| T O P I C R E V I E W |
| Ninibini |
Posted - Jan 23 2012 : 11:33:32 PM
Hi girls -
Well, after a very loooooong time of struggle and perseverance, we're just a couple months off from savoring the satisfaction of paying off all our debts - except for the mortgage, of course! I am just so excited, I could burst! Right now, we're working on our "next step" plan and could really use your insight.... Have any of you come this far yet, and, if so, when you did, did you opt to pay off your mortgage next OR save for a few months beforehand? I would SO love to have our mortgage paid off within the next four years (and it could very well be sooner!), but I know a lot of financial gurus (including my mother) warn that we should save at least 3 months of take home pay before moving on with our mortgage. Yet, I keep looking at the interest we'd pay on our mortgage while saving that kind of money, and I can't help thinking we'd be throwing a lot of money away in mortgage interest... So... What do you all think? How have you faced this crossroads? I would really, really appreciate your thoughts on this!
Thanks so much!
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
www.papercraftingwithnini.myctmh.com
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| 15 L A T E S T R E P L I E S (Newest First) |
| Tea Lady |
Posted - Dec 28 2012 : 06:19:12 AM
Oh Nini - that's a wonderful story and a Christmas gift for all of us. You and your husband are both very blessed. Thank you for sharing.
My husband will be eligible to retire in ~ 2 years. So in 2013, we're planning to live on what he will be receiving from his pension - to see if its feasible. My husband is relatively young to retire, and he plans to work at least part-time (doing something he really likes), but we don't want him to "have to" work. I still work part-time at something I love. We have no debt - except our house and it will be paid off in less than two years. It is soooooo worth it to have these options in our 50s... I also feel sorry for those who don't get it.
Lorraine
(aka Tea Lady)
Farmgirl #1819
www.birdsandteas.com |
| Ninibini |
Posted - Dec 27 2012 : 5:45:31 PM
I just have to share with all of you, too, that my hubby was Christmas shopping on Christmas Eve (it's a sport to him... personally, I think he's nuts). He was in line at one of the stores and this guy behind him was full of woe, freaking out about the cost of Christmas this year, and about the credit card debt he was racking up, especially buying her all the expensive gifts she expected. My husband shared with him how we did away with the credit cards years ago, and how at first it was difficult, but in time the debt started to come down faster and the cash flow in the budget became easier (not perfectly there yet, but easier). The guy was amazed that my hubby was buying me such an inexpensive gift (a silver chain for my crucifix, 75% off, ridiculously priced low... the original broke last year and could not be repaired), and that I would be satisfied with just that one thing. My husband told him that he was the luckiest guy in the world because I would've been happy with no gifts at all. The guy said his wife would never put up with that. Then the guy about fell over when my hubby paid cash. He said that he never has cash - ever. They do everything by credit cards. He said even if he decided to shoot for no credit cards, cutting back and working towards being debt-free, his wife would never go for it because she has certain standards and he is expected to ensure he meets every one. My husband couldn't get over it. He said he didn't know which one he felt worse for - the husband or the wife. He came home, wrapped his arms around me, swayed gently to and fro, smiled and stared at me for a little bit before planting a big wet one smack dab on my lips. He said that he was the richest guy in the world because he has me. Now, THAT, I tell you, is worth more than all the gold and glitter and things the world has to offer. I don't know that couple's names, but please say a little prayer for them. You can almost see the train wreck coming. Hopefully something will waken in both of them before it's too late. So sad. I just feel so bad for them. Hugs - Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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| Ninibini |
Posted - Dec 27 2012 : 5:33:34 PM
Good for you, Mary! It's not easy to stick to it at first, but once you get in the swing and see the debt coming down, you will be thrilled, energized and eager to pay down even more! It's sooooo totally worth the effort. Just stay strong! Remember, too, that if you hit a little speedbump or backslide a little bit, don't beat yourself up: just hop back on the path and move forward! And if you need support, please know the farmgirls and I are here for you! Good luck! Hugs - Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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| Carolina Farm Girl |
Posted - Dec 27 2012 : 1:51:43 PM
Congratulations! That has got to be an awesome feeling. We are just starting a "serious" journey to paying down debt. The end goal is to pay cash for a farm. |
| nancypo |
Posted - Jul 26 2012 : 6:03:54 PM
Glad to help! :)
Be the change...
http://littlehomesteadinboise.blogspot.com/ |
| Ninibini |
Posted - Jul 18 2012 : 9:27:48 PM
Thank you SO much, Nancy, for sharing your insight and your sage advice! AWESOME!!! I hear you! I recently had some unexpected medical problems, and the copays alone have been hitting us hard. We had been doing so well and keeping on track with the budget, our spending and the savings, but when the bills started coming in, our savings took a hit. Thank GOD we had saved what we did, though. It wasn't much, but if our savings hadn't been there, that money would've come out of our budget and REALLY set us back. We're still not all caught up, but we're plugging along, slowly recovering from the financial setback and putting a little bit away every week. Our savings is pretty pathetic right now, but it's only the beginning, right!? ;) You have to start somewhere! It's just hard not touching what is in there right now. Although modest, it still beckons to fill our pressing financial needs, you know? I'm sure we'll get there, though - we did it once, we'll do it again! Not gonna worry! :)
Heather - thank you for your thoughts, as well! You know, with the way the economy is going, I've been really considering doing more of a stock up of necessities and putting off paying down on the house for a little while longer. I really would feel a whole lot lighter knowing the mortgage is paid off, but I had heard a report on the news the other night that even the food banks are really hurting now because so many people have had need of them, and so few people are able to contribute to them. I believe it's going to get much worse before things improve. I am just trying to get ahead a little bit at a time by stocking up on things so that when the prices skyrocket next year (they say this year's prices are only a foreshadow of what is to come), we will not have to blow all of our income on groceries and other needs. Your words ring very true, however - in the worst of times, it's the mortgage that causes the most stress. We're going to have to really think this one over again... Thank you for pointing that out!
Teri - KUDOS to you! What a weight off your shoulders to know your home is yours, free and clear! I know if it were me, I sure would sleep better at night! We pay cash most of the time, too. Seeing what you have to spend, and knowing how little you'll have after making a purchase sure makes you think twice! You're right about keeping focused. With everything going on here lately, we haven't been nearly as focused on this as we were prior. I've been getting this nagging feeling about it for the past few days, and now Nancy posted and it seems as though you, Nancy and Heather are "meant" to spur me on! THANK YOU!!!
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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| kysheeplady |
Posted - Jul 18 2012 : 10:30:33 AM
We have been debt free for 8 years now. And in today's ecomony, I can't tell you how very thankful I am for that. If either one of us were to lose our jobs, they could never take our home, which to me is very important. I can cut back here and there, but you have to have a place to live.
We have never lived above our means, and don't care to keep up with what is new, hot or must haves. We take care of what we do have and pay cash for MOST everything.I do have ONE small loan out, only to retain a credit score.
It can be done, just have to keep your eye on the prize!
Teri
"There are black sheep in every flock"
White Sheep Farm
www.whitesheepfarm.com |
| MagnoliaWhisper |
Posted - Jul 18 2012 : 10:15:04 AM
I know you already made your choice, but I too probably would of chose the mortgage if you think you could in just a few years...if it would be like 20 years then yeah, savings first. But, I feel the mortgage is really the only huge thing if you lost a job, so if it was paid off you wouldn't have much worry if you lost your job-food, there's food banks, and soup kitchens to rely on, along with food stamps, wic etc etc. So I don't worry about food when poor (and yeah I've been dirt poor before and have eaten food bank food, and soup kitchen food, heck we still go to the soup kitchen sometimes!). Electric, and other bills, usually there is programs through red cross and such if you are in a dire situation. It's that mortgage that you are stuck with figuring out on your own or lose the house. I would feel best with it paid off.
I agree with you about tithing, my belief is that tithing ended with Jesus ransom sacrifice, as did the other Jewish laws, and now we are under a different law. I still believe in giving no doubt, but in our religion there is no passing of plates, no mailing of envelopes and no tithing, people give secretly (in a box at the back) what they want, and mainly give of their time, and energy. All things in our congregation are on volunteer basis no one is paid to mow the grass, to get a sermon, etc, all that is free and voluntary. The only money out in our congregation was the price of materials to build-as the time and labor to build was volunteers as well, and the electric, and such bills as that, but no one is paid to work for our church-ministers, gardeners, etc. All that is members of the congregation volunteering as we believe in the it was given to your freely so freely give back. ;o) But that's all another subject. lol
http://www.heathersprairie.blogspot.com |
| nancypo |
Posted - Jul 18 2012 : 09:49:30 AM
I don't know if this is a dead thread... but, we recently did some retirement/financial planning, so here's a few ideas-
We pay our mortgage every 2 weeks, which addes quite a bit to paying it off early. You get tax breaks for not paying off early, so that's a thought. The other thought, depending on your age- if something happens to you both in a period of time, and your home is paid for- who would it go to? Kids, friends? It can be tough selling off a home as part of an estate...
We refinanced our 3 year old car and saved 3 pts. We'll pay it off a year earlier.
We consolidated our remianing credit cards (which we have almost eliminated thru diligent big, extra payments) to a low interest signature loan thru a credit union, we're almost done there.
DO NOT start a college fund, if you have kids, plan your retirement funds FIRST. We helped 3 kinds thru college and only co-signed 2 small loans. They should use student grants & loans FIRST. If they are responsible for their own education if makes them much more invested (excuse the pun) in doing well, keeping their grades up and finishing. If you put them thru college and it breaks your bank, where does that leave you? Not in a good place... And teach them (if you haven't already) how to create a good credit history. Or kids took a basic "how to use a checking account" class in high school. WE sat them down and taught them about establishing credit to get 1 credit card for emergency use, and keep it paid off. They had a few bumps, but in their mid 20's they all have good credit! Can't buy a home with it...
Save, save, save. We had 2 hospitalizations, one emergency, and one for hubby's shoulder surgery. The costs were really tough. If we'd had more savings, it would have really taken the mental load off us...
I buy most of my clothes used, and we don't live the same urban life as most (check out my blog) BUT we're happier and don't have the $$$ worries of most either :) Good luck!
Be the change...
http://littlehomesteadinboise.blogspot.com/ |
| Ninibini |
Posted - Apr 28 2012 : 07:56:04 AM
Absolutley, Mara! I don't think I really found a lot of Christian concepts "pushed" in his books at all... I just think the 10% or tithing aspect - the aspect of giving - is taught... But even if you are not a Christian, I'm willing to bet that as a farmgirl generosity and caring for others is definitely part of your make-up! ;) Giving is a personal decision, a heart thing. I personally find giving is a good thing on many levels - but never if you "expect" to receive in return. The good inside of a person just simply seems to flow in a giving direction!
Thank you for your support - it's such an encouragement to me! I'm just a girl like you - we all have struggles getting where we want to be, but we'll get there chipping away at things a little at a time, I'm convinced of that. We did refinance a couple of years ago, but what that did for us was (1) shorten the length of our loan (15 instead of 20, like yours), and it really did lower our interest rate so that more money was going to principle than to interest. Next year we're really planning to pound away at the mortgage, and because we had refinanced it will be a lot easier to see the principle go down and the mortgage fade away. Had we not refinanced, it would've taken us much longer to reduce the principle. Now, we have a very good chance of paying it of in a couple of years vs. the 15... It's just going to take a lot of diligence and sacrifice, which we have become accustomed to. When I think of where we were only a few short years ago and where we are now, I sooo wish I could write our former selves a letter and show what our financial picture has now become - it would've been great incentive. We're hardly wealthy - we still have an extremely modest savings (most would probably laugh!), but it's a start, and it's something we never were able to do before - or, rather, something we never committed to do before, you know?
I have to say, recently I have had to deal with a health situation that has really hit the pocket book hard, even though we have health insurance and supplementary coverage. Thank goodness that we have "planned ahead" and had a little bit squirreled away for an emergency. This was the first time in our lives that a speed bump like this hasn't crushed us financially. We didn't have enough saved to cover everything, of course, but what we did have prevented us from serious financial strain. That is something that I really appreciate about Dave Ramsey's books - he really explains why saving is so important. It really saved us this time around - thank God!
I'm so glad you got that book and found it helpful... you really would think you'd find it at the bookstore... or even at a big box store like Costco (I'm always looking!). You can definitely find them second hand on ebay. My plan is simply to continue to pass mine around between family friends. It's so cool to see people getting excited about it - and it really does make a big difference when we're all working toward the same goal!
Good luck with reaching YOUR goals, too! I know you can do it!
Hugs -
Nini
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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| Rosemary |
Posted - Apr 27 2012 : 09:06:32 AM
I got Dave Ramsey's book (the one with the baby steps) and found it very helpful. It's such a popular book that you might find it in your library or at a used book store, cheap. You don't need to be a Christian to benefit form his advice.
My husband and I recently refinanced our mortgage down from 20 years to 15 and at a much better interest rate than we had before. There was no change in the monthly payments overall, but after 15 years, we'll own the place and will have saved oodles in interest payments. If we'd stayed with the 20 years, we could have significantly reduced our monthly payments. We went through Lending Tree.
Good luck with reaching your goals! I applaud you for having done so well already! Yay! |
| Ninibini |
Posted - Mar 30 2012 : 07:05:42 AM
Absolutely, Sheila - we couldn't have done it without the help of God. Hang tough. I think you probably learned what you needed to know from Crown financial. But for some reason, Dave Ramsey's plan helped me a lot more with the budgeting. I don't feel it's too different. It may be worth checking out his books, though. And I love his envelope system. I made my own up when Larry Burkett was still alive, and I've altered it a bit over time, but I really like Dave's system so much more - there's just something about having it all in one little case at the ready! I also really, really, really like his budgeting software. The download version is there in minutes, and then you're on your way! :)
We still encounter those things that come up, too. But what really helped was sticking our nose to the grindstone and making the necessary sacrifices to pay off all the things that were chipping away at our income. Once the debts started coming down, paying the rest off got easier, and then when finally reached THAT point, those speed bumps didn't break our stride nearly as badly. The thing we didn't do, however, was really save during that period, and I think that made things a lot harder for us in the long run. But saving didn't "seem" to be an option during that time, to be honest, because whenever we tried, something came up and sucked every penny away. Whenever we got ahead a little bit, I'd joke that God was probably sending us a little signal that something was about to go wrong and we'd need it. More often than not, that was very true. I can't stress enough the amount of sacrifice and self-control it took. It was really hard sometimes, and we made a lot of adjustments to our spending habits and ways of thinking about money. When everyone was out buying new clothes, new "toys," new furniture, going out to eat, etc., we simply weren't. Last weekend we had to break down and buy a new sofa set. I thought my neighbor was going to fall over when she saw the old one going out. We didn't buy what I wanted - we bought what we needed. Something a lot less expensive, a lot less pretty (okay - hubby loves it, I hate it - it's ugly), but sturdy and do-able. We figure our son won't be going off to college for another three years, which means about four summers and so many weeknights and weekends in between where they will trash the furniture (even though they really do try). Once he's gone, THEN I'm splurging on what I really want so that I can enjoy it! 'Til then, we have settled for something much more reasonable. Same thing with the carpeting - until our beloved semi-incontinent dog passes, no carpeting or new flooring! It'd be a waste!
Once my hubby was on board (you are SO right, Lorraine!), the money arguments stopped, the "free spending" and ATM visits on his end stopped - it was SUCH a blessing. When he started noticing the difference his efforts made, he became really motivated. He was never one to blow money on big things for himself, but he would nickle-and-dime our budget to death. He didn't understand why his money simply disappeared. The ATM was the worst - if he felt he "needed" money, he'd go to the ATM, see a balance, and take some. What he couldn't process was that just because there was a balance didn't mean that there was money available for spending. He didn't get the whole thing about it taking a few days for a check payment to clear. Can you say, "big honkin' headaches?" Yeah, trust me. The world will never know! When he finally hopped on board, and I showed him what a REAL budget should look like, I thought he'd have a stroke. He promised to work with me on the whole finances issue, but he just couldn't handle it - it stressed him out too much. What ticked him off the most was the cost of cable (if we want to watch television at all, we need it) - and that was the last straw. I was on my own at that point as far as paying the bills, but he did start turning over his paycheck without any questions afterward. And although he didn't ask me to do so, I felt it was super important to always have a little cash available if he were to ask for it. $10 here, $20 there... It didn't hurt the budget at all, really. In my book, he earns it, he needs to have a little fun money every now and then - don't we all? What was hardest on me was "gift" days - birthdays, holidays, anniversaries... But I became very creative, too; nobody suffered. It's just something you work at until you find your groove, I suppose. In the end, when you can breathe - all that stick-to-it-ness is just so worth it! So hang in there, Sheila! You'll get there! It just takes a lot of time and perseverance!
Hugs -
Nini
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(='.'=)
(") (")*
Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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| SheilaC |
Posted - Mar 29 2012 : 8:12:32 PM
Nini, I'm impressed. We are trying to become debt-free and have a savings. Things always come up. Always. I haven't read Dave Ramsey, but everyone seems to recommend him. I did go to a Crown financial seminar and that was helpful. My husband has his "dream job" which unfortunately doesn't pay much, so we have to get ultra-creative in our spending. I think the only way we can do it will be through God's help.
http://troutwife.blogspot.com/
http://www.etsy.com/shop/brooktroutwife |
| Tea Lady |
Posted - Mar 25 2012 : 2:03:40 PM
Nini - you're right. Things go much smoother and faster when both people are involved with in the process. DH and I still have issues we "debate" - but we're pretty much on the same page, especially now that DH will be eligible to retire in a couple years. I also agree that it takes a lot of dedication and sacrifice - but for me, once I got those debts paid off and started seeing the savings grow, I was more motivated and it seemed easier - it was just such a relief. Our biggest weakness is travel - we enjoy traveling and we have family all over. We're saving for a big trip in a couple years - until we can afford it, we're doing little weekend jaunts. Keep up the good work!
Lorraine
(aka Tea Lady)
Farmgirl #1819
www.birdsandteas.com |
| Ninibini |
Posted - Mar 24 2012 : 07:38:28 AM
LOL! Trish! You crack me up!!! I'm telling you, though, it's really and truly do-able! I think it's as "old school" American as it comes! ;)
Thank you, Lorraine, it really is amazing. But honestly, it took a LOT of time and sacrifice. It did seem like an eternity while we were walking through the process, but we have been chipping away at this for a few years. I can't tell you exactly how long, because we weren't "jointly involved" as a couple in the plan or sticking to any "formal" budgeting plan until about four years ago. We BOTH really needed to be on board to make this happen. Only in the last month have we come to this breathing point. To be honest, it's both a relief and extremely unnerving at the same time. Past experience has taught us that things can go >KABOOM!< when you least expect it - and the stress that accompanies that kind of experience is an absolute killer. Right now we're feeling more "cautiously optimistic" than anything. My husband, though - I just wish you could see what a relief this is to him. That alone was worth the sacrifice! :) I haven't had opportunity yet to hear Dave Ramsey's program or watch his videos because homeschool this year is just so intense and time-consuming, but when school is out, I'll try to contact him and ask about the investments and interest. I'll let you know what I find out, for sure!
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(='.'=)
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Farmgirl Sister #1974
God gave us two hands... one to help ourselves, and one to help others!
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