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Nifty Thrifty:  Almost Debt-Free! What next???  |
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Rosemary
True Blue Farmgirl
1825 Posts
Virginia
USA
1825 Posts |
 Posted - Apr 27 2012 : 09:06:32 AM
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I got Dave Ramsey's book (the one with the baby steps) and found it very helpful. It's such a popular book that you might find it in your library or at a used book store, cheap. You don't need to be a Christian to benefit form his advice.
My husband and I recently refinanced our mortgage down from 20 years to 15 and at a much better interest rate than we had before. There was no change in the monthly payments overall, but after 15 years, we'll own the place and will have saved oodles in interest payments. If we'd stayed with the 20 years, we could have significantly reduced our monthly payments. We went through Lending Tree.
Good luck with reaching your goals! I applaud you for having done so well already! Yay! |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Apr 28 2012 : 07:56:04 AM
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Absolutley, Mara! I don't think I really found a lot of Christian concepts "pushed" in his books at all... I just think the 10% or tithing aspect - the aspect of giving - is taught... But even if you are not a Christian, I'm willing to bet that as a farmgirl generosity and caring for others is definitely part of your make-up! ;) Giving is a personal decision, a heart thing. I personally find giving is a good thing on many levels - but never if you "expect" to receive in return. The good inside of a person just simply seems to flow in a giving direction!
Thank you for your support - it's such an encouragement to me! I'm just a girl like you - we all have struggles getting where we want to be, but we'll get there chipping away at things a little at a time, I'm convinced of that. We did refinance a couple of years ago, but what that did for us was (1) shorten the length of our loan (15 instead of 20, like yours), and it really did lower our interest rate so that more money was going to principle than to interest. Next year we're really planning to pound away at the mortgage, and because we had refinanced it will be a lot easier to see the principle go down and the mortgage fade away. Had we not refinanced, it would've taken us much longer to reduce the principle. Now, we have a very good chance of paying it of in a couple of years vs. the 15... It's just going to take a lot of diligence and sacrifice, which we have become accustomed to. When I think of where we were only a few short years ago and where we are now, I sooo wish I could write our former selves a letter and show what our financial picture has now become - it would've been great incentive. We're hardly wealthy - we still have an extremely modest savings (most would probably laugh!), but it's a start, and it's something we never were able to do before - or, rather, something we never committed to do before, you know?
I have to say, recently I have had to deal with a health situation that has really hit the pocket book hard, even though we have health insurance and supplementary coverage. Thank goodness that we have "planned ahead" and had a little bit squirreled away for an emergency. This was the first time in our lives that a speed bump like this hasn't crushed us financially. We didn't have enough saved to cover everything, of course, but what we did have prevented us from serious financial strain. That is something that I really appreciate about Dave Ramsey's books - he really explains why saving is so important. It really saved us this time around - thank God!
I'm so glad you got that book and found it helpful... you really would think you'd find it at the bookstore... or even at a big box store like Costco (I'm always looking!). You can definitely find them second hand on ebay. My plan is simply to continue to pass mine around between family friends. It's so cool to see people getting excited about it - and it really does make a big difference when we're all working toward the same goal!
Good luck with reaching YOUR goals, too! I know you can do it!
Hugs -
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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nancypo
True Blue Farmgirl
362 Posts
nancy
boise
idaho
USA
362 Posts |
Posted - Jul 18 2012 : 09:49:30 AM
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I don't know if this is a dead thread... but, we recently did some retirement/financial planning, so here's a few ideas-
We pay our mortgage every 2 weeks, which addes quite a bit to paying it off early. You get tax breaks for not paying off early, so that's a thought. The other thought, depending on your age- if something happens to you both in a period of time, and your home is paid for- who would it go to? Kids, friends? It can be tough selling off a home as part of an estate...
We refinanced our 3 year old car and saved 3 pts. We'll pay it off a year earlier.
We consolidated our remianing credit cards (which we have almost eliminated thru diligent big, extra payments) to a low interest signature loan thru a credit union, we're almost done there.
DO NOT start a college fund, if you have kids, plan your retirement funds FIRST. We helped 3 kinds thru college and only co-signed 2 small loans. They should use student grants & loans FIRST. If they are responsible for their own education if makes them much more invested (excuse the pun) in doing well, keeping their grades up and finishing. If you put them thru college and it breaks your bank, where does that leave you? Not in a good place... And teach them (if you haven't already) how to create a good credit history. Or kids took a basic "how to use a checking account" class in high school. WE sat them down and taught them about establishing credit to get 1 credit card for emergency use, and keep it paid off. They had a few bumps, but in their mid 20's they all have good credit! Can't buy a home with it...
Save, save, save. We had 2 hospitalizations, one emergency, and one for hubby's shoulder surgery. The costs were really tough. If we'd had more savings, it would have really taken the mental load off us...
I buy most of my clothes used, and we don't live the same urban life as most (check out my blog) BUT we're happier and don't have the $$$ worries of most either :) Good luck!
Be the change...
http://littlehomesteadinboise.blogspot.com/ |
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MagnoliaWhisper
True Blue Farmgirl
2817 Posts
Heather
Haysville
Kansas
USA
2817 Posts |
Posted - Jul 18 2012 : 10:15:04 AM
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I know you already made your choice, but I too probably would of chose the mortgage if you think you could in just a few years...if it would be like 20 years then yeah, savings first. But, I feel the mortgage is really the only huge thing if you lost a job, so if it was paid off you wouldn't have much worry if you lost your job-food, there's food banks, and soup kitchens to rely on, along with food stamps, wic etc etc. So I don't worry about food when poor (and yeah I've been dirt poor before and have eaten food bank food, and soup kitchen food, heck we still go to the soup kitchen sometimes!). Electric, and other bills, usually there is programs through red cross and such if you are in a dire situation. It's that mortgage that you are stuck with figuring out on your own or lose the house. I would feel best with it paid off.
I agree with you about tithing, my belief is that tithing ended with Jesus ransom sacrifice, as did the other Jewish laws, and now we are under a different law. I still believe in giving no doubt, but in our religion there is no passing of plates, no mailing of envelopes and no tithing, people give secretly (in a box at the back) what they want, and mainly give of their time, and energy. All things in our congregation are on volunteer basis no one is paid to mow the grass, to get a sermon, etc, all that is free and voluntary. The only money out in our congregation was the price of materials to build-as the time and labor to build was volunteers as well, and the electric, and such bills as that, but no one is paid to work for our church-ministers, gardeners, etc. All that is members of the congregation volunteering as we believe in the it was given to your freely so freely give back. ;o) But that's all another subject. lol
http://www.heathersprairie.blogspot.com |
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kysheeplady
True Blue Farmgirl
1291 Posts
Teri
KY
USA
1291 Posts |
Posted - Jul 18 2012 : 10:30:33 AM
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We have been debt free for 8 years now. And in today's ecomony, I can't tell you how very thankful I am for that. If either one of us were to lose our jobs, they could never take our home, which to me is very important. I can cut back here and there, but you have to have a place to live.
We have never lived above our means, and don't care to keep up with what is new, hot or must haves. We take care of what we do have and pay cash for MOST everything.I do have ONE small loan out, only to retain a credit score.
It can be done, just have to keep your eye on the prize!
Teri
"There are black sheep in every flock"
White Sheep Farm
www.whitesheepfarm.com |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Jul 18 2012 : 9:27:48 PM
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Thank you SO much, Nancy, for sharing your insight and your sage advice! AWESOME!!! I hear you! I recently had some unexpected medical problems, and the copays alone have been hitting us hard. We had been doing so well and keeping on track with the budget, our spending and the savings, but when the bills started coming in, our savings took a hit. Thank GOD we had saved what we did, though. It wasn't much, but if our savings hadn't been there, that money would've come out of our budget and REALLY set us back. We're still not all caught up, but we're plugging along, slowly recovering from the financial setback and putting a little bit away every week. Our savings is pretty pathetic right now, but it's only the beginning, right!? ;) You have to start somewhere! It's just hard not touching what is in there right now. Although modest, it still beckons to fill our pressing financial needs, you know? I'm sure we'll get there, though - we did it once, we'll do it again! Not gonna worry! :)
Heather - thank you for your thoughts, as well! You know, with the way the economy is going, I've been really considering doing more of a stock up of necessities and putting off paying down on the house for a little while longer. I really would feel a whole lot lighter knowing the mortgage is paid off, but I had heard a report on the news the other night that even the food banks are really hurting now because so many people have had need of them, and so few people are able to contribute to them. I believe it's going to get much worse before things improve. I am just trying to get ahead a little bit at a time by stocking up on things so that when the prices skyrocket next year (they say this year's prices are only a foreshadow of what is to come), we will not have to blow all of our income on groceries and other needs. Your words ring very true, however - in the worst of times, it's the mortgage that causes the most stress. We're going to have to really think this one over again... Thank you for pointing that out!
Teri - KUDOS to you! What a weight off your shoulders to know your home is yours, free and clear! I know if it were me, I sure would sleep better at night! We pay cash most of the time, too. Seeing what you have to spend, and knowing how little you'll have after making a purchase sure makes you think twice! You're right about keeping focused. With everything going on here lately, we haven't been nearly as focused on this as we were prior. I've been getting this nagging feeling about it for the past few days, and now Nancy posted and it seems as though you, Nancy and Heather are "meant" to spur me on! THANK YOU!!!
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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nancypo
True Blue Farmgirl
362 Posts
nancy
boise
idaho
USA
362 Posts |
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Carolina Farm Girl
Farmgirl in Training
10 Posts
Mary
Darlington
SC
USA
10 Posts |
Posted - Dec 27 2012 : 1:51:43 PM
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| Congratulations! That has got to be an awesome feeling. We are just starting a "serious" journey to paying down debt. The end goal is to pay cash for a farm. |
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Dec 27 2012 : 5:33:34 PM
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Good for you, Mary! It's not easy to stick to it at first, but once you get in the swing and see the debt coming down, you will be thrilled, energized and eager to pay down even more! It's sooooo totally worth the effort. Just stay strong! Remember, too, that if you hit a little speedbump or backslide a little bit, don't beat yourself up: just hop back on the path and move forward! And if you need support, please know the farmgirls and I are here for you! Good luck! Hugs - Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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Ninibini
True Blue Farmgirl
7577 Posts
Nini
Pennsylvania
USA
7577 Posts |
Posted - Dec 27 2012 : 5:45:31 PM
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I just have to share with all of you, too, that my hubby was Christmas shopping on Christmas Eve (it's a sport to him... personally, I think he's nuts). He was in line at one of the stores and this guy behind him was full of woe, freaking out about the cost of Christmas this year, and about the credit card debt he was racking up, especially buying her all the expensive gifts she expected. My husband shared with him how we did away with the credit cards years ago, and how at first it was difficult, but in time the debt started to come down faster and the cash flow in the budget became easier (not perfectly there yet, but easier). The guy was amazed that my hubby was buying me such an inexpensive gift (a silver chain for my crucifix, 75% off, ridiculously priced low... the original broke last year and could not be repaired), and that I would be satisfied with just that one thing. My husband told him that he was the luckiest guy in the world because I would've been happy with no gifts at all. The guy said his wife would never put up with that. Then the guy about fell over when my hubby paid cash. He said that he never has cash - ever. They do everything by credit cards. He said even if he decided to shoot for no credit cards, cutting back and working towards being debt-free, his wife would never go for it because she has certain standards and he is expected to ensure he meets every one. My husband couldn't get over it. He said he didn't know which one he felt worse for - the husband or the wife. He came home, wrapped his arms around me, swayed gently to and fro, smiled and stared at me for a little bit before planting a big wet one smack dab on my lips. He said that he was the richest guy in the world because he has me. Now, THAT, I tell you, is worth more than all the gold and glitter and things the world has to offer. I don't know that couple's names, but please say a little prayer for them. You can almost see the train wreck coming. Hopefully something will waken in both of them before it's too late. So sad. I just feel so bad for them. 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 - Dec 28 2012 : 06:19:12 AM
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Oh Nini - that's a wonderful story and a Christmas gift for all of us. You and your husband are both very blessed. Thank you for sharing.
My husband will be eligible to retire in ~ 2 years. So in 2013, we're planning to live on what he will be receiving from his pension - to see if its feasible. My husband is relatively young to retire, and he plans to work at least part-time (doing something he really likes), but we don't want him to "have to" work. I still work part-time at something I love. We have no debt - except our house and it will be paid off in less than two years. It is soooooo worth it to have these options in our 50s... I also feel sorry for those who don't get it.
Lorraine
(aka Tea Lady)
Farmgirl #1819
www.birdsandteas.com |
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Nifty Thrifty: Almost Debt-Free! What next??? |
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Almost Debt-Free! What next???
