I wrote a couple weeks ago about the debate in my head over whether to create a want list or not. The pro was that writing down my wants would stop them from just floating around in my head, tempting me. The con was that it would really be better for me to stop focusing so much on the things and the last thing I want to do when I’m finally out of debt is go buy a bunch of stuff I don’t really need.
Soon after I wrote that post, I quickly forgot about the debate. It suddenly seemed like a non-issue, perhaps because the temptation had passed for all those shiny things I wanted. It became pretty obvious that I’d be just fine without them.
No more than a week later, it struck me again, but different this time. I stopped thinking it terms of this DVD and that necklace and this set of nail polish. I didn’t feel so impatient. I was thinking much more in terms of the life I want to lead once I’m out of debt. I was thinking about priorities.
Priority #1 will be building up a $5,000 Emergency Fund. That’s 3-4 months worth of expenses for me. Then I will get to do the fun stuff. Like, new clothes! (After more than a year of zero to limited shopping, I will be in need.) Then I’ll start saving for a newer car. No more loans for me. This one I’ll pay for in cash. Next, I’ll increase that Emergency Fund to $10,000.
If I continue working like a crazy person, then meeting these financial goals will not take me very long, even though I plan to loosen up my spending in general even as I save. After I’m driving a more reliable car, wearing decent clothes, and resting comfortably with a healthy emergency fund, then I will do two things.
First, I’ll start paying down my student loans. Not at the crazy pace I paid off my credit card debt, but still pretty seriously. I want to really be debt free.
Second, and perhaps even in conjunction with the first, I will think about changing my lifestyle. You know, by maybe not working so much, maybe moving to a larger apartment, and maybe getting a dog (can’t really do the third of these things without doing the first two).
Who knows how my life will change in the next couple years. My priorities may shift dramatically, but when you’re working every day to get out of debt, it’s really motivating to think about what you’ll do when you actually get there.
{ 2 comments }
You are totally on the right track. I can’t wait until I have a full-time job again – not because I can get the “wants” but because I want to do things right this time. This year taught me a lot about saving!
Here’s to be completely debt free!
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