Y'all, after 5 years and 2 months we finally did it! We're debt free! To celebrate I wanted to recap the journey for us.
Five years ago at Christmas we were gifted one of Dave Ramsey's debt free books. I don't even recall which one, but I do recall feeling compelled to get out of debt. At the time Josh and I had been married for 7 months. I brought in 60k in debt to our marriage: 40k in graduate school student loans, 20k in a new car. He brought in debt too- some student loans and car loans. It wasn't stressful to pay our bills, but seeing how much I paid in interest was frustrating.
Rome 2010
Mexico 2012
Hawaii 2015
I had just purchased a new car in 2010 when Josh and I met. He had some fancy used convertible and when we got Optimus he upgraded to a long-term (we thought) family type car...that had its engine blow up.
He traded it in for a more expensive lemon that would randomly just stop in the road while you were driving. I was pregnant with Anias when we traded that in- there was no way I was going to be stranded with 2 kids. I begged for a new car (eh hem, hormones) with the thinking my Kia had made it 6 years with no issues. Almost as soon as we bought my Misubishi - with a 10 year bumper to bumper warrantee- the Kia had an air leak in the engine. Y'all with all of Josh's cars we paid for repair upon repair and the Kia was no different. We had already invested over 1k when a code was thrown again. He ended up getting a brand new car with a stellar warrantee...that we paid off today! I should mention that both our new cars since last year were 0% APR.
He traded it in for a more expensive lemon that would randomly just stop in the road while you were driving. I was pregnant with Anias when we traded that in- there was no way I was going to be stranded with 2 kids. I begged for a new car (eh hem, hormones) with the thinking my Kia had made it 6 years with no issues. Almost as soon as we bought my Misubishi - with a 10 year bumper to bumper warrantee- the Kia had an air leak in the engine. Y'all with all of Josh's cars we paid for repair upon repair and the Kia was no different. We had already invested over 1k when a code was thrown again. He ended up getting a brand new car with a stellar warrantee...that we paid off today! I should mention that both our new cars since last year were 0% APR.
So yes, cars were our downfall. Dave says to drive junkers and slowly upgrade but even our middle of the line cars were fraught with bad luck. I honestly think we should've bought new from the start. Oh- and the Kia- it threw a code from Josh's overfilling of the tank so please don't do that.
We also keep a credit card. We use it every month for items we budgeted for and pay it off immediately- then we use the points we earn (we have the Amazon card) to buy things we want or need. We have only had 2 occasions that I can recall where we didn't pay it off right then. All in all I would estimate we spent less than $30 in interest for the credit card over 6 years.
We also keep a credit card. We use it every month for items we budgeted for and pay it off immediately- then we use the points we earn (we have the Amazon card) to buy things we want or need. We have only had 2 occasions that I can recall where we didn't pay it off right then. All in all I would estimate we spent less than $30 in interest for the credit card over 6 years.
Other things that slowed us down? I quit my job in 2015 when Eli was 8 months old. I hated leaving him every day and he was sick so much I was hardly working anyway. I had taken all of my PTO, FMLA, and was only managing a few hours a week. It was costing me half my paycheck in childcare when he wasn't sick and more than my paycheck in childcare when he was. We had to pay regardless of whether or not he could attend, after all. It was worth it to me whether profitable or not to give up my steady income to be there for my child- now children.
Other things happened. A fridge here, a washer and dryer there the occasional TV and camera. Things just going out and needing repairs. We spent a lot of money (in my opinion) on house plans and a whole lot of money on our land. We had 3 people in our family need minor surgeries and of course children aren't cheap. BUT- throughout it all we couponed, budgeted, scrimped and saved. I buy clothes and shoes only when they're on sale and will wear them past the point of them being fashionable or even in good condition to be honest. We used our bonuses and tax returns towards debt but we did it!
We'll still be scrimping as we move on in our life. We'll hopefully need extra cash for paying our construction loan- if that house ever gets going. Eli will start private school as soon as he is 5. It's not like we're going to head out and go on a shopping spree, but we might have a steak dinner, maybe take a deep breath and appreciate being free. Who knows? Maybe Josh and I will get a line item in the budget like the kids.
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