We are doing the DAVE RAMSEY Total Money Makeover...
Thanks to some pretty crummy Insurance last year.. and some pretty awful health issues.. for all 6 of us... we hit a LOT of medical debt.. and DEBT can be OVERWHELMING...
we don't like overwhelming..
especially because it doesn't help you to heal.
so to help us to heal.. help us to be PRO-ACTIVE
we bought Dave's book, and are getting a handle on our debt fast and it's super exciting!
Just this month, we paid OFF 8 creditors, and paid every single person something.. :) a few were not very happy with the small sum, but when I called and told them what we were doing.. That we were doing the Dave Ramsey plan, and that it was our goal to PAY each and every person, each and EVERY month. They quieted and listened.. I then explained that I am paying the smallest guys FIRST and taking the balance and dividing it equally amongst the rest, so each month their amount would look differnt but that they would be getting something, and hopefully each month, that amount should grow... with them getting closer to being NEXT on the pay off list.. Some of the folks asked how to spell the name Ramsey, because it would seem, some of these folks are struggling with Debt at their OWN HOMES, and they were so excited that I took the time to share with them! Others were just satisified to know we were going to pay and not be delinquent! :)
So far.. everyone is cool and calm.. HURRAY
The OTHER exciting thing we did as we've been working on this new DAVE plan is paid off our Van.. which free's up some monthly cash to pay off this medical junk...
I think having medical issues is hard enough.. watching children struggle with medical issues, is so hard.. but having to ward off angry creditors is horrific... I can't tell you how happy, yes HAPPY I am, that I purchased Dave's book!!! We are getting our lives BACK, our finances no longer seem so dismal, and our creditors are calm, because even if they are only getting $3 they know that, during THAT particular month, that is all anyone was getting, except for a few that got paid off, moving them up the list.. woo hoo.. exciting..
yes... exciting...
Dave's book is chock full of ideas.. I sure wish our government officials would read it.. perhaps they could have a garage sale, or an ebay sale... :) perhaps trim their grocery budget like we have!
yes..we have.. even with our CRAZY diet.. we've done it! trim trim trim...
we are even working on putting together a family cookbook.. as right now our wonderful new recipes are here and there, and everywhere.. I think the grocery bill will trim EVEN more when we get THAT in order as well..
what are you doing to trim the fat? anything to share? we are eager learners here ...
it was our families goal this year to become debt free... the bible says that the borrower is a slave to the lender.. we are done with slavery... we want to be FREE...
we know it may take longer than 1 year.. but.. none the less... we are WELL on our way.. and WHAT an adventure!
3 comments:
Whoo hoo to you! Amazing how free and wonderful it feels to be debt free - and you'll get there! Good for you for making a plan and sticking to it! We'll be praying and cheering you on!
Indeed Annette! It is exciting just to breathe in the air of freedom, even if it isn't mine just yet :) Today a refund check came in the mail.. seems some demanding dr realized we actually overpaid! :) and because of our chat, sent that money back promptly.. I am simply THRILLED, because that $20 can be sent to someone else.. it is money I had NOT counted on this month, and will make bill paying time Fun! because I get to see how to stretch it! who knows maybe someone will get PAID off.. I even have a few dollars left over after this weeks groceries.. and all that put together might pay a WHOLE bill!!! sooo exciting!
Great to hear y'all are on your way to being debt free. It is a long but worthwhile journey. Here are some things we learned on our own journey. Hope it is helpful.
1. Pay off the car and then vow to never again borrow for another vehicle. You may have to drive your car a little longer and buy used, but not taking on that hefty payment on a fast depreciating item is truly liberating.
2. Consider consolidating your debt. If you have a lot of different creditors and they have high interest rates, you may do better by even taking out a home equity loan at a lower interest rate and paying the high interest off.
3. Accelerate your mortgage payments or refinance at 15 yrs instead of 30 yrs. Retiring the mortgage is probably the biggest impact item you can do. Getting to 15 yrs saves a ton of interest. Accelerating to 10 yrs by pre-paying will really make a dent.
4. Review whether your budget contains items you can really live without. Newspaper? Read online. Cable? Digital is free over the air. Phone? Just use a cell phone. You get the picture.
5. Little rewards are good motivators. When you reach a big goal in debt retirement, it's good to give yourself a little reward to keep you motivated. Nothing extravagant, just something to feel good about your accomplishment.
6. Avoid playing both sides of the game. I call debt retirement playing defense and investment playing offense. Don't do both at the same time. You'll come out further ahead if you just get rid of the debt first and then invest the same amount consistently. So look at 401K, savings, etc. and determine if you're actually losing ground because you're investing for less gain than the interest on your existing debts.
7. Once your debt is retired, create an emergency fund. You might consider putting this fund into metals like gold and silver as they will likely hold value especially in an economically challenged time.
8. Given the lost time in retiring the debt, you should save at the same rate as you paid down debt to keep the same discipline up and to make up for the lost time. You will come out ahead in the end as compared to carrying the debt longer and trying to invest in parallel. But the key is you have to be consistent in saving and investing.
Post a Comment