Celebration!!!

We are celebrating...want to know why!!! Well because Mr Dave Ramsey has entered our lives....

 

Let me start at the beginning....it was about November 2010 and Jacob kept telling me about this book his coworker kept talking about...something about a snow ball...planning and there was talk about a gazelle...huh? I had no clue what he was talking about...and when he did tell me in depth...I thought yeah right....

 

He was talking about the book "Total money Makeover" by Dave Ramsey....it is about reducing your debt and planning for your financial future...Jacob read the book in less than two days....I myself, drug my feet on it.   I just didn't get it....first of all, I thought..."with all the 'bills' we have from month to month: mortgage, HELOC, a loan we got for new windows (which was REALLY needed....bonus, we received a tax credit since they were energy efficient windows), our student loans, Jacobs truck loan, a couple of small credit card bills (total of like $500), a couple doctor bills blah blah...things that I felt were "responsible" debt...things everyone has....things people need...things people just pay what they need to pay month to month and call it good until the loans mature or whatever...so, I didn't understand how Jacob thought we could possibly come up with MORE money each month to pay crap off...in my mind, impossible, waste of time, never.going.to.happen!

 

Finally, after a couple weeks of saying I would read the book, I gave into the nagging encouragement to read it and I finally did....the book was interesting and had some amazing success stories in it....yet, I still didn't see how WE could do it...two kids in daycare, above mentioned monthly bills, having a social life, and....well...shopping! I would get the sweats just thinking about not being able to go to the mall and target and feel ok to buy something if I really really needed liked it.

 

I agreed to sit down and write out all of our debt....it frightened me....I felt a sense of...well...a sense of oh.crap!!! We are how old and OWE that much...it made me sad, frustrated, defeated and yet, motivated....I decided I would give it a three month trial....during that time, I had to review a couple of the success stories in the book from time to time...

 

Ugh...Jacob....is...a...hard ass (muah love you honey!) And as frustrating as that has been at times, I am so thankful for that. He has kept us on track with our plan for the most part...with a lot a little grumbling from me daily/weekly/monthly here and there...I'm not saying this has been easy...it hasn't...but at the same time not quite as difficult as I had thought...

 

Dave Ramsey talks a lot about how you pay your debt off...basically start with establishing your emergency fund ... $1,000 you put away and do not touch....this took a little bit, but honestly felt great once we got to that point ha...before we would have looked at our account and to see $1,000 just sitting there, our wheels would have been spinning on what fun we could have with that money!

Once you have your Emergency Fund, you start to pay your debt off starting with the smallest amount you owe...once that is paid off...you take what you were paying on that and add it to what you were paying on your next debt...then, when that's paid off you do the same to the next...and next...etc...ok...blah...sometimes I really suck at explaining things (I can see you all shaking your heads yes in agreement) I encourage you to read the book, it will make more sense...or at least Google Dave Ramsey...

 

Now, we didn't go all "gazelle" ...which Dave explains as pretty much cutting out all, ALL unnecessary spending and putting it all towards your debt...like I said...we did not do this...we are young...we are social...we have fun...it just wasn't feasible (whatever ok...we could have made it work, however...to us...it wasn't worth it) we live our lives still and even went to Vegas during this time, which, I'm SURE is frowned upon...but totally worth it and due to our new found budgeting system...it didn't feel like it really cost us anything.

 

Ok...anyway...I know we could have paid off so much more and been so much closer to "financial freedom" but...like I said...wouldn't have worked for us ... we would have been sad...and lonely...and miserable ... at least that is how it plays out in my head ha ha

 

So, in the last two years (starting in January 2011), we went from having to write down 17 "debts to pay" (most mentioned above) to.....Drum Roll Please... 4...yes FOUR things on our list...our house, our HELOC, one student loan and our windows loan...we have paid off 13 different loans/bills in two years...it totally blows my mind! It hasn't been easy, we've had to say no to most vacations with friends, new vehicles (that I really really want...pity party) fun toys we have both wanted, new clothes we have wanted....(ugh this is making me sad...I still need want that stuff...ugh...someday...)

 

I guess the reason I am giving you all a glimpse into our "finacial journey" is because, I didn't realize where we were on this journey....basically for the last year we haven't "checked in" to look at, or add up what we have paid off or what we still owe...until now...and, honestly I'm blown away! In the past two years, we have paid off over $30,000 AND taken off 15 years from our mortgage...I know...what?!?!?! Where did that money come from? What did we do with that before...you guys...I don't get it...I don't explain it very well at all (obviously)...I just don't know...but I do know it works...you have to put effort into it and realize a lot of times, it sucks. I don't feel richer because of this...I'm not seeing all this extra money floating around (mostly because we are putting it toward other bills)...I'm not bragging...I'm not boasting....I'm not saying it's easy....I just want you guys to know...IT IS POSSIBLE!

 

Google "Total Money Makeover" for a way, way better explanation, there are many steps that come after paying off your debt (this debt does not include your mortgage)...like I said, just Google it, because now, I am just rambling...and you will get a much better idea of it that way vs this way...

 

Thanks for reading!!!