We Did a Thing! At the end of May, we made a long-time dream come true. For years, I've been wanting to take my kids to see the majestic Redwoods. Yet, it never seemed to become a top priority. Other opportunities and priorities for our time and money always seemed to get in the way. But earlier this year, I had an epiphany: this HAD to be the year and the last week of May HAD to be the time. Why the urgency? Our family is rapidly growing and changing. My oldest will soon be moving into her first apartment (it's in our basement, but it's still a significant change). Our second just graduated from high school and is heading into new and time-consuming adventures in the fall. Our youngest will be starting high school. And my husband, though retired from his former company, is exploring new fulfilling work opportunities outside the home. This was our window, and I knew we had to seize it. We had some money in our YNAB budget set aside for vacations. So, one afternoon in the midst of our crazy May, my husband and I did some research and decided that driving the 870 miles and camping would be the most affordable option. We booked the campsite and told our kids to request time off work. We were all super excited for this adventure, even our daughter who has an aversion to bugs and dirt! The weeks leading up to the trip were packed with end-of-school-year events, finals, graduations, and navigating semi-retired life. It was a busy and stressful time, but whenever one of us mentioned the trip, we all got a hopeful look of excitement, knowing that soon we'd be relaxing in the beautiful surroundings of the Redwoods. Folks, we were NOT disappointed! It was a dream vacation. With minimal phone reception, we had the chance to truly explore and enjoy the area and reconnect with each other without the distraction of devices. We enjoyed some amazing hikes, great food, and the peace and quiet that the area offered. We even drove our SUV through a tree! The morning we packed up to leave, I got a little teary-eyed. This was probably the last vacation we would have like this with our family as it is now. I didn't want to leave. If you know me, hearing me say I didn't want to leave CAMPING is saying something. The word that keeps coming to mind when I think of this trip is "sacred." The place, the time, the entire experience felt sacred.
So why am I sharing this with you? Many money gurus would criticize our choice to take this trip. We don't currently have a steady family income coming in. That week was the last week we had medical insurance coverage. We don't have a solid plan yet for replacing the steady income we've enjoyed for the last 21 years. To take that time and spend that money could be seen as reckless by many financial experts. We should be saving that money. We should be using our time to find steady income. We should have our priorities aligned with what they view as important for financial success. Nope! The best way to find true financial freedom is to ensure your spending aligns with your own priorities and values. We value our family time, so that's where we want our money to go – spending time with family. Now, I'm not advocating for the "I value a trip to Italy with my family, so I'm going to go into more debt to pay for it" philosophy. It's still crucial to avoid debt for many reasons, especially because it doesn't add to your financial freedom; it adds to your slavery. So, if it's something you truly value, save up the money, find ways to make it more affordable, and do the thing! Taking this trip was a priority for us, and it was worth every penny. It reinforced what we value most: our time together. So, as you plan your finances, remember to prioritize what truly matters to you. Spend intentionally, and you'll find both joy and financial freedom.
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Nathan Morris said, “Every time you borrow money, you’re robbing your future self.” In the case of a looming recession, we cannot afford to rob ourselves and our families.
Once you have your beginner emergency fund, you will want to buckle down and start paying off debt using the snowball method. What is the snowball method? Here it is in a nutshell: 1- Make a list of ALL your debt (except the house) - smallest to largest. 2 - Find all the “extra” money you can - remember the idea of cutting your budget and finding extra income? 3 - Pay all that extra money on the debt at the top of the list - pay just minimums on the rest. 4 - Once that first debt is paid off, take the minimum payment and all the extra you’ve been paying to the first debt and pay it to the second. 5 - Continue doing that - making your “snowball” bigger and bigger - until you get to the end of the list and you are consumer DEBT FREE! So, why the snowball method? Shouldn’t I pay off the highest interest first? Many financial coaches recommend the Snowball method because it keeps you motivated. Starting with the smallest and working your way up helps you have quicker wins to keep you going. Often, when you start with the highest interest rate, it takes a long time to pay it down and motivation is lost. The second part of this is to avoid adding more debt to the list. With your emergency fund, you are safeguarded from further unwanted debt. Just remember, if you do have an emergency, pause the snowball and fill up your emergency fund again then get right back on track. Keeping your plan and budget in to forefront of your mind will help you avoid those temptations to borrow more for wants - couches being on sale is not an emergency. It’ll take time and work to get to the end of your snowball, so start now. You never know when that job could end, and not having debt payments sure will help! Next time we’ll talk about one thing you can do now to prepare for job loss... Stay tuned! Hello, Hope on a Dime family! May is such a busy month! The end of the school year brings endless class parties, graduations, commencements, and so much more!
If college is on the horizon for you or for someone you love, listen up! According to Forbes magazine student loan debt is at all-time high! "There are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt in the U.S. alone [That's an average of over $34,000]. Student loan debt is now the second highest consumer debt category - behind only mortgage debt - and higher than both credit cards and auto loans." As I've spoken to those who are college-bound, one thing they have in common is that they see huge debt as a necessary part of their future. They don't see any way around it. Did you know that you don't actually have to take out loans in order to go to college? There are so many options out there for scholarships, college savings plans, and strategies for making college more affordable and paying cash. If a college education is what you want for yourself or your child, be sure to do your homework, investigate all the options, and avoid a life starting with substantial debt. If you would like to find out more about some of these options and where to find help, shoot me a PM. I'd be happy to share what I have learned and direct you to the right place for your particular situation. Early on in our financial journey to paying off debt and building our finical future, we had the fun opportunity to be featured in a series that CNN Money was doing on people working to pay off their debt. It made our debt pay off plans a little more exciting. All these years later, people still come across the article and mention it to us. This is the short story of how it come to be:
After filling out a survey my husband came across one day, we were contacted and interviewed by CNN Money about our goal to pay off our debt. We were featured in a series they did called, Debt Busters. Click here to read the article. Nearly a year later, they reached out again to do a follow up article about where we were in our process and how we felt about our journey to debt freedom. To read that article, click here. Things have changed since then, but we are still doing our best to be debt busters and being in control of our money. |
Heads-Up!Take a peek into my coaching journey through the years! Here, you'll see how my thoughts and wisdom have grown as I've learned from working with amazing people and expanding my knowledge Archives
July 2024
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