Comments on: 11 Ways We Dove into Debt and How We’re Digging Out http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/ Pay off debt. Save. Give. Live your mission. Wed, 08 Feb 2012 17:36:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: This Week in Personal Finance | Redeeming Riches http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-10041 This Week in Personal Finance | Redeeming Riches Thu, 29 Jul 2010 10:23:20 +0000 http://www.debtfreeadventure.com/?p=5066#comment-10041 [...] Matt from Debt Free Adventure shares some pretty common ways people get into debt and how to dig out! [...] [...] Matt from Debt Free Adventure shares some pretty common ways people get into debt and how to dig out! [...]

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-8455 Matt Jabs Tue, 09 Mar 2010 13:26:28 +0000 http://www.debtfreeadventure.com/?p=5066#comment-8455 The lessons you're learning by living minimally and by saving and by reducing debt and by building up emergency savings are valuable lessons you will carry with you for the rest of your lives... I wish you all the best. The lessons you’re learning by living minimally and by saving and by reducing debt and by building up emergency savings are valuable lessons you will carry with you for the rest of your lives… I wish you all the best.

]]> By: One shovelful at a time http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-8384 One shovelful at a time Sun, 07 Mar 2010 07:57:27 +0000 http://www.debtfreeadventure.com/?p=5066#comment-8384 Our debt load has many contributing events that led up to it- the most damaging being several injuries my husband suffered at work and surgeries/recovery periods that followed those, immediately followed by a broken wrist then some other substantial health events that required hospitalization. He has a physical job so each event was a toll on our resources. You never know when it's going to rain on your parade and just keep on raining. We never have lived high off the hog or chased after expensive toys or even bought new clothes to speak of. Our minimalist lifestyle has made it easy enough to buckle down and tackle the debt. What I have learned from all of this is to have a multi-level emergency fund and, if you're a couple, to jockey yourselves into a position where you *could* live off of the income of one or the other if necessary in order to prevent yourselves from racking up the debt to begin with should one of you become sick or injured. By multi-level emergency fund, I mean dividing it up into several buckets. One bit in a savings account attached to the checking to cover unexpected expenses. A second, less accessible, savings account that pays a little better for level 2, equal to a week's pay. Series I Savings Bonds equal to a week's pay for level 3. These are a little less liquid than a savings account but pay better. If you're cashing those in, there better be a real emergency going on. Level 4 is a CD ladder to get you through three months of unemployment. I'm working on building this emergency fund plan while simultaneously working to erase the debt. I think it's important to pursue both since I feel like I don't know when I'll be out charging the pain medications he's just got to have again and the emergency fund will keep us from digging in deeper. Hopefully his remarkable streak of bad luck is over but you never know when all this stuff you never could have guessed would happen just keeps happening back to back. Now we're paying *a lot* of interest because we figured we were young and didn't really need much of an emergency fund. That's all stuff that happens to other people but not us, right? Our debt load has many contributing events that led up to it- the most damaging being several injuries my husband suffered at work and surgeries/recovery periods that followed those, immediately followed by a broken wrist then some other substantial health events that required hospitalization. He has a physical job so each event was a toll on our resources. You never know when it’s going to rain on your parade and just keep on raining. We never have lived high off the hog or chased after expensive toys or even bought new clothes to speak of. Our minimalist lifestyle has made it easy enough to buckle down and tackle the debt. What I have learned from all of this is to have a multi-level emergency fund and, if you’re a couple, to jockey yourselves into a position where you *could* live off of the income of one or the other if necessary in order to prevent yourselves from racking up the debt to begin with should one of you become sick or injured. By multi-level emergency fund, I mean dividing it up into several buckets. One bit in a savings account attached to the checking to cover unexpected expenses. A second, less accessible, savings account that pays a little better for level 2, equal to a week’s pay. Series I Savings Bonds equal to a week’s pay for level 3. These are a little less liquid than a savings account but pay better. If you’re cashing those in, there better be a real emergency going on. Level 4 is a CD ladder to get you through three months of unemployment. I’m working on building this emergency fund plan while simultaneously working to erase the debt. I think it’s important to pursue both since I feel like I don’t know when I’ll be out charging the pain medications he’s just got to have again and the emergency fund will keep us from digging in deeper. Hopefully his remarkable streak of bad luck is over but you never know when all this stuff you never could have guessed would happen just keeps happening back to back. Now we’re paying *a lot* of interest because we figured we were young and didn’t really need much of an emergency fund. That’s all stuff that happens to other people but not us, right?

]]> By: Falling Into Debt - Real Estate Investing http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-8098 Falling Into Debt - Real Estate Investing Mon, 01 Mar 2010 13:42:22 +0000 http://www.debtfreeadventure.com/?p=5066#comment-8098 [...] website Debt Free Adventure reviews why people dive into debt, whether consciously or without realizing it.  Perhaps the biggest mistake people make is not just [...] [...] website Debt Free Adventure reviews why people dive into debt, whether consciously or without realizing it.  Perhaps the biggest mistake people make is not just [...]

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7840 Matt Jabs Thu, 18 Feb 2010 21:31:11 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7840 Way to buck the cultural norms for more responsible behavior Alice... I commend you. Way to buck the cultural norms for more responsible behavior Alice… I commend you.

]]> By: Single Mom, Single Money http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7648 Single Mom, Single Money Sun, 14 Feb 2010 23:17:20 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7648 Swiper, no swiping!!! I, too, am a swiper. I don't really carry any cash, so I tend to swipe my debit card until I can't swipe no more. I am climbing back on the wagon and sticking to my budget. I am finding if I spend every dime on paper and transfer it out to savings, debt payments, whatever, then I am more likely to stick to my budget. Swiper, no swiping!!! I, too, am a swiper. I don’t really carry any cash, so I tend to swipe my debit card until I can’t swipe no more. I am climbing back on the wagon and sticking to my budget. I am finding if I spend every dime on paper and transfer it out to savings, debt payments, whatever, then I am more likely to stick to my budget.

]]> By: Alice http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7616 Alice Sun, 14 Feb 2010 00:07:28 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7616 As a young single woman (27) I find the eating out and drinking, as well as gifts the hardest to control spending on. All my friends are getting married, having babies, and there is always a reason to celebrate with dinner/drinks. I live in the city so it is so easy to spend some money on dinner, drinks and then a taxi. This year I got really serious about my finances, I need to pay cash for a remodel and then need to save $9k to refinance my mortgage. I have told my friends I am in money saving mode and the sky did not fall out. We will hang out at each others houses, and when we go out for birthdays we will get the specials. I also instituted Mary Hunt's Freedom Fund idea: saving for gifts/weddings in advance ($100 per month) since I am at an age when does occur frequently. While it is hard to say no to social events (I am a very social person), say no buying clothes, etc it need to be done in order to live within our means. I don't even want to mention the cost of dating! Married people are lucky not to have that expense any more :-) Best of luck to you guys on your goals. I am sure you will make it! As a young single woman (27) I find the eating out and drinking, as well as gifts the hardest to control spending on. All my friends are getting married, having babies, and there is always a reason to celebrate with dinner/drinks. I live in the city so it is so easy to spend some money on dinner, drinks and then a taxi. This year I got really serious about my finances, I need to pay cash for a remodel and then need to save $9k to refinance my mortgage. I have told my friends I am in money saving mode and the sky did not fall out. We will hang out at each others houses, and when we go out for birthdays we will get the specials. I also instituted Mary Hunt’s Freedom Fund idea: saving for gifts/weddings in advance ($100 per month) since I am at an age when does occur frequently. While it is hard to say no to social events (I am a very social person), say no buying clothes, etc it need to be done in order to live within our means. I don’t even want to mention the cost of dating! Married people are lucky not to have that expense any more :-)
Best of luck to you guys on your goals. I am sure you will make it!

]]> By: Friday Financially Savvy Links: Valentine’s Edition http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7520 Friday Financially Savvy Links: Valentine’s Edition Fri, 12 Feb 2010 11:02:04 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7520 [...] 11 Ways We Dove Into Debt and How We’re Digging Out – Debt Free Adventure [...] [...] 11 Ways We Dove Into Debt and How We’re Digging Out – Debt Free Adventure [...]

]]> By: Ken http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7506 Ken Thu, 11 Feb 2010 21:42:57 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7506 Yeah..we got married and within a month we put a new living room suite and couch/sofa on credit cards...the mountain of debt was off to a grand start....we made mistakes with 0's on the end....experience and bad decisions were our teachers..live and learn. Yeah..we got married and within a month we put a new living room suite and couch/sofa on credit cards…the mountain of debt was off to a grand start….we made mistakes with 0′s on the end….experience and bad decisions were our teachers..live and learn.

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7505 Matt Jabs Thu, 11 Feb 2010 20:51:32 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7505 Awesome points Michelle. Unfortunately, in today's world presuming upon our future ability to earn is FAR too common! We all need to scale back, reduce debt, and learn to live on one income. Preparation before disaster is always far better than scrambling for solutions after disaster strikes! Awesome points Michelle. Unfortunately, in today’s world presuming upon our future ability to earn is FAR too common! We all need to scale back, reduce debt, and learn to live on one income. Preparation before disaster is always far better than scrambling for solutions after disaster strikes!

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7504 Matt Jabs Thu, 11 Feb 2010 20:49:06 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7504 Thanks Kate... I REALLY need to write an article on how we use our cash envelopes. I hope to do that by the end of next week. :-) Thanks Kate… I REALLY need to write an article on how we use our cash envelopes. I hope to do that by the end of next week. :-)

]]> By: Kate http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7498 Kate Thu, 11 Feb 2010 17:50:16 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7498 First - I love the picture! Second, I felt like I was just reading about my life. I did recently buy a new TV but I did it with some of my annual bonus and it is one of my favorite things about my place. Suddenly my place is the go to for all friendly gatherings when the TV will be used. I try to use cash for many things, but never thought about pulling out a certain amount for groceries, entertainment, etc. It is something I am going to start doing - at least starting out with the groceries and then moving on to the other areas. I do tend to use my cash for eating out already so that should help. Great Post! First – I love the picture! Second, I felt like I was just reading about my life. I did recently buy a new TV but I did it with some of my annual bonus and it is one of my favorite things about my place. Suddenly my place is the go to for all friendly gatherings when the TV will be used.
I try to use cash for many things, but never thought about pulling out a certain amount for groceries, entertainment, etc. It is something I am going to start doing – at least starting out with the groceries and then moving on to the other areas. I do tend to use my cash for eating out already so that should help.

Great Post!

]]> By: Michelle http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7489 Michelle Thu, 11 Feb 2010 12:24:25 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7489 Yes...we fall into all those categories. We (as young marrieds, no kids) were pulling in 6 figures...and spending next year's money all the time - since we'll just make enough later to pay off today's spending, right? Then the bottom fell out of DH's industry and household income became $70K, then $50K before he was able to transition into a new career. Those 2 years he was struggling to find work were really a wake-up call. Not only should you NOT spend future dollars, but you can't rely on them. You have to save (have an emergency fund) and you have to live BELOW your means, otherwise when life happens, you're going to make bad (financial) decisions. Thanks for the great article! Yes…we fall into all those categories. We (as young marrieds, no kids) were pulling in 6 figures…and spending next year’s money all the time – since we’ll just make enough later to pay off today’s spending, right? Then the bottom fell out of DH’s industry and household income became $70K, then $50K before he was able to transition into a new career. Those 2 years he was struggling to find work were really a wake-up call. Not only should you NOT spend future dollars, but you can’t rely on them. You have to save (have an emergency fund) and you have to live BELOW your means, otherwise when life happens, you’re going to make bad (financial) decisions. Thanks for the great article!

]]> By: Weekly Roundup – Social Media Edition | Frugal Dad http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7487 Weekly Roundup – Social Media Edition | Frugal Dad Thu, 11 Feb 2010 09:01:30 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7487 [...] 11 Ways We Dove Into Debt and How We’re Digging Out. Matt shares some all too common factors on how he and his wife accumulated their debt. (@Debt Free Adventure) [...] [...] 11 Ways We Dove Into Debt and How We’re Digging Out. Matt shares some all too common factors on how he and his wife accumulated their debt. (@Debt Free Adventure) [...]

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7467 Matt Jabs Wed, 10 Feb 2010 17:53:50 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7467 <blockquote><em>"I say this is to encourage you all to stay the course. You got your wake up call early, take advantage of it."</em></blockquote> Well said Olivia... thanks.

“I say this is to encourage you all to stay the course. You got your wake up call early, take advantage of it.”

Well said Olivia… thanks.

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7466 Matt Jabs Wed, 10 Feb 2010 17:51:40 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7466 I agree. That is why I employ the <a href="http://www.debtfreeadventure.com/debt-reduction-emergency-fund-savings-the-balanced-7525-method/" rel="nofollow">75/25 method of debt repayment & savings</a>. I agree. That is why I employ the 75/25 method of debt repayment & savings.

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7465 Matt Jabs Wed, 10 Feb 2010 17:46:28 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7465 Yeah, one of our goals is to live entirely on my salary. If we cut out the huge monthly debt payments we have been making and just consider our budget... I think we're already there - it feels great & adds an enormous level of security. Yeah, one of our goals is to live entirely on my salary. If we cut out the huge monthly debt payments we have been making and just consider our budget… I think we’re already there – it feels great & adds an enormous level of security.

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7464 Matt Jabs Wed, 10 Feb 2010 17:44:39 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7464 Oh my word... having an actual working budget is sooooo important. It helps us eliminate emotion from the equation. Oh my word… having an actual working budget is sooooo important. It helps us eliminate emotion from the equation.

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7463 Matt Jabs Wed, 10 Feb 2010 17:43:36 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7463 Yep, it's crazy how we used to turn a blind eye to our debt isn't it. Yep, it’s crazy how we used to turn a blind eye to our debt isn’t it.

]]> By: Matt Jabs http://www.debtfreeadventure.com/ways-we-dove-into-debt-how-were-digging-out/#comment-7462 Matt Jabs Wed, 10 Feb 2010 17:42:09 +0000 http://www.debtfreeadventure.com/?p=5066#comment-7462 I challenge you to calculate how much your debt costs you each month. Then break that down into daily amounts. For example, we currently pay $40.13/day just in interest on our debt... knowing that provides strong daily motivation. Use my '<a href="http://www.debtfreeadventure.com/interest-paid-how-much-debt-costs-spreadsheet/" rel="nofollow">how much your debt costs spreadsheet</a>' to calculate your amounts. I challenge you to calculate how much your debt costs you each month. Then break that down into daily amounts. For example, we currently pay $40.13/day just in interest on our debt… knowing that provides strong daily motivation.

Use my ‘how much your debt costs spreadsheet‘ to calculate your amounts.

]]>