- Guide to finding cheap airfare: http://su.pr/2pyOIq #
- As part of my effort to improve every part of my life, I have decided to get back in shape. Twelve years ago, I wor… http://su.pr/6HO81g #
- While jogging with my wife a few days ago, we had a conversation that we haven’t had in years. We discussed ou… http://su.pr/2n9hjj #
- In April, my wife and I decided that debt was done. We have hopefully closed that chapter in our lives. I borrowed… http://su.pr/19j98f #
- Arrrgh! Double-posts irritate me. Especially separated by 6 hours. #
- My problem lies in reconciling my gross habits with my net income. ~Errol Flynn #
- RT: @ScottATaylor: 11 Ways to Protect Yourself from Identity Theft | Business Pundit http://j.mp/5F7UNq #
- They who are of the opinion that Money will do everything, may very well be suspected to do everything for Money. ~George Savile #
- It is an unfortunate human failing that a full pocketbook often groans more loudly than an empty stomach. ~Franklin Delano Roosevelt #
- The real measure of your wealth is how much you'd be worth if you lost all your money. ~Author Unknown #
- The only reason [many] American families don't own an elephant is that they have never been offered an elephant for [a dollar down]~Mad Mag. #
- I'd like to live as a poor man with lots of money. ~Pablo Picasso #
- Waste your money and you're only out of money, but waste your time and you've lost a part of your life. ~Michael Leboeuf #
- We can tell our values by looking at our checkbook stubs. ~Gloria Steinem #
- There are people who have money and people who are rich. ~Coco Chanel #
- It's good to have [things that money can buy], but…[make] sure that you haven't lost the things that money can't buy. ~George Lorimer #
- The only thing that can console one for being poor is extravagance. ~Oscar Wilde #
- Money will buy you a pretty good dog, but it won't buy the wag of his tail. ~Henry Wheeler Shaw #
- I wish I'd said it first, and I don't even know who did: The only problems that money can solve are money problems. ~Mignon McLaughlin #
- Mnemonic tricks. #
- The Wilbur and Orville Wright Papers http://su.pr/4GAc52 #
- Champagne primer: http://su.pr/1elMS9 #
- Bank of Mom and Dad starts in 15 minutes. The only thing worth watching on SoapNet. http://su.pr/29OX7y #
- @prosperousfool That's normal this time of year, all around the country. Tis the season for violence. Sad. in reply to prosperousfool #
- In the old days a man who saved money was a miser; nowadays he's a wonder. ~Author Unknown #
- Empty pockets never held anyone back. Only empty heads and empty hearts can do that. ~Norman Vincent Peale #
- RT @MattJabs: RT @fcn: What do the FTC disclosure rules mean for bloggers? And what constitutes an endorsement? – http://bit.ly/70DLkE #
- Ordinary riches can be stolen; real riches cannot. In your soul are infinitely precious things that cannot be taken from you. ~Oscar Wilde #
- Today's quotes courtesy of the Quote Garden http://su.pr/7LK8aW #
- RT: @ChristianPF: 5 Ways to Show Love to Your Kids Without Spending a Dollar http://bit.ly/6sNaPF #
- FTC tips for buying, giving, and using gift cards. http://su.pr/1Yqu0S #
- .gov insulation primer. Insulation is one of the easiest ways to save money in a house. http://su.pr/9ow4yX #
- @krystalatwork It's primarily just chat and collaborative writing. I'm waiting for someone more innovative than I to make some stellar. in reply to krystalatwork #
- What a worthless tweet that was. How to tie the perfect tie: http://su.pr/1GcTcB #
- @WellHeeledBlog is giving away 5 copies of Get Financially Naked here http://bit.ly/5kRu44 #
- RT: @BSimple: RT @arohan The 3 Most Neglected Aspects of Preparing for Retirement http://su.pr/2qj4dK #
- RT: @bargainr: Unemployment FELL… 10.2% -> 10% http://bit.ly/5iGUdf #
- RT: @moolanomy: How to Break Bad Money Habits http://bit.ly/7sNYvo (via @InvestorGuide) #
- @ChristianPF is giving away a Lifetime Membership to Dave Ramsey’s Financial Peace University! RT to enter to win… http://su.pr/2lEXIT #
- @The_Weakonomist At $1173, it's only lost 2 weeks. I'd call it popped when it drops back under $1k. in reply to The_Weakonomist #
- @mymoneyshrugged It's worse than it looks. Less than 10% of Obama's Cabinet has ever been in the private sector. http://su.pr/93hspJ in reply to mymoneyshrugged #
- RT: @ScottATaylor: 43 Things Actually Said in Job Interviews http://ff.im/-crKxp #
- @ScottATaylor I'm following you and not being followed back. 🙁 in reply to ScottATaylor #
A Look Back
I’m on vacation this week and thought it would be nice to post a look back at some of my early posts. These posts are some of my favorites, but were written when there were only 3 or 4 of you paying attention.
Since I know you don’t want to miss anything, here are 5 of my favorite early posts, in no particular order:
1. Cthulhu’s Guide to Finance. I’m more than a bit of a horror geek. Books, movies, or games; all keep me entertained. Over the weekend, I taught my Mom how to play Zombie Fluxx and Gloom. When Cthulhu approached me about writing a guest post, I couldn’t refuse.
2. Birthday Parties Are Evil. It’s hard to remember to be cheap when your little girl is asking for a bowling party. It can run $200 to get a dozen kids an hour of bowling and a bit of pizza.
3. No Brakes. This is a post about why I had a hard time coming to grips with financial responsibility.
4. 4 Ways to Flog the Inner Impulse Shopper. Who can’t love a BDSM-themed personal finance post? Every blog needs a dominatrix mascot, right?
5. Fighting Evil by Phone. In which I share the method of convincing Big Nasty Telephone Company and their Contracted, Soulless Long Distance Provider to leave me the heck alone and stop demanding $800 they refused to admit was their mistake.
Debt Burnout
You’ve got a budget. You’ve got a debt repayment plan. You’ve been paying off your debt. You’ve even paid off a few of your smaller debts. Now you’re staring down the barrel of your big debts: your mortgage, a $30,000 credit card, maybe a car payment. You’re looking at months of payments with no quick wins; no more watching your debts die every few months. You’re in the middle of a very long slog.
All of the easy milestones have been reached and the next one is a year or more away. This is when debt repayment gets hard. How can you avoid getting burnt out doing the same thing, month after month, with no major visible progress?
1. Keep your eye on the prize. Try focusing on the end result, while ignoring the time it takes to get there. Do you have a reward planned for when you pay off your debt? If not, consider that to be your new shining goal-post. My wife and I plan on taking an Alaskan cruise when our debt is repaid.
2. Ignore the prize. If #1 doesn’t work for you, try focusing on just the current month’s progress. How much did you pay off this month? Was it more than last month?
3. Make micro-goals. Try breaking the long slog into bite-sized pieces. How fast can you pay off the next $1000? How many months will it take to pay off that TV you bought last year? Sometimes, meeting a smaller goal can make the whole works feel like it’s going by faster.
4. Take a snowball vacation. For just one month, take every dollar you would normally apply to your debt–except your required payments–and have some fun with it. Take a weekend trip, have a fancy dinner, or pick up that video game system you’ve been eying. Something. Anything to take your mind off of your repayment plan for a while. Be careful not to make this a habit or you will never get out of debt.
5. Start a blog to share your pain.
A debt snowball is a long, intense process. If you’re not careful, you can burn out and let the whole thing collapse. How do you avoid burnout?
Twitter Weekly Updates for 2009-12-19
- RT @ScottATaylor: Get a Daily Summary of Your Friends’ Twitter Activity [FREE INVITES] http://bit.ly/4v9o7b #
- Woo! Class is over and the girls are making me cookies. Life is good. #
- RT @susantiner: RT @LenPenzo Tip of the Day: Never, under any circumstances, take a sleeping pill and a laxative on the same night. #
- RT @ScottATaylor: Some of the United States’ most surprising statistics http://ff.im/-cPzMD #
- RT @glassyeyes: 39DollarGlasses extends/EXPANDS disc. to $20/pair for the REST OF THE YEAR! http://is.gd/5lvmLThis is big news! Please RT! #
- @LenPenzo @SusanTiner I couldn’t help it. That kicked over the giggle box. in reply to LenPenzo #
- RT @copyblogger: You’ll never get there, because “there” keeps moving. Appreciate where you’re at, right now. #
- Why am I expected to answer the phone, strictly because it’s ringing? #
- RT: @WellHeeledBlog: Carnival of Personal Finance #235: Cinderella Edition http://bit.ly/7p4GNe #
- 10 Things to do on a Cheap Vacation. https://liverealnow.net/aOEW #
- RT this for chance to win $250 @WiseBread http://bit.ly/4t0sDu #
- [Read more…] about Twitter Weekly Updates for 2009-12-19
My Financial Life
My financial life right now is boooring.
And that’s a good thing.
When I started this site I was $90,000 in debt, and considering bankruptcy. I’d just started on the Dave Ramsey plan and was looking for every possible way to scrape up any extra money I could.
Now, the debt is nearly gone.
- I’m looking at the last $8000 on my mortgage. I have enough in savings to pay it off today, without draining my savings completely dry.
- My IRA gets maxed out every year, and this year, my wife’s will be, too.
- We save or invest about 30% of our income.
- My credit score according to CreditKarma.com is 826.
Our credit card is almost paid off every month. There’s occasionally some overlap between our auto-payment and our charges. And sometimes the budgeted auto-payment doesn’t match the reality of our spending and I don’t notice for a week or two. Except for the end of last year, but that’s a post for another day.
The short version is: We’re doing well, and we’re nearing the end of our financial problems.
Our scheduled mortgage over-payments will have it completely paid off in October. Then we are debt-free and can hopefully manage to live the rest of our lives without paying interest on money that isn’t earning us more than we are paying. For example, I’m willing to take out a mortgage to buy another rental property, but I’m going to wait to do that until our current mortgage is paid and we have a substantial down payment ready.
No debt.
I’m not kidding when I say it’s been a long 6 years of fighting our debt. Counting a car loan we got and paid early, we’ve paid more than $110,000 of debt in six years.
I’ve run side businesses, aggressively negotiated raises, and left companies(voluntarily and otherwise) for better pay & benefits.
I’ve watched friends and family take vacations around the world.
I’ve turned my kids down for so many things that I would love to buy them, but couldn’t because being financially secure is a much higher priority than spoiling children. Try explaining that to a 6 year old.
And now, the debt-ridden part of our financial journey is almost over. Finally.
So what’s next?
I have no idea. I’d like to travel more. Linda and the girls want us to move to a hobby farm and get horses. We want more rental properties.
Whatever “next” is, it will be done from a position of strength that won’t destroy our financial world or put out futures at risk.
Watching My Debt
- Image by Getty Images via @daylife
I’m so excited. Yesterday, I transferred the final payment for my personal line of credit. This LOC was originally my overdraft protection LOC that had worked it’s way up to $6000 at 21%. Today, it is non-existent.
We started to pay down debt on April 15th, 2009. Since that time, we have paid off $22, 370.70 of our debt. That isn’t $22,370.00 in payments, that is a $22k reduction in our total debt! By my calculations, we have made approximately $28,000 in payments to get that reduction. Next week, we cross the line for 25% of debt eliminated. This is a good day.
Over the last 14 months, we’ve settled into much more responsible spending and saving habits. It no longer feels like we’re sacrificing our lifestyle. We’ve built up a useful emergency fund and set aside money for some things that we know are coming, like braces for my son. In 6 weeks, we are taking our first debt-less vacation.
Now, we start on the long slog to the end. We have 3 debts left to pay: Our last car loan(ever!), one credit card which was an accumulation of pretending we were making progress on our debt by combining many debts onto one card, and finally, our mortgage. The car will be paid by the end of the year. When summer childcare expenses are over, we’ll be making triple payments until it is gone. After that, we have a long, slow couple of years paying off the credit card.
It hasn’t always been easy, but right now, it feels good to look at the progress we’ve made.
Update: This post has been included in the Carnival of Debt Reduction.
