In the past two weeks, life took a chaotic turn but in a positive way. Currently, we have our house for sale with no intentions of buying another house when this place sells. But we still need to live somewhere and, due to the cost of living in our area, an apartment would be almost twice as much as our current mortgage, robbing us of all the extra cash we have been throwing at our debt.
Any decision that leads us away from paying down debt is the wrong decision.
So we opted for a radical concept of living that I won't get into just yet, but it required an initial investment leaving us with a little more debt (though dramatically less than if we chose another mortgage). I know it seems backwards to accumulate debt in order to get out of debt, but the math did not lie. Our initial investment, upon selling our house, will save us quite a bit each month leaving us with even more money to throw at our debt in the long run.
Sometimes saving money is all about playing the games. I hate the games. The games are what confused me for years keeping me in the same awful loop because I was so bad at playing them. But over the past year, I have become much more educated in the realm of debt, loans, interest and game-playing, leaving me very confident in the road we have decided to take.
Our debt pay downs are still 100% on track and will only improve in the months to come!
Another Paid Off!
While I have not been very active in keeping this blog up-to-date, things have certainly still be debt-focused around here. I am so excited to announce that we just paid off our second credit card since starting our debt-free journey! What an amazing feeling!
On top of paying off the second credit card, we also have our savings up to a more comfortable level than before ensuring that even a major expense would not have us whipping out credit cards or totally depleting our funds. Things are right on track!
The best part about having two credit cards down is the snowball effect. Dave Ramsey is a genius. The beautiful number that we are now paying toward our third credit card shrinks the payoff from three years to one year. Think of the interest savings! Of course, we are hoping to throw enough at it to have it paid off well before the full year, but it is comforting to know that we can do it in a fraction of the time even if we can't throw any additional funds at it.
Where does this leave us? We now have two credit cards left (down from four), a car payment (horrible past mistake), student loans and a mortgage.
Still sounds like a lot but with plans set in place, it seems less daunting to tackle especially considering how impossible it felt just a short time ago to pay off the two credit cards that are now a thing of the past.
Dave Ramsey recommends mini-celebrations to keep the fire going, but honestly, the feeling of paying off the debt is celebration enough to fuel me!
On top of paying off the second credit card, we also have our savings up to a more comfortable level than before ensuring that even a major expense would not have us whipping out credit cards or totally depleting our funds. Things are right on track!
The best part about having two credit cards down is the snowball effect. Dave Ramsey is a genius. The beautiful number that we are now paying toward our third credit card shrinks the payoff from three years to one year. Think of the interest savings! Of course, we are hoping to throw enough at it to have it paid off well before the full year, but it is comforting to know that we can do it in a fraction of the time even if we can't throw any additional funds at it.
Where does this leave us? We now have two credit cards left (down from four), a car payment (horrible past mistake), student loans and a mortgage.
Still sounds like a lot but with plans set in place, it seems less daunting to tackle especially considering how impossible it felt just a short time ago to pay off the two credit cards that are now a thing of the past.
Dave Ramsey recommends mini-celebrations to keep the fire going, but honestly, the feeling of paying off the debt is celebration enough to fuel me!
Setback or Victory?
Yesterday, my family had the pleasure of waking up to 20 degree weather and a furnace that was dead. The house was quite chilly and I was beyond grateful for the number of space heaters we have that kept the living area comfortable for the kids. My husband made the call nice and early to get some guys out to take a look at it. We prayed for a cheap fix as the unit is only a couple of years old.
After two hours of diagnostics, guesses and more diagnostics, they determined the problem and repaired it easily. Only a couple of old broken wires, thank goodness, but the total was still $160 which is no small chunk when every penny is well-budgeted.
Praising God that it was only (my husband hates when I use that word associated with money ;-)) $160, I looked at the budget and felt huge relief that I could easily tweak some items to fit it right in. No credit. No savings dent.
Initially, I looked at it as a setback. I was frustrated and kept thinking what else that $160 could have gone towards, but if I have learned only one thing on this debt-busting journey, it's that mindset is everything.
Negativity like annoyance, anger and victim mentalities only exacerbate situations. It only fuels the mindset that things will never get better and goals will never be reached. Instead of holding that mindset, I chose to look at this as a victory. We had the cash available and because of budgeting every penny, we could make the unexpected cost work. I can look at the situation with thanksgiving and positivity which makes pushing for some extra savings next month feel like an exciting challenge as opposed to an unfair chore of circumstances.
Setback or victory? Definitely a victory.
After two hours of diagnostics, guesses and more diagnostics, they determined the problem and repaired it easily. Only a couple of old broken wires, thank goodness, but the total was still $160 which is no small chunk when every penny is well-budgeted.
Praising God that it was only (my husband hates when I use that word associated with money ;-)) $160, I looked at the budget and felt huge relief that I could easily tweak some items to fit it right in. No credit. No savings dent.
Initially, I looked at it as a setback. I was frustrated and kept thinking what else that $160 could have gone towards, but if I have learned only one thing on this debt-busting journey, it's that mindset is everything.
Negativity like annoyance, anger and victim mentalities only exacerbate situations. It only fuels the mindset that things will never get better and goals will never be reached. Instead of holding that mindset, I chose to look at this as a victory. We had the cash available and because of budgeting every penny, we could make the unexpected cost work. I can look at the situation with thanksgiving and positivity which makes pushing for some extra savings next month feel like an exciting challenge as opposed to an unfair chore of circumstances.
Setback or victory? Definitely a victory.
Holidays
So this month feels like it has been a success so far. All of the holiday shopping is done and I am feeling really good about where we have landed financially. Sometimes the end of the year is just a matter of holding ground rather than making progress.
We have been able to get our savings back up to a comfortable level, though still not as high as I would like. The goal is to finish that out at the beginning of next year. We have not been putting extra money toward debt the past couple of months as we have been getting our savings up to snuff, but I am okay with the little lag because the payments are still being made and no extra credit is being accumulated.
My income is staying steady as I work on some long term projects and my husband has managed to do some selling which is helping immensely in extra cash. Eating out could be sliced down a little more so I am planning on no more last minute fast food stops for the remainder of the month.
So a quick and simple update just to say that we are staying on track even through the holidays and in some areas, doing better than I had hoped. Once Christmas is done, it is back to hard core focus and throwing extra money at those debts!
Merry Christmas!
We have been able to get our savings back up to a comfortable level, though still not as high as I would like. The goal is to finish that out at the beginning of next year. We have not been putting extra money toward debt the past couple of months as we have been getting our savings up to snuff, but I am okay with the little lag because the payments are still being made and no extra credit is being accumulated.
My income is staying steady as I work on some long term projects and my husband has managed to do some selling which is helping immensely in extra cash. Eating out could be sliced down a little more so I am planning on no more last minute fast food stops for the remainder of the month.
So a quick and simple update just to say that we are staying on track even through the holidays and in some areas, doing better than I had hoped. Once Christmas is done, it is back to hard core focus and throwing extra money at those debts!
Merry Christmas!
Rebuilding
The most frustrating piece of paying off debt has occurred. We had a setback that took pretty much all of our savings and a portion (albeit, incredibly small portion) also wound up on a credit card. Ouch.
First of all, I am grateful that we had the savings to buffer the blow otherwise our credit would have taken a much bigger hit. My biggest regret is not having more savings. We had the $1,000 recommended by Dave Ramsey and the rest of our money was going straight to credit cards. Sounds good in theory, but once put into practice, $1,000 disappears quickly in a bind.
Another upside is that the amount that needed to be put onto a credit card was so small that it is a hiccup in the grand scheme of paying off our debt. It will only take a month or for the evidence of that credit to disappear.
But now we are left paying the bare minimum on each of our loans until our savings is back up to snuff. Personally, I want it more than up to snuff. I want it to be twice what it originally was, just in case. There will always be the possibility of extreme circumstances that can sap your savings dry which, short of being a millionaire, are unavoidable. But I still feel a little gun-shy when it comes to using our credit cards, so taking a little extra time to bring the savings higher than we originally intended holding it at is well worth it to me.
Luckily I chose this month to really slash groceries, and it was a complete success. Having that extra money has been a blessing. I have also locked down another income source for myself which I am hoping will help as well. I have been double-timing on finishing my second book and optimizing the monetization of my blogs. All in all, things are moving forward. One step back, two steps forward. Staying positive is key and recognizing that my mentality is much different than the one that aided in our debt-laden lifestyle helps me to not feel as down on needing to use a credit card.
The month of November will be a hardcore savings month. My goals are:
I whole-heartedly recognize that I am asking a lot of myself financially, especially as we enter the holiday season, but having a strict plan is key to getting ourselves back to where we wanted to be. I am adamant that this set-back does not hinder our long-term goals and plans and that is going to require a lot of hard work. What was demolished can be rebuilt.
First of all, I am grateful that we had the savings to buffer the blow otherwise our credit would have taken a much bigger hit. My biggest regret is not having more savings. We had the $1,000 recommended by Dave Ramsey and the rest of our money was going straight to credit cards. Sounds good in theory, but once put into practice, $1,000 disappears quickly in a bind.
Another upside is that the amount that needed to be put onto a credit card was so small that it is a hiccup in the grand scheme of paying off our debt. It will only take a month or for the evidence of that credit to disappear.
But now we are left paying the bare minimum on each of our loans until our savings is back up to snuff. Personally, I want it more than up to snuff. I want it to be twice what it originally was, just in case. There will always be the possibility of extreme circumstances that can sap your savings dry which, short of being a millionaire, are unavoidable. But I still feel a little gun-shy when it comes to using our credit cards, so taking a little extra time to bring the savings higher than we originally intended holding it at is well worth it to me.
Luckily I chose this month to really slash groceries, and it was a complete success. Having that extra money has been a blessing. I have also locked down another income source for myself which I am hoping will help as well. I have been double-timing on finishing my second book and optimizing the monetization of my blogs. All in all, things are moving forward. One step back, two steps forward. Staying positive is key and recognizing that my mentality is much different than the one that aided in our debt-laden lifestyle helps me to not feel as down on needing to use a credit card.
The month of November will be a hardcore savings month. My goals are:
- Groceries - $350 (for a $200 savings)
- Eating out - $25 (meaning only one emergency eat out allowed for the month)
- Zero extra expenses
- Increasing my income by $100
- Finishing half of my book
I whole-heartedly recognize that I am asking a lot of myself financially, especially as we enter the holiday season, but having a strict plan is key to getting ourselves back to where we wanted to be. I am adamant that this set-back does not hinder our long-term goals and plans and that is going to require a lot of hard work. What was demolished can be rebuilt.
Grocery Tweaks
One of my favorite ways to save extra money is through grocery shopping. It is a flexible expense that simple changes can alter. Currently, my family is in a phase of life with growing children, so grocery costs are growing. It seems I have not been able to save any money in the past few months to put towards debt, and this bugs me.
I feel like there is an untapped money source just sitting there, waiting for a few tweaks to make it aid in our debt-free goal. A few weeks ago I purchased the book Family Feasts for $75 a Week
by Mary Ostyn. I have read her book, A Sane Woman's Guide to Raising a Large Family
and have been an avid follower of her blog Owlhaven for several years, so I was excited to gather some more of her money-saving tips. The book is wonderful and is filled with some great recipes that are not a huge change for our family making it easily doable.
I also use the Food Planner
app to really streamline my shopping and menu planning, plus a couple more apps to help me compare prices. With all these tools, I am hoping to have a few good months of grocery planning to save a couple hundred dollars.
A couple years ago, when I blogged on TheNorthForty, I would do what I called Power Saving Months where I would use up every last thing in our pantry and freezer, becoming extremely creative and buying only the bear minumum in groceries. This would save us an extra $100 to $200 in a month. This is my goal for this month.
I have all ready spent $250 on groceries this month which included a monthly trip our local club store. Currently, we have a lot of odds and ends in the house which leads me to believe that, with a little creativity and planning, I may be able to finish out the month with only $150. This would save us $100 this month to use toward debt. I am also hoping this goal will jump start me back into some old habits in order to save a little more in future months.
You can follow along with my monthly grocery spending on the sidebar to the right. Wish me luck!
I feel like there is an untapped money source just sitting there, waiting for a few tweaks to make it aid in our debt-free goal. A few weeks ago I purchased the book Family Feasts for $75 a Week
by Mary Ostyn. I have read her book, A Sane Woman's Guide to Raising a Large Family
and have been an avid follower of her blog Owlhaven for several years, so I was excited to gather some more of her money-saving tips. The book is wonderful and is filled with some great recipes that are not a huge change for our family making it easily doable.I also use the Food Planner
app to really streamline my shopping and menu planning, plus a couple more apps to help me compare prices. With all these tools, I am hoping to have a few good months of grocery planning to save a couple hundred dollars.A couple years ago, when I blogged on TheNorthForty, I would do what I called Power Saving Months where I would use up every last thing in our pantry and freezer, becoming extremely creative and buying only the bear minumum in groceries. This would save us an extra $100 to $200 in a month. This is my goal for this month.
I have all ready spent $250 on groceries this month which included a monthly trip our local club store. Currently, we have a lot of odds and ends in the house which leads me to believe that, with a little creativity and planning, I may be able to finish out the month with only $150. This would save us $100 this month to use toward debt. I am also hoping this goal will jump start me back into some old habits in order to save a little more in future months.
You can follow along with my monthly grocery spending on the sidebar to the right. Wish me luck!
Community Yard Sale
This past weekend, we decided to take part in a community yard sale. It is one we have driven past often as they do it a few weekends a year and yet never considered giving it a shot. But with our new debt-busting mentality, it just seemed right when we saw the advertisements.
Since I am a pretty extreme minimalist, I constantly go through our belongings and purge things that we haven't used for a while, but I usually pack it up and donate it. This time we went through every closet and cabinet and tagged it for the yard sale. The idea of making money off of things we barely use made decisions much easier. Even if something only got us a dollar, it was still better than nothing, so off it went.
Considering the amount of time we spent purging, tagging and actually standing around our table at the sale, I consider it a huge success. We made a couple hundred dollars which figured to about $25 an hour of actual work. Not too bad in my book!
Unfortunately, none of that money went to paying down debt as there was another large purchase that we had been putting off. But the huge upside is that we could make the purchase with cash! No debt and no reaching into our emergency fund.
It feels so great to make some quick extra money that we are definitely going to do as many yard sales as possible in the future. We have larger furniture that we are hoping to get rid of as well, so the next project is calling around consignment shops and seeing if we can get good deals. If not, they will be Craigslist bound!
Since starting this journey, it amazes me how much differently we approach situations. From needs and prioritizing to handling setbacks to making extra cash. So much of our debt culture is in the mentality. I am really excited to finally be in the right frame of mind to take back our finances!
Since I am a pretty extreme minimalist, I constantly go through our belongings and purge things that we haven't used for a while, but I usually pack it up and donate it. This time we went through every closet and cabinet and tagged it for the yard sale. The idea of making money off of things we barely use made decisions much easier. Even if something only got us a dollar, it was still better than nothing, so off it went.
Considering the amount of time we spent purging, tagging and actually standing around our table at the sale, I consider it a huge success. We made a couple hundred dollars which figured to about $25 an hour of actual work. Not too bad in my book!
Unfortunately, none of that money went to paying down debt as there was another large purchase that we had been putting off. But the huge upside is that we could make the purchase with cash! No debt and no reaching into our emergency fund.
It feels so great to make some quick extra money that we are definitely going to do as many yard sales as possible in the future. We have larger furniture that we are hoping to get rid of as well, so the next project is calling around consignment shops and seeing if we can get good deals. If not, they will be Craigslist bound!
Since starting this journey, it amazes me how much differently we approach situations. From needs and prioritizing to handling setbacks to making extra cash. So much of our debt culture is in the mentality. I am really excited to finally be in the right frame of mind to take back our finances!
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