Finding balance between what we need to do and what we want to do is hard at the best of times. Sometimes it can feel like you’re constantly swinging between two extremes: being out all the time or not seeing anyone, trying to pay off debt or being forced to create more of it. And now that we’re coming into the pointy end of the Christmas period, it can be even harder.
This is exactly where Steph finds herself right now on her journey to financial wellbeing. Let’s hear from her about how things have been going:
It's not just frustration at lack of knowledge that can lead you struggling to follow newly gained financial tips. Emotional turmoil in life can also attribute to falling into bad habits and overspending.
This current fortnight has been a failure in relation to following my budget and paying off my credit cards. I did some retail therapy (that I can't afford) and instead of clearing my AfterPay/PayPal balances, I added to it. I found myself not going over my budget as thoroughly, however, my only happiness amongst this failure is my determination to do better and actually stick to my budget and not overspend.
I keep worrying about not meeting my friends and missing social gatherings. So I keep booking things when really, I just want to focus on my finances and budget and not go anywhere. Saying no is still really hard. I'm trying to follow a “doing nothing for a month” and only spending on necessities but it's harder than anticipated.
As clearing my debts is my biggest priority, I thought I'd check out the course for debt, to see if there were any tips to help me organise this. Even reading the opening slide, I already saw that I ticked off several of the debt warning signs, which made me consider the wisdom of having two credit cards and how I use them. This pay cycle has been more successful than previous ones. I've been more diligent with my spending and have been steadily paying off my credit card. Though I've had the thought "I've got more money on my credit card now so worst comes to worst I can use it and pay it back later". So far, I’ve resisted the urge to spend any of that money as I'm so close to clearing the debt I've had for well over a year. But if I keep to my current plan, I'll have my car paid off by the end of this year, a month later than I had hoped but still excited to reach that goal!
I've also used my new budgeting skills to continuously go over my budget, and have workout out a plan for clearing my two other debts. The first one (mum debt) I’m hoping to clear by May 26' and my other one (HECS/HELP) in the next three years. The reason I'm working towards clearing these is I’m thinking about buying a city apartment in the next five years (fingers crossed). Having all my debts cleared and my credit score looking better by then should help me when I apply for a home loan.
The thing I've found the hardest is wanting to clear your debt as quickly as possible but also not paying everything off in one large sum and then having no money. Balancing that has been quite a challenge but I think I've responsibly divided my debt responsibly over a longer period so I'm not short of money and putting myself in more strife.
And then…due to a recent medical emergency, I unfortunately had to use my credit card and am now starting back at zero to pay it off. A setback, yes, but also a good incentive to continue working towards having a savings bundle as I’ve seen how handy emergency funds can be!
Have you ever found yourself struggling to strike that balance between enjoying life and staying on track with your financial goals? It’s so easy to slip into all-or-nothing thinking, and sometimes the hardest part is learning to sit comfortably in the middle. Steph’s experience is a reminder that balance isn’t mastered overnight but built slowly over time. And even when it feels messy, it’s important to remember that it’s still progress.
Stay tuned to see where her journey takes her next!
