As I alluded to earlier, the budget has slipped in December. Big time. I'm embarrassed to admit it, too embarrassed even to look up how bad the numbers are. All I know is this: in December, all we paid to our credit cards debt was the minimum payments. On top of that, we had covered our December minimum payment towards the Discover card with our November payments, so we didn't even put anything towards that debt. Our grand total towards the credit cards in December was $198. Somewhere, the credit card companies are cackling with glee.
As I predicted in November, the month of December was really tough. I was really quite busy and didn't pay attention to our finances hardly at all - just enough to pay the bills. No budgeting, no coupons, lots of buying. Most of the shopping was for Christmas gifts and related items, but those budgets there were still *ahem* broken. And we went out to eat quite a few times throughout the month. I am such a bad example! Maybe I'm a what not to do?
The good news is that we didn't use our credit cards. At all. Christmas, while expensive, was all cash.
All these add up to a disastrous December for debt payoff. I think the kicker is that when I allocate money towards a certain budget category (like Christmas gifts), but I don't spend it right away, I throw it toward the debt. So some of the credit card payments in November should have been made in December. I don't know if I prefer it this way or if I would rather have a sub-accounting system to allocate my money towards its final destination. I know that when we get a savings account, I will need sub-accounts to keep track of it all.
I need some ideas- when you have money to use a certain way, but not immediately, where do you put it? How do you keep from using it for something else?