debt payment which happened to be my
undergraduate student loan. On that day we
began a beautiful journey living debt free.
Listen to me share my excitement in My Video Blog 12 Hours Before We Became Debt Free.
Click here to see Our Family Debt Free Scream video created a few months after we paid all of our debt.
We’ve enjoyed moving forward financially and building wealth for our family rather than paying financial tribute to the past. For us it started in college. We stumbled upon Dave Ramsey’s radio program on our local Christian radio station and heard call after call from people who were trapped and restrained by their debt and their financial decisions. As two single college kids who happened to be friends we were individually sold on following Dave’s principles before we ever earned a dime. We realized that starting off our marriage with a conservative risk averse financial plan would give us an advantage. Our senior year in college these two friends became lovers and we took covenant vows of marriage. The voyage began.
It’s hard to believe we’ve now been debt free for five years already. Plowing through the debt snowball was definitely the most exciting and most intense part. Our closest friends are currently trucking through the last part of their final debt and I am reminded of the thrill as the chains begin falling off and the lifetime legacy begins to form. But what is it like to live a lifestyle of intentional stewardship and financial freedom? What are the challenges and responsibilities that come with wealth once the debt is gone? How difficult is it to remain debt free? We’ve made some mistakes that were cushioned by grace and we have hit some challenges we didn’t anticipate. There are always curve balls, but God WILL honor your desire and choice to be debt free. I’d like to share the hurdles, the grace, and the difference once you are debt free.
THE HURDLES
The disappointment I had to overcome was in the burden to pass this process on to others. Once you are truly liberated and when you are fully exposed to the options people have with their finances you can’t help but want to pass it on. I quickly noticed that not many would listen to us. People don’t look at our life and see something contagiously desirable. That was hard. Not many ever ask us how to succeed at this process. We truly have something to offer but we must wait for God to use it how he sees fit. I have bridled and restrained my passion for many years now and it is disheartening, but I’m waiting.
THE GRACE
Shortly after becoming debt free we made moves to purchase our first home. We started the building process on our home after saving up a 3-month emergency fund. We also saved a down payment. In July 2014 we moved in to our dream home with the potential to house a growing family forever.
That following January we hit two expensive emergencies back to back. My husband’s car suddenly needed to be replaced and we also had pests that were brought into our brand new home by visitors. Because our home is large the cost to exterminate the entire house was astronomical! Just like that our emergency fund was completely wiped out. I am thankful we had the emergency fund, although it was difficult to see it dwindle. The difference in the face of these emergencies was that now we also have a 15 year fixed rate mortgage on our dream home. Needless to say our monthly mortgage payment is higher than the norm and rebuilding our emergency fund was a lot more difficult at this stage. Five years later we are still working to build our emergency fund back up after emptying it a few times.
We take the blame for the state that we found ourselves in. We didn’t follow Dave’s advice to a tee. He recommends putting 20% down as a down payment on your first home. We only put down less than 5%. This had an impact on how huge our mortgage payment is. It has impacted the speed of our progress towards baby step 3 (the fully funded emergency fund). I am not proud to say that five years later we have still not moved on from the 3rd baby step.
We also have had to replace 4 cars and purchase new ones while remaining debt free. Once we became used to paying cash for cars we began to desire more reliable vehicles. So far, from my experience and from watching others, replacing vehicles is a tremendous obstacle to those who want to be and remain debt free. While it can be intimidating to find yourself needing a new vehicle, there is a way to do so and stay debt free. It will take sacrifice and being adamant, but you can find a way. I was doused with grace and I know that for others it may take much more sacrifice and creativity. Thankfully, my husband received a large bonus from work and we bought a newer vehicle with cash. By newer I mean we purchased a 2011 vehicle in 2017. Shortly after that it was also time to replace our second car. I had a retirement account from my first job that had doubled in growth since I stopped working there. We cashed that out and purchased a 2009 vehicle in 2017.
Shortly after purchasing both cars they both needed very expensive repairs. I must admit that this was the point that I was most frustrated with the Dave Ramsey plan. I complained that things were not working. We emptied our emergency fund yet again to repair these vehicles we were now committed to. Again, for us, the vehicles have been the most difficult part. Looking back now, however, by the grace of God, we have purchased a total of 4 vehicles without going back into any debt, and God provided the funds to fully repair them. God provided even though we made decisions I believe Dave would frown upon. For the record, we would share one vehicle before ever financing one, but in all honesty in my frustration it became very tempting to go into debt. I am thankful for financial grace.
THE DIFFERENCE
So what. We’ve been debt free and are committed to staying this way. So what! What’s the difference between us and those who use debt as an attempt to be good stewards? What benefit is there, really, to the strain and sacrifice, the self-denial and “weirdness” in the eyes of others? How different are we? I think these can best be answered in a list of declarations, declarations that you can only make when you are debt free accordingly.
- My degrees now work for me instead of me working for them. Paying off our loans in 3 years allows our college education to be a full benefit to us, taking nothing from us now.
- I am pregnant with our third child and because we are debt free I am able to comfortably take one year of maternity leave to stay home and focus on motherhood.
- We’ve been able to easily say yes to family and friends who hit financial crisis. We boldly declare to them that this is a gift and not a loan. It’s a joy to relieve them when they attempt to discuss paying us back.
- We’ve been able to give amounts of money we never dreamed of as an offering beyond our tithes to the work of ministry and to the spreading of the gospel.
- We aren’t keeping up with the Jones’. We ARE the Jones’. We may be the world’s best kept secret, but we admire ourselves and commit to keeping up with who we have become through these principals. In a sense, we are keeping up with ourselves...keeping up with our commitment. If we desire to splurge on vacations or nice things, WE CAN because our priorities are in place first and there are no regrets.
Thank you for reading our journey. We know many who disagree with Dave Ramsey’s principles and choose to manage money their own way. In no way is this intended to offend you, however, I realize that can happen. Leave a comment, and check out my future blog topics soon to come in 2018.
FUTURE BLOG POSTS
7 Myths Keeping You from Becoming Debt Free
I Needed One: Social Work’s Hidden Client
Yield: Pause. Assess. Proceed. Produce.
Several Shades of Black: Racial Rejection
Comments
Post a Comment