It has been a busy week, luckily my last week of having to work one night-shift. I did make an entry on Earth Day, but nothing since then. However, that does not mean that there is nothing to write about.
Beth and I officially achieved a significant milestone this week. We have officially gotten down to only having one debt, our mortgage! We have been able, over the past six years, to go from extreme debt (I had more than $100K of credit card debt from my first marriage - I almost declared bankruptcy - but determined that I would meet my commitments), to almost debt free. It was so bad when I met Beth, and after we got married, that my name could not even be included on the loan for the house. Beth had to qualify for the loan, based on her income and excellent credit rating, on her own.
It has been fun to reminisce over the past several months. After we got married, we set up a long range plan. The plan (see below) had a sequence, culminating with a target of Beth retiring on March 31, 2008. We had some unanticipated legal expenses in 2007, so alas, we missed our plan by eleven days (some at work have said “that’s just sick” :o) Below were our priorities for the first six years:
1. Determine how much house we can afford, based on Beth’s savings and income – Complete, November 2001 (when we were married)
2. Purchase house of our dreams – Complete (nine months after wedding, we love Nutwood Junction).
3. Achieve positive cashflow without using savings – Complete (15 months after the wedding). A big part of this was paying all new credit charges off in full each month – no new debt!
4. Purchase Beth’s Mustang – Complete 2005
5. Purchase Ken’s Mustang and used truck – Complete 2006
6. Pay off all credit card debt and timeshares – Complete March, 2008
7. Beth Retire – Complete (4/11/08)
8. Ken Retire – TBD (9.5 years left in nuclear, then a new career is definitely in order :o)
We did this as a team. We live a fairly frugal lifestyle, we both abhor having debt and owing anything to anyone. We have common goals, and we are both very disciplined.
We were both blessed to have parents that made provisions for us to get our college degrees, and we work (worked in Beth’s case) in professions that pay well. But, the thing is, a lot of people spend what they make, and their debts equal or exceed their incomes, making it hard to truly get ahead.
It is very important to have goals, to develop a plan, and to work the plan together. For us, we had great role models in Beth’s parents (her Dad retired at 55) and my Dad, who went bankrupt in 1974 but recovered to leave his two sons a reasonable inheritance in 1990. While I was not able to save this inheritance (lost it in California 1995 real estate downturn), it instilled in me a “never again” mentality.
My wish for you is to develop financial goals, to then assess your situation and establish a plan – with your partner, and to then live the plan. You can achieve amazing results!
9 comments:
I don't mind saying that I think we can be proud of what we've achieved together. It took teamwork and discipline, but we got there. You planned well, Grasshopper.
:)
Beth
Totally awsome- many congratulations on sticking to your plan. We're so pleased for you both!
I agree...and the thing is that most people, including me, don't make a concerted effort to save for the future. Though this year, I am putting a greater effort into saving, watching my pennies much closer. Kudos to you and Beth for making a plan, and following it through!
xoxo ~Myra
Congratulations my friend. Wonderful goals met and behind you. Free to explore new life goals and move on. I applaud you both.
Joyce
that is awesome, congratulations!!! that is a rarity in this day and age for sure
betty
Congratulations to you both! More and more people are moving into debt free living and its the only way to go. Like Dave Ramsey says, the paid off home mortgage is taking the place of the BMW. I, too, got into massive credit card debt to the tune of about $60,000 from my first marriage. The sad part was at the time of my first marriage, I was only two years out from being completely debt free, including the house. I'm still 2 years out from having them paid off, and Nelishia's skills in the kitchen (eating well, but cheaply) and her ability to sniff out bargains is how we're making it right now. After all of this is paid off, she and I have made up our minds to never go into debt for anything again, but to do it the old fashioned way - save up for it.
Congratulations again, well done!
Dirk
Thanks for the comment and understanding that just happens I am taking your advice on my budget for sure thanks for sharing .
hugs
Sherry
My husband and I only have our house payment as debt. Like you, we worked out butts off for years to pay off all loans and credit cards.
Missie
Really good advice and so encouraging.--Sheria
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