Friday, May 11, 2012

All of Our Debt #2 and Buying a House

We really haven't made anything more than minimum payments on our debt but I figured it's probably gone down a bit and wanted to do an updated list of all our of debt.

Jj’s School Loan (Group B): $190.59 PAID OFF!!
Jj’s School Loan (Group D): $370.77 PAID OFF!!
Jj’s School Loan (Group A): $1542.69 PAID OFF!!
Credit Loan: $2,058.79
Jj’s School Loan (Group H): $2,334.37
Jj’s School Loan (Group E): $2,624.80
Jj’s School Loan (Group G): $2,754.43
Kj’s School Loan #1: $2,853.74
Jj’s School Loan (Group C): $2,912.75
Jj’s School Loan (Group F): $4,466.22
Kj’s School Loan #3: $5,286.95
Kj’s School Loan #2: $7,389.84
Honda Pilot Car Loan: $12,474.39

CURRENT DEBT: $45,156.28

Unfortunately, we definitely had a few months where we put our money elsewhere but we're finally in a much better mental financial state. You know how you can't really start a diet and/or fitness regime unless you're in the mental frame to do so, while we're finally in the right mental state for our financial diet. We've come to a place where we're ready to put aside our immediate wants and pay all this ish off.

Our plan is to pay all this debt off in more or less a year and a half. However, we are a big family, have three little ones and there's always something that comes up. Ali's first birthday is coming up, the Pilot needs it's timing belt replace, Mila needs to get spayed and into puppy training classes, Aiden starts preschool in the fall and we plan on adding another little baby into the family. All of which will push us back a little bit but it's okay - as long as we're striding forward, we will eventually get where we want to be.

I'm extremely excited to pay all of the above debt off and immediately afterward, (we're entirely following Dave Ramsey's plan to a T) we'll save for an emergency fund of three to six months and then save for a down payment on a house. Jarod and I were initially going to save just 20% and get into a house ASAP but (again this is another thing that kind of kills me, just like the iPhone, but) we're planning on saving at least 50% down. I don't want to state where my husband works (for my family's protection) but for those of you who know me personally (in real life) and know where my husband works, then you know his job isn't the most secure. He could easily get laid-off tomorrow and we're about 99% certain he would not be able to make the same amount and I don't want to be forced to work until I'm certain it's the right choice for our family (aka when the kids no longer need me to be there all the time); thus, we're trying to make the safest and smartest decision.

It's definitely hard to not just save up for a down payment now instead of paying our debt off first and getting into a house like tomorrow but we know deep down that it's not the smartest decision. It's incredibly hard as a mother and as a woman that planned to already be in a house with a huge backyard and a cute little white picket fence before the birth of her first child to not have my children grow up in a house. Obviously, that's not the case as we're now planning to have a fourth little one join us in our three bedroom apartment. It's hard putting my preconceived notions of "what should come first" and making the conscious choice to do the right financial decision. It's really tough.

But I think the biggest thing that hit me when Googling advice (how did anyone live without the Internet before??) from Dave Ramsey gurus online about the proper time to buy a house when someone has kids is that I want the house, not them. My kids have a place to live, they have a roof over their heads, food to eat and more toys than I've ever had in the whole accumulation of my childhood (seriously). They're taken care of and I need to push aside that feeling of mine that always wants to satisfy my own unnecessary immediate gratifications.

This is definitely hard and I'm learning that unlearning previously (horrible) financial beliefs is a process that has it's ups and downs but it, also, makes me so thankful for a husband who is on the same page as me (aka reason #12932045605 why I think he's so wonderful). Anyways, I think that's all for now. I'll definitely keep you all updated with the journey. Super exciting news is that we're going to be paying off Credit Loan $2,058.79 very soon! Yay!! :)

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