Personal Finance:

It’s Behavior, Not Math

If you’ve spent any considerable amount of time with me in the past six months, you know that I’m mildly obsessed with personal finance. I’ve more than likely talked your ear off about zero-based budgets and the importance of term life insurance. #sorrynotsorry

This wasn’t always the case. In fact, I was an “out of sight, out of mind” spender in my recent past. I rarely looked at the balance in my bank account before making a purchase, because if I did, then I’d have to really consider whether or not I needed whatever I was about to buy, and honestly, I didn’t want to face that kind of reality.

Things changed about six months ago. My husband Matt and I had reality smack us right across the face while doing our taxes. We realized that in 2015, we made the most we ever had as a couple (yeah!)…

and had nothing to show for it (yikes!).

No significant savings.

No monumental headway made on my exorbitant student debt.

No upgrades or improvements done to our house in effort to increase value.

Nothing.

This is where we flipped a switch.

We made too much money to feel so broke. To feel as if we had so little financial freedom and flexibility. In reality, we were making decisions with our spending allowed to those who do have financial freedom — but unfortunately, we had no business doing so because we are not those people… yet.

We still aren’t there, but we’re a hell of a lot closer than we were six months ago. Since flipping that switch on April 10th, my husband and I have paid off over $11,000 in debt.

$11,000!

I don’t say this to brag. I don’t say this to flaunt our income. In fact, it’s not that we’re bringing in buckets of money with my public school teacher and my husband’s HVAC technician jobs. Let it be known: I’m grateful to have an income from which we can cover our necessities and make headway on our debt, but our recent gains have less to do with the amount of money we’re bringing in, and more to do with the choices we are making with that money.

We have committed to living on less than we make.

Obviously math is important. Understanding how to make a budget is necessary. But what’s more important is sticking to that budget. Making those choices day in and day out.

That’s where the magic happens.

Day 24 (a little late)