It is funny that I consider myself OCD – I am a Virgo, so it’s imbedded in my character, if you believe in that stuff. When I think of OCD people, I think about hypochondriacs and neat freaks. I have described myself as lazy to some extent, something I definitely don’t associate with OCD (though anyone that’s watched Hoarders will understand that OCD has nothing to cleanliness or energy) and I lack discipline. Funny, then, that when I say that I am on my second month of my disciplined budgeting, I am being very OCD and accounting for each penny spent.
In May, once I committed to making this a new 12-month project, I made a radical financial decision. I took a HUGE chunk of my savings and paid off my existing credit card. This was a scary decision! There is something to be said for having a large savings balance. There is also something to be said about paying interest to a banking institution on a monthly basis. Ultimately, none of this matters if I just start shopping indiscriminately and racking up that credit card debt again!
The two financial decisions I made recently may seem to be somewhat separate, but to me, it makes no sense to implement one and not the other. If you are too scared to look at what you spend on a daily basis, you aren’t holding yourself accountable for your own financial decisions. If you are too scared to open a credit card statement, how long do you think that can continue before you begin to hit credit limits, or incur over the limit fees, or default rates? How can I avoid using my credit cards if I have no concept of what I pay out in bills and living expenses? And, talking about it keeps me honest.
I get paid once a month. For a shopaholic, it’s a long time in between highly anticipated shopping trips. For the near future, my primary focus is to not use credit cards and stay balance free. I cannot wait to reach some goal (that I haven’t set for myself yet) and enjoy the fruits of my labor. In the meantime, every penny counts!