Time to start throwing snowballs!

Its the end of the month again.  Last month we were looking good financially then the valve stem on the tire decided it was done doing its job, and with an all wheel drive vehicle, all 4 tires needed replacing. Thus, that is where the extra money went. Now on month 2 of Project Money, we actually have money left to put towards our debt snowball. For all of you who aren’t familiar with the term, it means to pay minmum payments on your debt except for one and start paying that debt off as fast as you can. In our case this is our highest interest rate credit card. Once that is paid off, take the next debt payment along with the extra you had been paying on the first debt and pay it off, and so on, and so on until you are left with… well… income that you could, oh I don’t know, INVEST with! Which in some way shape or form, we are all after.

Since our highest credit card debt ever was $30,000 - and 1/2 of it was house projects on the house we sold 3 years ago - it was a great feeling to pay off almost half of that all at once with the sale of the house. Now the rest is up to us. It feels daunting sometimes but keeping the perspective that in a short time our consumer debt can be gone feels good and gets us pretty motivated!

This is not an overnight task. We did not get into debt overnight, so it only makes sense that we will not get out of it quickly, besides there is not a quick way to get out of debt. Anyone who says there is stands to make a profit from you. 

There is only one way to do this. Roll up your sleeves, and start throwing snowballs. Any size will do. And when you start doing it, you may realize something, something that we have just realized ourselves. There is another way of living, you can live by your means and not by someone else’s. You can create the life you want and not live the life of something you don’t. You will realize that you have the power to make this world exactly the way you wish and if you are like us, it will be a world for the better.

As we start our snowball to pay down debt we look forward to finding ways to let investments snowball to our future. We have found new ways to save and new ways to live with what we have and save for what we want. Our children are learning valuable lessons and our family is having a blast through the process. We now realize that each day we eat rice and keep the lights off and don’t buy that latte and sell things we no longer use, is one day closer to our dreams.

This week we are celebrating knowing where our money is going and having some to save! 

Comments

[Brandi]

Kudos to all of the Project Money families! And keep it up. I can testify to how great it feels over time! I began working similarly on our debt (for family of 3) in July of 2008. One year later, all of our credit cards and smaller loans are paid off, a total of $26,000 in debt is gone, and I'm working on the larger stuff like car note and mortgages. I call that "snowball" payment my accelerator payment, and boy has it grown! With the improvement to my credit score, I was also able to work with Summit and refinance our second mortgage which not only lowered my interest, but also turned a 30-year debt into a 10-year payment plan...cutting out 20-years of interest payments! Getting out of debt is worth every penny!

[Matt K.]

I read the first paragraph...and had to comment. A valve stem can be replaced without replacing the tire, they are separate. There was likely no need to replace any tires...
Key to saving is to be educated when spending money...don't let businesses take advantage of you.

[John T.]

You'd be better off paying your debts smallest to largest regardless of interest rate. Thats what Dave Ramsey would say, and thats what I do.

[Jen Faber]

Dave Ramsey would be most proud of you two! You're inspiring me to follow in your footsteps!

Sending lots of love,
Sista J