1. Absolutely! My wife and I have been in debt-repayment mode for the past 1.5 years (since we got married) and just made our last debt payment this month (a full 2 years ahead of our original schedule)!

    While paying off our debts, we did, just as you have, start a number of different savings categories. We feel much more secure and confident now with our financial position. Not only have we done away with the monthly debt obligations, but we have a solid savings to draw on as emergencies, car repairs, and other things we’ve been putting money aside for come due. In fact, just recently, our minivan needed $2,000 worth of work and we were able to pay cash for it! What an empowering feeling!

    • That’s awesome. Two years is forever.

      • Yeah, I know. When we first set out to eliminate our debt, we were looking at nearly four years, which seemed like an eternity. Needless to say, facing an ‘eternity’ of debt is not very motivating, but we kept plugging away at it and became increasingly motivated by how fast the debt began to fall. It almost became a game with the objective being: Squeezing out as much money as possible from each month to put towards debt.

        HANG IN THERE! Two years will be here before you know it. And who knows, you may even reach your goal early! How awesome would that be?!!

        • Originally, we were planning for 6 years. According to my debt spreadsheet, we’ve got almost 3 years to go, so we’ve cut the time in half already. I’m sure we can manage it in two.

  2. Congratulations! That is some exciting progress. Having money saved makes a lot of problems seem more manageable (speaking from someone who will be incurring some unexpected health costs this year).

    By the way, I came over by the way of Squirrelers.

  3. From getting close to a bankruptcy to being almost debt-free, great job on managing your debts!

    What made you do it?

    • The first glaring signal that I needed to fix something was when we found out my wife was pregnant with baby #3. We’d been counting on not being as efficient as we were in getting her, since her sister took 2 years of trying. I looked at our cash flow, tried to figure out how to add another kid in diapers and daycare, and almost keeled over. It took a few more hits over the head to really get it, but that was first.

  4. When I started learning about investing, I use to imagine investing money so I could enjoy the dividends now. Eventually I realized that would just raise my taxes and interfere with compounding interest. Now I think about saving money in terms of goals, instead of interest payments or dividends. Before spending money, I decide if this is the absolute best way I can spend the money to maximize the benefits to me. Sometimes buying the item is worth it. Other times I decide I’d rather have more money for retirement investments, paying off the house early, or saving towards a specific big item purchase.


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