As a general rule we have not carried a balance on our credit card since we have been married.
Two exceptions
- one - when we brought our son home from Russia we has some unexpected immediate expenses that went on a credit card - we paid it off in about a year. (reasonable right?)
- two - the economy kicked our butts last year (this was not quite as reasonable - I mean, we did loose some freelance clients but we also kinda went to Hawaii....it all happened so fast)
So after Christmas we knew we just had to get back on track. We took a 'Financial Peace University' Class that was offered through our church which totally rocked our budget. I mean we thought we had it pretty together before, and honestly we knew most of what he was talking about - but it was great encouragement to really get everything out on paper, set some goals, live on cash - etc.
Despite cutting our spending we kinda felt like we got a raise - (weird I know). Long story short we paid off the credit card and the only car we owed on in about 6 months! We then put a little over a months worth of expenses in the bank (insert pat on the back >here<) - we hope to grow this to 3 full months of living expenses for emergency use only.
Let me tell you - having no debt and a little more money in the bank than you have in a while feels REALLY good - even if you are shopping with coupons and the cashier at many places roll their eyes as you try to find the right envelope to pull your cash out of.
So we decided NOTHING goes on credit - NOTHING - not even a car! We were simply going to save enough to buy a new (to us) car cash. I have made this statement here on this blog and that is why I feel I must confess that we broke down and bought a car and we *gasp* financed it. While I'm guessing most people really don't care, I just feel like I should confess that we kinda jumped the gun on our little 'cash only' new car plan. My car just became increasingly less reliable, we got a royalty check from my husband's books, and we just started looking at cars....perhaps our goals were a little lofty, perhaps we just got lazy - somewhere inbetween I think.
That being said we bought less of a car than I know we would have and we did put almost half down without touching our 'emergency' or 'adoption' funds - not too bad right?
We still fully endorse debt free living.....even though we are kinda posers.
So two steps forward, one step back. We are working on it...
Kate
I admire you more for being honest about this. A lot of people look up to you on this blog for your goal of debt free living and it makes you and your goal seem more "human" when you admit you don't ALWAYS stick to it.
ReplyDeletethanks =) we really wish we could have held out another year (or even 6 months) and stuck to our original goal - but sometimes it isn't realistic & overall we do really truly believe that debt free living is best, this wasn't our ideal but you gotta do what you gotta do - hopefully we will get there =)
ReplyDeleteSeriously, in this day it is a true blessing to have your only debt be a car (minus a home of course). My husband and I painfully need to learn this way of living and thinking. We have racked up over $8000 on our credit card, just this year! It was one necessary expense after another, fridge broke, water heater broke, etc. I have a great desire to shop with coupons and I don't like to eat out much. But we have gotten into this slump of "don't spend any money right now" for a while! Anyways, sorry to ramble; as a follower of your blog I appreciate your honesty, definitely feel a little relief that with all your hard work you know that circumstance just takes over, and I have a little bit of envy inside for how much you have accomplished!
ReplyDeletei'm so glad people appreciate this post - i thought it might make me sound like a hypocrite - so glad that it just helps people know that we are really just doing the best we can - it is REALLY hard to commit to this debt free goal - and i think we can just all try to do the best we can & it will eventually get easier - our thoughts were that even though we bought the car & did finance it - we put about 1/2 down & bought a MUCH less expensive car than we would have & it at least is the only thing we have to pay down - so it's not the worst thing in the world....anyway - glad my readers are so friendly and supportive! =)
ReplyDelete