4 years using the Dave Ramsey 7 baby steps. What the last year looked like for us financially, experience using the Dave Ramsey plan, and our financial wins and fails.
4 years ago my husband and I started our debt free journey.
I call this month the official start because on September 21st, 2016 I committed to becoming debt-free by paying off my car.
That was 4 years ago to the day.
The last 48 months have taught me so much financially.
This blog post is not only a time of reflection for me but possibly the encouragement that others need to change their financial futures.
This fourth year has been especially eye-opening.
September of 2019-2020 was our first full year with some serious financial responsibilities.
The obvious being our first year of homeownership.
Recently most of our income has been invested in our home.
We have had a hiccup here and there but nothing too costly.
Some of the larger more expensive projects included a basement renovation and a new back deck and patio.
Becuase of our prior smart financial decisions we were able to cash flow all of these projects.
We bought all new basement furniture, a patio dining and lounge set, as well as finally finished decorating one full room.
Does anyone else have trouble bouncing from room to room like me? Our little house is starting to feel like the home we always wanted.
In October of 2019, we were also faced with a more serious financial decision.
Michael lost his job.
This is something we saw on the horizon and luckily had some time to prepare for. The silver lining was his ability to choose what to do next.
Being debt-free gave him the ability to continue a career in management, try a different position, or change career paths altogether.
Having the financial backing to create those kinds of options is powerful.
In the end, he chose a pay cut for a better quality of life.
If we weren’t debt-free that path may not have been an option.
This year also blessed us with one of the most precious creatures money can buy, our fur child Max.
We paid $200 for this cute boy.
Max has brought us so much love and joy we can’t believe we ever lived without him.
Even a $500 emergency trip to the vet, countless destroyed toys, and expensive food could make us say he is not worth every penny.
We love you, Max!!
2020 has also been the start of our investing journey.
Aside from investing in our companies 401k, we opened a ROTH account with vanguard. This is something we are still exploring but excited about.
Reading Chris Hogan’s Retire Inspired and The Simple Path to Wealth by JL Collins helped us get on the right track.
My experience with vanguard thus far has also been very pleasant.
This fourth year on our financial journey also brought an experience that no one could have ever expected.
A global pandemic.
Causing thousands upon thousands of Americans to lose their jobs.
This has been an experience like no other as both Michael and I were one of those thousands.
If this pandemic has taught anyone anything it is how important living financially independent really is.
6 months from the day we were furloughed we still have not returned to work.
At first, there was a feeling of fear.
The fear was quickly overcome by comfort knowing we could live for months paying our bills without a single source of income.
We have certainly been blessed throughout this time and are learning how crucial it is to continue on this financial journey.
On a more positive note, this year I also turned 30.
For my birthday I received the present of my dreams, a Louis Vuitton.
I only mention this becuase dreams do come true.
Since our debt-free date, I have been wanting to buy this bag.
Finally, for my 30th birthday, Michael convinced me I deserved nothing but the best.
I would have never imaged paying $1,500 for a material item but here I am a proud neverfull owner.
I do believe it is important to remember your financial past.
There are so many moments in this journey that are difficult.
Many times quitting will seem easier.
Remembering all of your financial accomplishments is critical to being successful.
The good and the bad.
Today is September 21st of 2020. And the entire world is tipped upside-down.
This year my husband and I have been able to make some of the best financial decisions.
Surely we have had some mishaps but I am here to remember the positive.
4 years ago I committed to this debt-free journey.
I started by paying off my car.
Today that car is currently in the process of being sold.
I am set to buy my first car in all cash.
My first Dave Ramsey car. If that is not a sign I am not sure what else is.
Want to read more about our debt-free journey?
How to pay off $50,000 of debt
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