Battle Won
I might as well update this little blog, since it has been awhile. But the most recent posts are certainly relevant to the times we live in, aren't they? Indeed, the latest financial troubles highlight the problems that come with being a country that is addicted to debt. Many companies can not even make their payrolls without credit! That is really sad and scary.
As for me and my family, we are officially out of debt except for the house. YAAAAY! FREEEEeeedooOOOMMM!
The last and final big debt fell last month, and boy did it feel good! It has been a journey of several years (much of it documented here) but it was well worth it. We still have a modest house payment, but I'm thinking about refinancing to a 15 year fixed. Or perhaps a 10 or 12 year? The house is the final debt that needs to fall, but I'm not stressing too much on that. There's always some sort of housing expense, even if it is just upkeep and taxes. But having it paid off would really help out my family if anything ever happened to me. As it is, we are just in a better position all around with more options when stuff happens. I'm presently pouring more into savings and will need to do a better job of fully funding retirement.
I give a lot of credit for this progress to Dave Ramsey's plan and the baby steps. For me, it was a plan I could follow and stick with. Sending my wife to one of his live events was also a good move and helped get her on board. I was saying the same things as Dave, but I think we can agree that we don't always follow the advice of our spouse as well as that of someone else sometimes. We got the $1,000 savings set up pretty quickly but I don't remember using that more than once or twice. I did draw off it in order to kill off this latest debt as I had over $3,000 in the savings and just needed a slight shove to finish it off. At the same time, I doubled the amount going into that savings since we are pretty much without payments of any sort now. Increasing the savings now will help us get through step 3 that much faster, which is building up 3-6 months of expenses into savings. That's still going to take some time, because I figure each month I'm saving about 1 weeks worth of expenses. So this is a year-long project at my present rate, assuming we don't have to get anything out of there for any reason.
And our household income is less than $60,000, just to put this into perspective. It is possible to live within ones means with some degree of determination, effort and discipline. We are not driving the latest, newest cars and I am against buying a new one anymore. I just refuse to have a car payment. We do have medical expenses pretty much all the time, but not having payments allows us to pay those off quicker. The house we live in might be described by some as a "starter house" but it is a basic 3 BR 2 BA that we got at a good price that meets our needs. It is needing some work, though. We do go out to eat sometimes but not all the time. As far as groceries, I am the home economist in the family. My hat is off to all other home economist's of either gender, because it is a difficult and absolutely thankless job. I'm the one who has to say "NO" to more expensive foods, more expensive clothes and getting a dog. And saying that little word can save gobs of money and trouble down the road. But boy, do we pay for it in the short term! Especially around the holidays. This year, I think we might have gone a bit far with the boys as they seem to have a ton of stuff! But NO CREDIT CARDS!
I am willing to live like no one else now, so that I can live like no one else in the future. It has been a long, tough fight. Perhaps someone else who reads my story will be inspired to fight and win their own war against debt. I can not remember who, but it was someone in the blogging world who did point me to Dave Ramsey by leaving a comment on one of these pages. So the least I can do is return the favor!
How are y'all doing?
As for me and my family, we are officially out of debt except for the house. YAAAAY! FREEEEeeedooOOOMMM!
The last and final big debt fell last month, and boy did it feel good! It has been a journey of several years (much of it documented here) but it was well worth it. We still have a modest house payment, but I'm thinking about refinancing to a 15 year fixed. Or perhaps a 10 or 12 year? The house is the final debt that needs to fall, but I'm not stressing too much on that. There's always some sort of housing expense, even if it is just upkeep and taxes. But having it paid off would really help out my family if anything ever happened to me. As it is, we are just in a better position all around with more options when stuff happens. I'm presently pouring more into savings and will need to do a better job of fully funding retirement.
I give a lot of credit for this progress to Dave Ramsey's plan and the baby steps. For me, it was a plan I could follow and stick with. Sending my wife to one of his live events was also a good move and helped get her on board. I was saying the same things as Dave, but I think we can agree that we don't always follow the advice of our spouse as well as that of someone else sometimes. We got the $1,000 savings set up pretty quickly but I don't remember using that more than once or twice. I did draw off it in order to kill off this latest debt as I had over $3,000 in the savings and just needed a slight shove to finish it off. At the same time, I doubled the amount going into that savings since we are pretty much without payments of any sort now. Increasing the savings now will help us get through step 3 that much faster, which is building up 3-6 months of expenses into savings. That's still going to take some time, because I figure each month I'm saving about 1 weeks worth of expenses. So this is a year-long project at my present rate, assuming we don't have to get anything out of there for any reason.
And our household income is less than $60,000, just to put this into perspective. It is possible to live within ones means with some degree of determination, effort and discipline. We are not driving the latest, newest cars and I am against buying a new one anymore. I just refuse to have a car payment. We do have medical expenses pretty much all the time, but not having payments allows us to pay those off quicker. The house we live in might be described by some as a "starter house" but it is a basic 3 BR 2 BA that we got at a good price that meets our needs. It is needing some work, though. We do go out to eat sometimes but not all the time. As far as groceries, I am the home economist in the family. My hat is off to all other home economist's of either gender, because it is a difficult and absolutely thankless job. I'm the one who has to say "NO" to more expensive foods, more expensive clothes and getting a dog. And saying that little word can save gobs of money and trouble down the road. But boy, do we pay for it in the short term! Especially around the holidays. This year, I think we might have gone a bit far with the boys as they seem to have a ton of stuff! But NO CREDIT CARDS!
I am willing to live like no one else now, so that I can live like no one else in the future. It has been a long, tough fight. Perhaps someone else who reads my story will be inspired to fight and win their own war against debt. I can not remember who, but it was someone in the blogging world who did point me to Dave Ramsey by leaving a comment on one of these pages. So the least I can do is return the favor!
How are y'all doing?
posted by Digger Jones at
12/26/2008 10:12:00 AM
3 Comments:
That is AWESOME, Digger! Congratulations!
My parents believed in living frugally during their younger years so they'd be fine after retirement, and it has worked out tremendously well for them. My Dad retired at 57, and they will be comfortable for the rest of their lives.
RS and I are doing okay, considering. Other than the house and my car, we don't have any debt. We put money away in a retirement account, a 401k, and an emergency reserve. Or....we have been doing that. When RS took a new job six months ago, that came with a pretty significant pay cut so we haven't saved as much as we should've. It's been difficult adjusting to the smaller income, so we're a work in progress, I guess.
By
Therese in Heaven, at 12/26/2008 04:17:00 PM
Thanks, Therese! You're on the right track, and still further ahead than I was when I was your age! Being debt free means that when the income comes back, you'll e in a better position to make up for lost time. The hardest thing for us will be staying out, especially car debt. We'll keep driving what we have until the wheels fall off!
By
Digger Jones, at 1/01/2009 03:18:00 PM
It could've been me that recommended Dave Ramsey; I have been telling his tale for years. My husband & I have been debt free since our wedding day almost 7 years ago. I also refuse to have a car payment. We have 6+ months of expenses saved up, and just in the knick of time, as my husband's company unexpectedly closed its doors last month. The way things are in this current economy, you never know what might happen.
Congratulations on your debt disappearing! I know it's hard work but I know it's rewarding in its own right. Keep it up and keep working... you and your family will reap the rewards.
By
Tajalude, at 2/11/2009 11:44:00 PM
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