Author Topic: Moving towards financial freedom  (Read 1510 times)

Offline maxhedroom

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Moving towards financial freedom
« on: June 04, 2011, 04:14:47 AM »
We have been following a path for the last 18 months that has eliminated all credit card debt, paid off a car loan in 2 years and helped us put cash in the bank.  IT IS NOT A FAST FIX like the spending was. But if you stick with a plan, yes you need a plan, you can do it. While we had just under 10k in debt we did it.

There is a book called The Richest Man in Babylon, one principal of the book is to pay yourself first, 10%. That's how we started with the bulk of that money going towards debt and that amount increased as debt decreased and it is powerful. When you face a challenge that gets thrown at you and you have cash and don't need to grab the plastic it is a sign of independence, you don't need your hand held.

We also incorporated a house rule, if you want it save for it first, then buy it. It sure makes items less desirable when you need to pay first then get.

I want people to know you can do it and the first 3-6 months are HARD, as you are learning new skills and looking for a substitute to e high you get from buying new things. Try gardening, reading, research, fill your mind with knowledge not your house with stuff.

The trip is worth very penny you save and the peace of mind you get in uncertain financial times will keep you out of the hospital!

Offline ncjeeper

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Re: Moving towards financial freedom
« Reply #1 on: June 04, 2011, 11:23:29 AM »
Glad your back on your financial feet.

Offline monkeyboyf

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Re: Moving towards financial freedom
« Reply #2 on: June 04, 2011, 05:06:24 PM »
Great job, Max!

Offline Roundabouts

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Re: Moving towards financial freedom
« Reply #3 on: June 10, 2011, 12:43:06 PM »
Great I am happy for you.  It is very hard to make those changes and rewrite the tapes in your head.  I am a firm believer in pay yourself first.  So many times I would get us out of debit only to have something hit and poof there you are with debit that requires another monthly payment.   So many of those "gurus" say pay off debit first . However if you don't pay yourself first you end up right back in debit. 

If you look at it say you have $3000 in credit card debit and $5000 in savings you could pay it off but with the say$100.00 month payment you were paying it would take 30 months to get that back. That savings could make 30 payments if you lost your job.  I have found that I would rather pay $100 a year in interest to a debit than to be without a savings.   That's not to say I prefer savings over debit you have to balance things out.  Sometimes it's just better to let the debit ride a little longer to build that safety net.