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Nifty Thrifty:  Almost Debt-Free! What next???  |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
 Posted - Jan 23 2012 : 11:33:32 PM
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Hi girls -
Well, after a very loooooong time of struggle and perseverance, we're just a couple months off from savoring the satisfaction of paying off all our debts - except for the mortgage, of course! I am just so excited, I could burst! Right now, we're working on our "next step" plan and could really use your insight.... Have any of you come this far yet, and, if so, when you did, did you opt to pay off your mortgage next OR save for a few months beforehand? I would SO love to have our mortgage paid off within the next four years (and it could very well be sooner!), but I know a lot of financial gurus (including my mother) warn that we should save at least 3 months of take home pay before moving on with our mortgage. Yet, I keep looking at the interest we'd pay on our mortgage while saving that kind of money, and I can't help thinking we'd be throwing a lot of money away in mortgage interest... So... What do you all think? How have you faced this crossroads? I would really, really appreciate your thoughts on this!
Thanks so much!
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
www.papercraftingwithnini.myctmh.com
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windypines
True Blue Farmgirl
4228 Posts
Michele
Bruce
Wisconsin
USA
4228 Posts |
Posted - Jan 24 2012 : 04:20:42 AM
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Anytime we have had loans, we always pay extra each month, to get it paid down faster.
You could increase your payments and maybe save a little.
There will be lots of ideas, you will have to choose what is right for you.
Michele |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Jan 24 2012 : 05:21:25 AM
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Spot on, Michele! Thank you! We do the same thing with our mortgage, whenever possible - absolutely! :)
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
www.papercraftingwithnini.myctmh.com
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Jan 24 2012 : 07:30:21 AM
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Oh... and I forgot to mention... we do put a modest amount away every week for savings - it'd just take YEARS at this pace to put three months income aside...
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
www.papercraftingwithnini.myctmh.com
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ceejay48
Farmgirl Legend/Schoolmarm/Sharpshooter
13641 Posts
CeeJay (CJ)
Dolores
Colorado
USA
13641 Posts |
Posted - Jan 24 2012 : 10:40:28 AM
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Nini,
We are debt free and have been since we lost our house in a fire in 1994! It's a long story but God truly worked a miracle through that catastrophe. We intend to stay debt free as long as possible. I see that buying another car may be in the future but not now. We put away what we can and have a "cash stash" . . just in case.
I think it is a good idea to pay extra on payments as much as possible to cut down the interest paid. Congratulations on your progress!
I'm so thankful for what God allowed us to experience hand-in-hand with a tremendous, traumatic loss.
CJ
..from the barefoot farmgirl in SW Colorado...sister chick #665.
2010 Farmgirl Sister of the Year
Mother Hen: FARMGIRLS SOUTHWEST HENHOUSE
From my Hands - www.cjscreations-ceejay.blogspot.com
the "Purple Thistle" http://www.ceejay48.etsy.com
From my Heart - www.fromacelticheart.blogspot.com
Through my lens - http://ceejayscamera.shutterfly.com/
From my Hubby - www.aspenforge.blogspot.com |
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oldbittyhen
True Blue Farmgirl
1511 Posts
tina
quartz hill
ca
USA
1511 Posts |
Posted - Jan 24 2012 : 2:45:30 PM
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just increasing your mortgage payments will save you money in the end, try putting away at least half of the money you were paying out on your debt, it will amass real quick, start stocking up on non-perisable foods, if you can, increase your insurance deductions, and that will lower your payments, I would save at least 6 months income, just due to the economy...
"Knowlege is knowing that a tomato is a fruit, Wisdom is not putting it in a fruit salad" |
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nubidane
True Blue Farmgirl
2899 Posts
Lisa
Georgetown
OH
2899 Posts |
Posted - Jan 24 2012 : 3:14:09 PM
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Nini
We are big Dave Ramsey fans. In his plan, he has babysteps.
1. Save $1000 for an emergency fund.
2. Pay off debt... Yeah you are there!!
3. Save 3-6 months of living expenses.
4. Put 15% of earnings in a retirement fund
5. Start college fund
6. Pay off mortgage.
I trust him completely, as he became wealthy very young, lost it all, & built his wealth back up with the above principles.
Oh yeah, if you are Christian, there is the automatic tithe, before anything.
So, with that being said, you guys are probably well into baby step 3.
YEAH!!!
& just a bit of food for thought. If you save $100 a month from the time you are 18 , put it in a good growth stock mutual fund. leave it there.. do not panic when the market goes up & down.. by the time you are 60 you will have 2 million!!
WHY did I not find out about him until I was in my late 40's?? Wah! |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Jan 25 2012 : 09:56:00 AM
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Hi girls - thank you all for your insight!
I totally understand what you're saying, CJ - what a horrible thing to have to go through! But God does have wonderful ways of working all things for our good, doesn't He? Debt free - mortgage free - I long for that day! I'm hoping that once everything's paid, we can start saving ahead for all of our needs like new vehicles, etc. For now, though, it really does feel soooo sooo good to be where we are at. God willing, we'll remain on this path with no more major upheavals. I can definitely say: lesson learned.
Tina - I'm so glad you said that! Our neighbor just saved us over $1200 a year in auto and home insurance - and we have even better coverage than before! Thankfully our driving records are clean as whistles, which really helped, I think. It's a shocker though to see what they value our home at for full replacement cost. I really, really think it's a racket, but should we lose our home like CJ did, it will be such a relief to know our mortgage is paid off and that we can rebuild to replace this beautiful old lady of ours as closely as possible! And now that we're saving on insurance, we just may be able to afford increasing our life insurance a bit better. Right now, our coverage is so small, the funeral home might laugh...
Thank you SO much, Lisa. You know, I had heard Alee and the girls speak of Dave Ramsey, but when I saw your list of baby steps, I really started to think how closely in line those principles are with our own personal plan. I visiting his website and am very excited about what he teaches. We are "old school" Larry Burkett-ers, and big fans of Crown Financial. LOL! A lot of what Mr. Ramsey and Mr. Burkett/Crown recommend are similar - including the envelope system, which, until just a couple of months ago, we really struggled to achieve. We're still not 100% there, but our use of cash is much greater than ever, and it really does serve as an eye-opener when we go to purchase anything! Even our son thinks three times before doling out his money. SUCH a great thing!!! I'm just really having a tough time with the savings vs. mortgage payoff thing. We'd be throwing away so much in interest, but there is also a lot of wisdom in saving ahead for 3 - 6 months of income loss. We've been in situations where there is sudden loss of work with no savings to carry us through - it is a killer. After reading up a bit more with Dave Ramsey, I'm going to really have to present this to my husband. Like I said, we have an extremely modest savings, but if, Heaven forbid, something happens again, it's definitely not enough to carry us through. Lisa - which Dave Ramsey book do you recommend that we read? I can't decide, but I definitely want to start somewhere! It sounds like you're really on fire for this, as are so many others... I am anxious to learn more! Thank you!
We are Christian, and we do give quite a bit, but our tithing consists not only of our money, but also of our time, talents and other resources. Remember - Jesus said to give to Caesar what is Caesar's and to God what is God's. Everything we are and everything we have belong to God, so that is how we approach our "tithe." God gives us so much to work with - why limit it to money, you know? Tithing is very, very important, but it takes on many forms - not just monetary - and we have to be very careful about being legalistic with it. We are not saved by our works (here I mean in doing and giving). What we do and give is simply an outpouring of our love for God and His love pouring forth from us, you know? I find it very dangerous to trust in the tithe, per se, because God loves and blesses us no matter what. The tithe should be just one of many outpourings of our love for Him. I see too many people who "rely" on that giving of 10% of their income (as if when they do, they're done and free to do whatever they choose) vs. giving generously in all areas of their life from their hearts. We just need to be really, really careful of the legalistic aspect of that. Further, if we have lots of money that we're not using, we really shouldn't limit it to just 10%. That would also be wrong, you know what I mean? If others are suffering and we have the ability to do something about it, then we should, regardless of some preset limit of what we "should give," you know what I mean? I guess what I'm trying to say is we just need to be generous souls no matter what our financial status, and that generosity should not be limited to the financial. In other words, we should give from all aspects of our being as generously as they come from The One who gives these gifts to us. :) If we don't have it in money, we should give it in other ways. You can't put a dollar sign in caring for an elderly friend, taking time to feed the hungry, reading to a child, or in helping a neighbor fix his roof, but to God those things are priceless - you see?
Thanks so much for your input, girls - looking forward to hearing more from all of you on this subject of saving, paying, etc....
Hugs -
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
www.papercraftingwithnini.myctmh.com
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FieldsofThyme
Farmgirl Guide & Schoolmarm / Chapter Leader
4928 Posts
USA
4928 Posts |
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nubidane
True Blue Farmgirl
2899 Posts
Lisa
Georgetown
OH
2899 Posts |
Posted - Jan 25 2012 : 1:30:49 PM
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Oh Nini
I totally agree with you on the tithe. I just mentioned it because that is part of the Dave Ramsey plan, but I know people give in many ways, all valuable.
The reasoning behind saving the 3-6 months before paying on the mortgage is simple (& also goes along with putting the 15% in retirement.)
If something were to go wrong & you had a loss of income due to an accident, illness, or job loss, etc, you would still have to pay the mortgage, lights, water, food & Murphy(who will be sure to peek his head in at this time!)
So at a time when you are stressed anyway, the emergency fund offsets that stress, & enables you to continue to live as normally as possible without the added pressure of having no income.
Once you have all of that in place, you can hit that mortgage hard.
Books that I would recommend either Total Money Makeover, or Financial Peace University. Hubs & I took the Financial Peace class. Very entertaining & fun. For both men & women alike. If you go to his website, I would also recommend listening to his radio show. I appraise for a living, so I am constantly in the car, & listen often while I am out driving.
Sounds like you are well on your way!.. |
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Tea Lady
True Blue Farmgirl
645 Posts
Lorraine
Morris
IL
USA
645 Posts |
Posted - Jan 25 2012 : 4:55:26 PM
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Nini - what kind of mortgage do you have? Are you in the beginning of the mortgage or close to the end? As I'm sure you know, you pay sooooo much interest at the beginning of your mortgage that next to nothing goes towards the principle for a long time. So if you added just a small amount each month towards your principle it will help in the long run.
I agree with Dave Ramsey as well - good common sense. I know there are differing opinions whether its necessary to have 6 months of living expenses in your emergency fund - but its a huge comfort to know "something" is there. We have a 3 month emergency fund and I'm comfortable with that. Our mortgage will be paid off in two years. About the same time, my husband will be eligible for retirement - we're not sure if he'll take it - but its nice to have the option.
I started my tea business in 2007 - using some of our savings. I went a little overboard and dug deeper into our savings than I realized, so I re-prioritized and made sure I repaid our savings ASAP... I still work part-time in my "old" job but plan to leave the company for good when this project is over in August. I attended a Dave Ramsey webinar for businesses (basically the same as personal finances - and yes, he still emphasizes an emergency fund for businesses too). I learned a lot. He talked about the companies that are debt-free and how he built his company. As far as I'm concerned, its the way to go.
Good luck with your financial journey - sounds like you're doing fantastic. Enjoy the peace that comes with it.
Lorraine
(aka Tea Lady)
Farmgirl #1819
www.birdsandteas.com |
Edited by - Tea Lady on Jan 25 2012 4:57:49 PM |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Jan 26 2012 : 2:30:13 PM
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Okay, girls - we're heeding your advice on this. My husband said it sure wouldn't hurt to have a couple of months tucked away before we tackle the mortgage - he said it actually would be a relief to him to know it is there. So I went online and ordered the download of Dave Ramsey's software to help us keep track of everything - SO cool! I had been using my own homemade spreadsheet all these years, but Dave's software is so much better. We reworked our budget, too, and included expenses that we hadn't really planned for in the past. When we ran the debt snowball, we found that even if we save half of what we'll have available after these bills are paid off, and turn the other onto the mortgage (like you mentioned, Tina), we can have a substantial emergency fund started by the end of the year, AND we can have our mortgage paid off in 5 years! Actually seeing it all on paper usually stresses my hubby out beyond belief, but this was the first time he had a big ol' smile on his face when looking at our finances! I am thrilled. THRILLED! The only thing he said was that he is leaning toward only putting a month or two worth of pay away and then putting the rest on the mortgage. His reasoning is that we could always borrow against his 401K in an emergency, and when paying it back, we'd be paying OURSELVES interest instead of some faceless institution. My feeling is that we should just get started and when we finally save a comfortable amount, THEN we can decide whether to pay down the mortgage more forcefully or continue to put that "half" away in savings. Either way, my hubby is smiling - actually happy - about our financial outlook. I like the look of "financial peace" on his face! :) We'll just keep plugging along! So - THANK YOU!!! Now we just have to keep praying that there will be no more unexpected unpleasant "Murphy" visits! Lisa - that made me laugh - it took me a while to figure out what you meant! LOL! At least now, though, like you said, we will be a little bit better prepared when they come, though, huh? Yay!!!
Kristina - that's so awesome! Can you just imagine how good it will feel to get out from under those bills?! And then you'll be able to buy a newer car when you need it, and without taking a loan! Awesome! :)
Lorraine - we refinanced with a 15 year mortgage about 3 1/2 years ago to lower our interest rate. We still have a little over 170 payments to go. I think you're right though, as are all the rest of you - it's better to put a little extra down every month whenever possible. I'm just so excited that we're finally at this point. It's been such a long journey, and it's such a relief that there is finally a glimmer of light at the end of this tunnel! :)
Lisa - I didn't mean to go off on such a tangent about the tithing! LOL! I just worry about other people feeling bowled over by a heavy yoke, that's all, and I didn't want anyone to find that to be some sort of hindrance to taking charge of their finances, you know? I think giving is a wonderful thing, definitely! :) I did end up ordering the Total Money Makeover book and workbook - thank you! I have the Larry Burkett books still here on hand, but I thought it couldn't hurt to learn about Mr. Ramsey's insight on all of this, too. I can't wait for them to arrive! ;)
Thanks again - SO very much - to all of you!
Big smiles -
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
www.papercraftingwithnini.myctmh.com
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oldbittyhen
True Blue Farmgirl
1511 Posts
tina
quartz hill
ca
USA
1511 Posts |
Posted - Jan 26 2012 : 2:46:39 PM
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So glad your hubby is at peace with it all, and I know its tuff to put away that much money every month, BUT, when you start seeing the amount grow , it is so worth it...good luck
"Knowlege is knowing that a tomato is a fruit, Wisdom is not putting it in a fruit salad" |
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tangledthreads
True Blue Farmgirl
185 Posts
Michelle
Middle Tennessee
USA
185 Posts |
Posted - Jan 28 2012 : 12:02:31 PM
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After many years of penny pinching and doing without to remodel a 1930's farmhouse and property to be debt free and having a savings account in case of an emergency, I now say along the way people should splurge on small pleasures, don't get off track but a life with no treats and all penny pinching makes the process become a burden.
Congratulations on your progress to being debt-free!!
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(¸.•´ (¸.•´Michelle Farmgirl #85
You must be the change you wish to see in the world.
Mahatma Ghandi
Well behaved women rarely make history.
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Edited by - tangledthreads on Jan 28 2012 12:05:08 PM |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Jan 28 2012 : 4:39:27 PM
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Thank you, girls!
Yay, Michelle! You GO girl!!!
It took us a loooong time, we made quite a few mistakes, did some "stupid" things, and we had a couple of mountains to climb, but we're almost there. It was hard, but it feels so good to finally be in the final stretch. I finally can see the light at the end of the tunnel and it's getting brighter every week. As the weight has lifted, I'm finding it's getting easier and easier to breathe again, you know? We've had friends along the way who have scoffed at our earnest, but now they're in a heap of trouble and seeking our counsel. I just really pray that they all will have perseverance, and not punish themselves when they get off track. I'm hoping that our example will provide them with hope and encouragement along their journey. I also think I may be buying a few of Dave's books and software CDs as wedding, college and Christmas gifts this year! :)
Yesterday when I received Dave's book in the mail, and simply couldn't put it down. Read it straight through til 4:30ish this morning. I am so impressed and "get" the whole save 3 - 6 months in expenses before paying down on the mortgage. I am really excited now! We're going to make a few changes to my husbands 401(k) allocations. We have been extremely conservative with it over the years (which I think really saved us during the crashes), but the other day my husband indicated he would like to do a little more with it. Dave's book really explained it so well. I was really excited to read his discussion about funding college. We're just a little more than three years away, but have only a very modest savings for our son's education (homeschooling hasn't been killer expensive, but it has come first). We had already discussed/planned on doing some of the things he mentioned in his book, but he really has given some great ideas for us to pursue. In fact, my cousin's husband worked for a company who put him through Harvard, if you can believe it. Something I hadn't remembered until I read the book last night. Also, I'm really thinking about purchasing the homeschool program for my son for next year, because nothing would thrill me more to see him stay on the right track financially and buy a home with cash. He's very good with his money (tries to be very free with ours, however - LOL!), and I think the course would really help him. He has already asked if he can read Dave's book, which is so great. He has a really great opportunity to work with my husband this summer. Wouldn't it be so great if he applies these principles to his own finances starting at 15 years old? Yes! Yes! Yes!
Thanks again - SO much - for everything, girls. I really, really appreciate you all so much!
Hugs -
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
www.papercraftingwithnini.myctmh.com
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tangledthreads
True Blue Farmgirl
185 Posts
Michelle
Middle Tennessee
USA
185 Posts |
Posted - Jan 29 2012 : 07:51:28 AM
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I have never read or seen tthe Dave Ramsey stuff, but it might help us get back on track with our savings..I think its great to start young with your son, something that will benefit him for the rest of his life!
*´¨)
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(¸.•´ (¸.•´Michelle Farmgirl #85
You must be the change you wish to see in the world.
Mahatma Ghandi
Well behaved women rarely make history.
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Tea Lady
True Blue Farmgirl
645 Posts
Lorraine
Morris
IL
USA
645 Posts |
Posted - Jan 29 2012 : 4:17:13 PM
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Nini - I know what you mean about past spending habits and/or "stupid" mistakes. My husband and I were just talking about that the other day. Sometimes when I think about financial choices I made in the past, I cringe. However, it doesn't help to beat yourself up over the past. Just keep focused now and as Tina mentioned, when you see how quickly it adds up, its definitely worth it.
Michelle - I also believe in treating yourself, just not going overboard. Some times a small splurge is just what you need. Its all about priorities and a bit of balance. You just want to make sure you're getting the biggest bang for your buck. We have an entertainment category in our budget and we're planning for a vacation. I just know that I feel a whole lot better now without carrying balances on credit cards or car payments, than when I was "rewarding" myself more often than I could truly afford and justifying it by telling myself I deserved it. Your remodeled farmhouse sounds like a huge reward to me. Congratulations!
Its great to read these success stories. Very inspiring. Thanks for sharing.
Lorraine
(aka Tea Lady)
Farmgirl #1819
www.birdsandteas.com |
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MississippiMama
Farmgirl at Heart
2 Posts
Donna
Central
Mississippi
USA
2 Posts |
Posted - Mar 22 2012 : 7:34:36 PM
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| When you pay extra on the mortgage ~ make sure you specify that the extra is for the principal. Dave Ramsey has a radio show also thats really good. And I think on his website you can listen to the shows also. |
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nubidane
True Blue Farmgirl
2899 Posts
Lisa
Georgetown
OH
2899 Posts |
Posted - Mar 22 2012 : 8:03:53 PM
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Dave Ramsey rocks
Unfortunately, our local stations moved him to 7-10 at might, so we rarely listen anymore, but we completed his FPU & have his books in case we need a refresher. |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Mar 22 2012 : 9:31:59 PM
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I have to tell you girls, I'm hooked on Dave Ramsey's plan, too. I have NEVER had such an efficient budget and savings plan! The more I read, the more excited I become. But you know, I look at his savings vs. cost of living percentages, then I check online to find savings and investing accounts with comparable interest rates, and I just can't find them. Is that because of the current economy, or am I missing something and just looking in all the wrong places? I know we're not at his recommended point for investing yet, but I can't help looking online just to see what's out there, you know?
ANYWAY, these sacrifices we've been making are really paying off, and it's so weird to be at this place where we actually have a little money in the savings account and enough cash for what we need. I am so grateful to God. There is such a sense of peace and contentment in our home. My husband has never before been so relaxed and at ease as he has been lately. He is very contented to know our bills are current, our savings is growing, and we even have enough cash for some fun. Last weekend we were actually able to treat his 84 year old uncle out to a special dinner at a Lebanese restaurant he had been wanting to take us to for a very long time. His uncle kept forewarning us it was going to be expensive, and he was right, it was - I haven't ever spent that much on dinner for four people in my life! When the bill arrived, my husband quickly snatched it up, of course, and paid without batting an eye. After we took his uncle home, my husband just kind of winced and became tense as he said, "Okay, so that set us back, huh? I'm sorry, I just didn't realize how expensive that was going to be." I just smiled, squeezed his hand and said, "Don't even give it a second thought. We had it set aside for a special occasion, and you made that dear old man a very happy man indeed tonight. It was worth every penny and then some." You could just see the calm wash over my husband - a massage could not have done him any better. He had been "hearing" me over these past couple of months, but he really hadn't been "listening" and letting it sink in: we can breathe a little better now; we're better prepared. We need to stay focused, we need to stick to the game plan, but we can also chill a little bit and enjoy a few things that we had been giving up for so, so long because everything - and I mean EVERYTHING - is in the budget. I'm almost afraid to actually speak the words to say we're finally at this place, to be honest - I don't want to jinx anything! ;) And it's so weird because even though we've budgeted for a few extras, I'm finding it more and more difficult to allow myself to spend anything. I just really want to be sure we're "okay" in case something happens!
Our plan now is to just keep saving through the end of this year, God willing, and next year, we move on to paying off the house. I want that so badly, I can almost taste it, I'm telling you! I am praying that we never have another life-altering financial bomb hit. At least now, though, we have a strong plan and are trying to prepare for the worst - just in case - with the help of God. Right now, I can honestly say I'm more motivated than ever. We're really and truly on our way to not owing a soul another dime. Not one penny. Absolutely amazing. I honestly never thought we'd see the day. I can't begin to tell you how SO worth the struggle and sacrifice was. If I knew back then how this was going to feel, I would definitely have been a lot more cheerful during the tough times, that's for sure! :)
So, once again - thank you farmgirls! Your sage advice, as always, has been a godsend!!! I really pray everyone who is working so hard at this will stick to it and see their plans come to fruition, too. Those of you who are trying - hang in there! You can do it! You really, really can!
Hugs -
Nini
(\_/)
(='.'=)
(") (")*
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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Tea Lady
True Blue Farmgirl
645 Posts
Lorraine
Morris
IL
USA
645 Posts |
Posted - Mar 23 2012 : 4:25:50 PM
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Congratulations Nini for making so much progress in so little time. It shows how dedicated you've been. And I don't mean to minimize your accomplishment, but as you go along, it really does get easier, doesn't it? And once you have that peace of mind, there is nothing better. Its also a good feeling to be able to splurge on people you care about, and know that you can pay for it without worry. Kudos to you and your DH.
As far as the interest rates for your investments, I think most interest rates are lower now than in the not so distant past. However, as you continue to save and are able to invest more money and capitalize on longer investment periods, you're interest will increase as well. This is my understanding - if there is an opportunity to ask this question online or call in to the radio show, I'd like to hear what he has to say too.
Lorraine
(aka Tea Lady)
Farmgirl #1819
www.birdsandteas.com |
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one_dog_per_acre
True Blue Farmgirl
1572 Posts
Trish
Sandpoint
ID
USA
1572 Posts |
Posted - Mar 24 2012 : 04:41:01 AM
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Debt free? Well that's just un-American!
“It always looks darkest just before it gets totally black.”-Charlie Brown |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Mar 24 2012 : 07:38:28 AM
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LOL! Trish! You crack me up!!! I'm telling you, though, it's really and truly do-able! I think it's as "old school" American as it comes! ;)
Thank you, Lorraine, it really is amazing. But honestly, it took a LOT of time and sacrifice. It did seem like an eternity while we were walking through the process, but we have been chipping away at this for a few years. I can't tell you exactly how long, because we weren't "jointly involved" as a couple in the plan or sticking to any "formal" budgeting plan until about four years ago. We BOTH really needed to be on board to make this happen. Only in the last month have we come to this breathing point. To be honest, it's both a relief and extremely unnerving at the same time. Past experience has taught us that things can go >KABOOM!< when you least expect it - and the stress that accompanies that kind of experience is an absolute killer. Right now we're feeling more "cautiously optimistic" than anything. My husband, though - I just wish you could see what a relief this is to him. That alone was worth the sacrifice! :) I haven't had opportunity yet to hear Dave Ramsey's program or watch his videos because homeschool this year is just so intense and time-consuming, but when school is out, I'll try to contact him and ask about the investments and interest. I'll let you know what I find out, for sure!
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(='.'=)
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Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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Tea Lady
True Blue Farmgirl
645 Posts
Lorraine
Morris
IL
USA
645 Posts |
Posted - Mar 25 2012 : 2:03:40 PM
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Nini - you're right. Things go much smoother and faster when both people are involved with in the process. DH and I still have issues we "debate" - but we're pretty much on the same page, especially now that DH will be eligible to retire in a couple years. I also agree that it takes a lot of dedication and sacrifice - but for me, once I got those debts paid off and started seeing the savings grow, I was more motivated and it seemed easier - it was just such a relief. Our biggest weakness is travel - we enjoy traveling and we have family all over. We're saving for a big trip in a couple years - until we can afford it, we're doing little weekend jaunts. Keep up the good work!
Lorraine
(aka Tea Lady)
Farmgirl #1819
www.birdsandteas.com |
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SheilaC
True Blue Farmgirl
1948 Posts
Sheila
Vermont
USA
1948 Posts |
Posted - Mar 29 2012 : 8:12:32 PM
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Nini, I'm impressed. We are trying to become debt-free and have a savings. Things always come up. Always. I haven't read Dave Ramsey, but everyone seems to recommend him. I did go to a Crown financial seminar and that was helpful. My husband has his "dream job" which unfortunately doesn't pay much, so we have to get ultra-creative in our spending. I think the only way we can do it will be through God's help.
http://troutwife.blogspot.com/
http://www.etsy.com/shop/brooktroutwife |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Mar 30 2012 : 07:05:42 AM
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Absolutely, Sheila - we couldn't have done it without the help of God. Hang tough. I think you probably learned what you needed to know from Crown financial. But for some reason, Dave Ramsey's plan helped me a lot more with the budgeting. I don't feel it's too different. It may be worth checking out his books, though. And I love his envelope system. I made my own up when Larry Burkett was still alive, and I've altered it a bit over time, but I really like Dave's system so much more - there's just something about having it all in one little case at the ready! I also really, really, really like his budgeting software. The download version is there in minutes, and then you're on your way! :)
We still encounter those things that come up, too. But what really helped was sticking our nose to the grindstone and making the necessary sacrifices to pay off all the things that were chipping away at our income. Once the debts started coming down, paying the rest off got easier, and then when finally reached THAT point, those speed bumps didn't break our stride nearly as badly. The thing we didn't do, however, was really save during that period, and I think that made things a lot harder for us in the long run. But saving didn't "seem" to be an option during that time, to be honest, because whenever we tried, something came up and sucked every penny away. Whenever we got ahead a little bit, I'd joke that God was probably sending us a little signal that something was about to go wrong and we'd need it. More often than not, that was very true. I can't stress enough the amount of sacrifice and self-control it took. It was really hard sometimes, and we made a lot of adjustments to our spending habits and ways of thinking about money. When everyone was out buying new clothes, new "toys," new furniture, going out to eat, etc., we simply weren't. Last weekend we had to break down and buy a new sofa set. I thought my neighbor was going to fall over when she saw the old one going out. We didn't buy what I wanted - we bought what we needed. Something a lot less expensive, a lot less pretty (okay - hubby loves it, I hate it - it's ugly), but sturdy and do-able. We figure our son won't be going off to college for another three years, which means about four summers and so many weeknights and weekends in between where they will trash the furniture (even though they really do try). Once he's gone, THEN I'm splurging on what I really want so that I can enjoy it! 'Til then, we have settled for something much more reasonable. Same thing with the carpeting - until our beloved semi-incontinent dog passes, no carpeting or new flooring! It'd be a waste!
Once my hubby was on board (you are SO right, Lorraine!), the money arguments stopped, the "free spending" and ATM visits on his end stopped - it was SUCH a blessing. When he started noticing the difference his efforts made, he became really motivated. He was never one to blow money on big things for himself, but he would nickle-and-dime our budget to death. He didn't understand why his money simply disappeared. The ATM was the worst - if he felt he "needed" money, he'd go to the ATM, see a balance, and take some. What he couldn't process was that just because there was a balance didn't mean that there was money available for spending. He didn't get the whole thing about it taking a few days for a check payment to clear. Can you say, "big honkin' headaches?" Yeah, trust me. The world will never know! When he finally hopped on board, and I showed him what a REAL budget should look like, I thought he'd have a stroke. He promised to work with me on the whole finances issue, but he just couldn't handle it - it stressed him out too much. What ticked him off the most was the cost of cable (if we want to watch television at all, we need it) - and that was the last straw. I was on my own at that point as far as paying the bills, but he did start turning over his paycheck without any questions afterward. And although he didn't ask me to do so, I felt it was super important to always have a little cash available if he were to ask for it. $10 here, $20 there... It didn't hurt the budget at all, really. In my book, he earns it, he needs to have a little fun money every now and then - don't we all? What was hardest on me was "gift" days - birthdays, holidays, anniversaries... But I became very creative, too; nobody suffered. It's just something you work at until you find your groove, I suppose. In the end, when you can breathe - all that stick-to-it-ness is just so worth it! So hang in there, Sheila! You'll get there! It just takes a lot of time and perseverance!
Hugs -
Nini
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(='.'=)
(") (")*
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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Edited by - Ninibini on Mar 30 2012 07:09:35 AM |
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Nifty Thrifty: Almost Debt-Free! What next??? |
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Almost Debt-Free! What next???
