We are DEBT FREEEE!!!!

[kaufc]

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.

I completely agree with the idea of cash envelopes. It also helped me eradicate my tendencies to go on impulse buying. It kind of reinforces the idea that if I don't have the money for it, then I can't have it just yet. Using cash envelopes is a means of getting expenses under control.

Also, as you said about having an open mind about spending habits with your partners, some may find difficulty in doing so because it looks like an issue of control or mistrust. IT IS NOT. It is a way of practicing openness and respect for each other. Every spending decision should be agreed by both you and your partner to avoid misunderstanding. There is power in agreement.

[HappySaver]

Congratulations!!

Do you like your Subaru? We are thinking of getting one when it's time to replace our current older car.

[GeorgeEastman]

How does it feel? Time for a trip to vegas?!

[tripods68]

Congratulations!!

Do you like your Subaru? We are thinking of getting one when it's time to replace our current older car.

Update: We decided to keep the car little longer for at least 2-3 years. Love it! This will allows to just to focus on savings...

[tripods68]

How does it feel? Time for a trip to vegas?!

Probably not! Not sure yet but my wife wants to visit our Family in Madrid Spain in two years.

[GeorgeEastman]

Probably not! Not sure yet but my wife wants to visit our Family in Madrid Spain in two years.

I would move that trip up to as soon as possible. I've always wanted to go to Spain.

[LivingAlmostLarge]

Sweet congratulations!

[Randomsaver]

Congrats!



Enjoy for a while then when you're ready go and transfer to my Mortgage Countdown Thread!

[rob62521]

Way to go!

[tripods68]

Goal Net Worth 1 Million in 5 to 6 years

thanks guys!

[NatG11]

Congratulations!!!!!!!