So, the first change that I have made is to have a quick overview of my spending. One thing I have always done is increase my spending every time I secured a promotion or higher salary. This usually results in me obtaining more things I want but don’t necessarily need. I then sell the item almost with fail for a loss or just fill my home and garage with stuff.
In November 2016, I secured a new job. The base salary was almost exactly the same as the previous job I had but with the benefit of shift penalties and overtime. Both shift and overtime were in no way applicable to my previous job, so the only option of obtaining more money in the role was to gain a promotion or wait for incremental pay rises.
In my new job, shift penalties are standard, adding between 12.5 and 15% per hour for an applicable shift. If I secure a shift on a weekend or public holiday, additional penalties and overtime apply. Subsequently, though a bit inconsistent, my pay has been considerably more than my previous job. The lowest being around $150 to nearly $700 net more per fortnight.
It occurred to me recently that I was able to live comfortably on my old salary. (It is strange how the mind seems to work far more logically when there is focus and a goal.) I never saved a lot with my old salary and overall it was tight. In saying that, it was rare when I was counting the days for a payday to come up. In theory then, there is no reason that I shouldn’t be able to live on my former salary and take any additional pay and use it to reduce debt. Given that the interest rate applicable to credit cards and loans is considerably higher than a standard savings account (with an almost non-existent interest rate), it is obvious that reducing debt is a priority.
The biggest debt I currently have is my home loan. This loans allows for additional payments that can be withdrawn if a big expense pops up. Until that big expense happens though, the interest on the loan will be calculating on the lower amount.
I know that mentally, I will really feel a lot closer to my goal when the debt is under $200k and then $150k and I will know that I’m closing in on the target when I crack the $100K mark!