You have just got to check out this book if you have any kind of debt. I wish I'd discovered this book years ago, although years ago I probably wouldn't have been ready for it. NOW, I'm ready for it.
I look forward to living a life with out debt. He talks about how it can be done. He has baby steps that you should follow. Baby Step #1 is have a $1000 Emergency Fund that is not easily excessible. Baby Step #2 is pay off debt (all debt= cars, medical, credit cards, small loans and anything else) using a snowball method. Baby Step #3 is save 3-6 months in expenses. I completed Baby Step #1 in just a couple of months, Baby Step #2 I'll be working on for quiet some time! He believes that you shouldn't even have a house payment, and that it's actually possible. I'm a long way from that though!!
One of the funny things that he points out though, is that once you start this process and get really focused on getting rid of your debt, MURPHY (as in Murphy's law) will hit. Well, let me tell you - this month he came to visit, moved in and never left. First, Hubbies car broke down, it wasn't a huge priority and I didn't want to use my emergency fund (baby step #1), then Hubbie broke a tooth and needed a root canal in another tooth- total bill so far $950 (I say so far, because they totaled $11,000 in work he needs done!! Can you imagine?!) Then my shower broke, to the point where Hubbie can't fix it, but as there is no E-fund left I just shower in my spare bath (we'll live). Then I thought, hey I'll go the dentist too. Now they say I need $1000 worth of work done too.
The stupid thing is they can't fathom the fact that we don't want to go into debt to fix our mouths, Obviously we want to fix the painful stuff now, the rest will just have to wait. The billing lady who was actually filling out paper work for the loan for Hubbie, was like "Oh, but it's only $180 a month for the next 72 months" (UM, hello that's like a car payment!!!!) She couldn't believe he didn't want to sign it to apply. Now that I'm focused on this I can't believe the ads out there. Buy now, pay later. It's everywhere. It's normal to be broke and in debt up to your eyeballs. It's normal. Well, I don't want to be normal anymore!
6 comments:
Maybe you need a new dentist? Justin loves listening to Dave Ramsey. BTW, this is Rachel, didn't feel like switching accts.
i so hear you! we started doing our own version of this at the beginning of the year and now we are actually looking into affording a home and maybe, just maybe getting into one before the end of the year!! seriously, that is HUGE for us :D
keep doing what you're doing, you know what is needed for your family. way to go on beating the debt curse!
I've had this book sitting on my desk since last christmas when my hometeacher gave it to me. Maybe just maybe I'll have to pick it up.
I wish more people understood that living with significant debt is NOT a normal state that should one should be OK with.
I'm glad you are ready to face the challange head on. You are already ahead of the curve!!
Something to think about: To make your desired money untouchable try sticking it in a seperate bank/credit union. Then the trick is to try to make it out of sight out of mind. When you get the statement don't open unless it is to celebrate, do not attach an ATM card. Rule: Just put money in, no taking out.(Maybe, as a money market, definately shop around-- you will be suprised!)
Good Luck!
Way to go Julia!
We totally love that book! It's been a long time coming...but we are getting so close. Not close at all to paying off the mortgage, of course, but close enough that I can smile when I hear the dreaded word "money" again. Good luck and keep with it!!
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