Thankfully, we're already debt free, so we didn't have that worry over our heads, but we do still have $25,000 left owing on our home. It's time to be more pro-active in getting that paid off quicker. Our goal: 1 year from now! Our mortgage allows us to pay an extra 20% of the original principle per year. That's $13000 per year in addition to our regular mortgage payments. Lord willing, we will have our mortgage paid in full in less than 15 years. With 8 of those years seeing Randy in full-time university, I'd say that's a huge blessing!
My next project was to try and use the credit cards less. We didn't feel we could live without them totally, because we purchase items online and use them when travelling rather than carrying cash. Our bank doesn't offer the debit credit card, so that wasn't an option.
But, we did decide to use cash for all other purchases. Dave says that we generally spend an extra 30% when shopping with credit cards. I think he's right, and wanted to change that. And, so, I reverted to Dave's envelope system. I figured paper envelopes wouldn't last, and Dave's envelope system that he sells just wasn't part of my budget.
So, using scraps of fabric from my stash and a few zippers I had laying around, I made my own. Simple and fun. I will want to use these. They took me less than 30 minutes to throw together. Nothing too fancy, but they will do the trick.
I like how they turned out. Today I will start using them, and we'll seeing how effective they are.
Note: we are using Dave's recommendation of having "blow money" every month, but I didn't see the need for an envelope for that. That will just go into my wallet, as I can't have an empty wallet, can I.
Shirley, we also did the Dave Ramsey course and are all cash for the last 2 years. We have only a wee bit of student debt left (thanks to Wes' doctorate work), but it will be paid off by the spring. Since using his methods/advice, we now have money in savings, RRSPs, etc. and have more money for the charities we love. He has been a blessing to us too! I came across your blog through Louise's blog. :-)
ReplyDeleteFor Wes' travels, we have a pre-paid Mastercard but otherwise regular credit cards have been dumped.
ReplyDeleteAwesome work! We're completely debt free now, and will have our home paid off next year, Lord willing :) Cash system is the way to go. We still have a credit card for travelling and have been able to stick to using it just for that.
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