Down to my last dollar!

I’ve worked out why I’m down to my last dollar each month. It’s not because I don’t earn enough. It’s not because I spend too much (though that has something to do with it). It’s because I’ve allowed my money to be in control. I don’t mean that it’s whispering from my wallet “Spend me, spend me now!” (Though I understand that this might be the case for some people), more that the way I spend it, or have spent it in the past, controls what I do with my life in a far bigger way than it should. Building up debt from loans, overdrafts and credit cards, and then repaying it too slowly and gathering up interest, fees and penalties and then building it up again means that a significant percentage of my monthly income is deducted to pay for borrowing - debt that will roll on, growing like a snowball, until I take control. I resent the monthly deduction. It means that I am never able to enjoy the full benefits of my salary. I now recognise that it is actually a ‘Stupidity Tax’ levied on me through my own actions. The big difference between Stupidity Tax and regular state, federal and other taxes imposed by government, is that you can actually do something about it. In a previous post, I outlined my plan for finally tackling the credit cards. In the case of the loans, it appears to be a simple question of biting my lip and waiting until they are paid (24 more months) and then saying “No more!”. Assuming that I will have paid off my cards around the same time, I need to remind myself that I will effectively be awarding myself a pay rise of around 30% in October 2008. Of course, I will still be paying my other bills - rent, school, utilities, and cable and so on, but I don’t mind that. I choose to spend my money on those to give my family and me the quality of life with which we are comfortable. From now on I’m taking control. I’m my money is going to work for me. I’m just saying ‘NO!’ to the Stupidity Tax.