A New Dream // be debt free

2014 04 01 A Year from Now

You know that moment when clarity washes over you like it was there all along? As if nothing in the world makes more sense than this one decision? That recently happened to me and after not much convincing, Husband feels the same way.

The fact is, we’ve spent a crap ton of money that should never have been spent in the last 5 years (food is the main culprit). We’re not “in hot water” because of it, but we’re not where WE want to be. We have zero credit card debt (though we use credit cards for most purchases) but we do (did, see below) owe 18 months left on our car loan and many months on a not insignificant student loan debt from Hubby’s 2-year grad school stint.

January’s “no spend” Directive completely opened our eyes to what could be. We worked together so well on accomplishing that goal and ended the month was extra cash. We didn’t even feel deprived of anything during January, so why were we spending so much each month prior? Why didn’t we try this last year?

I’ve been doing a lot of thinking and researching in the last two months since January and came to the realization that we need to be debt free. We just do. It’s within our reach and it needs to happen for us to move forward in life with the dreams we’ve created.

Previously, we wanted to buy a house in our new city, but this dream has changed. There’s simply no reason why we need to buy a house in the first place we live. How do we know we’ll stay there long enough to make that house worth it? We don’t. Therefore, we won’t buy a home within the next 2-3 years, maybe more.

By the time I turn 30 next year on March 31, our dream is to be debt free. We have exactly 12 months to reach this goal and it may or may not be possible, depending on what comes our way. We’ve cleared our savings accounts (leaving only enough for emergencies) and put all our money into debt payoff.

The Toyota? That’s paid off already. It was our easiest win and we mailed the check on Saturday with money from our savings account. I think Dave Ramsey says to pay off the smallest loan first for motivation and he’s totally right. It’s HUGE motivation. Plus, we now have that monthly payment amount back on our budget for other things.

The student loan? This is what we’ll be working on for the next 12 months. It’ll be tight, and we’ll be living relatively frugal during this time, but it’ll be incredibly worth it when we can knock the debt off our list. Once the student loan is paid off, we can start re-building our savings until we decide to purchase a second car or a home. Who knows…maybe we’ll feel so good debt free that we’ll wait to buy a home until we can do so with cash! Only time will tell.

In any case, dreams and goals change as life moves forward. It’s interesting to think how 5 years ago I barely looked at my checking statement and charged whatever I wanted, whenever I wanted. I’m lucky I had enough maturity to avoid credit card debt, but I could have a massive savings account had I not behaved the way I did financially. There’s no use in regretting this behavior, but I sure do wish I’d started saving like this a year ago!

Are you working on any big goals like this??!

productivity for working moms

welcome!

I'm Jessica!

I used to glorify "busy." If I wasn't busy, I wasn't doing enough. But when I became a mama, my entire outlook shifted.

 

The only way out involved a complete overhaul of my time, money & communication systems.

 

Today, I'm doing LESS and achieving more.

It's a productivity dream!

I'm still learning (and always will be!), but my purpose here is to help YOU achieve this level of space in your life too.

 

So grab your (hot) coffee & read on >>

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