Our Debt Free Family

Commit. Plan. Take action.

August Debt Update: Stalled

| Leave a Comment

<p>We take a look at our finances pretty regularly, but I have to be honest, we've slacked off big time this summer. I am not sure if it is the move, the inconsistency with work, or slipping back into bad spending habits, but we're definitely not where we'd thought we'd be after a year of paying off debt. Here's the latest debt update with detailed numbers...</p>::Pexels

We take a look at our finances pretty regularly, but I have to be honest, we’ve slacked off big time this summer. I am not sure if it is the move, the inconsistency with work, or slipping back into bad spending habits, but we’re definitely not where we’d thought we’d be after a year of paying off debt. Here’s the latest debt update with detailed numbers…

One Year Debt Update

Right now, we are feeling pretty stalled. A lot has happened in the last five months that has hindered our progress a bit.

As you know, last September, I detailed my debt and broke it down. When tallied, it came to $67,999 in total debt for our family. I’m happy to report that almost a year later, we have made some progress. Last year, the numbers looked like this…

  • My Car Amount Owed: $23,051
  • Drew’s Car Amount Owed: $1,092
  • Credit Card Total For Both: $1,748
  • Student Loans (Mine): $23,852
  • Matco/Snap On: $9,534
  • Amount in Collections: $8,722

Here are the updated dollar amounts for August 2019…

  • My Car Amount Owed: $21,333
  • Drew’s Car Amount Owed: $0
  • Credit Card Total For Both: $483
  • Student Loans (Mine): $24,002
  • Matco/Snap On: $7,543
  • Amount in Collections: $679

That brings the total amount we owe down to $54,040. That is nearly $14,000 paid off in a year (not too bad). Compared to this time last year, that is definitely an improvement. Some of our biggest “wins” have been paying off Drew’s car, paying down credit card debt, and taking care of items in collections.

You’ll notice my student loan amount owed has actually gone up a bit. I asked for forbearance on the loans for a few months this year as we transitioned from North Carolina to Georgia. I will be back on track to repaying those in a short amount of time.

The move impacted our ability to attack our debt the way we’ve been wanting to, there’s no doubt about that. With deposits, the costs of moving trucks, and getting used to a new city, we fell behind on our goals a bit.

Getting Back on Track

Both of us are working on budgeting and finding a way to get back on track with our debt freedom goals. First, we’ve had to tap into our emergency fund, which needs to be padded once again. This will be taken care of this month.

Next, we are planning to find a way to cut costs and make more money. As mentioned in previous posts, I’ve been finding ways to make money on the side by selling things and grabbing a freelance gig here and there. Drew has also been looking for additional side work as he feels his way through establishing his own business.

Finally, we HAVE to sit down and work out a budget. We’ve gotten way off track with our current spending and need to refocus. Stay tuned for an update on our new budget later this month!

Readers, where do you stand with your debt freedom progress? I’d love to hear about it in the comments below!

Read More

Can DebtGuru Help You Pay Off Your Debt?

| Leave a Comment

<p>Thinking about seeking help to get out of debt? You wouldn’t be the first person to do so. Financial counselors have been around for ages but what about the new-age advisors, you know, the ones you find online?</p>::Pexels
Thinking about seeking help to get out of debt? You wouldn’t be the first person to do so. Financial counselors have been around for ages but what about the new-age advisors, you know, the ones you find online?

Now you can virtually make any transaction you could possibly think of online, including consolidating and paying off your debts. DebtGuru.com is a prime example of that.

About DebtGuru

DebtGuru was founded in 1998. Unlike many other debt consolidation and debt relief companies, DebtGuru is completely nonprofit. The company aims to help people pay off and pay down their debt without having to file for bankruptcy or take out a loan to consolidate. DebtGuru’s program does not require any collateral and has already helped thousands of people pay off their debt.

A DebtGuru Review

DebtGuru has been helping people carve their way to financial freedom for almost two decades now. The company is able to provide a ton of great, free resources to its customer base to help them achieve their financial goals.

Getting Started With DebtGuru

To begin with, everyone (no matter who you are) is able to get a free evaluation of your finances by a DebtGuru counselor. The assessment of your finances only takes about 15 minutes and then a DebtGuru counselor provides a small session.

The session provided by the company will let you know if DebtGuru is needed for your particular situation. If the counselor believes that you need debt management assistance then you will move forward with further DebtGuru services, including setting up and reducing debt payment plans, creating a budget and payment reminders.

Interested in paying off debt? You may also enjoy these articles: 

Benefits of DebtGuru

Getting started and on your way to financial freedom is fairly easy, so that’s a great perk about DebtGuru. Their debt management program claims to help people reduce monthly payments by 25 to 50 percent and get rid of fees for being late or over limit. The DebtGuru counselors also help stop the collection calls all together. DebtGuru also claims to have a fantastic relationship with creditors, which helps DebtGuru customers get the hep they need.

Outside of the actual help you’ll receive through the DebtGuru program, you will also be provided with a number of resources. Through the program you will have dozens of articles and other financial tools at your service (not to mention a debt counselor).

Disadvantages of DebtGuru

DebtGuru does have a monthly fee of $39, so it will add another monthly bill. This may be a turn-off for many people trying to save more money to pay off debt. Also, while customers can cancel at any time, the company’s website isn’t too clear as to whether or not there will be a cancellation fee, or any other fee for that matter. It also isn’t quite clear as to whether or not the company will give you your money back if the program does not suite you.

The Takeaway

Credit counseling services like what DebtGuru has to offer can help you save 10 to 15 percent of your income when paying off debt. So, if you have a bit of debt to pay off you may think about checking out DebtGuru. After all, the initial evaluation is free so what have you got to lose?

Want to speak to a DebtGuru counselor? Check out the site here.

Photo: Debt.org

Teaching Kids To Budget

| Leave a Comment

Why is it important to teach our children to budget?

It will be a necessity as a child grows to understand the difference between a NEED and a WANT.

A need is something we cannot live without.

A need is food and clothing.

A want is something we can live without.

A want is things that we perhaps do to relax such as spending money on websites such as 888sportsusa.

It is ok for a child to understanding that it is ok to buy things that are a want but that needs must have priority in spending.

Children are not born with an understand of what we need vs want or what a budget is.

We have to take to teach them properly about money.

Play money games at an early age.

There are many toy store sets with play money or small denomination of change work just as well.

If you chose to use real money in teaching your children have them save it in a safe place between play to understand that it is something special and worth not losing.

A piggy bank or ornamental box is a good place for any change.

Buying and selling toys or cookies for play helps the child establish a stronghold on the understanding of what we have to use money for in everyday life.

Have the child do chores or help older ones to establish a bank of there own money for things that they want to spend money on.

Some parents will give the allocated money for toys to the child and allow them to spend it either all in one sitting or in multiple times through a set time frame.

By not adding to the child’s money for there toys the child will learn what the family had budgeted towards their toys.

A trick my mother started at an early age was giving each of us a part of the shopping list and then showing us the proper way to tackle it.

Needs first.

Only after those needs are met can the wants be thought of.

She showed us how to look at sales, the cost per oz of an item, and name brand vs off brand.

The height of an item or location such as an endcap can have a large bearing on the cost of an item.

Teaching your children to budget will help them to look at you with more respect when you say that something is not a priority, despite how much they “want” it.

 

6 Red Flags to Look Out For When Buying a Car

| Leave a Comment

Buying a car is a very subjective experience. Some love nothing more than to wander the aisles of a car lot, evaluating potential options. Others, on the other hand, are brought to the lot kicking and screaming. Some who desperately need a new car will put it off for as long as possible simply because they are uncomfortable with the whole process, from picking out the best car, to negotiating an ideal price, to solving a financing solution. Wherever you land on this spectrum, there are red flags to look for when buying a car. As long as you’re aware of these warning signs, you’ll be fine. Don’t know what to be out on the lookout for? Read on for these top six read flags.

<p>Buying a car is a very subjective experience. Some love nothing more than to wander the aisles of a car lot, evaluating potential options. Others, on the other hand, are brought to the lot kicking and screaming. Some who desperately need a new car will put it off for as long as possible simply because they are uncomfortable with the whole process, from picking out the best car, to negotiating an ideal price, to solving a financing solution. Wherever you land on this spectrum, there are red flags to look for when buying a car. As long as you’re aware of these warning signs, you’ll be fine. Don’t know what to be out on the lookout for? Read on for these top six read flags.</p>::Pexels

  1. What’s That Funky Smell?

Chances are, you’ve at one point spilled something in your car that left behind a bad smell. Hopefully it was only temporary. If you’re buying a used car, you’ve probably accepted the fact that finding a car with that highly coveted new car smell is out of the question. However, a car with “funk in the trunk” is something experts will always tell you to avoid. As this article from HowStuffWorks.com notes, “Avoid used cars with musty, moldy or mildew-y interiors as this is a sign of possible flood damage. When a car suffers flood damage, most insurance companies consider it a total loss because the water damages almost every system, from mechanical to electrical to even—you smelled it—the carpet.” Of course, the smell itself could be a deterrent enough, but the reasoning behind is much more ominous.

  1. Mismatched Paint

All used cars have a history and, unfortunately, accidents are often a part of this record. But it’s how the former owner handled the accident that matters. If he or she tried to save money by going to an unauthorized or disreputable company to fix it, the signs could very well be paint that isn’t matching on various parts of the car. Not only is this unsightly but it’s an indication that the former owner likely didn’t take very good care of this vehicle. In FSBO transactions, always ask for supporting maintenance documentation from reputable service centers like Midas.

  1. Sketchy Sellers

If you’re looking at a car that’s for sale by owner (FSBO) but this particular person is ultra-controlling about how far you can take the car for a test drive or what you can touch, be very wary. And if he or she rides along with you but doesn’t want you to test things like air conditioning or other features, run—don’t walk—in the other direction. You’re often better off using a reputable company like Autonation that certifies their pre-owned vehicles to be in like-new condition. Looking for a new car instead? Check out this Audi dealership. Autonation has Audi dealerships from Arizona to Wyoming, so you can count on a safe seller no matter where you live.

  1. An Unrealistically Low Price

The Kelley Blue Book is there for a reason, as it gives you an idea of how much a used car you’re looking at should be worth. Of course, a car that’s priced sky high for its mileage and current condition is not a good sign, but a car that’s priced incredibly low should also be considered a red flag. The person is obviously trying to unload it quickly, so there is probably something under the hood that isn’t quite right. Be skeptical and consider just skipping this one altogether—especially if the title is missing.

<p>The Kelley Blue Book is there for a reason, as it gives you an idea of how much a used car you’re looking at should be worth. Of course, a car that’s priced sky high for its mileage and current condition is not a good sign, but a car that’s priced incredibly low should also be considered a red flag. The person is obviously trying to unload it quickly, so there is probably something under the hood that isn’t quite right. Be skeptical and consider just skipping this one altogether—especially if the title is missing.</p>::Pexels

  1. A Change in Online Price

If a seller or car dealership decides to start from scratch with pricing when you come in showing them your online quote, this is a huge red flag. Trust us, this will happen a lot. Our advice is walk away immediately. You might be able to eventually get them to stick to the online quote but it will be an exhausting experience. As USA Today’s Adam Shell noted of his experience, “The new price was higher than the initial online quote. But instead of making a beeline for the door (which might have immediately given me fresh leverage in the negotiations), I opted to fight it out, steeling myself for what turned out to be a time-consuming, mind-numbing and emotionally draining encounter.” What they might use against the online quote is fine print, which is even sketchier when all is said and done.

  1. You’re Bounced Around

We get that you might have to deal with the sales person and the finance person when buying a car, but if you’re bounced around to four or five different people throughout the process, chances are you’re going to end up with a bad deal. The reason being is that part of each of their jobs is to get a bit more money out of you, so if there are a lot of people working with you, well… you do the math.

…

 

Buying a car doesn’t have to be an exhausting and frustrating experience. Watch out for these red flags. If you manage to avoid them, you’ll do great.

5 Cheap Landscaping Ideas to Boost Your Curb Appeal

| Leave a Comment

<p>According to Houzz, two in every five homeowners admitted to using their bathroom to relax. You shouldn't have to go to your guest bathroom to find a quiet place in your home. If you've been thinking of transforming your backyard into your own private oasis for your family, but you've been worried you couldn't afford it, no worries! Here are a few ways you can transform your landscaping and boost your curb appeal all on a budget.</p>::Pexels

According to Houzz, two in every five homeowners admitted to using their bathroom to relax. You shouldn’t have to go to your guest bathroom to find a quiet place in your home. If you’ve been thinking of transforming your backyard into your own private oasis for your family, but you’ve been worried you couldn’t afford it, no worries! Here are a few ways you can transform your landscaping and boost your curb appeal all on a budget.

Raise Your Flower Bed

One great way to improve curb appeal on your family home is with flowers. Flowers add beauty and fragrance. However, raising the flower bed can give you these benefits while also creating some more contrast between the parts of your yard. As you plan to raise your flower bed, consider the different materials you could use. If you need to go with the cheapest option, that’s alright. But if you can spend just a little bit more money, consider going with solid wood. Solid wood is more environmentally friendly and sustainable than other popular landscaping materials. It also makes the flower beds more attractive.

Plant a Functional Garden

Your garden can serve both an aesthetic and practical purpose. Consider a vegetable garden that will feed your family. Plant things like herbs, fruits, and vegetables in your yard. They’re often very beautiful, with foliage and flowers that are perfect for decorating. Then, once the edible parts are ripe, you’ll also be able to provide fresh, healthy food. If you’ve never gardened before, start simple and try a few plants that you know you like. Then experiment each year as you build your garden. It will add color and personality to your yard, boosting your curb appeal.

DIY a Walkway

Having a walkway from the sidewalk to your door is a simple way to improve your curb appeal. However, getting it done by a professional can be expensive. Look into DIY options to set it up yourself. Using paving stones can create a whimsical, yet useful walkway without having to spend hundreds of dollars on supplies. If you keep it simple, you can get very good results this way. It will not only serve a practical purpose, but it will also add some uniqueness and contrast to your yard.

Add Lighting

Landscape lighting is beautiful, adding a warm glow to the yard in the evening and at night. While there are expensive options available, you can also get great results cheaply. Use solar pegs to illuminate your walkway. These are often inexpensive and can also serve a practical purpose by guiding visitors toward the safe ways to your front door. Look into string lights, as well. With the right lighting, you can make your yard look cozy, exciting, or both at the same time!

Hang Window Boxes

By hanging window boxes and filling them with flowers, you can improve the appearance of your home’s exterior without spending a lot of money. Flowers add a splash of color to the front of your house, making it look cheerful to anybody passing by. You can do a number of different things with your flower boxes. Plant identical flowers in each one to keep a neat theme going. Or plant various flowers together to get a rainbow of colors in your home.

You don’t have to spend a lot of money to improve your home’s curb appeal. With a few cheap purchases and some extra work on your part, you can have a home and yard that look expensive and comfortable. This can help if you’re planning to sell your house, but it can also just make it a more enjoyable place to live.

5 Great Remote Jobs for Parents

| Leave a Comment

If you have young kids, you understand that it can be challenging to find a job that meets your needs and the needs of your family. Fortunately, a growing number of careers are becoming remote. Here are some great remote jobs with flexible hours that are ideal for parents.

1. IT Support

More and more people are setting up a presence online. With this influx comes an increased risk of cyber-attacks and therefore the need for IT experts who can help individuals and businesses stay safe from the risks that come with being online. Even with the danger aside, most people are not particularly good at working online and so they may need assistance from time to time. This means that if you are competent or interested in IT, you may find an amazing remote job if you take some training or leverage any that you may already have to begin with. The gaming industry, which is the industry that is the second most targeted for Layer 7 DDoS attacks, may especially need IT to support so this is one of the places you could start looking for an opportunity.

2. Social Media Specialist

As different businesses strive for a market share on the digital space, they are starting to see the weight that social media has and the benefits that they can get from it. This means that there are many opportunities for social media specialists who are needed to handle the social media presence of these different businesses. If you are passionate about helping a business grow and you know a thing or two about trends and strategies, you may find a place in the world of social media management.

3. Customer Service Representative

This is another great opportunity for parents who want to work while taking care of their children. It entails handling a business’s customers and responding to their complaints or guiding them to a solution in a way that maintains a good reputation for the business in question. To serve in this capacity, therefore, you must have great communication and be willing to learn about the business you will be assisting. This could entail, for example, having information about a dedicated server if you will work for a company in the computer and IT industry.

4. Online Tutor

For parents who have extensive knowledge in a particular field and a willingness to help others learn, becoming an online tutor is a potential job. Simply organize lessons into tangible parts and come up with an outline for coursework. You can then sell this material as a tutorial or offer online classes in real time that cater to people from anywhere in the world. This is especially important to think about when you consider the pandemic that rocked the world in 2020 and whose effects are still being felt. At the end of it all, you will have helped people improve and enjoy the gratification of getting paid for a job well done.

5. Writer

Finally, if you have a way with words and would like to get paid for them, think about becoming a writer. There are different ways in which you can make a living writing. These include looking for clients who want content for their online spaces, working for pay from companies that offer writing gigs, and creating a blog to offer information to the public. For the last, you could pair the blog with a service or product for sale and also sell advertising space to businesses and individuals willing to buy it.

Consider these five remote job opportunities that you could look into and keep in mind that while you may have to start at the bottom, growth is possible. Soon enough, you could make your remote job a full-time opportunity and never have to work a job to which you have to commute to again.

Saving, Paying Things Off, and Looking Forward

| Leave a Comment

<p>We've made some awesome progress financially in the past few weeks, despite some hefty bills being thrown our way. We had an unexpected $630 insurance payment due. In the midst of everything, we'd missed a payment and the insurer demanded we pay the remainder of the policy to stay covered (ugh). However, having to attack that emergency got us thinking more about saving.</p>::Pexels

We’ve made some awesome progress financially in the past few weeks, despite some hefty bills being thrown our way. We had an unexpected $630 insurance payment due. In the midst of everything, we’d missed a payment and the insurer demanded we pay the remainder of the policy to stay covered (ugh). However, having to attack that emergency got us thinking more about saving.

So, we’ve got a solid plan to get our finances back on track within the next month or so and then (finally) be able to start really attacking our debt. Here’s an update…

1. Saving $1,000 in a Month

Between October 15 and November 15 we have set a goal of saving a $1,000 emergency fund. This will make things like the emergency car insurance issue no big deal if they come up again in the future. It will also provide us with a bit of peace-of-mind and motivate us to get the rest of our finances in order.

2. Paying Off One of Our Debt Items in October

In October we will have the first of our debts completely paid off! When we moved out of the motel about a year and a half ago, we had nothing (like literally only the clothes on our backs). We opened up an account at Rent-a-Center to have a TV stand, TV, bed, and bed frame. Everything else we were able to be gifted or thrifted ourselves.

Small rant: Do NOT go to Rent-a-Center for anything. You’ll wind up paying at least 2x the amount your items are actually worth. You can just save for what you need or want.

However, we will have the last payment of $203 made on October 15! That will be about $200 in savings each month by simply having that paid off.

3. Snowballing Debt

After we’ve gotten our $1,000 in the bank and the last payment made to Rent-a-Center, we have a plan to snowball our debt (hard). Both of us have been looking for additional sources of income to help pay down our debt as well as pad our savings. We will be making large payments on debt starting in mid-November after we’ve met our savings goal. We anticipate being able to pay off our credit cards before the new year.

Right now, we are focused on looking forward. Both of us are excited about getting money saved, snowballing our debt, and climbing out from underneath our current financial situation. I can’t wait to keep you all updated here.

Read More

Reflecting on the ‘Cost of a Baby’

| Leave a Comment

<p>Our daughter is turning one next week and it has had me in a reflective mood. I've been thinking about how much has changed over the past year. We became parents and, every day since then, we've gotten to watch our little one grow. A lot has changed financially as well.</p>::Pexels

Our daughter is turning one next week and it has had me in a reflective mood. I’ve been thinking about how much has changed over the past year. We became parents and, every day since then, we’ve gotten to watch our little one grow. A lot has changed financially as well.

Last year, I wrote a blog post delving into the true cost of having a baby. IVF and fertility treatments set aside, it costs tens of thousands of dollars to deliver a baby. Then, you have to consider the costs of the first year. So, does my post from last year still hold true?

Labor & Delivery Cost

I updated the blog when we received the bill from labor and delivery. When all was said and done, my out-of-pocket cost wasn’t that much. My insurance covered most of the medications and procedures leading up to and during delivery. For many people, this is not the case and they wind up having a bill in their mailbox for $30K two months after giving birth.

Our Monthly Budget Changes

The biggest change for our family has been the increased monthly spending. Specifically, our food and home costs have increased. There is a monthly clothing budget that wasn’t there before because kids grow so fast. Other additions to the budget have included formula ($300/month), diapers ($70/month), wipes ($15/month), plus all the extra food that seems to be consumed in the house these days.

Not to mention, all three of us are home every day. So, the electric and gas bills are higher than they used to be. In truth, this has been the true cost of adding a child to our family. We’ve seen more monthly budget changes than anything else.

Thankfully, my husband and I are both working full-time and can meet the changes to our finances as they come. We’ve even had the cash to cover several emergencies more recently. Our dryer quit and we had to pay $390 for a new one to be installed. We had to pay landscapers to take care of a bush on our property ($250). No worries, our EF saved us! (Focusing on saving during pregnancy and since the birth of our daughter was definitely the right move for us.)

Being ‘Prepared’ For Children

My mom always told me that if I waited “until I was ready” to have children that I’d never have any. That’s the truth! If you want to have children, it is a good idea to make sure you have a relatively stable financial life. However, don’t think you have to have surpluses and everything perfectly in place before starting your family. Because, in all honesty, things will never be 100% perfect. You’ll have to adjust to your new baby’s needs and your own needs as well.

You can prepare and never actually be prepared for having kids.

Read More

Employed, One Account Down, and Optimistic

| Leave a Comment

<p>It is super easy to look at your financial situation and feel a bit down, especially when you've been in a situation like we have been. There's no doubt that most of our finances haven't been easy in the past two years or so. However, we've finally gotten a bit of a break and I'm feeling extremely optimistic. So, here's the latest on how we're one account down, employed, and feeling awesome!</p>::Pexels

It is super easy to look at your financial situation and feel a bit down, especially when you’ve been in a situation like we have been. There’s no doubt that most of our finances haven’t been easy in the past two years or so. However, we’ve finally gotten a bit of a break and I’m feeling extremely optimistic. So, here’s the latest on how we’re one account down, employed, and feeling awesome!

Paid Off: One Account Down

The first piece of awesome news is that we have paid Rent-A-Center off completely! If you’ve ever bought anything from them, you know what a terrible mistake it is (stay tuned for a Rent-A-Center hate letter). Obviously, we won’t be buying anything from them again, ever.

We made our last payment of $205 on Monday and were ecstatic. That will save us nearly $300 per month that we can now put towards our heftier debts.

New Job!

Another way we’ll be able to save more next month and in the months to come is that we no longer have to pay storage on my other half’s tools and toolbox ($50 per month).

He starts his new job on Monday! It is a substantial pay raise from his previous position and, of course, after being out of work since June, it will be a huge help financially. More importantly, he will be doing what he loves again. So, things will be getting back to normal around here pretty soon.

Making Plans

Almost immediately after getting the great news and the progress of being one account down, we started excitedly talking about being able to pay off other items at a quicker pace. Our current credit card debt is sitting at about $2,000 collectively, which we aim to have paid off by the end of the year.

Not to mention, I’ll begin making payments on my student loans again in December and, once those credit cards are paid off, I’ll be able to through more money on my car loan each month as well. On top of all of that, we also will have Drew’s car paid off pretty soon ($650 left on the loan).

However, we both realized that maintaining focus at this time will be important. Although we are both ecstatic with the new job and being able to get back on top of things financially, we are still focusing on small goals to make sure we stay on track. As you may have read, our first goal is to get $1K saved. We should have that done by mid-November. Then we will really be able to start making serious progress on our debt free journey.

Do you have any advice for us? If so, I’d love to hear about your progress on your personal financial journey!

Read More