Our Debt Free Family

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My Word For 2020: Productivity

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productivity

Social media has changed the world in so many ways (some good, some bad). One thing it has certainly done (for me) is provided me with new, interesting ways to think about things and approach projects. Recently, I have seen people choose a word to represent the year to come. Many people have chosen words like “hustle” or “positivity.” My word for 2020 is “productivity.”

Why I Chose This Word

Of course, everyone wants to be productive, but I chose this word this year because last year was really busy. Even though I was running around and felt exhausted and busy constantly, I didn’t get as much done as I wanted to. Then I came across this inspirational post on Facebook and it really spoke to me. It said…

Be productive, not busy.

When I read that I was like, “that’s it! That’s what I need to focus on.” It is kind of like that old adage “Work smart, not hard.” I want to focus on improving my everyday processes to reach my goals (both short-term and long-term). Before starting projects, I’ll analyze what the best approach is to protect my time (and money).

Productivity Goals

A lot of my productivity goals for 2020 will require a bit of planning. To start, I’ve begun waking up just a bit earlier every day and jotting down a brief schedule of what I have planned. If you saw my last post, I talked about my main goals for the year and I plan to achieve each of these by being productive and planning out my day.

For instance, to achieve my goal of learning German, I will carve out 10 to 20 minutes every day for a quick lesson. To be able to read a book a week, I am scheduling about an hour a day devoted to that alone. My goal of practicing self-care every day will be achieved by waking up just a little earlier and taking care of my skin and practicing yoga.

Our main finance goal of paying off at least half of our debt will also be helped along by being productive instead of busy. Last year, we were a bit frantic with our financial plans. This year, we will track every penny and have a set plan for paying off our accounts.

All in all, I am hoping that setting a goal to be more productive (and less busy) this year will free me up to do more of the things I enjoy, like spending time with my husband, hiking, reading, doing makeup, and crafts. As I’ve stated in the past, a huge part of me being successful in life, and in my finances, is being able to achieve a balance. That’s why I’m choosing to be productive and NOT busy this year.

Readers, do you choose a word to describe your year? What is yours?

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What is the Best Debt Advice?

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debt advice

People are pretty much always willing to offer up advice, even when you haven’t asked for it. Throughout my debt freedom journey, I’ve received advice from a number of individuals, but how do you decipher what advice is good and what you should let go “in one ear and out the other?” Here’s how to determine if the debt advice you’re receiving is something to consider or not.

What is the Best Debt Advice?

So, there’s no best advice when it comes to paying off debt. Everyone’s finances are different, therefore, their approach will need to be different. However, there are certain pieces of debt advice that have consistently helped people.

  1. Make a budget and stick to it. Believe it or not, budgeting for repaying your debt makes it easier to stay on track. Not to mention, having a solid budget will keep you from overspending, which is what causes most people to go into debt in the first place.
  2. Avoid taking on any new/additional debt. If you have become accustomed to swiping your credit card for things, this can be difficult. Consider hiding it or even cutting it up. Additionally, you shouldn’t take out any loans to consolidate your debt. It will almost always prevent you from making significant progress towards your goal.
  3. Set realistic goals for yourself. Many people fail at making realistic goals when it comes to their finances. If you stretch yourself too thin, you’ll cave under stress. Be sure to budget money for fun things and set realistic time frames for debt and savings goals based on that.
  4. Contact your lenders if you’re having trouble paying. We’ve all had issues making payments at some point. The best thing you can do if you’re struggling to repay a lender is to give them a call. Most will work with you on repayment and some will even give you a break on late fees, etc.
  5. If you can’t pay cash, you can’t afford it. Cash is king. If you don’t have the money in the bank, or you haven’t budgeted for the purchase, you can’t afford it. It’s that simple.

While these five pieces of debt advice are solid, not everything everyone tells you is going to help you pay off your debt. Here are a few things to consider.

How to Determine What Advice is Good

Be wary of anyone telling you there’s a “cure-all” to your debt problem. No single approach is good for everyone. You’ll need to cater your debt freedom journey to your personal needs. It may be worth looking into certain approaches if what you are doing isn’t working, but what works for someone else won’t always necessarily work for you.

Additionally, don’t listen to anyone telling you that taking out more debt to consolidate or further your progress is a good idea. You will only be hindering your ultimate goal of being debt-free. Instead, consider ways you can cut spending or earn more to help pay off your debts.

The Best Piece of Advice I’ve Ever Received

Since starting my own debt-free journey, I’ve received all kinds of advice from several different people. Some individuals have suggested consolidation loans, others have said to use all of my savings to pay off my debt, and one person even told me that I didn’t have to pay certain debts off (seriously).

The best piece of debt advice I’ve ever received, however, was this: be patient with yourself. There is no roadmap to debt freedom. The journey looks different for everyone and we all have to feel our way through things. For us, we’ve had to learn to live on one income, hide the credit cards, and focus on living a cash-only lifestyle. That may not work for everyone, especially for families with children.

It is easy to get frustrated when you aren’t seeing progress and it is even easier to simply give up. Finding patience for your journey and yourself is key to becoming debt-free.

Readers, what is the best piece of debt advice you’ve ever received? 

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Is Your Outlook Holding You Back?

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outlook

Most people look at me stunned when I say my husband and I have a debt freedom goal. One of my best friends literally lives on credit cards, while others scrounge paycheck to paycheck just to be able to go out to eat and live above their means. What I’ve found is that it isn’t your financial situation that sets you back from reaching debt freedom. In most cases, it is your outlook that makes the difference.

I’m Overly Optimistic

I must admit, I am an overly optimistic person, especially when it comes to the future. After all, it can be whatever you want to make it, right?

This can be both good and bad. Sometimes I do fail to see what could go wrong or when things just aren’t possible. I refuse to accept “can’t.” My husband, on the other hand, is someone who thinks of everything that could possibly go wrong and finds a solution for each of those problems before they even happen. We balance each other well that way.

However, my positive outlook has been beneficial in many areas of our lives. From our debt free journey (we are $20K+ down in a year) to our fitness journeys, positivity has been key!

How a Positive Outlook Has Helped Me With Weight Loss

If you don’t already know, I have been on a weight loss journey alongside my debt freedom journey. Over the past three years, I’ve lost about 132 pounds. My husband has lost 70.

outlook

One thing losing weight and paying off debt have in common is that they are both difficult. Extremely difficult. I have to look for inspiration daily to keep on track with both of these goals. Whether I find a new inspirational person to follow on Instagram, read some inspirational article or book, or simply have a dose of daily affirmation, positivity keeps me moving forward.

Positivity and Paying Off Debt

They say there are characteristics most debt-free people have. One of these, for us, is a positive attitude.

We took a look at our finances a couple of weeks ago so that I could provide a debt update here on the blog. When we tallied everything up, we’d paid off $22,565 over the span of a year, bringing our $65,000 debt down to around $40,000.

There are plenty of days we both want to quit and run a credit card for something or take a break from payments to go on a trip. We are both able to keep a positive mindset when it comes to paying off our debt because we know how great it will feel once we reach our goal. We already know what it feels like to hit goals in our weight loss journey and can’t wait to feel what it feels like being debt free!

All in all, a negative outlook could really harm your chances of meeting any of your goals. If you don’t think you can do it, you won’t. Clear your mind from negativity and move towards your newly painted future, whether it be health, finances, or other goals you have in mind.

What do you think? Has a negative outlook ever impacted your ability to meet goals? 

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Debt Blogs to Follow for Inspiration

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Debt Blogs to Follow

Finding inspiration on your debt free journey can be a struggle sometimes, especially if you’re feeling like you’ve run out of ideas. Inspirational quotes can only go so far. That being said, there are plenty of inspirational debt blogs to follow if you need a good debt freedom story or piece of advice.

Debt Blogs to Follow When You Need to Be Inspired

When I started my debt-free journey, I was lucky enough to have this platform to look back at some really inspirational debt stories. That made me want to go searching for more. These are just a few great debt blogs I’ve been following.

And Then We Saved

“And Then We Saved” is a fantastic blog to follow, no matter where you are on your debt free journey. They have guides to help you stay committed to your financial goals, helpful advice, and inspirational stories on the blog.

Club Thrifty

Club Thrifty is another great debt blog to follow. The blog’s motto “Stop Spending. Start Living.” is really all you need to know! If you want to become (and stay) debt free, more than likely you’ll have to be a little thrifty and this is a great place to find inspiration.

Dear Debt

You may have read my suicide prevention post last year. Dear Debt’s Melanie sponsors those suicide prevention blogs each year. She’s paid off $81,000 in debt and has continued to help others reach their goals through public speaking and her blog.

Debt Roundup

Debt Roundup is a great personal finance blog that has some fantastic debt freedom tips. Additionally, the site has some great resources to help you save, learn to invest, and more.

JackieBeck.com

Jackie Beck and her husband paid off $187,000 in debt, including their mortgage. On top of having a blog helping others become debt free, Jackie has also launched her own app and has a number of helpful finance tools.

My Debt Epiphany

My Debt Epiphany focuses on gaining financial freedom. Started by Chonce, a certified personal finance coach, the blog has a number of resources available. Not to mention, it also provides insights into Chonce’s debt payoff progress and things she’s doing to gain her financial freedom.

Two Cup House

This blog follows Claudia and Garret Pennington who decided to get out of debt in 2015 and reached that goal by March 2017. The blog has a personal feel and the couple often includes stories about their pets (or furbabies). It also has specific examples of things the couple did to help them reach their goal.

Debt-Free Podcasts to Give a Listen

debt blogs

Podcasts have become more trendy as well. In fact, I find myself listening to The Dave Ramsey Show while I’m writing all the time (which is mentioned below). However, there are plenty of other great debt podcasts to listen to if you’re not a huge fan of Ramsey’s tactics.

Chain of Wealth

I was featured on Chain of Wealth towards the end of the year last year. This podcast has some really great episodes!

Follow Me Out of Debt

Follow Me Out Of Debt podcast is an easy-to-understand conversation. It comes out once a week and follows the advice of well-known influencers, such as Dave Ramsey and Suze Orman. Tom, the podcast host, lets listeners know which strategies have worked the best for him in his debt freedom journey.

Frugal Friends Podcast

As mentioned a few times on this blog post, and many other posts on Our Debt Free Family, frugality and debt freedom often go hand-in-hand. Jen, one of the podcast’s hosts, paid off $78,000 in debt. Her co-host, Jill, loves to scout out great deals and lives for being frugal. It is a great thing to give a listen if you’re looking for ways to cut spending and maintain motivation on your debt free journey.

Know Debt, No Problem with Mary A. Wheeler

Mary Wheeler delves into tackling student loan debt and moving forward financially. She offers real-life stories and situations that have led her to where she is now (debt free and loving it).

The Dave Ramsey Show

Last, but certainly not least, The Dave Ramsey Show. You can catch Dave’s on YouTube, iTunes, and just about any other streaming source. While his approach can be a little rough and to-the-point, he has helped thousands of people get out of debt and obtain financial freedom with his advice.

These are just a few of the debt blogs and podcasts I follow. Have one to add to the list? Comment below!

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’13 Reasons Why’ Being Debt Free is Awesome (and I Can’t Wait for It)

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Being debt free is awesome

Debt freedom. Those two words literally make me grin ear-to-ear, and who wouldn’t? Can you imagine what your life will be like once you’re no longer being crushed under credit card bills and car notes? Here are 13 reasons why being debt free is awesome (and I can’t wait to get there).

13 Reasons Why Being Debt Free is Awesome

Although I haven’t gotten there (yet), I’ve heard plenty of people talk about how great it feels to have the heavy burden of debt lifted off your shoulders. Here are a few reasons why it feels so awesome…

1. You are free to truly live.

When you aren’t bogged down with your finances you are free to enjoy other things in life. Maybe the stress of your debt made it impossible to go on vacation or practice good self-care. Without debt, you’ll have the ability to do what you want to do when you want to do it.

2. You feel accomplished.

Most people who have accomplished the feat of debt freedom say there’s nothing else like it in the world. Once you’ve paid off your last account, the sense of accomplishment is astounding. It is enough to boost your self-esteem and help you gain confidence where your money is concerned.

3. Being debt free strengthens your marriage and relationships.

This is especially true if you worked on being debt free with someone. For instance, my husband and I are working together on our debt-free goal. At the end of this journey, we will come out stronger (and avoid debt like the plague).

4. You’ll have more money.

When you’re not paying on your credit cards or other debts every month you’ll have more cash flow. At first, it is important to take this extra cash and fully fund your emergency savings (3-6 months of expenses). After that, you can spend freely, invest, and build wealth.

5. Debt free folks have more fun.

It is true! You’ll be able to take that vacation you’ve been postponing without worrying about being able to pay the bills. Not to mention, you won’t have to check your bank account before you go out with friends. You can have peace of mind where your finances are concerned.

6. The feeling of financial security increases.

Being debt free is awesome because it makes you feel more secure in almost every aspect of your life. Financial security increases, security within relationships, and feelings about yourself all become more positive.

7. You can make changes you’ve been wanting.

Many people who become debt free find themselves changing jobs or moving once they’ve reached their financial goal. If you’ve been putting off going after your dream job or moving to the beach, becoming debt free can help you make those changes.

8. Now you have the opportunity to build wealth.

Now that your debt isn’t weighing you down you have the opportunity to begin saving, investing, and building wealth.

9. Maybe you can retire early!

While you’re building wealth, you’ll also be building your retirement fund. Most people who become debt free early on find they are able to retire early.

10. There are fewer risks and more peace of mind.

When you’re holding on to a lot of debt there is always something worrying you. With less liability hanging over your head you’ll have peace of mind.

11. Your stress levels will drop significantly.

Because of the peace of mind you’ll receive from being debt free, your stress levels will drop. You won’t be biting your nails over the next credit card bill or whether or not your car is going to be repossessed.

12. Being debt free is awesome for your mental health.

All of this has a profound impact on your overall mental health as well. Many people find they are no longer depressed, have more energy, and feel happier. (Remember, debt is not a death sentence.)

13. You’ll be able to live your best life being debt free.

When all is said and done, paying off your debt will free you up to live the best life you possibly can. You will have the freedom to do whatever it is you want to do (within reason, obviously). Take the trip you’ve always wanted, send your kids to college, retire early, and live the way you want to.

For those that are already debt free, what is your favorite part about it? 

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Tips to Help You Find Financial Focus

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financial focus

There is no secret that becoming debt free requires a fair amount of focus and determination. Sometimes it can seem like the entire universe is against you getting back on track or paying off your loan, credit card, whatever it may be. Here is how I’m able to re-center and find my financial focus after a setback.

Recent Setbacks

If you’ve been following our family for the past couple of years, you know I am no stranger to setbacks. After living in a motel for six months, getting into our apartment, racking up some debt, and losing one of our incomes for six months, you think I’d be ready for just about anything, right?

In the midst of wedding planning and my regular busy schedule, I got intensely ill in January and it really set me back. First, I was ill with the flu and then I was in the hospital for possible appendicitis (yikes). Then, when I returned to work I got a notification that the state would be garnishing my wages for my 2017 back taxes. I’d been attempting to work out a payment plan but didn’t owe much so they’ll be taking $460 a month until about May or June.

When this happened I spiraled a little bit. Forget the wedding, forget our savings plan, forget all of it. However, before I completely overreacted, I decided to take a step back and reset my financial focus.

Finding Financial Focus

Obviously, this isn’t the first time this has happened. Sometimes, it is hard to focus on the big picture when everything seems like it is going wrong. Because I have the tendency to overreact, I need a go-to list of things to do to recenter my personal financial focus.

  1. Set small, obtainable, short-term goals. If you put your mind in the now and set more immediate goals you won’t be able to be bogged down by the “what ifs” of six months from now.
  2. Write it down. After you’ve set these smaller goals, write them down. We do this with everything. Whether it is our debt payoff plan, weekly budget, or savings goal. Writing it down helps us set our mind to the task at hand. Then we walk by it daily and are reminded of what we’re working towards.
  3. Search for inspiration. I cannot say enough about following fellow debt-free folks! If you follow the hashtag #debtfree or #debtfreecommunity on social media, you will find loads of inspiration. People will share their stories with you, favorite inspirational quotes, and motivational tips to help you continue on your journey.
  4. Spend time doing things that make you happy but also make you feel responsible. I like to try and avoid spending money when I feel I need better financial focus. To do this, we have a list of things we enjoy doing that cost little-to-no money. For instance, we have favorite walking trails where we take the dog or scrape for free coupons and grab a coffee together.

Lastly, if you’re really struggling to manage your finances, consider speaking with a professional. There is no shame in reaching out for help if you need it. Some financial advisors will even offer up their services for free (or cheap) if you qualify.

Readers, how do you recenter your focus when it comes to your finances?

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Happy Holidays! Here Are Our New Year’s Resolutions

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New Year's Resolutions

Christmas was extremely successful in our home this year. We managed to keep everything low-cost where presents were concerned. However, many of them haven’t gotten in the mail for our relatives out of town (whoops). Christmas Day we went to the dog park with our baby (Enzo) and made homemade lo mein instead of ordering takeout Chinese. We ended the holiday looking forward to creating a vision board for 2019 and setting some New Year’s resolutions.

Setting Family New Year’s Resolutions

My other half and I have a lot of goals for 2019. This year will be our first year creating a Vision Board together. It will include financial goals, of course, and personal goals for us both. On the personal side of things, we would both like to get married next year. I would also like to train for and run a 5K and lose the last 40 pounds I have to reach my weight goal.

Financially, we both have the same long-term goal: be debt-free. However, to hone in on what we need to do in 2019, we’ve made a list of our debts and plan to snowball it starting January 1. Here’s what we’ve discussed so far…

  1. Pay off “small” debts by March. The other half’s car will be paid off by March. We will also have our credit cards paid off by then and a small medical bill ($242). Having these things paid off in full will leave us room to pay off other debts, including new tax debt.
  2. Focus on tax debt while making minimum payments on other accounts. We owe a little over $9,000 and have established a payment plan with the IRS. With my other half out of work last year, we weren’t able to put taxes aside as we normally do. After we pay down the smaller accounts, we will use all of our extra cash to pay this off. Once it is paid we are also going to begin putting big chunks of cash aside for future tax bills.
  3. After tax debts are paid, we will be making extra payments on remaining accounts. Once the IRS is paid, we will start throwing extra cash at the remaining accounts. We will still have our Conn’s bill (about $2,000 remaining), student loan ($22K), car loan ($20K), and the tool bill ($10K).

Creating a Vision

New Year’s resolutions are overrated for the most part. Many people abandon them by the end of March. For us, creating a Vision Board is more important than resolving to change in the new year. Instead, we are focused on large goals we’d like to reach by the end of the year. Each of the steps above will be part of reaching that vision and creating a life we want to live.

What about you? What are your New Year’s resolutions? Do you create a Vision Board?

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Inspirational Money Quotes That Will Motivate You to Pay Off Debt

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Oftentimes, it is easy to get bogged down about what isn’t going right with your finances. Maybe you’ve gone over budget or you feel like you’ll never get your debt paid off. However, in times like this, you need to find the motivation to keep pushing forward towards your financial goals. When this happens to me, I turn to some of these inspirational money quotes to get me back on track.

10 Inspirational Money Quotes

Whether you are looking for inspiration to get back on track or the motivation to get started, each of these money quotes has inspired me on my debt free journey.

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” -Ayn Rand

money quotes

“Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.” – Johann Wolfgang von Goethe

money quotes

“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.” – Dave Ramsey

money quotes

“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” – Suze Orman

inspirational money quotes

“When you know the impact of little expenses, you will realize that there is nothing little in this world.” – Manoj Arora

money quotes to inspire

“It doesn’t matter how slowly you go, as long as you do not stop.” – Confucius

money quotes

“The journey of a thousand miles begins with one step.” – Lao Tzu

inspirational money quotes

“It always seems impossible until it’s done.” – Nelson Mandela

money quotes

“Start where you are. Use what you have. Do what you can.” – Arthur Ashe

money quotes

“The secret of getting ahead is getting started.” – Mark Twain

inspirational money quotes

If I am having an especially rough day and find myself getting bogged down with what isn’t going right, I take a look at these. I hope the money quotes above are able to help you on your journey as well.

What is your favorite money quote or otherwise inspirational saying? Let me know in the comments! I’d love to add it to the list. 

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Affordable Ways to Give Back This Holiday Season

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Since the holiday season is in full swing, this is the perfect time to consider giving back to others. Depending on where you are in your journey of becoming debt free this can be really tough. It’s hard to scrap up enough money to put toward your debt let alone donating money to others.

Since my kids are getting a little older I want to show them that giving back to the community not only helps them, but it makes us better as well. Helpguide.org states [Read more…]