One of the first things I did this month was to give myself an “allowance”. I tend to get carried away with purchases and I’m a sucker for impulse buys so instead of doing the “envelope” method, I went with a more forceful approach.

I’ve given myself $100 allowance a week to live on. On Friday when my paycheck gets direct deposited, I transfer $100 to my Paypal account right away. I only carry my PayPal debit card with me instead of my bank’s debit card. Actually I have my bank card stashed away so its hard to get at. The $100 has to keep my cars gas tank filled, keep me feed and any purchases I’d like to make for myself during the week. Another advantage for me is that it takes 3-4 days to transfer money into my PayPal account from my bank. This curbs the thought of just transferring money onto my card if I want to make a purchase and don’t have enough in my PayPal account at the time.

Due to my work schedule, I tend to eat out ALOT. This was a big money hole for me that I’m trying to fix. Due to my “allowance” I have to be careful when and if I eat out now. If i want to pick up the newest game, comics or DVD this week, I’m going to have to pass when the guys order a pizza at work. To get me eating better, I allow myself to use my bank card if I actually go shopping at a store. This gives me incentive to make a shopping list and try and find the best deals so I don’t have to dip into my allowance.

The second thing I did was to setup an ING Direct Savings account. For the past few months I’m been trying to put money into a savings account at my bank. Problem with that is I always saw what I had in savings which gave me a false outlook on my money situation. I could always move money out of my savings account immediately if I needed extra money. With ING the money is deduced automatically and it goes into a different savings account that I don’t ever have to look at. Plus it offers 4.5% interest. My plan is to forget about that savings account and just let it keep growing and adding interest.

I got a lot of financially rebuilding to do but these are just the first few steps I’m taking. Next month I plan on calling all my creditors and get a “state of the union” from them so I can devise a debt reduction plan.