I live, write, and garden in the PNW with my husband of 28 years, disabled daughter, adult son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!Despite the fact that it has been since July, it still feels strange to not get paid weekly. I mean, we budget for two weeks and it isn't like anything needs to be done during that time period after the bills are paid, but maybe that is the problem. I am so used to being hands-on on a weekly basis and now it is like it is set for cruise control and I'm there, but there is nothing for me to do unless I see an accident coming up ahead.
DH and I have started watching the Financial Peace University videos. We had started a while back and then life got busy. We decided to restart from the beginning and I am glad we did, because they have completely revamped the presentation. And what's really neat is that DH knows one of the guys in the video doing the testimonials. He worked with him up in Alaska.
We took a big step and cut up all but one credit card. DH is cancelling them, too, but the idea of cutting them up just seems so huge and something we have really both been resisting. We are keeping the one for auto pays, as I've had them double charge too often. Yes, they fix it in a couple of days, but if you double charge on a debit card and there isn't enough money to cover that, you get fees and it is such a mess to sort out even when it isn't your error. I feel more secure having the auto pays on a credit card for that reason.
Now you could say that we could just keep extra in the checking account, but we run a zero based budget, so that makes it difficult, as we don't keep a huge cushion in there. I know we can do it, but I'm just not sure we are 100% there yet. There is also the fact that with the debit card they can put a hold on your account. A hold on a credit card with a huge limit is not that big a deal, but a hold on money in your checking account is.
I know that I am justifying. I just think that when we only use it for travelling and auto pays and it is paid in fully each month, and we are as disciplined as we are, we can handle it. One day when we have enough money to have a large cushion again, we can go fully to debit, but that will not be until after the loan is paid off and we've saved at least 3 months of expenses. We will get there, but we are not there yet.
Personally, I want to do the part where you stop all retirement contributions until you are out of debt, because I think we'd be out of debt by the end of the year that way, but DH is against it. He's the one who wanted to do Dave Ramsey in the first place, but he doesn't actually want to "do" Dave Ramsey. Just the parts he agrees with. I get all his arguments, I agree they make sense logically, but I just want to be out of debt.
I don't mind doing retirement while saving up the full EF, but I want to be done with this debt. It frustrates me, because I feel like if you are only doing things halfway, it'll take twice as long, if not three times as long. I am so tempted to call Dave's show and ask him what to do about this. Of course he'll tell me to get rid of that last card, but he'll also tell DH to knuckle under to the plan. I think maybe some straight-talking from the man himself is in order. Or maybe I'll just email him.
We have been debt snowballing for as long as I've been blogging here. Not on the Dave Ramsey plan, just debt snowballing. And having a small EF. And it worked, but I don't think it worked as well as it could have if we'd been all in and had refused to take on any more debt (like the car purchases we made along the way). And we still aren't all in. We're 3/4 of the way in. Well, I'm 3/4 of the way in. DH is 1/2 of the way in. And while he is more of the free-spirit than I am financially, he still qualified as a nerd on the financial nerd vs. free spirit test. One more point and he'd have been a free spirit, though. I only had one free spirit point and seven nerd points.
In other news, I signed up for my Enbrel co-pay card. It should be here in a couple of days and then I can call the mail-order pharmacy and get the shots shipped to me. I am really hoping this will help me function better on a day to day basis. I'm not thrilled with the side effects of the drug, but the side effects of RA are at this point making it worth taking the risk to see if it helps. It may not even help.
In other, other news, the Girl Scouts are out with their super aggressive cookie sales and behaving as badly as ever at a store near you. I will be so glad when cookie season is over. Meanwhile, I will shop in the mornings instead of the afternoons, and see about making a small contribution to Campfire USA. I've never had a kid from there block the doors, grab my cart, and shout that I had to buy their cookies because they were almost at their goal. No, entitled munchkin, I do not.
I got the shower and tub cleaned today. I still need to do the sliding doors and the little shelves, though, but I will do those when I shower. It's easier. I used Barkeeper's Friend. It is amazing. We are keeping up with the kitchen so far and not letting it devolve into chaos again. Tomorrow's goal is to clean off the top of the bathroom vanity, clean the bathroom sink, and sweep the bathroom floor. Well, that's my goal.
DH's goal is to get the little section between the fridge and the cabinets cleaned out and to clean behind the fridge. And then if either one of us still has energy to take care of the armchair that has turned into a catch-all. We will get organized this year if it kills us.
Trying Not to Be Frustrated with the World
February 2nd, 2019 at 02:11 am
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February 2nd, 2019 at 04:04 am 1549080252
I don't think we ever stopped retirement to pay off debt. If we did it was a for a very short time, less than a year. But I do understand the reason for this particularly if going all in to pay off within a year. There are lots of people who have documented their Dave Ramsey journey on YouTube. It is interesting to see who follows to the T, and who makes adjustments.
Have you run the numbers? How many months to pay off with and without stopping retirement? I'd be curious to know the difference in order to make my decision.
February 2nd, 2019 at 04:51 am 1549083117
Overtime seems unlikely for the foreseeable future, as does a raise, so I don't think there is a way to generate more income to make it faster.
That's all assuming things go well with DD and we don't end up with new massive medical debt to worry about.
February 2nd, 2019 at 08:24 am 1549095872
Maybe you can show him on paper the difference and show him that in the long run you will be better off...do you have to pay interest each month? if so add that in over the month and show him the difference...sometimes that helps...good luck it can be hard when your not on the same page...when I started being a "cheapskate" to pay off our debt my hubby wasn't into it...but he soon saw the difference and now I think he is a bigger cheapskate than me LOL
February 2nd, 2019 at 11:01 am 1549105317
February 2nd, 2019 at 02:29 pm 1549117787
Do you have any idea when you might get some money from MIL? I guess your plan, as you said, should not rely on that money. But the best way to look at it is that it will have the power to speed up the payoff timeline whenever it is received.
I'll be honest, and this is just my opinion, I really want to see you pay this off fast, not only to get it off your backs, but to see you move forward with your emergency fund and potentially a home of your own. Keep talking to your husband and watching DR, he may change his mind!
February 2nd, 2019 at 08:10 pm 1549138249
I know 13 months doesn't seem like a lot as far as retirement savings, but every little bit helps when you get that interest added on.
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As to the debit cards, I don't think it's justifying. I don't find debit cards to be practical in the slightest. On principal, I would love to cut up all our credit cards and not support the credit card companies. But, practically, we will always have credit cards probably. Too convenient and practical compared to any other alternative.
February 5th, 2019 at 01:15 am 1549329331
So you usually compromise and build a 3 month EF and continue to save for retirement to the match, then debt laser focus.
So I think he said 12 months max without a EF larger than $1000 and stopping retirement.
Can you go gazelle intense after the surgery? At that time cut the retirement? Make sure no new debt accrues? If so then go back to retirement.
February 5th, 2019 at 06:14 am 1549347292
February 5th, 2019 at 05:41 pm 1549388482
https://www.daveramsey.com/askdave/investing/dave-gets-a-lump-in-his-throat
http://www.frugaldad.com/should-i-stop-401k-contributions-to-pay-off-debt/
https://www.daveramsey.com/askdave/saving/an-emergency-fund-shouldnt-take-a-year
Personally if you give up the match you're nuts. That's free money. Even 5%. You have to work how much harder to make 5%? That's a bonus/raise.
I would not. But at the same time I'd be looking for a second job for him, you, DS. Or go austere. Nothing purchased not even clothes for 12 months. Bare minimum before I give up the 5%. 5% of $100k is $5k. If it's less than that (i don't pay enough attention what you make), there has to be some way to it up. Because if it's $5k and the match is $5k then you are passing up $10k. How will you make up $10k? You'll have passed up free money.
Sell anything. Don't buy anything. Get any sort of job. Can you sew?
And I apologize for those poorly behaved girl scouts. I have sold many booth sales now and never have I seen that. But then my kiddos are young and more shy than anything.
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