5 Things We Gave up To Get out of Debt

The title of this post really should be "5 Things We Are Giving Up to Get out of Debt" since we're not out of debt yet, but we can see the light at the end of the tunnel. For the past two years, we have been throwing all our extra income at the student debt we have amassed. (I need to get permission with my husband before I share just how much debt we had, but let's just say that the amount could have bought us a house.)

Now, we are so close to being in the four digit debt amount that I can almost taste it, and I'm drooling. But, in the meantime, we are expecting our first child in about 6 weeks. In addition, we have one vehicle that may or may not make it through the winter. Finally, we have moved into a slightly bigger and more expensive apartment. Not to mention we're not exactly sure how to budget for diapers, baby stuff, and all the things that go with growing one's family by a person. Still, we are committed to saving on the luxuries that we formerly enjoyed in order to get out of debt faster. So, in no particular order, here are some things we have given up these past two years to help us achieve our goal of being debt-free in 2016:

1. Scented Candles-- Oh how I love Bath & Body Works scented candles (and just scented candles in general.) I light one of those bad boys up and all is right in the world, or at least in our little corner apartment of the world. But let's be honest, these are a luxury item. They aren't necessary for daily life; they have no return on investment; they had to go.

2. DVD's-- This is something Rob has given up since our Dave Ramsey lifestyle began two years ago. At first it was very difficult for him, and I know that some days it is still a challenge for him. However, he has been so gracious at giving up this small pleasure while we work on paying back Sallie Mae and her gang.

3. Beauty products-- I used to spend a decent amount on make-up, hair products, and hair cuts and colors. I have since gone down to getting my hair cut once every six months or so. I also use up all the shampoo / lotions / eye-liners / facial creams that I have. If I need to buy something, I buy it cheap at Target. No more Sephora beauty products for me. I even bought some eye-liner at the $1 store; I won't recommend it, but I still use it because that's life on a budget. When someone forgot their shampoo at our place, I used it up even though it probably wasn't  the type of shampoo my hair needed.

4. Books-- I used to buy more books because I was living overseas and usually the only way to read a book was to buy it for my kindle or purchase it when I was home for the summer. Reading books is a great stress reliever for me, and I love sharing books with my friends too. However, I have significantly cut back on buying books with the exception of a few devotional books and two pregnancy related books (one which the library did not have.) If I do decide I "need" a book, I buy it used on Amazon, usually at half the price of what it would be normally.

5. Concerts, plays, & shows. Rob and I went to a few concerts when we were dating. It was great fun, and it was during one of those concerts that I knew I was falling in love with Rob. Those concerts are distant memories now, and we have not been to a show or live music event since we started our debt-free journey. I feel slightly jealous when I see people enjoying a Cold Play or Avett Brothers concert, but when every dollar counts, paying anywhere from $30 to $60 for each ticket seems superfluous. I'm sure that we'll have a chance to enjoy live shows again, and we could always take advantage of FREE shows and concerts that are happening around town.

These are some small sacrifices we are making to get out of debt. What are some things you've given up (or thought about giving up) to help you achieve your financial goal?

Home Ownership vs Renting

A lot of our friends are in the house buying mode as of late, and it's safe to say that Rob and I are in the minority.  I'm a bit tired, however, of hearing how buying a house is a good investment for the future, and renting is just throwing money down the toilet. 

Our friends often share proudly how low their mortgage is per month and then ask us how much we pay per month for our apartment. Yeah, we get it. We're paying a lot in rent. You know what else we were paying a lot for? Interest on student loans, in excess of $200 a month! 

Don't get me wrong-- we want to own a home. I would love to have a yard or a garage. Rob dreams of the day he can have a dog. Home ownership is definitely a goal we have for the future. But just because we can't make it happen right now doesn't mean we are being irresponsible. We are going for financial freedom, not more financial bondage. To quote one of my hero's Dave Ramsey "Live like no one else so later you can live like no one else." We know we won't be in debt forever; but that doesn't mean we want to stretch it out as long as we can. 

I also believe that just because you are investing in something (like a home) doesn't always mean you get it back. A close friend of mine bought a house before the market crashed. Just four years later, he had to pay money to sell the house.  Sure, he invested in his home but that doesn't mean that he got anything back from it. Another family I know had to sell their home because they couldn't afford the roof damage caused by a storm.  

Furthermore, when you buy a house, there are a lot of hidden costs that you may not even think of. We would need to buy a washer and dryer, a lawn mower, possibly a fridge and other appliances. All things we don't need to worry about right now. In addition, you also pay a lot more on electricity, city fees, water, recycling, taxes, etc.  If something breaks or need repairs in your home, you're financially responsible to fix it. When you rent, you just report it and someone comes and fixes it at no cost to you. 

There is a time for home ownership, and I can't wait for that season. But for right now, we're in a season of renting (a predictable amount each month) and paying off our loans. Thanks Dave Ramsey! 

Happenings of a Year

It was Rob's 30th Birthday a few days ago. As I wrote out his card that morning, I couldn't help but remember how far we've come this past year.

 Last year, around this time, Rob started to mention that he thought the time was here for him to buy a new car. His 2004 volkswagon was a gas guzzler and required expensive repairs and upkeep. I, in trying to be a supportive wife, said I thought that was a good idea, and suggested we should go car shopping together.

 We found a car that we both loved! It was a 2012 Camry SE, leather interior, and it drove as smooth as melted butter. Of course, it was a couple thousand dollars more than we had planned on paying, but when you fall in love, what can you do? So we financed the car and drove it off the lot on Rob's 29th Birthday! It was a beautiful day! We proudly drove our shiny, new car to Minnehaha Parkway and walked beside the river. We even found $20 on our walk. Finally, we ended the night listening to live music and enjoying a delicious meal at the Icehouse.

About one week after this beautiful week-end, we sat down and looked at our finances. Together, we had a large amount of student loans. I had been unaware of the exact number, and the grand total hit me like a ton of bricks. "All my dreams are shattered." I said, showing my immaturity in its finest form. I started to cry; I played the blame game. It was a horrible memory, and its effects have stayed with me like a nasty cold I can't quite recover from.

That entire month, Rob and I were at each other's necks. Only one month into marriage, and true to status quo, we were fighting over money. But, we started to read Dave Ramsey's book, Total Money Makeover, and it started to give us hope that we could turn the ship around. We created a budget and did our best to stick to it. We started living below our means and started throwing all our extra money from the month toward our smallest debt to begin the debt snowball. In March, we decided the financing payments for the car had to go. We paid cash for Rob's parents 2000 Mazda protege and sold our beautiful new car back to the dealership. We took an initial loss on the value of the the car, but we knew that we would make up for the loss in the long run and have that much extra cash per month to put towards loans.

We are still not there to having our debts paid off, but we are getting closer. We have learned a lot about being content with what we have, where we live, what we drive. We don't spend a lot on traveling, but we were blessed to be able to take a trip to Chicago this summer. Rob has given up buying DVD's. I have given up buying books and Bath and Body Works products (except for extreme sales.) We try to cook more at home; we hardly go out to movies; we still eat out, but we don't go above the budgeted amount for eating out that month.

And our marriage has thrived as a result of being united about money. We still disagree sometimes, but we work through it and compromise. We forgive each other when we mess up. We dream together of financially freer times. We're not competing with the Jones, and we're okay with that.

I love that we are united, not by material things, but by something and someone bigger. I am so thankful for this humble man, full of integrity who I get to do life with! I am honored to be the first one and the last one to greet him everyday! And I can't wait to find out what God is going to show us in this coming year!

Bird Dates

Rob and I are trying to be a little bit creative and somewhat frugal in our dates. We try to ignore the fact that there are so many great bands coming to town this summer and so many delicious eateries to try out. Instead, we are trying to take in the budget friendly activities around us. Specifically, we have enjoyed walking around the beautiful lakes of the Twin Cities and just taking in the nature. Far from boring, it has proven to be quite interesting. The other day we were walking around Central Lake, when we came across this bird:

 

Say what? Yes, that is exactly what we said. Unfortunately, neither of us had our camera with us to document this peculiar looking bird. At first, we were a little scared, but then we were just intrigued. What the heck kind of bird is this you might ask? That's what we asked google. Google told us that it was a black-crowned heron. Apparently this type of bird is common in Texas. What you miss in this photo is how large this bird is and how it virtually has no neck.

On another date night, we came across a larger fowl bird. We didn't know what it was either, but we asked a passerby who was as intrigued as we were by the bird. He said it was likely a blue heron. Rob took this photo with his spiffy camera.

One night, after we had finished grilling, we had another bird join us on the patio. We had some fun snapping senior portraits of this bird. This bird is a regular at Larpenteur Estates; we often hear his high pitched screeching and look outside to see if we can catch a glimpse.  Up until recently, we thought this bird was a hawk. However, one of our neighbors informed us that it is a perregrine falcon. We're still undecided about this species of bid.