In debt to well off in 1 year | TigerDroppings.com
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Danchase
Georgia Fan
Member since Dec 2012
64 posts

In debt to well off in 1 year

At this point last year one of my New Years resolutions was to get better with money. I was 25k in the hole. Between a credit card, truck payment and boat payment I look back now and wonder how I got by. I routinely had less than a couple hundred dollars in savings and checking combined and was not putting a dime in any investments. I picked up a book called the total money makeover by Dave Ramsey and it definitely changed how I handled money

It requires a change in lifestyle but I had to get over instant gratification and impulse spending. Going to bars and casinos every weekend wasnt helping my case. So I sat down and made a budget, I spent every dollar on paper before I got a paycheck. I cut up the credit card and paid it off first but then came the hard part. I love being on the water but a Malibu wake setter is a black hole for money and I knew it had to go. I posted it for sale and sold it for more than I pad for it 3 years prior.

The next month I used some of the money from the boat and paid off my truck. It's a strange feeling but for the first time in my adult life of 25 years I did not have any debt of any kind. It's absolutely liberating. Since I paid off the truck I started putting 15% into work sponsored RIRA's and another 10% in mutual funds which have earned about 7% interest since i started investing. I am pretty proud of how far I have come in 1 year. So for anybody staring at a mountain of debt it's not impossible you just have to work at it.


Janky
LSU Fan
Team Primo
Member since Jun 2011
10295 posts

re: In debt to well off in 1 year
Well done sir.


TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17517 posts

re: In debt to well off in 1 year
Congrats. Very commendable effort.



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Coon
Nicholls St. Fan
La 56 Southbound
Member since Feb 2005
16209 posts

re: In debt to well off in 1 year
Good job. People on here will bash Ramsey because "he's for dumb people" but sometimes smart people just a jolt too.


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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
33842 posts

re: In debt to well off in 1 year
Great job man! Very proud of you. Keep up the good work. You'll be glad you made these sacrifices in 30 years.



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LSURussian
LSU Fan
Member since Feb 2005
85145 posts

re: In debt to well off in 1 year
Congratulations. Congress could learn a very valuable lesson from you.


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LawLessTyGer
LSU Fan
Bay of Ponchartrain
Member since Jan 2009
847 posts

re: In debt to well off in 1 year
Impressive! Not an easy thing to do at 25 yrs old


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Zach
LSU Fan
Member since May 2005
69047 posts

re: In debt to well off in 1 year
Great job. I've never read Dave Ramsey but I learned very early to make a distinction between 'needs' and 'wants.'


drewnbrla
LSU Fan
The Dark Side of the Moon
Member since Mar 2011
5445 posts

re: In debt to well off in 1 year
Well done sir. Well done indeed.

I'm 6k away from having all debts and college related debts being paid off.


tigerskin
LSU Fan
Member since Nov 2004
11720 posts

re: In debt to well off in 1 year


Unfortunately, you will now not be allowed to run for a political position.


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CrimsonTideMD
Alabama Fan
Member since Dec 2010
1863 posts

re: In debt to well off in 1 year

Congrats bud


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Meauxjeaux
Memphis Fan
90248 posts including my alters
Member since Jun 2005
18917 posts

re: In debt to well off in 1 year
Great job and a nice "up yours" to the Ramsey haters on here.

Yes, it really is that simple. Debt free. Excellent job sir.


Golfer
LSU Fan
Member since Nov 2005
59030 posts

re: In debt to well off in 1 year
quote:

Great job and a nice "up yours" to the Ramsey haters on here.


The only reason people hate Ramsey on here is because he doesn't shoot for the best return or savings for those who follow his plan. He advocates for the most simplistic.


Meauxjeaux
Memphis Fan
90248 posts including my alters
Member since Jun 2005
18917 posts

re: In debt to well off in 1 year
And some here think he means don't buy a house until you have saved the money to buy it cash.

Yes, he wants debt free. No he doesn't mean 0 debt all the time.

I am convinced the anti-Ramsey posters have more to dislike with his religous views and that's why they hammer him.


I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
33842 posts

re: In debt to well off in 1 year
quote:

I am convinced the anti-Ramsey posters have more to dislike with his religous views and that's why they hammer him.


Interesting....

BTW....Thought you quit posting?


Meauxjeaux
Memphis Fan
90248 posts including my alters
Member since Jun 2005
18917 posts

re: In debt to well off in 1 year
May have been mj2 that said that. I haven't.

I'm still happily married and joyful enough regardless of what goes on around here.


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drewnbrla
LSU Fan
The Dark Side of the Moon
Member since Mar 2011
5445 posts

re: In debt to well off in 1 year
quote:

The only reason people hate Ramsey on here is because he doesn't shoot for the best return or savings for those who follow his plan. He advocates for the most simplistic.


This. A lot of people don't like or listen to him or anyone else that advocates the "Needs v. Wants" assessment of ones own finances. Mainly because very few people are willing to put forth the dedication to doing what they know what needs o be done to get out of debt because a lot of people so desperately want instant gratification despite whatever hardships that may result due to the acquisition of the item because they have gotten sucked into the whole Keeping up with the Jones' rat race and feel as though they need to maintain some sort of image for others in order to be "satisfied". That or they have never developed true patience or discipline when it comes to spending because that's something that no one is born with or is very rarely taught leading many people to learn those lessons the hard way which was true for me as well.

I remember when my first credit card came in the mail my dad told me to cut it up and that if you can't pay for something with cash then you can't afford the item, or the debt needed to purchase the item. Boy was he right


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Danchase
Georgia Fan
Member since Dec 2012
64 posts

re: In debt to well off in 1 year
quote:

Well done sir. Well done indeed. I'm 6k away from having all debts and college related debts being paid off.

Keep up the work its a great feeling when you have that burden lifted and you get that next paycheck without strings attached.

As far as needs vs wants. This is the biggest hurdle I'm sure for anyone trying to get out of debt. Everybody I work with is under the assumption they will have a car and house payment their entire lives so they think its just normal

At this point it's conceivable for me to save upwards of 50% down payment on a home depending on how the market does in the next 5-15 year. I'd like to not buy a home at all while I'm in the military but that can change depending on several factors


boosiebadazz
Member since Feb 2008
49473 posts

re: In debt to well off in 1 year
Nice post. I'm happy for you.


Gorilla Ball
LSU Fan
Gonzales, LA.
Member since Feb 2006
3015 posts
Online

re: In debt to well off in 1 year
great for you. In Dec of 2011, i wrote down all my debt on a spreadsheet (except for the house) and i was able to pay off 3 cc's and will have another pd off in 5 months. I applied Dave's methods and attacked the smallest balance first and kept increasing the pymts as other bills were pd off. I wasn't proud of the debt that I accumulated but i feel better as they are pd off. Fwiw any bonuses i recd went to the cc's and i even reduced my 401k contribution from 15% to 10% and applied that 5% tp attack those bills.


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