There is one thing I would like to write about today... One thing that has touched our life a great deal in the last two years. One thing that I am passionate about...One thing that people don`t really often talk about but something I think should be talk about more because there are so many people affected by it... That thing is DEBT.
Last 2008, Ken`s job position has been cut off. The year after, our family income was cut in half. He then decided to go to university and for the next 2 year, we lived as university students with a family of 5.
It was tough... especially to change the lifestyle we where used to have.
As you can imagine, with a family of 5 there was a lot of "emergencies" and guess what... our normal thought was that we had no choice than to use the credit card and to repay it when we could... But that didn`t work out...
On March 2012, for Ken`s birthday, I bought the book The Total Money Makeover by Dave Ramsey. After reading it together we decided that we wanted to become debt free.
This was a huge step for us and this meant a lot of sacrifices, but the Bible verse "The rich ruleth over the poor, and the borrower is servant to the lender" really gripped our heart and we knew that this is what we wanted and needed to do.
The first step was to cut our credit cards...which we happily did... Second was to do a budget plan and put $1000 aside for the emergencies, and 3 was to attack those debt with intensity which we DID!
Together we sat down and we did a budget. I have to say that we had to do this several time until we did it right but it was worth it. This meant deciding how much we had to put aside for the Lord, groceries, clothes etc. every pay. We started to use the Envelope system and pay cash for everything. That meant that when the clothing envelope was empty, we had to wait until the next pay to buy an item...
All the little extra we had, we dump it on the debts. When we had our income tax refund, we didn`t buy a new couch with it... we dumped it on the debts...
It meant that if we earned a little bit of extra money, we didn`t went to the restaurant with it.. No! We dumped it on the debts... and when Ken worked very hard and brought in extra money, we didn`t plan a vacation with it... No! We dumped it on the debts. It means driving an old car and putting money aside to buy one cash. It means saying no to Tim Horton`s coffee every day... If you can understand this saying.... We said NO to wants and YES to needs. Because there is a difference between wants and needs.
We started to pay the little amounts first and then attacked the big ones. When one amount was paid, we put the extra money from that payment on the next amount. It kind of did like a snowball effect.
Guess what...? After a while, slowly but surely, this huge mountain called debt started to melt... One goal was met and then another one... When one goal was met, we put that extra money on the next one and on and on...
We lived and are still living on a very tight budget and it is sometimes hard, but with God`s help, we can now say that we are very close to our goal of being debt free except our home mortgage. This means no car loan, no student debts, no credit cards debts...We are so excited!! Paying off the mortgage will be included in our next goal which is baby step 4,5 & 6 in the Dave Ramsey`s method.
The reason why I decided to write about this today is because sometimes, I am wondering if there is other families in the same situations... Other families that are struggling with having more months at the end of the pay. We want to encourage you and tell you that with the help of God, there is a way out. For this you will have to to say No to "wants" and get intense. There is a lot of other families on the same path to freedom. We are here to testify that it works and we would be very happy to help you if ever you need someone to talk.
Get started with Dave Ramsey`s Budgeting Money Makeover here.
Get coaching everyday Here
The book is sold Here (We bought it at Chapters)
Last 2008, Ken`s job position has been cut off. The year after, our family income was cut in half. He then decided to go to university and for the next 2 year, we lived as university students with a family of 5.
It was tough... especially to change the lifestyle we where used to have.
As you can imagine, with a family of 5 there was a lot of "emergencies" and guess what... our normal thought was that we had no choice than to use the credit card and to repay it when we could... But that didn`t work out...
On March 2012, for Ken`s birthday, I bought the book The Total Money Makeover by Dave Ramsey. After reading it together we decided that we wanted to become debt free.
This was a huge step for us and this meant a lot of sacrifices, but the Bible verse "The rich ruleth over the poor, and the borrower is servant to the lender" really gripped our heart and we knew that this is what we wanted and needed to do.
The first step was to cut our credit cards...which we happily did... Second was to do a budget plan and put $1000 aside for the emergencies, and 3 was to attack those debt with intensity which we DID!
Together we sat down and we did a budget. I have to say that we had to do this several time until we did it right but it was worth it. This meant deciding how much we had to put aside for the Lord, groceries, clothes etc. every pay. We started to use the Envelope system and pay cash for everything. That meant that when the clothing envelope was empty, we had to wait until the next pay to buy an item...
All the little extra we had, we dump it on the debts. When we had our income tax refund, we didn`t buy a new couch with it... we dumped it on the debts...
It meant that if we earned a little bit of extra money, we didn`t went to the restaurant with it.. No! We dumped it on the debts... and when Ken worked very hard and brought in extra money, we didn`t plan a vacation with it... No! We dumped it on the debts. It means driving an old car and putting money aside to buy one cash. It means saying no to Tim Horton`s coffee every day... If you can understand this saying.... We said NO to wants and YES to needs. Because there is a difference between wants and needs.
We started to pay the little amounts first and then attacked the big ones. When one amount was paid, we put the extra money from that payment on the next amount. It kind of did like a snowball effect.
Guess what...? After a while, slowly but surely, this huge mountain called debt started to melt... One goal was met and then another one... When one goal was met, we put that extra money on the next one and on and on...
We lived and are still living on a very tight budget and it is sometimes hard, but with God`s help, we can now say that we are very close to our goal of being debt free except our home mortgage. This means no car loan, no student debts, no credit cards debts...We are so excited!! Paying off the mortgage will be included in our next goal which is baby step 4,5 & 6 in the Dave Ramsey`s method.
The reason why I decided to write about this today is because sometimes, I am wondering if there is other families in the same situations... Other families that are struggling with having more months at the end of the pay. We want to encourage you and tell you that with the help of God, there is a way out. For this you will have to to say No to "wants" and get intense. There is a lot of other families on the same path to freedom. We are here to testify that it works and we would be very happy to help you if ever you need someone to talk.
Get started with Dave Ramsey`s Budgeting Money Makeover here.
Get coaching everyday Here
The book is sold Here (We bought it at Chapters)
Blessings,
Nancy
Great post! I wish everyone could read it and follow your tips!
ReplyDeleteKelly @ View Along the Way
Thanks Kelly! We`re almost there!! Only 1 more month to go and so excited!!
DeleteThe way to a debt-free life can be quite challenging, even to the most experienced homeowners. You're so close to attaining your goal of living debt-free, Nancy. I just hope that you will be able to pay off the mortgage as soon as possible, so you can finally enjoy being financially secured. Wishing you all the best! :)
ReplyDeleteBarry Sutton @ Iron Point Mortgage Group
Thanks Barry!!
DeleteWe`re almost there! Only 1 more month to go before we reach this goal, and we`re so excited!
Thanks David!
ReplyDeleteWhat amazing perseverance you and your husband have. We faced a very similar situation once as well, but unfortunately it didn't turn out quite as well for us. You and your husband created a plan together and have worked hard to pay off your debt. Yes, every family faces these challenges, but not every family has the positive outcome you are having.
ReplyDeleteKaroline Peak @ Ruffi Law Offices, S.C.