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I'm Halfway There!
Jan. 15th, 2021 05:37 amHOLY SHIT, I MADE IT!!!! Thoughts, revelations and resulting brain dump at the halfway point on a debt free journey:
Today, I can declare that I've made it to my #1 GOAL in my Debt Free Journey, which is being down to my LAST two (consumer) debts- my car loan through my local credit union (2.4% interest), and a Visa through the same (7%). The reason this was the first real bench mark for me is because, while they are the highest balances in my snowball, they are the lowest interests and will bang out quickly. Plus, they're local from a co-op..... All the little ankle biter debts are paid and GONE!!!
I'm not against charge cards, never have been. I've just learned that I'm not GOOD with them. Why create debt if I have a savings (well, besides the obvious cash back or air miles)? I remember a time as a single mother, when every card I owned was maxed out simply because I didn't know how to manage the money I brought home. That debt was money borrowed that I didn't have to spend in the first place! If there's one thing I've learned, it's that if I can't afford the item or the emergency with actual money or savings, I probably don't need it at all (unless of course, it's a major expense like a well or septic). It's hard when you're on your own with 4 children at home.....I'm not alone anymore and I am so grateful. At this point in time, over a year later....I have the money to back words up, at the very least.
In October of 2019, after filling our 1K emergency fund back up (flood-wipe out-start again)....I started my zero based budget/cash envelope debt payoff journey. At that point, I was looking at 10 lines of credit equalling almost 24K. Personal loans, furniture, appliances, vet bills, Amazon and Paypal, Capital One and Discover cards, car loan and personal charge card....
I found myself at a point where I had NO extra money to speak of and it was a very slow process in the beginning. All of the debts we accumulated together were on my spreadsheet to pay monthly (I've declared myself the accountant of the household so basically I get to figure out HOW to pay for everything). Jeremy really wanted nothing to do with the finances so let me take control with the money he gives me every paycheck combined with my income.
Seems we'd have a lot of extra money if I was putting it in savings rather than throwing at the debt....but that's what I'm doing this for, to be ABLE to save. That's definitely the one thing I'm following from Ramsey, 1K in savings while you pay off all consumer debt. And Jeremy admits to knowing nothing about how credit card bills work and finding himself in trouble. It really is better if I just deal with it and he pays me a little extra to make sure his stuff is paid on time.
So here I am, down to car loan, and my credit union card. A total of $11,336.08 remains of my lowest interest debts. I've paid off $12,346.20 of that $23682.26. I would probably be way closer had we not needed emergency vet care and wisdom teeth removal....but it was easy enough to take care of by halting the snowball and cash flowing those bills, jumping back into the snowball fight when paid.
It's so easy to get tired of sacrificing, and being frustrated at the long haul though. Seems I'm OVER HALFWAY THERE, financially and time wise. I know I wouldn't be able to do this without my premium pay from my work through COVID. I took advantage of that bitch and used it!! So, here we go....snowball is rolling downhill now and my payments now that I'm on the car are (at least) $587. When you're using the snowball method, you attack your lowest balance, paying minimums on everything else. When that lowest is gone, you use THAT minimum and combine it with the next, so that 587 is a combination of my car payment + the minimums on all paid off before it (plus more if you can). The snowball gets bigger as your debt gets smaller.
Some things I've learned:
1. Not everyone believes in you and your goals, and many will have "friendly" know-it-all advice telling you "You'll always have debt". Even those closest to you who can't manage money OR bills, and don't really care to. It all comes from envy, even if it's masked as a lesson.
2. You're only proving your own goals and life TO YOURSELF. Everyone else can either shut up, or fuck right off. That's the mentality you'll need to find.
3. Setting goals and following them is one of the most difficult, and empowering lessons learned. And sacrifice can come easier and easier the closer goals become.
4. People will start to notice your ongoing success, and find inspiration in it. I have had no less than 5 friends here message me privately for info on how to get started, or how I'm doing my budget. I love having friends on their own debt free journeys supporting my goals and sharing/celebrating their own. It's like it's own little community!
5. Even though my goals are what they are does not mean husbands' are the same. There ARE people who believe money is meant to be spent ("you can't take it with you").....I've discovered that I would rather "spend" toward my future and get to the point of having a fully funded emergency fund (3-6 mths in savings) and be able to invest more into my 401K so I CAN retire. Maybe without toys, but whatever. Not too much to ask :)
Biggest thing I've learned, there isn't much of anything that I NEED but security in my future.
6. Ramsey Solutions: I've discovered that I'm not a die hard Dave follower, you may even call me "Dave-ish". There are things that I do not agree with, his bible influence on the plan at hand. While there are some "common sense" Bible influences, I am not Christian and would NEVER give regular budgeted money to a tax exempt institution like a church. I'm also not a Conservative. Also, his verbal and anger based "support", calling people STUPID etc. That's not cool with me. BUT, I have found that the basic plan is working for me....
7. I've heard that I only care about money. This is absolutely NOT TRUE. I care about intention. Every single penny I spend has a home....and every dollar has a path to follow. I spend intentionally, I save intentionally, I stuff cash envelopes every pay period with intention. This really has nothing to do with the money portion....it's the intention on a debt free journey. I will never again mindlessly swipe a debit card. I will never take money from savings that I'm not paying back (unless it's planned). I will never think I have "extra money" after bills are paid, if I have debt to pay. That mentality is how I ended up here attempting to pay it all off. NEVER AGAIN.
8. and finally, I'm thinking MOST IMPORTANT OF ALL: starting and continuing on a debt free journey is definitely behavior modification. Learning how and holding yourself accountable. The only thing keeping you away from your goals is YOURSELF. Point blank, full stop.
I do not know if I'll ever get to the point of paying off the mortgage since we're starting so late (and husband isn't totally on board), but at least I'll personally be in a way better place when I'm putting more into my future retirement. Husband is perfectly fine owing money right now.....So I'm letting him not care about his own future money, while I actually WORK with and hopefully enhance mine :)
Two very different people having two completely different results. And it's ok by me :). I DO know, you cannot do any of this without a budget!!!
All in all, I made it to my first personal financial goal!!!! Car loan, you're next!!
Today, I can declare that I've made it to my #1 GOAL in my Debt Free Journey, which is being down to my LAST two (consumer) debts- my car loan through my local credit union (2.4% interest), and a Visa through the same (7%). The reason this was the first real bench mark for me is because, while they are the highest balances in my snowball, they are the lowest interests and will bang out quickly. Plus, they're local from a co-op..... All the little ankle biter debts are paid and GONE!!!
I'm not against charge cards, never have been. I've just learned that I'm not GOOD with them. Why create debt if I have a savings (well, besides the obvious cash back or air miles)? I remember a time as a single mother, when every card I owned was maxed out simply because I didn't know how to manage the money I brought home. That debt was money borrowed that I didn't have to spend in the first place! If there's one thing I've learned, it's that if I can't afford the item or the emergency with actual money or savings, I probably don't need it at all (unless of course, it's a major expense like a well or septic). It's hard when you're on your own with 4 children at home.....I'm not alone anymore and I am so grateful. At this point in time, over a year later....I have the money to back words up, at the very least.
In October of 2019, after filling our 1K emergency fund back up (flood-wipe out-start again)....I started my zero based budget/cash envelope debt payoff journey. At that point, I was looking at 10 lines of credit equalling almost 24K. Personal loans, furniture, appliances, vet bills, Amazon and Paypal, Capital One and Discover cards, car loan and personal charge card....
I found myself at a point where I had NO extra money to speak of and it was a very slow process in the beginning. All of the debts we accumulated together were on my spreadsheet to pay monthly (I've declared myself the accountant of the household so basically I get to figure out HOW to pay for everything). Jeremy really wanted nothing to do with the finances so let me take control with the money he gives me every paycheck combined with my income.
Seems we'd have a lot of extra money if I was putting it in savings rather than throwing at the debt....but that's what I'm doing this for, to be ABLE to save. That's definitely the one thing I'm following from Ramsey, 1K in savings while you pay off all consumer debt. And Jeremy admits to knowing nothing about how credit card bills work and finding himself in trouble. It really is better if I just deal with it and he pays me a little extra to make sure his stuff is paid on time.
So here I am, down to car loan, and my credit union card. A total of $11,336.08 remains of my lowest interest debts. I've paid off $12,346.20 of that $23682.26. I would probably be way closer had we not needed emergency vet care and wisdom teeth removal....but it was easy enough to take care of by halting the snowball and cash flowing those bills, jumping back into the snowball fight when paid.
It's so easy to get tired of sacrificing, and being frustrated at the long haul though. Seems I'm OVER HALFWAY THERE, financially and time wise. I know I wouldn't be able to do this without my premium pay from my work through COVID. I took advantage of that bitch and used it!! So, here we go....snowball is rolling downhill now and my payments now that I'm on the car are (at least) $587. When you're using the snowball method, you attack your lowest balance, paying minimums on everything else. When that lowest is gone, you use THAT minimum and combine it with the next, so that 587 is a combination of my car payment + the minimums on all paid off before it (plus more if you can). The snowball gets bigger as your debt gets smaller.
Some things I've learned:
1. Not everyone believes in you and your goals, and many will have "friendly" know-it-all advice telling you "You'll always have debt". Even those closest to you who can't manage money OR bills, and don't really care to. It all comes from envy, even if it's masked as a lesson.
2. You're only proving your own goals and life TO YOURSELF. Everyone else can either shut up, or fuck right off. That's the mentality you'll need to find.
3. Setting goals and following them is one of the most difficult, and empowering lessons learned. And sacrifice can come easier and easier the closer goals become.
4. People will start to notice your ongoing success, and find inspiration in it. I have had no less than 5 friends here message me privately for info on how to get started, or how I'm doing my budget. I love having friends on their own debt free journeys supporting my goals and sharing/celebrating their own. It's like it's own little community!
5. Even though my goals are what they are does not mean husbands' are the same. There ARE people who believe money is meant to be spent ("you can't take it with you").....I've discovered that I would rather "spend" toward my future and get to the point of having a fully funded emergency fund (3-6 mths in savings) and be able to invest more into my 401K so I CAN retire. Maybe without toys, but whatever. Not too much to ask :)
Biggest thing I've learned, there isn't much of anything that I NEED but security in my future.
6. Ramsey Solutions: I've discovered that I'm not a die hard Dave follower, you may even call me "Dave-ish". There are things that I do not agree with, his bible influence on the plan at hand. While there are some "common sense" Bible influences, I am not Christian and would NEVER give regular budgeted money to a tax exempt institution like a church. I'm also not a Conservative. Also, his verbal and anger based "support", calling people STUPID etc. That's not cool with me. BUT, I have found that the basic plan is working for me....
7. I've heard that I only care about money. This is absolutely NOT TRUE. I care about intention. Every single penny I spend has a home....and every dollar has a path to follow. I spend intentionally, I save intentionally, I stuff cash envelopes every pay period with intention. This really has nothing to do with the money portion....it's the intention on a debt free journey. I will never again mindlessly swipe a debit card. I will never take money from savings that I'm not paying back (unless it's planned). I will never think I have "extra money" after bills are paid, if I have debt to pay. That mentality is how I ended up here attempting to pay it all off. NEVER AGAIN.
8. and finally, I'm thinking MOST IMPORTANT OF ALL: starting and continuing on a debt free journey is definitely behavior modification. Learning how and holding yourself accountable. The only thing keeping you away from your goals is YOURSELF. Point blank, full stop.
I do not know if I'll ever get to the point of paying off the mortgage since we're starting so late (and husband isn't totally on board), but at least I'll personally be in a way better place when I'm putting more into my future retirement. Husband is perfectly fine owing money right now.....So I'm letting him not care about his own future money, while I actually WORK with and hopefully enhance mine :)
Two very different people having two completely different results. And it's ok by me :). I DO know, you cannot do any of this without a budget!!!
All in all, I made it to my first personal financial goal!!!! Car loan, you're next!!
