Saturday, January 31, 2009

Ramsey Way

I have been obsessing about being completely debt free lately. With the economy in such a depressing state and hoping to retire in the next ten or so years I have been reading up on Dave Ramsey. I found this great site by Joel Maxwell who has been following this method and blogging about it. He and his family were well over $500,000.00 in debt and since December of 2005 have eliminated close to $273,000.00. Wow in just two years....just wow! I could pay off our home with less than that.

We would love to have our place paid for when we retire. When your income becomes fixed and you need to purchase your health insurance and all that goes with that, it would be in our best interest to have no mortgage payments and a tidy savings. I know many people who would be one paycheck away from homelessness if they lost their job, had a medical emergency or any number of things. We have been there many times over the years.

We made our final car payment this month and now that money will be directed elsewhere to help us reach our goal.

What are you doing to pay off debt?


the7msn said...

We are on the same wavelength about a mortgage-free retirement. I'm in the process of refinancing right now - the lower interest rates are making it pretty painless to switch from a 30-year mortgage to a 15-year. Going into retirement with no mortgage sure makes sense to me.

Mental P Mama said...

Same boat. I think I may downsize the house once the kidlets are gone. And no mortgage will be a reality;) Good for you. I love Dave Ramsey.

Twisted Fencepost said...

Right now, i have little debt. And I, like you, would like to be debt free by retirement.
I wish luck to us both!!

Country Girl said...

I made my last car payment in late December. Good timing, too, because I'm one of those people who HAVE had a medical emergency. My husband will never work again and we're waiting on disability. We don't own a home, so we're not in that much debt. Just a little credit card debt and it's really not much. So, as I'm wont to say: It could be worse.

Kareer Woman said...

One can't obsess too much about being debt free, to those who are debt free, CONGRATULATIONS, to most of us who are not, we all want to be, hopefully sooner rather than later :)

Linda Reeder said...

This is right thinking. My husband retired from teaching five years before I did, but he continued to substitute most of that time. I worked an extra year so we could pay off our cars and our mortgage and build up a savings account. We also had to contribute a chunk of money to rebuilding the family cabin on Whidbey Island.
All of this was done before I retired. Now we live debt free and well on our pensions and social security. We have used some of the savings for some wonderful travel experiences, and will do more on the future. We are in a position to help our son, who got laid off, if he needs it, all without using any of our long term investments, which aren't worth so much right now anyway.
Good luck. You can do it.

Deb said...

We all would like to be debt free and we have been trying to accomplish that for years - When we bought this property we purchased an old mobile home and renovated it. We paid for all of this out of pocket, including the land (which was cheap 12 years ago) We lived in it and paid off everything including our vehicles. When we did get a mortgage to build a new home, we made sure that was our only payment - we hope to pay the mortage off in 15 yrs.

I think it can be done but I'll never say it's easy.........

We do have a small "emergency fund" and add to it as we can but we worry about job security as much as the next person and there always seems to be some unexpected expense that eats up any extra.

TSannie said...

Been having the same obsession lately. A sigh of the times, I'm sure, but nontheless, an obsession I am determined to make a way of life.

Debt free. What a concept!

Putz said...

paid my house off, paid my cars off, no credit cards{my wife does have some] LIVE ON MEAGER RETIREMENT AND IF THE ECONOMY GETS ANY BETTER I HAVE A TIAA CREFT 401 K

Carolynn said...

Taking little bites every month. It's slow going, but it's what I can do. I'll check out this site. It sounds like he may know a thing or two about paying down debt.

Junebug said...

We are debt-free as of right now. We have had our house paid off for years, thanks to help from mother-in-law and father-in-law whom my husband worked for and got big bonus from.

CeeCee said...

I have been extraordinarily blessed by marrying my hubby. He was always one to pay off our credit card bills each month. He refuses to go into debt unless it's for something important like a car or a house. He always put away more money from each paycheck than I thought he should. We live sparingly and spend only when we have to have something. He has one years salary put away in case he were to lose his job.

I'm glad you've found someone whose plan makes sense. Here's praying you can get your house paid off with his ideas!!

Kristi said...

We were once in crushing debt. I am happy to say we followed Daves Ramsey's plan and we are now debt free. Sorry if I sound like a commercial, but my husband is 35 and I am 36 and we are debt free. It isn't easy and your pride has to go on a shelf or better yet be thrown away. As Dave Ramsey likes to say. Who wants to be like the Joneses? They're broke! (translation in debt) If you owe on something you don't really own it. You own a part of it. Being debt free can be a reality for anyone. It just depends on if you want it more than you want the other stuff.

Good luck Egghead! I'm cheering for you!!! When you get there let us know how good it feels!

Kristi said...


We took the Dave Ramsey financial course and were pleased to find out we had basically been following his steps for quite some time! It is very good and many local churches sponsor his course - I'd recommend you try to find one to attend!

We are excited that we have only $20,000 left to pay on our house. Our cars are paid off - although old - it is sure nice to have them paid off.

I can't wait until the house is paid for - it will be so nice!!! It isn't a huge house payment but it will be nice to not have that burden over our head. One of the main things about Dave Ramsey's recommendations is to have an emergency fund, pay for cash, never pay full price, and do the debt snowball which sounds like what you are doing since your car is paid off. Go girl go - you can do it!!!!

Love ya,


tipper said...

Love Dave Ramsey too! The only thing we owe is our mortgage which will be paid off in about 10 years so we aren't in debt too bad. But the economic downturn has scared us-and has effected my husbands work load drastically-and I lost my job due to it. So we have tried to cut back in every way from buying energy efficient light bulbs to doing without stuff.

Laughing Orca Ranch said...

Great ideas Vonda!

When we received our legal settlement from the accident that nearly killed my husband and twin sons several years ago, we sold our small house in the city and bought this mountain home with our proceeds from the sale and the settlement monies. We paid cash for this house and we paid cash for our vehicles, too.

We paid off all of our bills, credit cards, and loans, too.
We tore up all our credit cards and now only pay cash or we just don't buy it.

The only things we have to worry about now are our daily living expenses for us humans and our animals.

I can honestly say, going into this tumultuous time and depression, that having no debt, no mortgage, and no bills is such a low stress way to live.

The only things we'd still like to do our go off-grid by using solar and wind power, so then we'd be free of utility bills, too.


Flea said...

Woohoo to paying off the car!!! We owe on the house and student loans, but it's enough to feel overwhelming, even with a mortgage less than half the size of many. I love Dave Ramsey. Just struggling to get on track in so many ways. Ugh.

The W.O.W. factor said...

"What are you doing to pay off debt?"
Praying!! The only debt we have is our mortgage, and not a huge one either...but..
this economy has to turn around for everyones sanity if nothing else!