creating a debt free life

Posts tagged ‘no money’

The true key to getting debt free

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We have been working on getting debt free for a while now, and we are doing good, some steps forward and back, but now that our move is complete that should be done and it should be all forward now.

The importance of having that emergency fund has become very clear to us this past few weeks and we are going to make sure to get that in place again.  But sometimes an emergency fund does not help if you are not thinking.

The key I am going to get to starts with an experience we had this past weekend.

We were on our way to our grandaughters third birthday and were supposed to stop for ice. We wanted to wait until we were close to get it and found a store not far and on the way. My husband gets out of our truck to go buy the three bags of ice and does not even get around the front of our truck and comes back a bit panicked,  ” I forgot my wallet !!! “”

He had changed into new pants and forgot to put his wallet into his pocket. This is completely out of charactor for him.

I jump out to use my card , we get the ice, get to the counter and then I remember, oh crap, I lent my debit card to Cam  ( our collage age son, just moved home and tight the week he started a new job after the move which broke him. I gave him my card to put some gas in his car to start his job. He is delivering pizzas so would have cash each day after that one fill to take care of it.

I remembered then that when the new credit card came for the one I cut up, I put it in my wallet in case of emergency as we have no savings right now, and I got it out and paid for the ice and we went on our way. No problem I will pay it off when I pay the bills next week, it is only 8 bucks.

So, I get online today, and pull up my balance and I am shocked …. 68 bucks, ?   WHAT  ???

So, I start searching the site and then I find it, a 60 dollar fee to have the card. What in the heck was I thinking to pay that per year the last few years, I was not happy .

I called, canceled the card, paid the 8 bucks and the card is getting added to my wine glass.  Cut up smaller than this, but it is a start, but this time it is a truely dead card. No way to use it and no new card coming.

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So, pay attention, the cards are out for thier benefit, not ours. The banks make a great deal of money on us just on interest, and yet, they feel the need to add fees to that pile they already make.

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They could not do it if we did not agree to it and pay it.  I do not need that card, I do not want the debt and I will not pay it.

So, look at your accounts, even if you cut up your cards and make sure , I would have gotten a bill for 25 bucks if I had not made that purchase and went to the site to pay it.

No one cares about your money like you do ,

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So, what is the key in my title you ask ?

The key to getting debt free is paying attention.  We need to pay attention to all the little things we do that add up. How many people have more than one card with a fee ? They could be paying hundreds a year. This sixty bucks was for a small 600 dollar credit card, that is insane. I consider myself an intelligent person but have not been acting very intelligently when it comes to money and credit.

So, my advice is to check out all your cards. Get rid of the ones with those fees even if you are not getting rid of all your cards. Shop for a better card to transfer any balances too and then cancel that card and be done with the fees.

There are many cards with no fees and in fact,  Capital One, the card I canceled has many cards without fees, so I could in theory find another Cap 1 card that does not have a fee and apply for that, but I want to be debt free and that is not an option for me.

So, just be smart with your money and pay attention. It is so easy to nickle and dime those fees and over time it really adds up to a lot. Although 60 bucks IS a lot.

Thanks for stopping by, I would love to hear your thoughts on credit card fees !!

Stephie

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What does wealth mean to me /you ?

 

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Another blogger posed the question, what does wealth look like, or mean to  you. I did not have to think long. She suggested some things, among them nice cars or house, but to us, that is not what we are going for.

 

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Wealth to us, my husband and I means security. Freedom. When you owe money, you are in many  ways, working for the  company you owe. You work for them, not yourself. You have to plan your life around work you have to do to pay those debts every day. Now, I know there is money you make that does not go to them. But  if you have substantial debt, you have a lot of hands held out each month and often times, when you include your mortage, they get a lot more  of your check than you do. Period the end.

We have dreams of course. We want to pay off our house and we want to buy a building downtown to start a business. With no mortgage, that is possible. With a mortgage, possible but stressful and not probable.

Retirement for us  has never meant to stop working and just play golf and sit around be lazy. Quite the opposite. We want a business to run, something we love to do when he retires from where he works now,  so we keep active and busy . We want reasons to get up every morning. A purpose. We want to be part of the community and get involved with community events and enjoy being out in the world.

David will never retire from working. He is very vocal about that. He saw his own father retire and sit in a recliner and die. He refuses to own a recliner. They are not allowed in the house. He will retire from the company he works for between 70 and 75 years old.. What age depends on where we are on this plan. How much is saved, do we have our building already, how much security do we have in place.  We have just over 18 years until he is 70. We cannot waste any time. We have  to get our debt and house paid off asap so we can make the  decisions that affect the quality of our golden years. Now a days  you can expect to live into your nineties and maybe even 100 and that is our goal, we joke we want to live until at least 110 , and we will try to do that , but we want to live until the day we die, not  be in a  nursing home or sick, so we are working on our health as well.

Some things are out of our hands, but we are grabbing  what we can control. We are working to get thinner and healthier. Can we prevent anything from happening, no, no one can, but we are thinking positive and planning for a long full life. We CAN pay off all our debt. We CAN save up a huge nest egg both for emergency and retirement. We CAN walk and eat right. So, we CAN do a lot. We also CAN plan and plot and come up with a great retirement business that will keep us alive and happy and excited to get up every morning.  Something we can do together.

So, this is step one, which is very critical. Pay off our debt.  Every single dime, including the house. Then save. Save money like squirrels save acorns.

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Once we have an 8 month emergency fund and have enough money going into the 401k, then we start saving again for our business. There is nothing romantic about our plans. Nothing edgy. It is just staying the course and making sure we do what we need to do to make things happen the way we want them to happen.

We recently read a quote that said something to the effect of , dreams without plans are wishes. I have no clue who to give the credit to, but it is so true. If you dream, but never make a plan for that dream, it really is just a wish. It will probably never come true.

Things happen and that is okay. As long as we have our emergency fund, it is all good. Occasionally our savings will be  redirected to emergency to rebuild if something like a blown water heater, or air condiioner malfunction happen, but then we just rebuild what we had to spend and, once done, back to where we were at. Simple. Easy to follow.

Lets face it. Budgets and diets are both alike in many ways and people resist them for the same reason. It is more fun to not do them. Eating and spending what you want sounds like fun, but is it really ? At the end of the day you are fat and/ or broke and that is certainly not fun.

We had  50 grand in the bank once. Years ago.  An inheritance. What an amazing feeling that was. But getting laid off and being out of work for months before he had the job he has now,  and having to do major overhauls on two baths that were close to unusable, and some foundation repair and put up fences, and and loaning to our grown kids who were in need at the time, who did pay back every cent within a few years, just kind of ate it up. Very sad.

I want that feeling again. It was so fun to walk into a store and KNOW y ou could buy anything you wanted cash, but are choosing not to. It was fun to know we could pay cash for a car, but did not !! We loved that feeling and cannot wait to have it again.

So, we know how it feels, so we are working toward that feeling  of security that money gave us at the time.  Wealth to us is many things, but not fancy cars and houses. If we have those one day great, but they are not high on our list no matter how wonderful they are !!

So, what does wealth mean to you ? How do you define it ? It can be a very defining question !!!!

Hope you enjoyed my scrabble piece and chain  play and my modge podged acorns, I love playing and making things to put on my blog !!!

Thanks so much for taking the time to come by, it  means a lot to me !!!

Stephie

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Breaking up with debt !!

Welcome to my new blog site. I have been blogging on my beading blog for a while and I am having fun there and will still be blogging there and working on my jewelry but I am starting this blog because I want a place to come to document our journey to being debt free.  My husband and I have gotten to the point in our lives where we want to be free of debt. We are tired of being broke because we have too many bills. It is a stupid way to live and we need to address it while we still have time . We are tired of living check to check. It is a rotten way to live. We do not want that to be our future, we want it to be our past.

We are in our early fifties and  have less than  twenty years until my husband will retire from his job. He has said for years he probably will never retire completely. He will retire from this job, but he and I both want to start a business and find something to do together to make money and keep us busy after he retires. We have to make sure we are debt free to have a secure retirement .

So, we decided to break up with debt. We are cutting our relaxtionship with debt off. We have cut up our cards and are going to take every penny we can make and throw it at this debt until it is gone. We are choosing to live a debt free life.

Can we do this overnight. Nope. In fact we have new debt to deal with. We recently bought a car. We had one car and I want a job so we bought a car. Did we need to buy as expensive a car as we did, 19 grand, but we bought a safe, certified used car, a service car only owned by the dealer ship and we wanted a safe, reliable car. Our payment is pretty high and honestly that is what kicked us in our back sides and got us looking at our debt. We have more month than money and we cannot live like this anymore.

We are very intelligent people, so why do we make such dumb decisions with money ? I do not know the answer. We pay all our bills and have a good credit score, which would be great if we were debt free. It is eye opening to be told you could have had a 2.25 percent car loan if our debt was paid off, and instead we have 4.8.  Good news is, get the debt paid, we can still get that great rate, so that got us going.

We are pretty typical . Some credit cards, a car loan, a signiture loan, furniture loan. Our debt is beginning to grow and once we really sat and looked at it, we got a bit worried. We are okay right now, but on the edge, it would not take much to topple us off that edge. That is no way to live.

So, we were lucky and got debt coaches and they are going to help us. We cut up our credit cards

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into tiny little bitty pieces and put them in this wine glass. I will keep them on display so I know every minute what I am working for. I even added a green wine charm  I made and even drew a money sign on with a gold sharpie  to symbolize our money  !! We are going to go at this debt with everything in us !! It does not stand a chance !!

We are going to be writing down in a notebook every dime we spend. Every single penny !!  We started that two days ago and have two entries already. Gasaline and a few groceries. Wrote them down, wrote they were debit card purchases and put the reciepts in a manilla evelope tucked into that notebook.

Starting this week on pay day we will take out cash for groceries and any spending money. Gas money is moved to a checking account we  use just for gasaline so my husband knows how much gas money he has for the week. All recipts go into the envelope and any purchases made written down in that book.

We have a lot to still learn. We have to sit down and talk to our coaches and will see what they advise us on our debt and emergency savings  and then go from there. We are just starting and taking baby steps. But cutting up our cards, writing it all down, and using cash that is predetermined for the weeks expenses is a start.

I will write about what we learn and the progress we are making. I will also write a post about our debt and what we owe but not today, I just want to get things started and get this blog up and public.

I hope to find other people out there who are paying off thier debt and  learn everything I can.

To quote Dave Ramsey,  Broke is normal, be weird,

We look forward to being werid !!