Goodbye Master Card! (interestingly, "master" is a good biblical title for a credit card...) // December 23, 2007
No More Credit Card Debt!!!
Yup – that’s the other thing I was going to tell ya’ll about! It’s kinda anti-climatic since Sophie was born – but then, maybe that just makes it that much more significant after all.
Off and on for the last year and a half, Sara and I have played with budgets. We would sit down and crunch numbers to come with a “get out of debt” plan. It never lasted longer than the initial sit down – then, Sara got pregnant and I made the choice to lose weight.
That changed everything. For the first time in my personal life, I kept myself accountable about what I ate. In doing this, I began to notice that I had more discipline in other areas of my life as well. Suddenly, I had more “no” power. It was so liberating.
My student loan came due. I had put that thing off for years – I put it off while deployed and when I finished my classes, I began to work at it. When I started thinking about how to save for the future, I realized that there was no way I could save for Sophie’s college if I continued down the road we were on! In 18 years, she’d have to do the same thing I did and how does that help a person just starting out in life?
Please understand – Sara and I are not extravagant spenders – our credit debt was on “important” things like cars and education… We spent cash on most stuff – its just that we had no idea where our money went at the end of the month. It didn’t help that after I got back from Iraq I had a healthy dose of the: “I went to war so I deserve to have whatever I want” syndrome. I spent money without thinking about what it was I was spending it on. I figured since I we always put more than the minimum payment on the debt, I was doing better than the average American! Thing is, the average American is over their head in debt and not saving for the future.
Yup – that’s the other thing I was going to tell ya’ll about! It’s kinda anti-climatic since Sophie was born – but then, maybe that just makes it that much more significant after all.
Off and on for the last year and a half, Sara and I have played with budgets. We would sit down and crunch numbers to come with a “get out of debt” plan. It never lasted longer than the initial sit down – then, Sara got pregnant and I made the choice to lose weight.
That changed everything. For the first time in my personal life, I kept myself accountable about what I ate. In doing this, I began to notice that I had more discipline in other areas of my life as well. Suddenly, I had more “no” power. It was so liberating.
My student loan came due. I had put that thing off for years – I put it off while deployed and when I finished my classes, I began to work at it. When I started thinking about how to save for the future, I realized that there was no way I could save for Sophie’s college if I continued down the road we were on! In 18 years, she’d have to do the same thing I did and how does that help a person just starting out in life?
Please understand – Sara and I are not extravagant spenders – our credit debt was on “important” things like cars and education… We spent cash on most stuff – its just that we had no idea where our money went at the end of the month. It didn’t help that after I got back from Iraq I had a healthy dose of the: “I went to war so I deserve to have whatever I want” syndrome. I spent money without thinking about what it was I was spending it on. I figured since I we always put more than the minimum payment on the debt, I was doing better than the average American! Thing is, the average American is over their head in debt and not saving for the future.
Sara tells a funny (now we can laugh at ourselves) story about when I
came back from Iraq and we just went out and had the honeymoon we had
missed before I left. We spent money so fast in that month, we didn’t
even notice that out tax return had come in! That’s on the extreme end
of the scale, but it illustrates how we approached money – live how we
want and deal with the fallout later.
Historically, I just figured I was not a “money guy.” I was never good at math, I hated dealing with details, and trying to understand just taxes gave me a headache. I understood bills and payments so that’s kinda how I budgeted. I looked at how much money I made every month and asked myself if I could afford the payment plus 50 bucks. If so – I got it. Honestly, that’s more thought than the average person I have talked to puts into money management! But with my laissez-faire approach to finances we could never get ahead – we were quickly becoming debt-dependant. Debt becomes a way of life. It never really occurred to me that I could EVER buy a car with cash! I might could buy some clothes with cash, food with cash – but cars? Why should I? Why would I?
I understood the whole “you pay more over the long run” principle – but really, that didn’t matter much to me. I lived in the moment and spent money in the moment. (I will say that I spent a lot more money when I was single than after I got married… don’t know what’s up with that…) Once in a blue moon I would think about investing – but where would I get the money? Thus, I was satisfied to let Sara worry about the money and I would feel ok that I finally got my truck paid off. Thing is, the closer I got to paying off my truck, I began to dream about what else I could “afford” for 315 a month…
Debt has become a way of life for the overwhelming majority of Americans. We’re just an average American couple.
After Sara got pregnant though, being the average American just wasn’t good enough.
In my weight loss plan, I started running… a lot… It wasn’t long after I started that I got board with music and began to listen to podcasts – yeah, then I started listening to Dave Ramsey. In listening to the program it began to dawn on me that if I was really serious about getting out of debt – I had to do what I had been doing in my diet – limiting myself.
That morning, as I rounded Woodcrest Circle, I made the choice to sell my truck and get out of debt for good! Sara and I made the choice to do whatever we had to do to get out of debt.
We started by selling the truck to pay off the bike and then selling the bike. We started actually track our spending and did what was the hardest thing – using actual cash for purchases (yes, I do mean the envelope system) and then paying debts – smallest to largest. We sit down and the end of the month and write down how we are going to spend our money for the next month
(zero-based budget) – and then we DO IT! It was amazing how just doing that freed up several hundred dollars to help pay off debt! Its not easy – when there is no cash left in the “going out to eat” envelope – we stay home and eat spaghetti! We still do go out – we are just deliberate about it. In fact, we still do everything we did before – we just do it on purpose! Its awesome! We even put money into the budget that we can spend on anything we want – I mean, if I wanted to fold it up and make paper airplanes out of it I can! (I don’t, but I do save for all that stuff I love to acquire… and not feel guilty about it.) I can buy whatever I want (as long as I have the money for it) and not worry that we’ll come up short (or have to dip into the tithe fund) in order to pay the bills, Suddenly, we’re accountable and it’s the most freeing feeling in the world!
This last week – we paid off our last credit card!!! That’s it! No more credit cards!
Now, all we have left is my student loan and what little is left on the Toyota.
We have an emergency fund and a fund to save for family purchases.
And I’ll be paying cash for my next car – in January!
I’ll tell ya, its not that easy. We’ve been limping along for the last few months on one vehicle – and that’s a pain in the neck! The interesting thing is that when our lifestyle comes up with other people I get a WIDE range of reactions! Some folks understand and are very encouraging – and a bunch more are quick to tell me about “positive” or “constructive” debt. They tell me about their plans and justify their lifestyles – thing is – I do not care! Just like me losing weight – I don’t care if someone else loves junk food, or what their genetic leaning are – they don’t have to justify it to me. All I know is, for me and my family, learning to live debt free has been the most liberating, empowering choice that I have ever made. It’s the right way for my family to live.
Its about contentment.
Its about freedom.
Its about leaving a legacy for my kids.
Its about me standing before God and answering for how I lead my family.
Its about being debt free.
Historically, I just figured I was not a “money guy.” I was never good at math, I hated dealing with details, and trying to understand just taxes gave me a headache. I understood bills and payments so that’s kinda how I budgeted. I looked at how much money I made every month and asked myself if I could afford the payment plus 50 bucks. If so – I got it. Honestly, that’s more thought than the average person I have talked to puts into money management! But with my laissez-faire approach to finances we could never get ahead – we were quickly becoming debt-dependant. Debt becomes a way of life. It never really occurred to me that I could EVER buy a car with cash! I might could buy some clothes with cash, food with cash – but cars? Why should I? Why would I?
I understood the whole “you pay more over the long run” principle – but really, that didn’t matter much to me. I lived in the moment and spent money in the moment. (I will say that I spent a lot more money when I was single than after I got married… don’t know what’s up with that…) Once in a blue moon I would think about investing – but where would I get the money? Thus, I was satisfied to let Sara worry about the money and I would feel ok that I finally got my truck paid off. Thing is, the closer I got to paying off my truck, I began to dream about what else I could “afford” for 315 a month…
Debt has become a way of life for the overwhelming majority of Americans. We’re just an average American couple.
After Sara got pregnant though, being the average American just wasn’t good enough.
In my weight loss plan, I started running… a lot… It wasn’t long after I started that I got board with music and began to listen to podcasts – yeah, then I started listening to Dave Ramsey. In listening to the program it began to dawn on me that if I was really serious about getting out of debt – I had to do what I had been doing in my diet – limiting myself.
That morning, as I rounded Woodcrest Circle, I made the choice to sell my truck and get out of debt for good! Sara and I made the choice to do whatever we had to do to get out of debt.
We started by selling the truck to pay off the bike and then selling the bike. We started actually track our spending and did what was the hardest thing – using actual cash for purchases (yes, I do mean the envelope system) and then paying debts – smallest to largest. We sit down and the end of the month and write down how we are going to spend our money for the next month
(zero-based budget) – and then we DO IT! It was amazing how just doing that freed up several hundred dollars to help pay off debt! Its not easy – when there is no cash left in the “going out to eat” envelope – we stay home and eat spaghetti! We still do go out – we are just deliberate about it. In fact, we still do everything we did before – we just do it on purpose! Its awesome! We even put money into the budget that we can spend on anything we want – I mean, if I wanted to fold it up and make paper airplanes out of it I can! (I don’t, but I do save for all that stuff I love to acquire… and not feel guilty about it.) I can buy whatever I want (as long as I have the money for it) and not worry that we’ll come up short (or have to dip into the tithe fund) in order to pay the bills, Suddenly, we’re accountable and it’s the most freeing feeling in the world!
This last week – we paid off our last credit card!!! That’s it! No more credit cards!
Now, all we have left is my student loan and what little is left on the Toyota.
We have an emergency fund and a fund to save for family purchases.
And I’ll be paying cash for my next car – in January!
I’ll tell ya, its not that easy. We’ve been limping along for the last few months on one vehicle – and that’s a pain in the neck! The interesting thing is that when our lifestyle comes up with other people I get a WIDE range of reactions! Some folks understand and are very encouraging – and a bunch more are quick to tell me about “positive” or “constructive” debt. They tell me about their plans and justify their lifestyles – thing is – I do not care! Just like me losing weight – I don’t care if someone else loves junk food, or what their genetic leaning are – they don’t have to justify it to me. All I know is, for me and my family, learning to live debt free has been the most liberating, empowering choice that I have ever made. It’s the right way for my family to live.
Its about contentment.
Its about freedom.
Its about leaving a legacy for my kids.
Its about me standing before God and answering for how I lead my family.
Its about being debt free.
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Chaplain Jon Fisher
Jon,
CONGRATS! (on the birth of Sophia and on getting rid of Master Card) My wife and I have been working the zero-based budget and LOVE IT! I never get tired of hearing stories of getting out of debt. I know you cannot wait to kick Salle Mae out of the spare bedroom. Thanks for sharing your journey.