Earlier this summer we achieved a HUGE financial goal for our family, we paid off our 2010 Chrysler mini-van! We have finally made a plan to become debt-free, and while seeing how much we owe written down on paper makes me a bit queasy, I am so happy we’re acting like adults and have made a plan to pay it off as quickly as possible. Zack and I are following a lot of financial advice by Dave Ramsey. We listen to his podcast, we use cash to pay for everything — like, literal cash (very little debit card purchases), and we plan out how we’ll spend every single paycheck we receive. It’s a crazy process some times, but it’s such a powerful feeling to FINALLY be in control of our finances. I love it! :) So, in July we paid off our mini-van, and we were both so so excited to write the check.
One of the greatest blessings being on a budget has given our family is peace of mind knowing how much money we have to spend within a certain category (like clothing, groceries, birthdays/holidays, entertainment). We say “not right now” to a lot of things, but we also get creative in many areas. Being on a budget helps us feel excited and prioritize our future goals, like purchasing a home, owning income properties, and travel opportunities.
Paying off our debts has helped Zack and I become incredibly disciplined with our finances. We are choosing to celebrate our progress along the way, which has been huge in helping us make big progress. I mean, how happy do we look standing in front of our PAID FOR van? ;)
A few ways we are becoming debt-free:
* Make a plan for all income received (including unexpected income)
* Use physical cash wherever possible, use debit cards where we must, and absolutely no credit cards
* Trim expenses down to the essentials so we can prioritize paying down debt
* Stay inspired! For our family, this means listening to Dave Ramsey’s podcast and learning all we can
* Keep a detailed register off all debts, including phone number/account number/payment address/amount owed, so you always know your current debt balance and who to pay next
For years we have wanted financial freedom for our family, so I am thrilled we are on our way! :) #BigGirlUndies
Im SO excited for you! Great work on paying off your car.
We LOVE Dave in our house. I’m addicted to his show haha. Is that okay to say?! My sister and I joke all the time to each other by saying “Dave wouldn’t approve of that!” We are working on 15% toward retirement and are in process of flipping a house and hope in the next four or less years we will have money to buy a house with cash. I would have never made that goal to want a paid for house and never thought it was possible until listening to Dave’s show and people saying they’ve done it. We have done some crazy things to get here and some people may think we are weird! My husband’s grandma was telling people we are poor and that’s why we buy old houses and flip them because we can’t pay for a new house. Haha it is all about perspective! I’m excited you are using your platform to share your story and show others it IS possible to accomplish your goals.
LOL — that’s totally something Zack and I say, too ;) it’s my favorite when we’re listening to an episode and we can foresee how he’ll respond to something. It’s like a little game we play. I’m so glad you commented :) great job with all of your accomplishments, too!
I have one week left of FPU and listen to Dave Ramsey’s podcasts daily. I feel so empowered to take control of my money and become debt free!! In the past 2 months, I’ve paid off both of my cars and am scheduled to be completely debt free in 2 years. I can’t wait!!
Congrats on getting started on the road to financial freedom!!
WHAT???! you are amazing!!!!! so so proud :)
So happy/proud for you!! We love Dave’s podcast so much my 3yo asks for a “det fwee tweam” and her and her 1 yo brother giggle and shout with them
Oh, that’s so fun!!!
Congrats! I use the program -You Need A Budget. I love it and it has helped me so much!!!
#highfive
Congrats! That is a huge accomplishment! I was very fortunate to pay off all my college loans 10 months after graduating. I did have less debt than the average college student, but to me it still felt like a lot and debt is debt. Since paying off my loans, I have been working on saving money, but I really struggle with budgeting and that is something I need to work on.
[…] we’re now able to save each month is so encouraging. A few days ago I wrote a little about how we’re paying off our debt, and it starts with using actual cash (very little debit card use, and NO credit card use), and […]
Congratulations! So excited for your family! We’re also loyal Dave Ramsey followers and it has truly changed the trajectory of our family’s future. We paid off all of our debt last year and we are gazelle intense about baby step #3 right now. It’s so inspiring to hear others’ stories on their journey so thank you for sharing!
[…] tickets, we hadn’t talked about moving back to Michigan. But as the months went on, we knew we wanted to get out of debt, have some more space for our growing family, and be able to take care of Marigold (her kidneys […]
One thing I will say that got us to debt free (except for our house but we live in one of the most expensive places in the world soooo that will be that)
I have three kids and handmade business…. originally we went the exact same route as you, but then found if we had one credit card that was fracked (I mean to the last penny) and paid off immediately we earned more…. for example paying off immediately means our credit score went up and buying a house is easier…. 2. We found a credit card that did money back or credit to travel… as such we were able to do our dream NY 10 yr wedding anniversary trip for 6 days and only paid for food!!!! And now we are doing another trip to Disneyland all 5 of us, one week and $1400 instead of $6000.
So make sure you look into that as well as I didn’t know years ago how important actually being a successful credit card owner was…. we also use it to teach the kids… so it has been positive.
Best of luck and God Bless!!!
Hi Kati,
We prefer not to have credit cards as statistics show most can’t use them without overspending. Even if they are paid off monthly, overspending happens and ultimately that goes against our goals of being intentional with our spending (limiting what’s not necessary) so we can have more experiences & bless others with our generosity. Borrowing money via CC isn’t something I want to endorse.
[…] Want to have more money? Stop spending all the money you earn, stop it right now. Be intentional with saving your money, […]
[…] a year ago I wrote a little about our family’s process to becoming debt-free. Our story is common, in fact I bet some of you can totally relate to our financial situation. In […]