I want to reiterate to you all that Financial Peace and being debt free does NOT mean that you never get to do anything you enjoy. Nowhere have I read that you can't go out to eat, can't enjoy life, etc....the lesson is just that you have to PLAN for those things. Don't get me wrong, we don't have an envelope with $1,000 just for shopping (although I'd be ok with it), let's get real here, but we have dedicated money for "Fun" and do save up for bigger fun things we would like to do. Please don't hesitate to begin this process on the basis that you feel you have to be in debt to enjoy life. This is FALSE!! (See more elaboration on this FALSE sense of reality on my good friend, Rachel's blog)
For those of you who have started, keep it up!! And those of you who need to, I urge you to consider going through your own Total Money Makeover! It is LIFE-CHANGING!!
In a previous post I laid out the foundation for a Total Money Makeover (TMM). Kevin and I are staying motivated and are so excited because we are seeing real results already! I've already received feedback from multiple people who are inspired and already starting your personal journey, and I am so EXCITED for you guys!! I can't wait to hear ya'lls success stories as well.
I can't believe it's already been 4 months since we started this journey. It seems like yesterday we had those miniscule 50 cents in savings and were lost every other week on how to make it to the next paycheck. Those are definitely no longer the days we are in and we could not be more thrilled with how amazing it's going!!
7 Baby Steps:
Baby Step #2 - Pay off all debt using the Debt Snowball
Baby Step #3 - 3 to 6 months of expenses in savings
Baby Step #4 - Invest 15% of household income into Roth IRAs and pre-tax retirement
Baby Step #5 - College funding for children
Baby Step #6 - Pay off home early
Baby Step #7 - Build wealth and give!
Baby Step #2
OUR DEBT
Name of Card (Beginning Balance) (Current Balance)
Chase CC: ($1,314) --- ($1,233)
Wells Fargo CC: ($1,469) --- ($1,487)
JCPenney CC: ($2,523) --- ($2,356)
Granny: ($3,620) --- ($2,620)
1st Financial CC: ($9,697) --- ($9,633)
Kevin's Truck: ($7,196) --- ($6,703)
Tia's Car: ($14,200) --- ($12,952)
Tia's Student Loan #1: ($1,341) --- ($1,237)
Kevin's Student Loan #1: ($1,448) --- ($1,448)
Kevin's Student Loan #2: ($12,274) --- ($12,274)
Tia's Student Loan #2: ($17,060) --- ($16,456)
TOTAL DEBT: ($72,916) --- ($68,399) = Total Paid Off: $4,517 (WHAT!!!)
So to recap, in only 4 months we have saved more than $1,250 AND paid off over $4,500 of our debt AND we still have money in our account AND AND all of our bills are being paid. Let me tell you, I'm a numbers person, and I just don't get these numbers and how it's working out but IT IS!!
Now, for those of you who've made it this far along in my post, I want to say THANK YOU! Also, I'll confess something to you. This is our last month for a while that we will be posting numbers like we have been. We will definitely still be paying down on our debt, but not at the rate we have been since the beginning. Through much thought and discussions between ourselves and with our close friends, Kevin and I have decided to put our monthly snowball (starting in May) towards our honeymoon instead of debt. It was a tough decision and I want to be honest with you guys because I think it can help those of you who are still hesitating (crazies!). This process is not easy, and that's why I love Dave's quote he has throughout his book..."There are NO shortcuts to any place worth going!". It is definitely somewhat discouraging to know that we won't be seeing these numbers for awhile, but we are confident that this is the right choice. What's the point in paying down all this debt just to go back into it when we go on the honeymoon that we are not willing to pass up (once in a lifetime people...and we've waited a long time!!). We think it will feel AMAZING to be able to go on the honeymoon we've dreamed of and knowing we get to do it without adding ANY debt to our name in the process!!
Have a great week you guys!! I will try to work on a wedding planning recap soon, hopefully this weekend!
