Debt free!

 We see the light :)

Last year in June Danny and I read Dave Ramsey's book The Total Money Makeover.  It really changed our way of thinking about how we spent our money.  

We started following the books baby steps almost immediately.

The first things we did was make a budget and committed to only using cash/debit card.  Bye bye credit card.

Then we started our debt snowball.  I can't remember the exact numbers but we had about a months worth of credit card debt (we used to pray we could pay it off each month) about $8,000 of car loan and over $10,000 in student loans.  The total was around $20,000 of debt (not including our home)

In our budget we only planned for necessities and got rid of all our extra spending.  I am surprised how much money we were spending on stuff we didn't need and food we didn't eat!  All the extra money went to debt, starting with the smallest amount first (credit card)  You know how or debt snowball works and we first planned it out we figured it would take 2 1/2 years to pay off our debt.  (by the way before we read this book we were on a 10 year plan to pay off Danny's student loans, eek!)

We prayed alot for Heavenly Father to helps us stay focused and find ways to pay off the debt sooner.  We both sacrificed alot.  I am not longer blonde, tear.  Danny sold his motorcycle (his idea I promise) no more eating out and going to movies, we didn't buy each other Christmas or birthday presents.  We stuck to the nessasities, and to us those small things didn't matter because this would be a short time in our lives! 

I can't believe how much prayer and tithing blessed us.  It didn't take us 2 1/2 years, in fact we payed it off in 11 months!  Hooray, it is such a wonderful feeling.  Heavenly Father will help and bless all those who have a desire to do good.  And I believe that Heavenly Father kept Danny's car alive while we were trying to pay off the debt.

Because I kid you not, 1 week later after paying off the debt Danny's car died!  Not totally dead, but it is going to cost to much to fix it, and the car isn't worth it.  I am so grateful we are out of debt and can focus our money for saving for a new car!  

No more car loans for us, so we are save save saving as fast as we can!  Then after we get a car, we can work on getting a bigger emergency fund :)  (a little backwards from the book, but hey we need a car!)

I am so happy we read this book, it saved us.  Read it, seriously!  Even if the exact plan isn't right for you I am sure you could find something insightful or helpful!  Oh and if you are married make sure your spouse reads it too.

Oh and this book isn't only about getting out of debt (though it is a huge portion) it talks about retirement, paying off a house early, saving for college funds etc.  I am excited to have a plan now, and in the future.

The best part of all is that Danny and I are on the same page about money.  We constantly communicate about where it is going and how we are spending it.  Even though we are not exactly where we want to be now, we have a plan and a peaceful feeling that we are doing it right :)

I am so grateful!