We are DEBT FREEEE!!!!

[tripods68]

Well ALMOST Except our Mortgage. BUT we paid off around 63K which took us about 3 years and 2 months.
It wasn't EZ...but man....I tell you IT FREAKIN AWESOME!!!!

DEBT PAID OFF
Car 20.5K
C.C 7K
Equity loan 7.1K
Personal Loan 4.2K
CalPERS 25K

Remaining balance is our mortgage $227,803.

[sblatner]

Congratulations! Huge accomplishment!

[Tabs]

Congrats!

[tripods68]

Nice appreciable and inspirational news, now please share the approach you followed during the session of you paying your debt.

It really got started 3 years ago after we bought my Subaru (stupid me). I started to put extra 200 a month and really got going that way, making 600 and sometimes 700 a month payment. So we started doing the same thing on our lowest balance Personal loan and C.C. We limit our groceries bills and restaurant budget which saved us an extra 200-300 a month towards paying other bills. We stayed true to our monthly budget (sometimes arguments) and if we didn't have the budget for it we didn't spend. Paid cash for everything as much we can including fixing our daughter's broken iPad glass TWICE. But it was a sacrificed we needed. It took us a bit longer that we really needed to because we took summer vacation every year which we paid cash for. But having a budget saved us a lot of money and sticking to it. It sounds simply BUT it wasn't easy to keep sticking to it every year. But communications with your spouse what made this possible.

[bjl584]

congrats

[JoeP]

Great news!

Just curious: with those loan payments now gone, what are your plans for that money?

[tripods68]

Great news!

Just curious: with those loan payments now gone, what are your plans for that money?

Our plan is to rebuild our EF/Savings to around 60K - 70K. Our savings right now is 19K. This will take us about 1 to 1.5 years. I also plan to sell my Subaru WRX 2012 which should net me a good chunk; downsize towards a cheaper SUV for less than 5K hopefully....

This July both wife and I are expected to get a pay raise. All our raises will be added towards increasing our retirement contributions to 15% each (around 23-25K this year from 18K last year). Finally we are refinancing into 15 year fixed loan from adjustable mortgage (should close in few weeks). The increase in payment is about 300 in our mortgage is more than doable.

We still plan to pay everything in cash using Dave's Ramsey envelope system. But really take more mini weekend type vacation with the Family over this summer.

[Eagle]

Well ALMOST Except our Mortgage. BUT we paid off around 63K which took us about 3 years and 2 months.
It wasn't EZ...but man....I tell you IT FREAKIN AWESOME!!!!

DEBT PAID OFF
Car 20.5K
C.C 7K
Equity loan 7.1K
Personal Loan 4.2K
CalPERS 25K

Remaining balance is our mortgage $227,803.

Congrats! That's fantastic!

What advice would you give to others still struggling?

[tripods68]

Congrats! That's fantastic!

What advice would you give to others still struggling?

Here's the lesson I've learn and whatever idea stick--that's my advice. But you heard this before its just a matter of applying it that fits to your family life/budget.

1) ALWAYS have a monthly budget (stick to it no matter what!!)

2) Plan your budget for next month (new things always seems to come up that you don't even know existed)

3) Discuss every line items in the budget with your SPOUSE. This is where we sometimes disagree/agree on items. But this is where communications with your spouse becomes really important (like when I convince her I needed to buy a new car..looking back now it was stupid) or how are we going to pay for next year family vacation? How are we going to pay for our daughter's private tuition next year. This is also where we solved those questions, and we both learn to negotiate without a full blown verbal fights!!! It wasn't EZ at first but it gets better as months go by and you learn each other's wants versus needs. We hardly fights anymore about money...I don't even remember our last arguments about. Our budget is our life/finances/retirements and in some ways its running in "auto-pilot" without outside help interference with just minor adjustments (If that makes sense to you).

5) Prepare to adjust your monthly budget instantaneously (traffic ticket can hit at you at anytime).

6) Have an OPEN MIND with your spending habits (apply to both husband and wife). No secret.

7) Set aside cash envelope for line item in your budget (i.e., Groceries, Car/repair maintenance, Entertainment, restaurant, movies, kids and our own allowances, pet food). Believe or not set more money aside towards your car repairs every month especially for high mileage car/van. I'm about to spend close to $1500 repairs for our 05 Honda Odyssey with 166K next month. But we have to break it the repairs in two month period because this month we need 2 new front tires that cost us 207 bucks).

#7 I was very hesitant at first using Envelope system but after a month-trial, we were surprised how easy it was and saved us a ton of money in so many areas of our budget that convinced me even more. It really works. For instance, if we run out of money from Groceries envelope, we don't eat the rest of the month. But you be amazed what's in your pantry and freezer that you didn't know you had. We budgeted to stock up our pantry for a month period on the whim we MIGHT run out of grocery budget at some point. So that's what we did. Plus we stop using our ATM debit card so much so I've loss it few times and didn't even know it I've loss it. And if needed gas I went to the bank (.5 mile from our house) and to get cash. We also cooked more at home and brought lunch to work. Like I said, it saved us a lot. If its not in the budget, you don't spend.

[scfr]

Gosh - That is fantastic news! Look at what you have accomplished all those brown bag lunches later. Nice job. Such focus you have shown!

[creditcardfree]

Congratulations! You've done fantastic!!!

[LittleMissSplendid]

Congratulations!

[Fishindude77]

Great job !
Also think your ideas and plans going forward are great.

[tripods68]

Great job !
Also think your ideas and plans going forward are great.

I appreciate all the comments. We tried to really keep it simply and apply what works for our family. It may not work for others. But if you keep things simple and focus on the basic needs you can accomplished a lot more than you give yourself credit.

[snafu]

Paying off $ 63K in a trifle over 3 years is truly impressive. Like others, I'm confident you'll meet your goals going forward.