Debt

[henktermaat]

I've tried to listen to Dave Ramsey but having fun in life is much more important to me. I felt like his message takes all the fun out of life

Forgo fun now, have more fun later. That's the message. It's called delayed gratification, and it's what adults do.

Life after debt is wonderful.
Emergencies just aren't so bad. Marriage fights decrease dramatically. A job loss won't hit so hard, and your phone doesn't ring.

 

[dmil12]

Today, I'm punching debt square in the dick!

haha - from now on whenever I post, I will start it off with... I'm punching _______ square in the dick!

 

[henktermaat]

haha - from now on whenever I post, I will start it off with... I'm punching _______ square in the dick!

Yep. That was awesome. He's going to be out of debt because he's passionate about it... That's the key. get MAD at it! Punch it square n the DICK!

 

[CBR1000rr]

haha - from now on whenever I post, I will start it off with... I'm punching _______ square in the dick!

Bahahahaha....... Nice. I don't know where I got it from but I recently started using that phrase in relationship to things I was mad at in life and determined on correcting. My philosophy is that, you and only you, are responsible for your position in life. Not happy? Punch happiness in the dick and fix it!

Forgo fun now, have more fun later. That's the message. It's called delayed gratification, and it's what adults do.

Life after debt is wonderful.
Emergencies just aren't so bad. Marriage fights decrease dramatically. A job loss won't hit so hard, and your phone doesn't ring.

I will second that! When the stress of bills are gone, so do a majority of the fights. I can say that what surprised me the most is that most fights are a result of money problems even when they aren't directly related being behind on your bills or something else.

I remember my wife and I getting into a huge blow out argument a few years ago because I wanted to buy something and she told me we couldn't afford it. I mean it was something minor, like less than $300 but I got so upset and began questioning her budgeting abilities. She took it personal and next thing you know we aren't talking. We weren't broke or behind on bills but because we owed money, I couldn't buy something I wanted. The solution was to pay ourselves, not the banks!

 

[femurphy77]

Nice! dont forget to start saving for your next vehicle or you will end up with new debt after paying off your current debt.

What he said! I paid off my truck last year and everybody asked me what I was going to buy to replace it. . . . .I told them a vacation! I didn't buy the truck to pay it off so I could buy another one, I bought it, paid it off and now the truck AND the monthly payment both belong to ME!

 

[Indy317]

Our goal is to have it payed for within the next 4 years and then start chipping away at the new home while saving a nice little nest egg in addition to our current 401k's.

Use caution with 401k's. While the tax incentives can be great, remember it is the government who giveth and the government who can taketh. They could easily change the rules many times during your lifespan, to where you could end up being viewed as an "evil rich" person, while never having a combined income near six-figures.

My wife contributes to her 401k, but we put in just what can be matched. She puts in 6% and they match 3% and she can possibly get another 3% depending on how well financially the company does.

It's a nice feeling knowing you can quit your job and work at mcd's and still be able to pay your bills.

This is exactly how I think as well. My only other suggestion is to get debt free, try to bank $100K, then I would feel comfortable knowing I could quit my job and work some $10/hour job to have money to feed myself, travel a bit, but mostly would have one for health insurance.

I've tried to listen to Dave Ramsey but having fun in life is much more important to me. I felt like his message takes all the fun out of life

The problem is that way too many people have to live the perpetual spring break, otherwise they just won't be happy. I know a couple who made twice what my wife and I were making, plus got some family money (decent amount...way more than us), but they are doers. Going out all the time, trips, etc.. They are pretty much free of debt except their home. However, I'm not sure if they count leasing vehicles as debt. They got word they are upside down on their home and it made him sad. However, they are in a great position because they are no where near as bad as most folks (who are upside down five figures plus).

Put it this way. Wife and I made a combined income of about $70K/year for about seven years. With that, we are debt free except her car. Yet even with that, we went out on a two week trip out west, we have been to Florida three times, NYC once, a handful of day trips here and there, E. Tenn. twice...with a third trip coming up.

The thing is, it is about what you spend to have fun that matters. We flew twice for all those vacations, but I mostly opt to drive as it is that much cheaper. We eat out about two times a week now (one sit-down place, one fast food place), but in the past we averaged 1-1.2 times a week. We just got ourselves modern smart phones, and two years ago we were still behind the times when we got phones with texting keyboards. However, many of my friends and relatives paid around $300 for the exact same phone I just got for $50. I haven't had a brand new car since 2000, though we did get the wife a $14K brand new car. When my car is done for, I will likely buy used. We aren't drinkers or partiers, but I do go out every so often with friends. I stopped going to rip-off movie theaters and opted for Netflix, which has saved me thousands over the years.

I don't feel I have missed out on anything. Have others had more "fun," yes...but I also hear the stress in their voice that comes from one issue...money. Mostly it starts when they want to move, and selling the home becomes something that just isn't happening.

 

[TTB Yeee]

Unfortunately, I am going the opposite way. I am 23 with a good job. I bought a car shortly after I graduated (0% financing), and I just bought a house a month ago.

I have quite a bit of school loan debt, but that should be paid off by 30. Car will be paid off in 4 years.

The debt is a necessity for me, for right now. No need to throw money away in rent when houses and interest rates are almost rock bottom right now. School loans suck(damn you private schools), but I will have a masters and less school loans than most people I know that have a bachelors. So hopefully by 30 I will not have much debt besides the house, which will hopefully have a nice chunk paid off.

My gf (soon to be fiance) is in a worse position than me with school loans, but she makes quite a bit of money so that shouldn't take much longer to pay off than mine, especially with us both chipping in.

 

[pudly]

No. Taking on additional loan debt like that is not a necessity. Did you buy a used car (doubt it at 0%)>? Did you buy a small house so that you can pay it down fairly quickly or did you buy as much as you could afford in monthly payments? Without more details I can't say for certain, but it sounds like you may have fallen face-first into the debt trap.

What would happen if one of you lost your job for a substantial period of time? What if you have a medical or other personal disaster? How would you be able to deal with it? If you don't have good answers to those questions, then you need to look into controlling your spending.

 

[TTB Yeee]

No. Taking on additional loan debt like that is not a necessity. Did you buy a used car (doubt it at 0%)>? Did you buy a small house so that you can pay it down fairly quickly or did you buy as much as you could afford in monthly payments? Without more details I can't say for certain, but it sounds like you may have fallen face-first into the debt trap.

What would happen if one of you lost your job for a substantial period of time? What if you have a medical or other personal disaster? How would you be able to deal with it? If you don't have good answers to those questions, then you need to look into controlling your spending.

Talk about jumping to conclusions on your own huh. If me paying off a substantial amount of a mortgage, all of my school loans, and a car in 7 years is falling face first into a debt trap, most of america is screwed.

Now to answer your questions....I bought my car brand new, why? Because I could. I bought a house, why? Because rent is as much as a mortgage. Financially speaking, I would be less responsible throwing money away on rent than gaining equity in a house.

As for the details, the only details necessary was the fact that I should have most everything paid off in 7 years....Not 10 (loan repayment), not 30 (mortgage).

As for me losing my job or any of the medical/personal disaster. I have medical insurance, and have a pretty big cushion in savings, so I should be good for a long while. No need to control my spending, as I already do.

 

[Lucas156]

That's so true about rent but you have to calculate maintenance costs too. The key is digging out of the debt as long as you still have a big shovel

 

[RyanV]

Congrats to the OP for punching debt in the dick. My wife and I started our debt free journey about 2 years ago and are nearly done. In that little time we have paid off more than 50k in credit cards, student loans, and car payments. We live on a modest income of 45k/year and follow Dave's envelope system and debt snowball. Dave Ramsey is my homeboy!

 

[CountryBoy19]

Congrats man... it takes a lot of hard work, but you can do it...

My advice, in the future avoid car payments like the plague... and cc debt as well. Those 2 items alone are the largest "hump" to get over on the road to being debt free IMHO.

I myself have never had a car payment, but my wife has, and I constantly hear from my close friend about how much his car payments (2 of them) kill his monthly income very quickly. I can honestly say that if I had a car payment I wouldn't be living in the house I am and I sure wouldn't have much disposable income. My friend is payment almost as much on his car payments per month as my normal house payment. Without car payments I can apply that much more towards my mortgage. My goal is to be 100% debt free (including my mortgage) by age 30. After I get my mortgage paid off the only thing I'll go into debt on would be land to build our dream house on. If I don't find that land, I won't be going into debt.

 

[CBR1000rr]

I have to say that I'm as proud as can be. Not in regards to the accomplishments my wife and I have made but proud to be a member of a community where so many people are not only working towards the same goal (or already accomplished it) but a community that shows such a great amount of support for a fellow gun owner and debt hater.

Thank you all for the words of encouragement. I wish you all the best of luck in your venture. You have inspired me further and I can't wait until I can truthfully scream at the top of my lungs that I'm no longer a slave to the dollar or the corporate world.

Now, if I could only stop spending my money on these darn broomsticks!

 

[Ericpwp]

My fiancee and I have a different outlook on money. She is the bread winner, but she carries so much more debt then me. I have a small 15 year on the house, and own my car. She has a big 30 year on 20 acres, a brand new car, and a wedding to pay for. I just pulled 5500 out of savings to pay off her CC. I hope one day we can get out of this hole.