When I married my husband, I also married his credit card debt. As a single guy and a baseball coach, it was nothing for him to charge each meal of the day, a dozen bats, and gas for the tournaments every week. And then I came into the picture. There was my ring (gorgeous–well done, husband), fancy vacations, preparations for the wedding, and an extravagant honeymoon on which we spared no expense. A year after sharing a home and a last name, our debt started giving us heart burn. Or maybe that was just my cooking? At any rate, the debt bothered us.
My math teacher husband got down to business and created our Family Budget (capitalized out of respect for all the hours he spent in Excel). We prioritized: budgeting smarter, and paying off the credit card took precedence. Within a year, we were out of the red and on our way to building up our savings account. Woo-hoo! We were also sickened to learn how we had wasted so much money. Boo-hoo! Tracking where and how much we spent was a real eye-opener. If you’ve never itemized your spending, I totally recommend it, if only to have a reason for that second glass of wine after dinner. And trust me, you’ll need it.
This is what worked for us:
We used any surplus money (from tutoring, tax returns, etc.) and threw it at our credit card debt. Once we had diminished that debt, we started to compare savings accounts for the best deal. Once we found a bank that offered a rate we liked, we started depositing rather than withdrawing. What a concept, eh?! We also found the envelope system quite helpful; each of our weekly or consistent expenditures (groceries, entertainment, etc.) went into a marked envelope and once that cash was gone, it was gone. We’ve allowed some wiggle room for the credit card, as to earn frequent flyer points and other similar deals, but for the most part, we only charge big purchases.
Because we got a handle on our spending and saving, we’ve been able to put a pool in our back yard, take our kids to amusement parks and other fun places in the summer, and continue planning for our future together. It’s such a relief to be in charge of our finances, rather than have our finances control us. There are still days that I want to go bananas in Target and blow my kids’ college funds in the dollar aisle, but I contain my urges. Except today. Sorry, Husband; I needed those yoga pants and shirts and fancy scissors that cut squiggly lines.
Credit card paid off: check
Savings account padded: check
Spending money limited: check
On our way to becoming more responsible adults: TBA
Vicky says
It’s perfect timing, I tell you. We are digging our way out of some cc debt too. Blech! And we’ve started the envelope/cash thing for entertainment, groceries and “the kids” as well. It is really helping and showing us how much money we waste on CRAP!! You are a wise, wise lady. I’d say “On our way to becoming responsible adults: CHECK!” It said “on your way” not “arrived at being” right?
😉
Vicky
http://www.thepursuitofnormal.blogspot.com
crazy14 says
Good luck, Vicky! It’s frustrating, but so worth it in the end!
Dani Ryan says
I’m currently working on our grocery expenses. Holy hell, when you really pay attention, it’s astonishing when you see how readily you can throw money away sometimes!!!
So glad you dug yourself out!!!!
crazy14 says
Isn’t it insane?! My kids drink two gallons of milk A WEEK! I can’t imagine what it’ll be like when they’re older and have appetites like my husband. I’m going to have to sell my body for a few extra boxes of cereal…
Meredith says
Go you guys for sorting yourselves out and tackling this! That is huge and awesome. I am with you, though. I’d better just shun Target for the next 18 yrs. That dollar aisle is a Pandora’s box–that is draining any hopes of future education one cheap plastic toy at a time!
crazy14 says
Right?! Curse those dollar bins!!!!
motherhoodisanart says
Great stuff Stephanie! We do all of this stuff too and it is really hard and time consuming but so well worth it!
crazy14 says
I totally agree, Melissa–definitely worth it!
Jen says
You’re so right…putting down on paper what you’re actually spending (as opposed to just what you plan to spend) is a great way to start the budgeting process. It shows you where your money is really going. For me, it was shameful the amount I was spending at Starbucks (for me) and dinners out (for the family). Now that we know that, we can stop the insanity and start diverting that $$ elsewhere. (Like the kids’ education fund. Or a nice bottle of Pinot Grigio…)
crazy14 says
Jen, you’re my favorite comment so far; you’re a Starbucks addict (admitting it is the first step) and a Pinot Grigio fan. We should hang out.
Cheryl Nicholl says
I also married my husband’s credit card debt- except, I told him I wouldn’t set a date until it was PAID OFF. He handed over his paychecks to me and I widdeled it down to -0-. When we walked down the aisle- WE were debt free. The power of a woman. Hahaha.
crazy14 says
WOW!! That’s impressive, lady! I needed you in 2009!
Mom Rants and Comfy Pants says
Good for you! Being a finance gal, my husband and I went on the same plan: paid off credit cards, padded the savings, used the envelope system. Then, 3 years ago I started staying home while our youngest was in middle school at the same time Hubs entered the realm better known as the Midlife Crisis. Oy vey!! With one year, we (and by we I mean he) got a brand stinkin’ new truck (while I drive a 14 year old Jeep), a Harley (cuz that’s a necessity donchaknow?) and opened 2 credit cards (which are maxed). I’m not Polly Perfect by any means but I’m happy to say that not ONE of those purchases I made. So I did what any wife in her right mind would do ~ I threw the checkbook at him and told him to figure it out. I know – real mature. Kudos to you both for keeping tabs on finances while your kids are LITTLE!!
crazy14 says
My husband will rue the day he has his midlife crisis and costs us money! He can get nuts on a budget 😉
Jill Pinnella Corso says
This is so great! Well said. Glad to know I’m not the only one to struggle with wedding-related debt. Maybe I should consider the envelope system.
crazy14 says
Jill, truly the envelope system was our saving grace. Without it, I think we would have continued to charge and outspend our earnings and still be in the red today. After looking at your GORGEOUS wedding photos, I’m sure you have a bit of debt right now! Happy One Year Anniversary, by the way!!
vernette says
I am going to try the envelope system. I am just starting on the path to getting out of debt, wish me luck!
crazy14 says
The envelope system is so helpful!! Much luck, lady!