Imperfect People

Imperfect People in love with a perfect God

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Imperfect People - Imperfect People in love with a perfect God

Tips on how to get debt free

Our story on becoming debt free didn’t happen over night.  And it didn’t just fall in our laps.  We got intentional, we got serious, and we sold a bunch of stuff we didn’t need. 

If you are looking to get rid of your debt this is a all or nothing commitment.  The idea is you work harder, live on less and get out of debt as fast as you possibly can.  If you are still working on your debt in four or five years (baring no unforeseen disasters) there is a problem. 

A few tips that helped us:

  • eBay:  There isn’t much more exciting than selling something you no longer need on eBay.  If you have never tried, I PROMISE it is user friendly.  If you can send and email, you can sell on eBay.  Many items like books and DVD’s have the information all ready to go , you just describe your specific copy.  I pulled $500 from our paypal account to add to our down payment when we bought our home.  That money was just from stuff we no longer needed or loved. 
  • Yard Sales: Being a shopper or a seller, yard sales are the way to go. If you are trying to get out of debt I am willing to bet you have lots of “money” sitting around your home in the form of something you no longer need.  Plus it helps de-clutter!Yard sales are also the place to shop for the family trying to get out of debt.  You never know what you will find but I guarantee it will be way less than retail!
  • Coupons: I hear stories of these super coupon cutters and how they get everything for free.  I have no pointers as I only wish to be so coupon savvy but this site tells you where to find all the best deals each week.
  • Envelope system: Designate a specific amount of money for areas such as eating out money, clothing money, even grocery money.  When that envelope is empty for the month, you are done.  Make do with what you have.  More details about this here.

Remember this is a short period of time.  Stay focused, eye on the prize.  When you are debt free you will be able to afford more, go on vacation, or make your hobby become your job. 

Making sacrifices for a short time may help you to realize there are things you can live without for the long term too.  Very few millionaires get $50 hair cuts, pay retail for major purchases, or buy brand new cars. 

My husband lost his job in September of this past year.  We were debt free and had an emergency fund, making the situation much more tolerable.  He didn’t have to rush into the first job that came along and thankfully he was able to land a great job a few months later. 

Being debt free changes your perspective on things.  You worry less and give more…because you can.

Share your tips, how do you live frugally? Tags: frugal,simple living,debt

Our Financial Testimony on becoming debt free

Apparently we live pretty differently than the rest of the world.  We have lived debt free and without credit cards for so long now I forgot we are “weird”.  The average American a.k.a “normal person” is carrying roughly $25,000 worth of debt not including their mortgage…I’m glad I’m weird. 

It wasn’t always that way…

When my husband and I were engaged he heard about Dave Ramsey.  It was PERFECT timing for us to get on board with a PLAN for our money so I was all for it.  We got the book total money makeover.  And we were hooked! 

Our marriage started with about $20,000 dollars worth of debt between a car loan and 2 school loans.  We decided to live off of the smaller of our two incomes and put everything else toward getting rid of debt. 

That meant NOT buying a home when we first got married like everyone else I knew. That meant NOT eating out much, NOT buying clothes (that we didn’t need anyway) and living as if the larger of our two salaries didn’t even exist.  We were “weird” we lived in a little duplex for two years when people with less money were buying big beautiful brick homes.  We lived like “no one else, so later we can live like no one else”

Although I had house fever I am FOREVER grateful for my husbands patience reminding me it will all be worth it in due time. 

In almost exactly two years of living solely off of our smaller income we:

Paid off ALL $20,000 worth of debt
Saved up a fully funded emergency fund (3-6 months worth of expenses)
Saved up a large enough down payment for a home that we were able to avoid the PMI loan

It wasn’t long after we bought our home we found out we were having a baby.  I worked throughout the pregnancy and until the baby was about 6 months old.  That gave us time to pay for a few household projects and save for the job I always wanted, to stay at home with our children.

If not for a PLAN for our finances, Dave Ramsey’s principles, and my husbands patience, this dream would have never been able to come true. 

Getting used to living off one income from the beginning of our marriage made it no big deal when we REALLY were living off just one income.  I am working a little on the side doing promotional items (if you need your logo on shirts, pens, hats, cups etc. email me) but for the most part I am able to be at home with our two children. 

Are we Rockefeller’s?  Hardly but we have learned how to make our money work for us.  Instead of living paycheck to paycheck. 

I’ll be talking more about money this week so come back as we discuss how to better manage our finances.

I’d love to hear your comments!  Do you carry debt? Tags: Debt,frugal,finance,simple living

Debt Free and loving it

I have my first guest post today! I made a wonderful friend in the “blogging world” named Emily.  Emily has a really cool blog about how her and her family have step by step remodeled their home.  Embracing simplicity and beauty all along the way.  They have done it all DEBT FREE (after working their way out of a pile of debt) and that is what I am writting about today on her blog.   So CHECK IT OUT