If we pay only the minimums on these loans, it will take us over 13 years and we will pay over $45,000 in interest!Our plan includes living very frugally on a strict budget for the next several years. Living on such a tight budget is not fun. There are times when we want to go out to eat, buy fancy food to cook, or travel. We'll be completely debt free in 3 years if we just stick to the budget and delay some of the things we WANT. Then we will begin saving for our 3-6 month emergency fund. Our emergency fund will be for true emergencies - health problems, unplanned catastrophes, and will help make sure that financial emergencies do not cause unnecessary stress.
Money is the number one cause of divorce. Being on the same page, having a plan, and maintaining an emergency fund will help Jarrod and I live happily for decades and fight against a culture of divorce.
|Our first anniversary dinner.|
In addition to retirement savings, we will pay off our home and make sure that we have modest accounts for our children to use for college. We will continue to give 10% of our income to our church. Once we are out of debt, we will also give generously on top of our tithe. Our children will learn how to give, save, and spend. They will never know the crushing debilitation of debt.
|Aren't these so cute?!|
I am teaching Financial Peace University at our church this fall. I can't wait to show others that they can live like this as well. I can't wait to see the culture of our church family change as people begin to live and give like no one else!
Want to learn more about living the debt free life? Check out www.daveramsey.com. Check out Total Money Makeover, find a Financial Peace class near you, or listen to Dave's free podcasts available on iTunes. Join Jarrod and I as we eat beans and rice so someday we can eat whatever we want!