Our Financial Journey ~ Focus

I anticipated writing this installment early in April. I knew I’d have good news to share by then and it just seemed like the perfect time to tell you the rest of the story. But…

When I left off last time, I shared that a friend had given us a suggestion that re-inspired us to dig in our heels and get excited about paying off our debt (again), specifically our van. The suggestion was to stop contributing to retirement.

This suggestion, at first, was not something I even wanted to consider. I love to have a big pile of savings somewhere hidden away, and the retirement savings is the perfect place for it. It’s hard to get to, it automatically comes out of the paycheck and there’s a penalty if you touch it. All the more reason to leave it alone and let it grow.

But, if we temporarily stopped contributing, not touching what was already in that pile, and threw that extra money at paying off the van, we figured up we could have the van paid for in 3 months.

That was such a huge incentive, we decided to do it. In fact, we decided to keep it going until the truck was paid off as well.

We started off strong. More than doubling up on our van payment was dwindling that payment down fast. It was exciting to be so close to a big payoff.

However, things began to get in the way. New glasses for the kid who’s eyes got worse, medical expenses and most recently, a $500 brake job on the van.

April came and went and we were still not quite there. I was disappointed and not feeling like writing about it.

We will make our last van payment this month. Finally.

Our church is starting the Dave Ramsey Financial Peace University this month, and at first, I wasn’t sure we needed to attend. We’d read the book and were working the steps. However, I think the encouragement and accountability will be good for us.

On Dave Ramsey’s television show he often asks the callers what kept their momentum going through the hard times. Most of the time the answer is staying focused on the goal and the reward each time they pay off a debt.

By our estimation, in two years we will be debt free (except for the house). Two years isn’t that long. Staying focused on that goal helps, but having friends who are on the same journey have helped even more.

What helps keep you focused on your financial goals?

Hannah

Just wanted to share something that has really helped our budgeting recently. Since we moved, we have been on a really strict budget, so when going to the grocery store, I make my list of things I need and then compare prices/coupons, etc. online through couponmom.com and the store's weekly ads and then shop wherever I can get the best deal. I'm sure most of you have tried this, but another thing I just started doing is going to the ATM to get my cash for groceries and only use cash to pay for them. That way I am a lot less likely to go over budget than I would be using a debit card or check. It has really cut out a lot of extra spending on stuff that we don't really need, and it forces you to re-think some of your items as to what you really need or not. Plus, I can just pay with cash at the register and not have to remember to write down the amount later in my ledger. It has made a big difference so far.

Alicia

So proud of you and Clark! It's not easy. When everyone around you continues to come and go with purchases, trips, etc., you focus on being grateful for all you have and all that is paid for! It truly is focus and committing to accomplish a shared goal. It's not 50/50. It's 150/150. When one thing is paid off in our family, we apply that amount to what ever else needs to paid off. Otherwise, it can go into savings. There are struggle points but you press on. God's way is debt free living because it is living free from financial bondage. He always provides a way for His best for us.

Melissa Stover

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Beth

Yea to have having your van paid off!! Congrats my friend! I hope to join you someday very soon in that very same thing.

marsha@othersuchhappenings

It is easier to stay focused when you are both committed and when you openly talk about it. When I hear David getting excited about having our house paid off, it encourages me to stay the course. I am looking forward to the day that we can yell "Freeeeeedom!" Lord willing, that will happen in three years (or less!).

When we were in the getting out of debt process (re: credit cards and cars), the more we paid off, the more motivated we became to cut back in other areas even more and put it all towards that debt payment. Our van is close to 170,000 miles now... I hope it hangs on for another couple of years. That might be wishful thinking.

Tracy

Melissa, so glad you posted an update! Thanks for not keeping us hanging too long :) We have been married 12 years and became debt free after a few in the beginning. Then we purchased a home, which is still our only debt. God has blessed us in so many ways. No financial disasters so far. I'm staying at home living on my husband's income. We never EVER consider debt. However, I find I am still depressed that we have the house debt and that we should be putting more away toward saving (like most people, we lost a lot of our retirement the last couple of years.) Anyway, God keeps giving me the resolve to keep this commitment. It involves sacrifice that, for the most part, I'm willing to make. I try not to keep regular company with those who do not hold the same convictions...I am easily turned into the Green Monster of envy! Keep your eye on the goal!

thekelleyeight

We had some out of focus ourselves, went slightly backwards, from out of debt except the car to a computer and couches (interest free). I just decided today that I will not go any farther backwards, and this stuff will be paid off QUICKLY!! Why? Having less to pay is better than more!