Managing Mainstream Money

I found some things I could do on the side to help bring down my debt faster using my hustle, but I also had to learn how to manage my main source of income. This involved creating a budget,finding strategies to stick to it, and finding ways to conserve as much money as possible.

There are a lot of different perspectives on budgeting online, and ultimately I had to make a plan that worked for me. Enter google sheets. I used google sheets because it gave me access to my budget on the go and was similar to Excel. I created multiple pages on the sheet. One page was devoted to my budget for the next 6 months and another page was a running list of my credit cards and their balances so I could keep track.

At first budgeting was extremely challenging, more from mental/emotional position. I knew HOW to budget, but I had so many credit cards I could only devote small amounts my main source of income to each one. This is why my side hustle was so important. My side hustle helped me quickly eliminate line items in my budget that were credit cards.The more credit cards I eliminated, resulted in more “disposable” income I had to contribute towards my remaining credit card debt. When I started my journey I had about 20 different line items, 11 of which were credit cards. Now I am down to eight, two of which are credit cards.  

One money management lesson I have learned is that I need cash in my wallet to spend on things like gas, groceries, household items (laundry soap, paper towels, etc.), small inexpensive meals out, over the counter medication, make-up, etc. Things that are hard to account for and track. It might seem like these are not a big deal, but believe me they add up. These items account for 15% of my total monthly budget. I call this line item “cash for expenses”, and at the beginning of each pay cycle I pull that amount of money out in cash. Until I get all of my debt paid off it is the same amount every month. By pulling out cash, I can easily see how much is leaving me and how much I have left to last me until my next payday. It also forces me to time my purchases ensuring I only get what I need from the store until my next pay period.

I also had to learn to curb my spending habits. I LOVE TARGET!!!! But every time I went to Target, I spent money on nonessential. I would justify this because I had their red debit card, which saved me 5% and I used their cartwheel app, which saved more money. Saving money was awesome, BUT I really wasn’t saving money, because I was buying non-essential things like a pair of shoes or a sweater. I learned there is a BIG difference in saving money on purchases vs. saving money in your wallet. This meant, I had to stay away from Target. If I didn’t it was torture and put me in a very vulnerable position.

I also had to start cooking at home, which I love. Enter the grocery delima. I also LOVE PUBLIX. At first I thought, well I am spending money on food which is a necessity, but I was spending as much on food as I going out to eat. This wasn’t helping me accomplish my goal.  I had to find a way to conserve as much money, while getting the groceries I needed. I wasn’t willing to give up Publix completely, so I subbed in Sam’s Club for some of the items I need and used frequently. I now buy things like meat, toilet paper, paper towels, trash bags, coffee, and milk from Sam’s Club. It was very easy to blow my entire discretionary budget on one visit to Sam’s, so I had to space out my purchases. I also watch the Publix ad and other grocery items from them like veggies, coffee creamer, and side dishes. A note about Publix BOGO’s…Do the math! Sometimes buying their store brand is actually cheaper than the sale. For example: 1 bottle of Publix brand ketchup is 1.59, but they have a BOGO on Heinz Ketchup 2/$4. In this case, the Publix brand of Ketchup (as long as it is the same size) is actually the better buy.  

The final thing I learned is that my budget could not be 100% lean, it had to have some fat in it from time to time. Meaning, there were a few times (and by few I mean two) I made conscious decisions to spend money on nonessential items. One of those items was a bike and another was an annual Disney pass. I knew if I was going to make it to my goal, I had to “cheat” a little, but with each of these items I thought about making the purchase for about 3 months before actually going through with it. I selected these two items because they would provide a long lasting impact. The bike was $100, and the annual pass was around $400 total-a $100 initial fee and $25 per month for 12 months after that.  Each time I did this of course, my financial coach (aka Daniel) was not very happy, but the bottom line was it was my money and my decision.

 

Advertisements

The Heather Hustle

My purpose for getting out of debt was to buy a house, therefore Bankruptcy was not a viable option for me. I knew I would have to accomplish my goal through hard work and dedication. While I made a respectable salary and could do a better job of allocating more towards paying down credit card debt, it wouldn’t get me where I wanted in the time frame I wanted. Let’s face it, I’m an American and when I want something, I want it now. Ironically, that philosophy partly contributed to my mess, and would also help get me out of it. If I wanted to accomplish my goal in the span of 12-18 months, then l I needed a way to make some extra cash to put towards my debt.

While scanning Facebook I saw a posting from a site called the PennyHoarder.com This is where I got most of my ideas I explain below. These ideas went into a plan I like to call the “Heather Hustle”. I actually did all of the things listed below to help pay off over half of my debt. Twenty thousand dollars of it to be exact. All of this money can trickling in, not rushing in, but I put every penny towards my debt over a period of 9 months. These are things I will continue to do until all of my debt is paid off, and I have enough money for a down payment on a house.

  • Donating Plasma-There are lots of companies that collect Plasma which is a protein that comes from your blood. Most companies will pay new donors $250 over a period of  5 donations. The first visit takes the longest as there are numerous screenings required, so if you decide to do this, plan on 3-4 hours. After that, I was usually in and out of the office within an hour. You are allowed to donate twice a week, so within two and a half weeks you have your new donor money. You can continue to donate, but typically they pay less, so my strategy was to collect the new donor money and move to the next facility. So far, I have been 3 different companies to donate so I have literally paid off $750 of my debt with my own blood. On top of that my plasma donations have helped others so it is a win-win for everyone.
  • Mystery Shopping-I used the company BestMark to do all of my mystery shopping. Most of the mystery shops I completed were posing as a buyer for a new car. From May-July I feel like I visited every car dealership in Central Florida. Some people may cringe at the idea of visiting car dealership, I was on a mission. I put on my Heather hustle hat, and used my brain to make sure I did want was needed in the shortest amount of time possible, and collected my money. I would often do this after work or spend all day on weekends completing these shops. I made around $17-23 for each shop. BestMark would offer an incentive to take shops outside of a big city which increased the amount earned. I completed around 150 shops and made around $2500 so that was a nice dent in my debt.
  • Using a Bank-Every bank is in the business of attracting new customers. One of the ways they do this is by offering cash incentives which are fairly substantial, usually around $200-400. Some of these offers come with requirements which usually involve having a direct deposit and/or making a certain amount out purchases with a new debit card. Using this method I made $800 just by switching my bank.
  • Freelance Work-I used a company called Upwork which allows people to post small jobs they need done ranging from website work, to writing papers, to reworking files. I made around $500 writing papers and even a set of lesson plans. For me however, this proved to be too much work and time for the payoff.
  • Driving for Uber-This too was short lived. I did enjoyed doing it because I got to meet some pretty cool people and walked away with some good stories, but it did put a lot of miles on my car and part of my profits were eaten up by paying for gas. When I decided to do this, I set one major ground rule (1) no driving past 9 pm because that is when people are drunk and will more than likely puke in my car. Additionally, this job had the potential to be a bit dangerous. With Uber I averaged around $10-12 per hour. Ultimately, not worth the time, effort, and costs associated.
  • Selling Stuff on Craigslist & Amazon-This option only works if you actually have valuable stuff to sell. During this journey financial freedom journey I moved from Tampa to Orlando and needed to get rid of some furniture. I also had some teaching books that I decided to sell since they were still relevant and in good condition. I made around $400-$500 this way. My recommendation for selling items on Craigslist…don’t do it alone. Always have someone there with you during the sale, again for safety reasons.
  • VIPKid-This has by far been the best of all of my hustles and one I still do. It pays between $18-$24 an hour, allows me to work from home during the hours I don’t work my normal job. I can set my schedule and have to do very little prep. I teach English to Chinese students. The students live in China which means the peak teaching hours for the Eastern Time Zone is between 5:00-8:00 AM Monday-Friday as well as 8:00 PM-10:00 PM. This job does require at least a bachelor’s degree, a head set with a mic, a deck of alphabet cards, a few props and a willingness to be very animated. If you are interested in applying, please use this referral link (I get a kick-back on recommendations). https://t.vipkid.com.cn/?refereeId=2944116

A word of warning….do your homework! Each of the items I listed I really researched and they all come with fine print. I didn’t want to get caught up in a scam or do something that would sink me further into debt. I am happy to answer any questions based on my experiences.