Road to Financial Freedom
When Matt and I decided to move back to Tennessee, it was for several reasons. The main reason was because we both wanted to live in the south but for me it was because my family would be close by, the weather is nice and the mountains are home for me. Matt's business was doing pretty well for us in Indiana and I had a great job at the hospital in Richmond. We were doing okay -- but we were living "outside our means". We spent too much money going out to eat, buying a new TV, traveling to visit family and friends out of state, taking vacations, spending too much on Christmas gifts, etc... It wasn't that we couldn't afford those things by themselves, but we sure weren't saving any money. Like many Americans, we also own a house that we can't sell. Lucky for us, we have GREAT renters, but we still own the property which makes it hard to purchase another home. With all of this weighing on our minds, we never felt like it was the "right" time to move. We always made excuses about not having a place to live, not having a job lined up, not having enough money saved -- the list went on and on. Finally in March, we just decided we were going to take our chances and move to Tennessee.
With the help of family, we were able to make the move from Indiana to Tennessee in one trip. We loaded up 3 trailers and 4 vehicles and hit the road. The whole moving process is overwhelming by itself and knowing we had no jobs lined up was scary but the thought of starting over was very exciting!!! I knew that we were really going to have to budget -- we still had bills to pay, some debt we were carrying with us and we still needed to find a place to live. When I looked at the big picture it felt like were were never going to make it. It was so easy to feel discouraged and doubt every decision we were making. I know that God was guiding us because when I would begin to doubt, something would open up for us and we could take another step forward. Within one month of quitting my job in Indiana, I started my new job in Tennessee -- you can't convince me that God is not watching out for me :))
As we settled in a little more, I sat down and sorted out our finances. Matt and I both wanted to get on a track to pay off debt as quickly as possible and save as much as we can for our future. It seemed impossible to pay off debt AND save at the same time. My mom told me about a man by the name of Dave Ramsey. I visited his website, and I felt so encouraged -- it changed my outlook on finances! We started following Dave Ramsey's "The Seven Baby Steps" (to follow the steps yourself, visit his website at http://www.daveramsey.com/new/baby-steps/). The most helpful step for us is "paying off all your debt with the debt snowball". I always worried about paying the bill with the highest interest rate first but Dave Ramsey suggests that you start with your smallest balance first (no matter the interest rate) and take that balance to zero. Once your first debt is paid off, you can take the amount you paid toward that debt plus the amount you're already paying toward the next debt and double your payments to get the next debt paid off in half the time. It is so encouraging for us to watch our debt being eliminated just by following this simple step. With the money were are able to save each week from eliminating debt -- we were able to start a savings account for our new baby :))
Another big step for us - stop using credit and debit cards!!! Matt and I have made a rule that whenever we use our credit cards, that credit card gets paid off at the end of the month. If we can't pay it off - we don't use it (I wish we had put this rule into effect from day 1 of our marriage). Debit cards seems harmless because it's not credit, it just comes out of your checking account but, debit cards can be as destructive as credit cards. When planning a budget, whether it's a weekly, bi-weekly or monthly budget, it's important to know what you can and cannot spend. If you use a debit card for purchases, it's easy to go over that budget. Matt and I have online banking, so we set up all of our bills to come out each week and we get out "x" amount of cash for outside spending for the week (like when I crave Taco Bell or I want a new pair of shoes). :)) Once that money is gone, it's gone. The only purchase we use debit card for is fuel -- and that gets written out of the check book just like a check. To some people this "rule" we have adopted seems so simple, but amazingly, it's very hard for most people. My parents have lived by these rules my whole life -- and I strive to be as good at it as they are!!!
We still have a long way to go to achieving our true "financial freedom" but we are definitely on the right track now. It takes determination, discipline, self control and a positive attitude to stay on track. We are feeling so rewarded by achieving our goals that it keeps us focused to continue on this path. Sure, we have to do without a lot of things we want but it's so worth it in the end!!! My advice to anybody feeling overwhelmed with debt is this -- set a plan and stick with it, even if it's baby steps. It will only take a few months to feel rewarded for your hard work.
With the help of family, we were able to make the move from Indiana to Tennessee in one trip. We loaded up 3 trailers and 4 vehicles and hit the road. The whole moving process is overwhelming by itself and knowing we had no jobs lined up was scary but the thought of starting over was very exciting!!! I knew that we were really going to have to budget -- we still had bills to pay, some debt we were carrying with us and we still needed to find a place to live. When I looked at the big picture it felt like were were never going to make it. It was so easy to feel discouraged and doubt every decision we were making. I know that God was guiding us because when I would begin to doubt, something would open up for us and we could take another step forward. Within one month of quitting my job in Indiana, I started my new job in Tennessee -- you can't convince me that God is not watching out for me :))
As we settled in a little more, I sat down and sorted out our finances. Matt and I both wanted to get on a track to pay off debt as quickly as possible and save as much as we can for our future. It seemed impossible to pay off debt AND save at the same time. My mom told me about a man by the name of Dave Ramsey. I visited his website, and I felt so encouraged -- it changed my outlook on finances! We started following Dave Ramsey's "The Seven Baby Steps" (to follow the steps yourself, visit his website at http://www.daveramsey.com/new/baby-steps/). The most helpful step for us is "paying off all your debt with the debt snowball". I always worried about paying the bill with the highest interest rate first but Dave Ramsey suggests that you start with your smallest balance first (no matter the interest rate) and take that balance to zero. Once your first debt is paid off, you can take the amount you paid toward that debt plus the amount you're already paying toward the next debt and double your payments to get the next debt paid off in half the time. It is so encouraging for us to watch our debt being eliminated just by following this simple step. With the money were are able to save each week from eliminating debt -- we were able to start a savings account for our new baby :))
Another big step for us - stop using credit and debit cards!!! Matt and I have made a rule that whenever we use our credit cards, that credit card gets paid off at the end of the month. If we can't pay it off - we don't use it (I wish we had put this rule into effect from day 1 of our marriage). Debit cards seems harmless because it's not credit, it just comes out of your checking account but, debit cards can be as destructive as credit cards. When planning a budget, whether it's a weekly, bi-weekly or monthly budget, it's important to know what you can and cannot spend. If you use a debit card for purchases, it's easy to go over that budget. Matt and I have online banking, so we set up all of our bills to come out each week and we get out "x" amount of cash for outside spending for the week (like when I crave Taco Bell or I want a new pair of shoes). :)) Once that money is gone, it's gone. The only purchase we use debit card for is fuel -- and that gets written out of the check book just like a check. To some people this "rule" we have adopted seems so simple, but amazingly, it's very hard for most people. My parents have lived by these rules my whole life -- and I strive to be as good at it as they are!!!
We still have a long way to go to achieving our true "financial freedom" but we are definitely on the right track now. It takes determination, discipline, self control and a positive attitude to stay on track. We are feeling so rewarded by achieving our goals that it keeps us focused to continue on this path. Sure, we have to do without a lot of things we want but it's so worth it in the end!!! My advice to anybody feeling overwhelmed with debt is this -- set a plan and stick with it, even if it's baby steps. It will only take a few months to feel rewarded for your hard work.
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