No, I'm not talking about warm weather...although that has finally arrived this week as well.
What I'm talking about is way bigger than that. Big. REALLY big. Tomorrow is the day we have been waiting for, for over 3 1/2 years. We're making good on our promise to our kids to celebrate being out of debt by going to DISNEYLAND!!!
We leave in the morning and the kids have NO idea. I have managed to pack without anyone catching on. We are going to wake up, tell the kids, and hop on a plane. I can't wait!
But it turns out that packing for a surprise trip for a family of SEVEN is a lot of work. Gotta go!
Showing posts with label finances. Show all posts
Showing posts with label finances. Show all posts
Tuesday, June 21, 2011
Friday, February 04, 2011
Deserved or Earned?
Brian and I booked something REALLY exciting last night. I can't go in to it too much on here right now. But if you're a long-time reader of this blog, you will be able to figure it out by remembering what we promised our kids as a family incentive for when we got out of debt.
Well, as you know, we're out of debt. And we're making good on our promise. And I can't wait! (But as you've probably figured by now, we're keeping it as a surprise for the kids.)
So I am so excited for this "event". Not only for how much fun it will be. But also for the significance of it. We worked hard for this. We made a lot of sacrifices along the way. We earned it.
I think that as "normal" people with fleshly desires - especially as Americans - we can some times get so caught up in "stuff" that we can lose perspective and easily slip into life outside our means.
I call it "claiming your blessing before it's really yours".
We could have easily gotten frustrated along our three-year debt-free journey and just said to ourselves, "let's just book this trip now. We work hard. Other people do this all the time. We deserve it."
What about, "our t.v. is so outdated, and this other one is a great deal. Let's just get it now and pay for it later."
Or how about, "our furniture is so old now, we deserve to get new furniture. After all, we work hard."
It's so easy to justify to ourselves why we "need" new things. We tell ourselves that other people replaced their old tv/couch/car way before we did - so we're really not being all that extravagant.
But here's the thing. It doesn't matter if you have waited longer than someone else. Or if your stuff is older. Or if you work more hours.
At the end of the day, all that matters, is: do you have enough money? Is it your money to spend? Have you truly earned it?
Don't try to claim your blessing before it's yours. Wait until you've earned it. Life will be so much sweeter.
Well, as you know, we're out of debt. And we're making good on our promise. And I can't wait! (But as you've probably figured by now, we're keeping it as a surprise for the kids.)
So I am so excited for this "event". Not only for how much fun it will be. But also for the significance of it. We worked hard for this. We made a lot of sacrifices along the way. We earned it.
I think that as "normal" people with fleshly desires - especially as Americans - we can some times get so caught up in "stuff" that we can lose perspective and easily slip into life outside our means.
I call it "claiming your blessing before it's really yours".
We could have easily gotten frustrated along our three-year debt-free journey and just said to ourselves, "let's just book this trip now. We work hard. Other people do this all the time. We deserve it."
What about, "our t.v. is so outdated, and this other one is a great deal. Let's just get it now and pay for it later."
Or how about, "our furniture is so old now, we deserve to get new furniture. After all, we work hard."
It's so easy to justify to ourselves why we "need" new things. We tell ourselves that other people replaced their old tv/couch/car way before we did - so we're really not being all that extravagant.
But here's the thing. It doesn't matter if you have waited longer than someone else. Or if your stuff is older. Or if you work more hours.
At the end of the day, all that matters, is: do you have enough money? Is it your money to spend? Have you truly earned it?
Don't try to claim your blessing before it's yours. Wait until you've earned it. Life will be so much sweeter.
Friday, October 08, 2010
Debt Free....Oh yeah!!!!!!!
At about 8:15 this morning, it became official. We made our last payment on a credit card, which was our last remaining piece of debt*.
Hallelujah!!!!
Oh man, it feels SO good to not be making senseless payments to the bank. Finally, our money can go where we WANT it to go.
Now, while we definitely have freed up a lot of extra money each month that we didn't have a couple months ago, our lifestyle isn't exactly going to change drastically. For example, we no longer have a car payment. But we are taking the same amount that we were paying for our car, and putting it into a fund for future cars. So we aren't getting "fun" money from that deal, but we are padding our own pockets instead of the bank's.
Also the money that was going towards monthly credit card payments is now going to building up our emergency cash fund. We have a mini cash fund already in place, but our next goal is to get about 6 months of expenses saved up.
So for the most part we aren't really going to notice a difference in our monthly budget. We are still going to be pretty tight, and it will still require a lot of self-control to keep on track. We do plan to add kids' activities back in, such as gymnastics or soccer - but we plan to do that at a slow pace. (Money aside, we are very selective in allowing activities for our kids - for our own sanity.)
So there you have it! It's been 2 1/2 years in the making (with about a 1-year hiatus in the middle), but we did it!
*For now, when I use the term "debt-free", I am referring to everything except our house. That is a goal of ours, but definitely a longer-term one.
Hallelujah!!!!
Oh man, it feels SO good to not be making senseless payments to the bank. Finally, our money can go where we WANT it to go.
Now, while we definitely have freed up a lot of extra money each month that we didn't have a couple months ago, our lifestyle isn't exactly going to change drastically. For example, we no longer have a car payment. But we are taking the same amount that we were paying for our car, and putting it into a fund for future cars. So we aren't getting "fun" money from that deal, but we are padding our own pockets instead of the bank's.
Also the money that was going towards monthly credit card payments is now going to building up our emergency cash fund. We have a mini cash fund already in place, but our next goal is to get about 6 months of expenses saved up.
So for the most part we aren't really going to notice a difference in our monthly budget. We are still going to be pretty tight, and it will still require a lot of self-control to keep on track. We do plan to add kids' activities back in, such as gymnastics or soccer - but we plan to do that at a slow pace. (Money aside, we are very selective in allowing activities for our kids - for our own sanity.)
So there you have it! It's been 2 1/2 years in the making (with about a 1-year hiatus in the middle), but we did it!
*For now, when I use the term "debt-free", I am referring to everything except our house. That is a goal of ours, but definitely a longer-term one.
Thursday, August 26, 2010
Sold!
We sold our van last night! We got what we were asking for it, with the addition of throwing in the roof cargo box to seal the deal (shhh, don't tell but we picked up that box at the REI garage sale for only 40 bucks!).
Since we've been on vacation for the last two weeks, we have done exactly zero shopping for a new car. So here I am, car gone, and not even a prospect to replace it. Nice.
This morning I rode my bike to the pool to swim laps. Since I had prearranged to borrow my mom's car for the day, after swimming I rode over to her work to pick up her car. So if you were driving around town today on one of the main streets, and saw a crazy lady on her bike wearing flip flops, a wet swimsuit, towel around her neck, and goggles hanging off the handle bars....that was me.
Since we've been on vacation for the last two weeks, we have done exactly zero shopping for a new car. So here I am, car gone, and not even a prospect to replace it. Nice.
This morning I rode my bike to the pool to swim laps. Since I had prearranged to borrow my mom's car for the day, after swimming I rode over to her work to pick up her car. So if you were driving around town today on one of the main streets, and saw a crazy lady on her bike wearing flip flops, a wet swimsuit, towel around her neck, and goggles hanging off the handle bars....that was me.
Wednesday, July 07, 2010
Irony?
I basically had our van sold last week. It had been listed for one day, and by afternoon the interest was pouring in. A sweet family came and gave it a test drive, and couldn't contain their excitement when they returned. I asked what they thought, they said "we love it". They basically had to hold themselves back from making me an offer right on the spot, and managed to say that if everything checked out okay with their mechanic in the morning, they could have a check to me the following day.
Then they asked why we were selling it.
Me: Have you heard of Dave Ramsey?
Them: Oh yeah, we love Dave.
Me: Well, we are following his plan to be out of debt and drive free cars. So we are taking the leftover cash from this sale to buy an older van.
Them: Oh, that's cool. Man, I really love this van. Even the color is perfect. We'll talk to you tomorrow!
Tomorrow came, the mechanic signed off, morning passed, and I hadn't heard anything. As the day wore on I started getting a little nervous. Then late that night I got the following email:
After thinking about it a little further we decided to go with a much cheaper van ($4000 dollars). We really loved your car but we feel like this was the better decision for our family. Good luck with your total money makeover!
Let me summarize. In an attempt to sell my car to get out of debt, I inspired the person who was going to buy my car to instead pay cash for a car so they could be out of debt. Meanwhile, I'm still in debt.
Honestly, I laughed at the situation. I don't have to sell my car, I want to. And if I can inspire someone along the way to change their financial future, I am happy.
But, um, I wouldn't mind if a buyer came by, like, today.
Then they asked why we were selling it.
Me: Have you heard of Dave Ramsey?
Them: Oh yeah, we love Dave.
Me: Well, we are following his plan to be out of debt and drive free cars. So we are taking the leftover cash from this sale to buy an older van.
Them: Oh, that's cool. Man, I really love this van. Even the color is perfect. We'll talk to you tomorrow!
Tomorrow came, the mechanic signed off, morning passed, and I hadn't heard anything. As the day wore on I started getting a little nervous. Then late that night I got the following email:
Dear Shana,
After thinking about it a little further we decided to go with a much cheaper van ($4000 dollars). We really loved your car but we feel like this was the better decision for our family. Good luck with your total money makeover!
Let me summarize. In an attempt to sell my car to get out of debt, I inspired the person who was going to buy my car to instead pay cash for a car so they could be out of debt. Meanwhile, I'm still in debt.
Honestly, I laughed at the situation. I don't have to sell my car, I want to. And if I can inspire someone along the way to change their financial future, I am happy.
But, um, I wouldn't mind if a buyer came by, like, today.
Thursday, July 01, 2010
Our big financial change
In a post a few days ago I mentioned that Brian and I were working on some big financial changes. It's no secret that we long to live a debt-free, cash-only lifestyle. We've been on the cash-only part for quite some time, but have slowly been working on the debt part.
I like to be transparent on here. So I will share with you that we owe about $14k on our car, plus an additional $3k on a line of credit. (I'm not taking our mortgage into account in my "debt-free" statements. That's a longer goal.)
We have a plan in place to pay off all that debt, hopefully by the beginning of next spring. That plan, in addition to monthly payments, relies on liquidating our old stock funds (praying that the market isn't in the toilet) and using up some - or all of our tax return next year (which will be fairly large, thanks to remaining adoption credits).
It's not a horrible plan, given that at the end we would be debt-free, plus have a car that still holds decent value. But of course if there were an emergency, we would have nothing* left over and would have to sell our car to get cash.
So we've been praying and thinking about it a lot lately, and feel led to sell our car now. Some of you may laugh at this, because it's a minivan - but it really is my dream car. So this isn't an easy decision for me.
Our plan is to sell our Odyssey, take the leftover cash, and buy a cheap minivan. We will continue to pay ourselves a "car payment" each month, and after a while we will upgrade our car. We will continue doing that until we are in a comfortable car that is completely paid for, plus we will have enough extra cash leftover earning interest that we will eventually not have to contribute to our car fund, yet continue to buy cars every few years.
That last bit might have been a little hard to understand, so here's a quick video that explains it simply.
We're really excited about this next step, but also a little nervous. It's a big step of faith, and I am trusting God that whatever car(s) we end up with will be safe, reliable, and great for our family.
Oh, and after only being on the "market" for one day, it looks like we have the van sold!
*I feel compelled to explain that we do have long-term savings and investment plans in place, just not super-liquid stuff.
I like to be transparent on here. So I will share with you that we owe about $14k on our car, plus an additional $3k on a line of credit. (I'm not taking our mortgage into account in my "debt-free" statements. That's a longer goal.)
We have a plan in place to pay off all that debt, hopefully by the beginning of next spring. That plan, in addition to monthly payments, relies on liquidating our old stock funds (praying that the market isn't in the toilet) and using up some - or all of our tax return next year (which will be fairly large, thanks to remaining adoption credits).
It's not a horrible plan, given that at the end we would be debt-free, plus have a car that still holds decent value. But of course if there were an emergency, we would have nothing* left over and would have to sell our car to get cash.
So we've been praying and thinking about it a lot lately, and feel led to sell our car now. Some of you may laugh at this, because it's a minivan - but it really is my dream car. So this isn't an easy decision for me.
Our plan is to sell our Odyssey, take the leftover cash, and buy a cheap minivan. We will continue to pay ourselves a "car payment" each month, and after a while we will upgrade our car. We will continue doing that until we are in a comfortable car that is completely paid for, plus we will have enough extra cash leftover earning interest that we will eventually not have to contribute to our car fund, yet continue to buy cars every few years.
That last bit might have been a little hard to understand, so here's a quick video that explains it simply.
We're really excited about this next step, but also a little nervous. It's a big step of faith, and I am trusting God that whatever car(s) we end up with will be safe, reliable, and great for our family.
Oh, and after only being on the "market" for one day, it looks like we have the van sold!
*I feel compelled to explain that we do have long-term savings and investment plans in place, just not super-liquid stuff.
Friday, June 25, 2010
This week (random updates)
We had a blast on Wednesday at the water park. We were there from open 'till close, and were POOPED. The kids all slept until 9:30 yesterday morning, which never happens. Emma went on every single adult ride, including the Avalanche, which is such an adrenaline rush I can only handle it once every two years.
She did it twice.
This video doesn't even begin to describe the terror one feels on this ride. It's never a good sign when the ride operator is harnessed in with climbing gear.
This weekend is going to be a busy one, with parties and the start of our church's VBX. We are nearing the end of our training for our next triathlon, which is three weeks away. Next week is "peak" week, which is the hardest week in all our training. Here is my schedule for next week:
Monday: run 23 minutes; strength training
Tuesday: swim 23 minutes; bike 46 minutes
Wednesday: run 31 minutes; strength training
Thursday: swim 31 minutes; bike 62 minutes
Friday: run 39 minutes
Saturday: swim 39 minutes; bike 77 minutes
Sunday: REST!
Brian and I are working on some exciting changes with our finances, and I can't wait until they're in place. I'll share just as soon as I can. I am super motivated and can see the end in sight.
I'm off to start the day, including working for a couple hours at church and a park date this afternoon. Happy Friday!
She did it twice.
This video doesn't even begin to describe the terror one feels on this ride. It's never a good sign when the ride operator is harnessed in with climbing gear.
This weekend is going to be a busy one, with parties and the start of our church's VBX. We are nearing the end of our training for our next triathlon, which is three weeks away. Next week is "peak" week, which is the hardest week in all our training. Here is my schedule for next week:
Monday: run 23 minutes; strength training
Tuesday: swim 23 minutes; bike 46 minutes
Wednesday: run 31 minutes; strength training
Thursday: swim 31 minutes; bike 62 minutes
Friday: run 39 minutes
Saturday: swim 39 minutes; bike 77 minutes
Sunday: REST!
Brian and I are working on some exciting changes with our finances, and I can't wait until they're in place. I'll share just as soon as I can. I am super motivated and can see the end in sight.
I'm off to start the day, including working for a couple hours at church and a park date this afternoon. Happy Friday!
Tuesday, June 15, 2010
Reality Check: Anniversary Trip
Last week I was knee-deep in research over airfare, condos, resorts, weighing all-inclusive versus self-service, beach front versus ocean view. It was overwhelming. But also fun. Brian and I have dreamt since pretty much the day we got married of taking a nice trip for our tenth anniversary (this September). And we were about to make it happen.
I write fairly often on here about our quest to be financially free. We still have some debt left, but if all goes according to plan we will be debt-free (minus our house) next February - or sooner.
Changing financial habits can be a lot like changing eating habits. First you have to acknowledge that you have a problem. Then you have to take steps to change it. Those steps can be hard, and you have to practice them over and over until they become habit. And then somewhere along the line you look back and realize that you feel better than you ever have. You're happy with your life changes. But that doesn't mean that temptations won't still arise. Like that cake that you were only going to have one piece of, but suddenly you ate half the cake.
We started asking ourselves real questions about how we were going to pay for this trip. Brian is expecting a bonus that should easily cover all the expenses. Sounds like a decent plan to me.
Problem is the bonus won't be in our hands until September or October. And we needed to book our airfare right away to secure the great price we found. So, in comes our credit card.
But we would pay the credit card off as soon as Brian got his bonus.
We continued looking for places to stay on our trip. Maui? Kauai? Mexico? Each time I thought I had found "the place", something else would come along and tempt me. It was a weird problem to have - so many wonderful places to choose from. Yet I didn't feel a peace about any of them. Why not?
We have been working hard (off and on) for the past two years to get out of debt. To change our habits. And to teach our children by example. Yet here we were, about to duplicate old habits. The same habits that got us here.
I am so thankful for that unsettled feeling I had, and that I finally decided to pay attention to it. We revisited our priorities. Number one: get out of debt. After that: save for the family Disney trip we have been promising our kids and using as a motivator.
So our anniversary trip is off (for now). I am disappointed, a bit. But the feeling of peace I have is so much better than the angst over which resort to choose.
We are back on the path to being financially free. And staying there!
I write fairly often on here about our quest to be financially free. We still have some debt left, but if all goes according to plan we will be debt-free (minus our house) next February - or sooner.
Changing financial habits can be a lot like changing eating habits. First you have to acknowledge that you have a problem. Then you have to take steps to change it. Those steps can be hard, and you have to practice them over and over until they become habit. And then somewhere along the line you look back and realize that you feel better than you ever have. You're happy with your life changes. But that doesn't mean that temptations won't still arise. Like that cake that you were only going to have one piece of, but suddenly you ate half the cake.
We started asking ourselves real questions about how we were going to pay for this trip. Brian is expecting a bonus that should easily cover all the expenses. Sounds like a decent plan to me.
Problem is the bonus won't be in our hands until September or October. And we needed to book our airfare right away to secure the great price we found. So, in comes our credit card.
But we would pay the credit card off as soon as Brian got his bonus.
We continued looking for places to stay on our trip. Maui? Kauai? Mexico? Each time I thought I had found "the place", something else would come along and tempt me. It was a weird problem to have - so many wonderful places to choose from. Yet I didn't feel a peace about any of them. Why not?
We have been working hard (off and on) for the past two years to get out of debt. To change our habits. And to teach our children by example. Yet here we were, about to duplicate old habits. The same habits that got us here.
I am so thankful for that unsettled feeling I had, and that I finally decided to pay attention to it. We revisited our priorities. Number one: get out of debt. After that: save for the family Disney trip we have been promising our kids and using as a motivator.
So our anniversary trip is off (for now). I am disappointed, a bit. But the feeling of peace I have is so much better than the angst over which resort to choose.
We are back on the path to being financially free. And staying there!
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