The subject of being debt free

[irish]

I am going to take a chance that people might be interested and address the subject of being debt free. I am not going to name any books or the names of any individuals though.

I was not aware that there were programs and plans, seminars, etc out there on being debt free until my one son told me a few years ago. They were having the usual issues of any young couple and got involved with one program that they found to work. They are still at it --- budgeting and working at it constantly. Most people usually have a house payment but many people are able to get their cars paid for and then save up to buy their next one.

I now listen to the same fellow that my son does and have checked out his website. I have to admit that he does things that are not foreign to my hubby or me. I think that having as little debt as possible makes like so much better. It is hard in this day and age for sure. The problem is there are so many things to buy that one thinks they need.

If you are interested in this just PM me and I will send you the name and website. Having less debt and less worry really helps when bad health comes and we need to spend moneye on doctors. Irish

[Jozee]

I totally agree with you! I think I know who you are referring to and he's wonderful. I know many people who are on his plan. We were at one time. That is how we saved up for our down payment. We got off track and are working again towards being debt free.  This past few weeks I've been so stressed out about our checks bouncing. We had to pay for stuff or get it shut off. We've been waiting for a check to come that was sort of big. But it HAD to get here before the checks bounced. For 5 days I checked out balance 3 or 4 times a day. OMG! What stress. It's been awful. The check finally came today and now I can sit down tomorrow with my hubby and do a budget again. I love the envelope plan. That works amazing for us. Thanks for the great thread! You are so right. The last thing we need is stress!! And debt = stress.

[irish]

Oh Jozee, So glad the check came and things will settle down for a while. Sure hope that you can get back on the budget cause it sure seems like it is good. I know my grandchildren will tell me that they can't buy something because mom says it isn't in the budget. They told me she uses the envelope system also.

We have another son and wife who are very, very good money managers and they are on another debt free system but I really don't know what the guys name is. I think it is someone they heard about at church who has a book out.

I can't believe how much some of these people pay off in such a short length of time. I know for sure that they have bigger incomes than hubby and I ever had. Anything is possible if you work at it. Right. Beans and Rice. Right!!! Irish

[Sooki]

Handling money was fine when I was single, but since getting married (long ago), the money dynamics are really complicated.  We went through the VISA death spiral early on and were able to get off that.  The main problem is that we're both self-employed and can't plan around a paycheck.  We're both working steadily but all of our money arrives in miscellaneous checks whenever.  We can just about pay the bills and support the kid in college, saving seems out of the question.  When we don't have money, we don't spend.  When it comes in, there are things we need and it goes.  Visa balance goes up and down but gets paid off several times a year. We're pretty vulnerable to any time we don't have work or can't work.  A higher income would help, but I know we could do better at managing what we have.  And as I get older, I get more worried about the lack of savings thing.  I just checked out Suze Orman's latest.  I'd like to hear some good suggestions!  (Not sure how to initiate a PM).  Thanks, Irish!

[Jozee]

We use Dave Ramjsey. He's on our radio sttion, our church has done his program with a group of people and I've read his books. Really great guy and great system.

[Pisces24]

Well I basically grew up poor compared to most. There are so many things that people think they Have to Have. Too many look at a lot of things as necessities instead of luxuries. I personally know how hard it is to want to have the "stuff" than everyone else seems to have , BUT you just have to accept that.

Before cars, people walked or took a bus.  I admit that due to job circumstances a car is a necessity but really it is a luxury to have one. Cell phone, microwave, cable, WII, $40 haircuts, etc etc LOL LOL    We have taken so many of these luxuries for granted that in our minds they are necessities and they are not.

As to all these debt seminars, etc.-- most are out to get Your Money.  Everyone is trying to get your money! Do your research before you spend any of your hard earned money on something you could have gotten from a book in the public library for free.

[irish]

Dave Ramsey is the guy I listen to on the radio. He has a very good plan for getting debt free. Not only that, he had to do it twice himself as he filed bankrupsey twice before he "wised up" and got smart. He admits this weakness himself and that is how he came up with this plan. It was conceived by him and his wife and they lived it a couple of times.

It is very hard to not buy things as we think we need everything. I was brought up on little money as was my hubby. We are the older generation now but we started out debt free when we got married and had only house and occasionally cars with mortgage for many years. Finally got the house paid off some years ago.

I have always kept a steno notebook with a budget and still do. I keep track of the income or money that is available. My hubby was employed as a territory manager for a company for some years and there was a very low wage per month and the rest was income on business done. Some months were pretty slim so we learned to save our money and spend only what we needed and plan ahead for the coming months.

I have always bought groceries with keeping a "food shelf" in the basement for the tought times. The tough times do come and he was unemployed a couple of times with me working part time so the planning ahead worked. I think the best thing a person can do is live within their means and not buy the big houses and fancy cars. With all the stuff we have been through over the years one thing I have learned is that "things" do not make you happy. Also, we do not use half of what we buy.

We don't exchange Christmas presents with our kids or birthday presents for that matter. I make a big cake for an annual family birthday party that we have in the summer. We all have more than we need so just the kids get gifts at Christmas. My DIL has even started getting alot of gift for her kids at the garage sales and thrift shops. They buy one new gift for their kids at Christmas. She also is training her kids to go through their old toys and clothes to sort out and take to the Salvation Army store. I wish I had thought of that when I was raising my kids!!!

To all of you trying to get debt free, you will never do it until you start and you will feel so good about yourself when you get things under control. It is wonderful to control your money and not let the money/or lack of money control you. Good luck. Irish

[Jozee]

The library has awesome Dave Ramsey books. he has seminars too but I found the books were just wonderful. Also, if you have an am radio station in your city you can call and ask if they air his radio program. Many do and it's free to listen!!

[Autoimmunity]

Hello.  Can I get an explanation of the envelope system you guys are talking about?  I am having a very rough time - single mother and with a number of chronic health issues, seeing this specialist, that specialist (sometimes several times a month, $35 each visit) and the number of medications I am on, not to mention I have a dog with a very serious (and VERY expensive) health issue and I just do not have enough to get through each month.  I would be very interested in what is working for everybody else, I cannot keep doing this, the added stress is not helping.

[eyeamdry]

Interesting thread!  I worked as a Credit Counselor back in the 70's and 80's.  I was certified and worked for a non-profit credit counseling agency which was supported by the National Credit Counseling Agency.  That was BEFORE there was one of the agencies on every corner such as there is now.  A good number of them are frauds.  A non-profit agency which is supported by the National Foundation is the way to go.

Dave Ramseyis also a very good way to go.  My sister uses Dave Ramsey and they just bought their second home, this one in Florida and brand new 4 bedroom.  Their home in Michigan is a lakefront and paid off.  They worked hard, made good money and invested wisely.  I am afraid for ppl who reach retiremnt age and have to rely on social security and make a mortgage payment, car payment and all that. 

If you have your house paid for--do not take out advance loans against it.  It is easy to lose your house that way.  If there is no leins against the house, then no one can take it from you.  Some people have bought cars, boats and fine themselves 30 years later oweing more than the house is worth.  You cannot spend more than you make.  Period.  You cannot borrow or consolidate your way out of debt.  There is a time to seek the help of a bandruptcy attorney if you are so bogged down in debt, you'll never get out.  Get ready to give up the credit cards, pay cash etc because your credit will be mush.  That's ok because that's what got you in trouble in the first place.  Gee I miss working in this area.  I loved to show people how to structure their bills and money.

[Meld256]

Irish,

Great idea starting this thread!  I know we've had financial issues come up in other posts recently.  I think we all know that stress about money is hard even for those without health problems, so for us, it's not only hard to deal with but actually makes us more ill with worry.

My husband and I just became debt-free a few years ago, after many years of not spending wisely or saving anything.  If we had it, we spent it.  If something big came up we needed, we got a loan and then another.  Not very smart!

If we had not changed before I became ill, we would have been in a very tough spot.  I became ill quickly and kept declining. We wouldn't have had time to plan ahead.
I would point out that sometimes we need to look at how we view money.  By that I mean for some we spend on things because we never had money to spend as a child, or we spend to take our minds off other problems, etc.  Or we buy duplicates because we're not organized; we already have ____but buy another because we can't find it or didn't know we had one.

Now that I'm on disability, at least I know what kind of check I will have each month. My husband works for a company where he will be scheduled mostly a 40-hr.-week, but on occasion it's a 3-day week or even a 2-day week. That hurts the budget since we depend on his check, too.  We plan ahead for those; I keep a few extra groceries and we save money back that we sometimes have to dip into.  Next time he has a good week, it goes back to the fund because we know we'll need it again!

We live simply partly because we must.  But I can say it's a great feeling to not be in debt to anyone and know that we're in control.  

[One and only]

While I was getting sicker the bills were mounting,, we twice went into foreclosure, I had to beg borrow and thankfully not steal to keep us in our home,,I took over the bills and now were paid up on the mortgage till Sept., all the credit cards are paid off and I live by one simple rule, the 2000 dollar rule, everything that cost a lot, will cost a lot to repair,, I keep 2000 in a special fund earmarked for just such occasions,
  That being said,, being debt free should be a time for joy,, but that joy is tempered when you are to sick to enjoy your good fortune,, theres no magic formula for geting debt free,, pay down your lowest credit card bill,, get that one taken of,, and thent ackle the next,,

[Pisces24]

I never got to put any $ into retirement until I was in my late 30s.  I do worry about my retirement but I can only do the best I can.   My folks were disabled, getting NO help at all, and couldn't live on $700 month with $400 going to medical. So when I was old enough to have a real job,  I lived with my folks and basically helped support them.  When my dad became terminal in 6mos, the social worker said "Why are not they on these programs?"  To which I replied "you want my list of ALL the agencies, social workers, etc etc I've seen to TRY to get them help?"  I just couldn't get them any help until my dad got terminal. Then the social workers got my foks in a couple programs to help.

I am used to not having the luxuries that people have now-a-days that they refer to  as necessities. I think the only things I have Ever owned that were not second hand were: glasses, underwear, shoes and the refridgerator (because the old one went out on me two days before Thanksgiving one year.)

BTW: It is not a good way to go but many 401k(s) have a hardship clause so you can take money out. I work with pensions, 401k(s), etc.  BUT don't want until the last minute as everything takes time to process and the $ to get to you. You wold be suprised the number of people taking hardship $ out now and also the number of ones who forget to even SIGN the forms!

[Carebear]

I can thank my parents for raising me be be fiscally responsible. "Thanks Mom and Dad!"

I made a modest income, and threw every stray penny on the mortgage to pay it off.  And I did without but I did it willingly because for me, financial freedom was the ultimate stress reducer.

I read "The Wealthy Barber" by David Chilton, and it forever changed the way I look at money.   He was ahead of his time (the book was published in 1989), and I see he is releasing a sequel in the fall of 2011.  I would highly recommend it.  It reads like a novel...and it's about a wealthy barber!   

[Meld256]

Sounds like a great book, Carebear; I'll definately check it out!

So good that your parents taught you to be fiscally responsible.  My parents were very responsible and smart about what they had, but never taught any of us children.  Difficult for me to understand, but they were from the older generation where they didn't discuss money, even with us!  I had to learn the hard way on my own, but it can be done.