Another month has just passed and we are already thinking about Xmas shopping! I haven’t been looking at my expenses until recently when I took austerity measures in order to get back to a “black” budget. So this month has been quite challenging in terms of expenses for 2 main reasons:
Our 3rd baby
While we have been pretty reasonable with Xmas shopping this year (we give gifts to our kids), the arrival of our 3rd baby is generating tons of unexpected expenses.
But you already have 2 kids, what else do you have to buy for the 3rd one that you don’t already have????
Well, this is the problem.
A very frustrating problem.
We have to buy all kinds of stuff that we already have because they are not considered safe anymore!
Man! It’s not like we had William and Amy back in the 40’s!
Watch this; we had a problem with our stroller so we have to change it… all right $300
Our baby seat for the car is overdue (they only last 5 years !?!?!). Another $200
There was a recall on our baby crib (that we only paid $400 not so long ago!) so we can’t use it anymore! Aaaahhhh! Thank God, one of our friends kept his so we can borrow it.
So while we have tons of clothing,both our children were born during summer time and this one is due Feb 2nd. So half of the clothes won’t work… ugh!
So this is why we have been struggling between Xmas and baby shopping in the month of November. I’ve decided to sell more of my stocks to pay for these expenses in order to avoid increasing my debt level. Good news! It worked! Not going to the restaurant or ordering out for a second month in a row was a great help! It’s a bit frustrating sometimes but it is nothing compared to not paying your credit card balance in full!
As I mentioned earlier, I’ll get a pretty fat bonus this year. Even though I have to pay a huge load of tax (50%) on it, I will still have enough to pay back about $25K in debts in one shot. On top of it, I’ll be reducing the cost of transportation by about $700/month starting the last week of January. So, I’ll not only start fresh with less debts but I will also have a balanced budget that doesn’t count on a huge bonus at the end of the year to pay down my debts!
Right now, my biggest issue is to resist the temptation to “treat myself” and buy more stuff. I love to go to restaurants, dress well and do activities. I just have to lock up my wallet and ignore the fact that I’m getting this bonus. Sorry capitalism, I have to stop making the economic wheel turn and think about paying down my debts ;-).
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