(We’re working through Tsh’s new ebook One Bite at a Time together. You should join in too. The book is $5, small price to pay, no?)
Man, I really hate money.
I hate talking about it.
I hate thinking about it.
I hate having to dole it out.
But, it’s here and it’s real and it’s one of those necessary evils in our culture.
And, Week 2 is to Make a Debt-Free Plan.
So I suppose I gotta even blog about it now.
About a year or two ago, I about had a heart attack when I realized how much debt we had accumulated over the years.
Fresh faced in college, armed with those credit cards practically tossed around the student union (but it came with a free T-shirt!), not to mention a brand new start up business…well, let’s just say I was less than excited to see what that number was when I actually sat down one day and added them all up.
And we had two car payments.
And student loan payments.
Gross, gross, gross.
So I decided right then and there to have a debt free plan.
I took control of the finances and said to Andy: “I’m getting rid of this debt. Don’t freak out at the bank balance. In fact, don’t even look at it. Because it’s gonna be low for a while. I’m gonna let it slim itself down because paying interest on debt just so that we have a cushion in our bank account doesn’t make sense.”
“But what if there is an emergency Jeannett?”
“We’ll charge it. IF we need to.”
I realize how backwards that sounds, but the truth is that in an emergency situation, the least of my concerns would be money. In non-emergency times, a huge concern was money. Ergo, I wanted the debt to be gone even if it meant we didn’t have much of a cushion for a while.
Worth it? ABSOLUTELY.
After about 14 months of hunkering down…paying and paying and sending even the littlest bit away…and NOT just waiting to “send it off with next month’s payment”…nope, if some random rebate check came in for $30, that $30 was sent THAT DAY. I didn’t want to even be tempted to “accidentally” spend it…14 months later…we were mostly OUT OF DEBT.
No car payments. No credit cards.
We still have our student loans and our house payment (I mean, I’m pretty sure we’ll have that for a while)…but that’s it.
Our student loans are next on the list…but with an interest rate of about 2%, I’m more concerned now with building up that cushion I whittled down. Once we have a good little chunk saved up (which is proving difficult with the neverending medical bills that keep coming in the mail), I’ll go back to focusing our efforts on those school loans.
Even with the school stuff, I cannot even begin to tell you how amazing it feels to not have all those bills.
Just paying bills every month is so much easier!!! I pay the mortgage, the utilities and Sallie Mae. The end. Not a whole slew of credit cards. No juggling balances to take advantage of 0% balance transfer teaser rates. No making minimum payments.
It’s a really great feeling.
And it’s nice that I did this a while back so that this week’s project was already done. ;)
Have you made a debt-free plan? It’s scary right?! But totally worth it. Promise.
Disclaimer: links to Tsh’s book are affiliate links and if you buy the book after clicking I make a small percentage. So buy it please.. ;)