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We paid off a car! We are a little tight this pay period but we did it. Yippee!! That’s one more down. Now we just have a couple of big debts left. It’ll take a couple of years to get those done, but we’re on our way.
Friends and family keep going on trips to the Bahamas or Caribbean and I’m wildly jealous but I keep telling myself, “But we’ll be out of debt. But we’ll be out of debt.” I have no idea what their finances are like and it’s none of my business. But in a couple of years all we’ll have are a house payment and utilities. Then we save up a six month emergency fund and start on the house. It’s going to take a while, but it’ll be worth it. We’ll retire with no debt at all. Maybe even a bit early.
This is all based in Dave Ramsey’s plan. I am not a fan of the “prosperity gospel” he preaches at the end of his book, but his principles are sound common sense. He lays out a plan that makes sense and that is easy to follow. We are not taking second jobs to pay off debt but we are putting any of our “extra” money toward paying things off. The payments of each paid off debt are rolled into paying off the next one so that the amount you are able to send to each successive debt is bigger and bigger. You pay off the debts smallest to largest so that you are able to send a significant amount to the largest debt and get it paid off quickly (well, relatively quickly in our case). The book I read is called The Total Money Makeover. He calls the steps baby steps and each one is laid out on his website daveramsey.com. You can go there and read about them if you don’t want to read the whole book. It’s common sense laid out in book form really. He even admits it’s nothing new.
I know, I sound like an ad. Really I just thought it was a sound way to get out of debt. Anyway, thrift is giving us some money to be flexible with. Some of it is going to greener food choices until my garden comes in, and some of it is going to pay down the debt. We’re getting there, slowly but steadily.