had almost maxed out my credit card ($5,000 limit). I realized something had to be done. I want to thank my friend Holly for her inspiration. She did a blog which introduced me to several budgeting ideas, including Dave Ramsey. I had heard of Dave before through church, but never really examined what he had to say. After Holly's blog, I dedicated myself to making it through Dave's seven baby steps.

Before Dave (B.D. times), my budget was the 80-10-10 principle. I tithed 10% of my income, saved 10%, and split the other 80% between the credit card company and personal spending. Fortunately, I only have one credit card to pay off (past experience has taught me that much...that's a long story for another time). But still, instead of concentrating on paying it off, my spending was still ugly. No budget...no concept of limiting myself. Now that I look back on the old habits, I am really sickened at how I used to spend my money.

After Dave (A.D. times), I have done a few things to help get myself on track. I still live by the 80-10-10 principle, but that 80% is purposed spending now. Every dollar I earn has an assignment in my budget or the spending money I allow myself. I am paying off the credit card little by little and saving my emergency fund. I'll share more about my baby-steps in future blogs. There is finally a light at the end of the tunnel...welcome to my journey, and I hope we both enjoy the ride together.