Posts by jsangl
Marching To Debt Freedom – Couple #3 – Month 03
I am excited to introduce Couple #3 – the newest members of the "Marching To Debt Freedom" crusade.
Introduction
This couple has been married for many years and have one child. They have HAD IT with their debt and have been marching toward debt freedom since November 2007. They are THROUGH with credit cards.
What went well this month …
We transferred our Bank of America card balance to another card at a much lower interest rate. We also got the interest rate reduced on one of the Discover cards. We "spent" our tax refund before we actually received it, and it went much further! Half of it funded our emergency fund which is now over $2,900!
What were the challenges/struggles this month …
Not really any this month … except we want it all paid off!
Updated Debt Freedom Date …
Sangl Says …
I am excited about the progress of Couple #3! One debt is already paid off, and more are getting ready to fall! It is AMAZING how fast debt can leave when you have your IHHE Moment!
I challenge everyone to seek lower interest rates on any debt you are carrying. Many times you can obtain a lower interest rate just by calling your credit card. Or you can avoid the conflict altogether by rolling the balance over to a "0% for 12 months" card.
Readers …
Will you take a moment to leave a comment for Couple #3 and thank them for sharing their personal financial information with everyone? It takes a lot of courage to do this, and I am PUMPED to watch this debt fly away!
Read the Debt Freedom March updates for Couple #1 and Couple #2
Want to start your own Debt Freedom March? Check out the free tools HERE. My book also teaches you how to use all of the free tools. You can purchase your copy at AMAZON.COM or via PAYPAL!
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Marching To Debt Freedom – Couple #2 – Month 06
Introduction
This couple is THROUGH with debt! It has now been five months since they announced that they were breaking up with debt.
Here is this month's update!
What went well this month …
Things are going great, and we are sticking to the plan.
Challenges and struggles this month …
I really don't have anything different to say as far as the challenges and struggles for this month.
Here is their updated Debt Freedom Date calculation …
Month By Month Progress …
What are the biggest changes you have seen as a result of the first six months of this march …
Marching To Debt Freedom – Couple #1 – Month 06
Introduction
Couple #1 is THROUGH with debt! They have been married for many years and have two children. They are now SIX months into their march. Here is this month's update.
What went well this month …
WOW! This is like when you can fit into your skinny jeans again. God blessed us and sent us a bonus check and instead of blowing it, I put it to good use. I paid off my car, and paid $3,000.00 on the other car. I am stoked! In about three months, I will be shed of all debt except the big stuff. We are also getting a tax refund, and I am hurling that at debt too. I feel like David reaching for the stones, baby!
What were the challenges/struggles this month …
The only struggle is feeling guilty because we did not do this early on. I would be a freaking gazillionare by now. God rocks. Joe rocks. Not being broke rocks. Yee Ha!
What are the biggest changes you have seen as a result of the first six months of this march …
This has made us focus like a laser beam on our finances – both good and bad. It has let us have a glimpse of what life will be like with no debt, and I like it. I can only wish that anyone who reads this takes it to heart. Don't let credit cards ruin your happiness. I will always remember my IHHE Moment!
Updated Debt Freedom Date …
Month By Month Progress …
Sangl Says …
ANOTHER DEBT IS GONE! Couple #1 has definitely had enough. Look at the progress they have made in just six months! Their initial Debt Freedom Date calculation was 42.9 months. They are now down to 35.1 months AND they have avoided all new debt. They had to slow down during Christmas so that they could avoid debt that month, but it allowed them to stay on the path toward financial freedom. In just six months, Couple #1 has made FOUR different debts leave their life!
Way to go, Couple #1! I am FIRED UP by the progress you guys are making!
Readers …
How are you doing on YOUR debt freedom march? You can do this!
Read Previous Monthly Updates For Couple #1 HERE
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Book Review: Values-Based Financial Planning
Someone gave me a book to read recently, so I read it as I traveled five miles above the ground to Dallas, TX last week.
The book is Values-Based Financial Planning – The Art of Creating an Inspiring Financial Strategy written by Bill Bachrach.
Here are some items/lines/quotes that stood out to me …
Started off with Maslow's Hierarchy of Needs- "Sometimes you have to change direction even when you're succeeding."
- Jim Carey "wrote himself a $10 million check and put it in his billfold to hold until the day he could cash it" to "spur himself on."
- "The future will come whether your plan for it or not. Will you have the future you want or the future that happens to you by default?"
- "To get somewhere tomorrow, you have to know your position today."
- "The real reason to hire a [financial planner] is delegation, not to get a higher return."
It was a fast read – less than two hours. It really pushes one to consider a financial planner (not a surprise since that is what Bill is all about!).
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Known, Upcoming Expenses – Sub Account Tracking
The below was written by Joe Ziska. Joe and his bride have helped with the Financial Freedom Experience multiple times and are ON THE CRUSADE for financial freedom! Joe offers another way to keep a name on each dollar saved for known, upcoming expenses. I like it!
Q) What two things do the following have in common?
Christmas; A flat tire; Your son going to college; Vacation in Hawaii; Your daughter getting married
A) 1. They all cost money. 2. We forget that they cost money until the bill comes!
Let’s face it. Even the most organized of us tend to forget things now and then. Whether misplaced car keys or forgotten reservations for Valentines Day, our imperfect memories always seem to make life more difficult. In my experience, forgetting large upcoming expenses is one of the most demoralizing things that can happen to you. Unlike true emergencies, such as a sudden illness or job loss, known upcoming expenses (KUEs) such as these listed above, can and should be expected! As Joe always asks, “Should it be a surprise if your car breaks down?” Of course not. That’s what cars do!
Many of you reading Joe’s blog are trying desperately to get out of debt and gain financial freedom. For my wife and me, one of the most disheartening things in that process was a big expense wiping out our emergency fund. Just when we felt we were finally getting traction, a $500 car repair or having to pay for Christmas presents would knock us off course. We constantly felt like we were starting over. I knew that we should be saving for these expenses but didn’t have a good way to separate this from our emergency fund. We’d generally leave a decent balance in our checking account and just hope that it would absorb most of these expenses when they came up.
I wanted to save for these KUEs. However, the mathematical part of me rebelled at the idea of gaining no interest on our savings (especially as some of these expenses can be quite costly). Wouldnʼt it be better to just pay down some debt or invest the money?
Enter Capital One 360. I’d been using HSBC and ING Direct to earn good interest on money we were saving for a down payment for our house. However, it wasn’t until almost a year after opening our accounts that I realized how they could help with my KUE problem.
One day, I was checking my account balance online and I noticed a large button labeled “Open an Account”. I figured this was used for investing or to open a new CD but clicked on it anyway. After browsing for about 30 seconds, I realized that Capital One 360 will let you create numerous new savings accounts linked to your original account. Not only that, you can give each a unique name to help you identify them. We created categories for all of our Known Upcoming Expenses to keep them separate from actual emergencies. Below is an example screenshot from an account (click on it to see it better):
We have also set up automatic transactions to each individual account. So now, at the beginning of every month we move $12 to our pet fund (unfortunately, our dog doesn’t pay her own vet bills), $40 to our Christmas fund, and so on. When we need the money for these expenses, it takes only 3-4 days to move it back to our primary checking account. Meanwhile we’ve been earning interest on our money instead of paying interest to a credit card company when these events sneak up on us. Last time I checked, Christmas is still in December so you’ve got 10 months to save up for all those gifts. Why not create a Capital One 360 savings account for it and make it automatic?
Thanks for the article, Joe!
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Purchase my book on AMAZON.COM or via PAYPAL.