I've Been Very Weird Lately
I JUST remembered something WONDERFUL happened this week, and I didn't blog about it...
Thrifty Decor Chick reminded me with her post... Gah! I can't believe I didn't tell you guys!!
Have you heard of Dave Ramsey ? If you haven't, you might want to. He says people who don’t have debt are WEIRD. That’s what he says. “Debt is normal…be weird.”
I PAID OFF MY LAST REMAINING CREDIT CARD!!!!!
YES, I really did. I hit SEND and that sucker was GONE! BLAMO!!!!!!
I read Financial Peace years ago. My cousin followed it with her family - Success! My brother follows it with his family - Succcess!! So I started following it gently about 4 years ago - I had about $5ok in debt that I can remember (not including the house). I'm not proud of that fact, I'm really not. Then again, my salary was pretty great so I wasn't toooo worried.
Idiot me - young idiot me, right? That kind of thinking is what I was up against. Ugh.
Well... I talked through the Financial Peace ground rules with hubby and we started doing it. Snicker. Snicker.
No really... Be serious...
Within the 1st 2 years of the plan we knocked out ALL of our car loans, and all but 1 credit card each. When we had Jim we had a harder time paying things of quickly, but all of our work bringing down our debts allowed us to pay for the non-covered portion of an IVF, all the hospital bills, and a GREAT daycare and still have $ coming into our savings each month.
In 2009 (the year after Jim was born) I managed to pay 1/2 down on a brand-new car.. Yes, in cash. You can still do that, you know, pay cash. :) I have a 2 yr old car and I owe only $5,000 on it now. Really.
FTR - I had to have a car after Jim was born due to safety and medical reasons. I searched and shopped and waited and searched until I found JUST the right deal on a new car. That new car was only $1 - 2 K more than the next 2 yr models that were selling used, so it made sense to buy new, but Dave (the FP guy) would have said to buy used. We disagree, it's OK, I still love him.
Oh, and in 2010, when there was no insurance for our IVF, and they told me to pay up front. I wrote them a big fat check, paid in full. Done. Yep. No bills from that either.
OK, so now I have a student loan to focus on, a car to finish paying off (I pay way more than the min each month), and I'm done. Done with debt, other than the house. If all goes well, that is. Oh, and you naysayers out there are thinking "It doesn't always go well, you could loose a job, yada yada...). YEP! That's why the Financial Peace plan starts with building your emergency fund. So you have cash money in the bank, just in case. No, it won't keep me afloat for long. I realize that, but it just might be enough to get me to the other shore of a menacing jobless sea of sorrow.
I AM SO EXCITED - and PROUD of myself. I really am.
pat. pat. pat. I might need PT after this, but I'm glad to be patting my own back for once!
5 comments:
Awesome job! It is good to be weird in this case, too! :-)
I think I do a pretty good job with our finances (but I haven't read FP). We've paid for all 5 IVFs out of pocket plus the 2 FETs. I have a bit left on the last IVF, a car payment, and the house loan. That is it. Not bad, I think. (Patting myself on the back!) We should get a sizeable tax return due to the medical itemizing I am doing, which will clear the IVF bill, too. Whoot!
It's not weird to want to pay off personal debt - it's good advice! Although different advice applies for investment debt, as has been given to me. Anyway. It sounds like you're doing well on your financial goals, so well done.
Bea
That is AWESOME!!! BigP received that book in '09 (I think) and read it and we have been eliminating debt but not as strictly to the plan as we should be - for the sake of our marriage...
Awesome! Good for you!
Whoo hoo!
The mister and I don't keep credit card balances, and have a healthy emergency fund, due to his naturally frugal nature. Ever since the "possible MS" diagnosis, I have been on a rampage to get rid of any load, including our mortgage. I carry a cash-only system I got from Dave Ramsey's site now. Even with two kids in full-time day care, we should pay off my new car I bought last year by the time this girl is 1, save the cash to buy a new truck for Mr S and pay off my remaining student loan one year later. By 6 and a half years from now, our mortgage should be paid off as well. I am so excited about the thought of getting to build our dream house and possibly pay for 80% in cash (round house, geothermal heat, built-in bookcases).
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