So a few months ago, as well as in my post last week, I wrote about how Nick and I were working on paying off our debt using the Dave Ramsey baby steps method. Right after the first post, we found out I was pregnant and went into stork mode. Basically, we paid our regular bills but every extra dollar we received, instead of paying extra to our debt, we put into a savings account. We knew we would need it for medical bills, plus for baby girl when she arrived.
Unfortunately, that didn't happen as we wished and our sweet Kynsleigh is now in heaven. So we are back to working on paying off our debt as quickly as possible in Baby Step 2. And Nick and I have gotten incredibly gazelle-like intense these last couple months. We are tired of paying our hard earned money to debt. We are ready to live the cash only life!
We traded in both our cars at the beginning of June for a car we both wanted, a Subaru Outback. We smartly purchased the warranty agreement because, as we all know, used cars tend to have issues. Well, I guess all cars do. But wouldn't you know it...three weeks into having our car, it needed the transmission replaced. This could have been devastating news, but instead, with our warranty, it is only $100 to do this! Talk about a lucky break!
Trading in both our cars means less car insurance a month and a lower car payment, plus we finally paid off our iPhones so our cell phone bill is less, and we're working on selling our timeshare! We're not only working on paying off our debt, we're working on lowering our bills all around.
Through all of this, somehow, in the last month and a half, Nick and I have managed to pay an extra $5,300 towards our car payment, plus extra to our hospital bill for delivering Kynsleigh.
Y'all...I have no idea how we've come up with this extra money, but literally everything extra gets dumped right on the car loan! We both got refunds from Chesapeake for the personal property tax payments on our cars we traded in, and I got a refund from the warranty on my Rogue. Yep - you guessed it...paid right to the car loan!
When you start seeing the number decrease, it lights a fire under your butt! I mean, can you imagine what we could have done with $5,300 if we didn't have to pay it to debt?! Soon, that will all be extra money we can invest, go on amazing vacations, treat ourselves!
I'll tell you...it's a sacrifice. We've had to say no to things and make adjustments, but it's worth it. We know we are living like no one else now so we can live and give like no one else later. It will 100% be worth it and we can see the light at the end of the tunnel.
I'll be so excited to pay our last payment to the car, pay off the little bit we owe for delivering Kynsleigh and whatever other medical bills we'll receive for it, and start paying ourselves for a change!
We've made a couple of huge adjustments in how we've managed to make this work for us. We now operate on a cash basis. We pay for groceries in cash, we have "fun" money set aside for us, as well as date night and car money. If and when something comes up, we have money set aside so it isn't an emergency or an "oh crap, we don't have the money" scenario. And believe me, we've lived that way before. It wasn't fun.
We also no longer use our credit cards. When we started on this journey in February, we put our credit cards away (aka, out of our wallets), I changed all our auto orders so they are now on debit cards, and we haven't used our credit cards one time. If we don't have the money for something we want, the answer is no. Then we figure out how long it will take for us to save for it and we make it happen.
It's a nice feeling, knowing we are in control of our money. We know how much is going out every month without wondering at the end of the month where all the extra is going.
If you're interested in learning more about it, please don't hesitate to ask. I'm happy to help you and guide you in the right direction. I know it can seem so overwhelming when you don't know where your money is going or what you owe and to whom. The first step, of course, is to write it all out and know what you owe. You can't tackle your debt if you don't know who you owe or how much!
Let's chat. See how to get you started!
Have an amazing week, y'all!
With love and wellness,