It’s impossible to pay off debt while spending money with no real plan. I mean, I have a budget that I try to follow with fairly good success, but what I’m really excited about is that I recently stumbled upon Anna’s blog And Then We Saved. It’s right up my alley. And yours too if you’re trying to pay off debt and save more money. She paid off almost $24,000 in debt in just 15 months.

How did I not find her blog sooner?!

Anna is also a successful author (with rave reviews) and I’m currently listening to her book, “The Spender’s Guide to Debt-Free Living”. After spending some time on her blog I decided to become a spending dieter. You can find more information about that on Anna’s blog on this page. I’ve basically tried to be a “spending dieter” since I started focusing on paying off debt a couple months ago but I love how Anna breaks it down.

I'm Officially A Spending Dieter - via LiftingMakesMeHappy.com

Here is my plan:

My Spending Dieter Rules

Greatly limit spending for 3 months at a time. I want to go one full year (at least) but I’m going to start with a small goal. Three months is doable!
Limit myself to $25/month (or less) to spend on things that aren’t needs. This could include crafty stuff, dining out, new music for iPod, candles, books, etc. I know myself and I do much better if I give myself a little to spend each month rather than trying to force myself not to buy anything.
Track all savings that can (and will) be put towards debt.

Side note 1: I have been tracking debt payoff in my monthly goals posts but I’m gonna switch things up a bit and keep track of all debt payoff in the same place. I’ll be starting this new tracking process in October.

Side note 2: I’m also using the debt snowball method to pay off debts, beginning with smallest balances first. When I’m down to the major debts, I’ll switch to paying off highest interest accounts first.

My Needs: What I Will Spend Money On

Mortgage

Utilities (minimal usage)

Cell phone

Food (Aldi and store brand from Target)

Debts (obviously)

Annual road trip to Arkansas for family Christmas (gas, snacks)

Christmas (I’m currently on a savings plan for holiday gift spending, I’m hugely downsizing from what I normally spend and I’m making quite a few items to give as gifts this year)

My Wants: What I’m NOT Spending Money On:

No clothing, shoes or accessories at all for myself (not even sweats, haha)

New make-up (only if great deals on drugstore mascara and tinted moisturizer)

Movies

Out to eat (fast food/restaurants)

Home decor

Seasonal decor

I’m hopeful to start this challenge for myself. We’ve already paid off a good chunk of debt and it feels great. The feeling is similar to getting rid of junk you don’t need. You just feel lighter.

I just need to stay motivated to see this through, which is what I hope these updated posts will help me do. :)

xo Mindi