Journey to Debt - Part 3 - Leading to the Now

(You can catch up here -> Part 1 - Student Live, Part-2 - Post Graduation)

Finally, in late 2008, the fruit of my attempts began to show. I had paid off all my store cards, paid off my lasik surgery bill, paid off my smallest major CC balance, and was only $3,000 from paying off the next card so I could tackle the largest one. And then, as soon as I started to breath a sigh of relief, I got laid off.

The amazing thing is, since October, my credit card balance has remained steady, my car and student loan balances have gone down, and I have a (very small) emergency fund (thank you severance)! My (seemingly) worst financial crisis turned out to be the best thing that could have happened to my finances. The minute we got laid off it all snapped into place. All those worries about finances and priorities just aligned. I suddenly understood the difference between "need" and "want". I realized my 30 pairs of shoes and multitude of dresses and skirts did nothing for me beyond the fleeting moment of excitement of wearing them for the first time.

There were still hard moments leading to the here and now. Making it through the holidays without touching my credit cards was by far the most difficult part. I, like my mom, have always been a very generous gift giver. I value and adore my family and friends, and I want them to know it! This made buying Christmas gifts on a budget very emotionally trying for me. In the end, I probably spent more than necessary, but at least I didn't touch my cards or my severance. That was a huge step for me.

Since the Holidays I've limited shopping to needs only. I've made it a point to not touch my remaining severance EVEN for bills. I have been paying for bills and groceries with my unemployment insurance (BF pays for rent) and I have only purchased 2 "cute" items (an adorable purse that was only $13 and dress for $16 both on major clearance).

The best moment came last week. I had an interview at a pretty cool company. Given that I have dropped 2 complete dress sizes since my last job hunt, I needed a suite jacket. I had a pair of great pants but no blazer. So I popped into the mall on my way to the interview, picked up a jacket that perfectly matched my pants and a pair of shoes that didn't make me want to kill someone from blinding pain. The total cost came to $200.

Normally, that sudden but needed expense, would have sent me into a worry induced migraine. But it didn't. I left my local mall with only what I needed in hand and with no anxiety about overdrafts or interest rates. It was amazing. After just three weeks of NOT shopping and NOT submitting to my wants and NOT putting myself in tempting situations and paying my bills FIRST I had learned (sort of) to manage my money.

I get it now; finally, 3.5 years after entering the "real world" I get it. I'm glad I did not get a job sooner because I believe I would have just continued my selfish spending habits. I'm ready to find a job now, a job I like, not just need. And I am confident that within 12 months of getting said job, I will be free of credit card debt, almost free of student and car loan debts, have a less-tiny emergency fund, and will be helping BF save for our wedding (and maybe rent, he'd love that!).

I know the challenges are far from over, but I finally feel I am appropriately armed to take them on. I plan to add a Part 4 to this series in 2010 telling you I made it out!

*Note: This is the final "official" part, but I'm sure there will be more on this is the future of LFMM :-)