Since this is the first post, I may as well explain why I am even doing this. There are three main reasons:
2. To help others see how they can escape debt slavery
3. To see if readers can help me plot my financial future
Give myself something to do as I pay off debt:
First, let’s have a confession – I am obsessed with my financial situation. I look at my personal finance spreadsheet every day. It tracks my bills due and bills paid each month, and I use it to track all of my non-bill expenses such as groceries and entertainment. It also tracks how much debt I owe.
I am loosely following Dave Ramsey’s 7 Baby Steps plan, as well as his debt snowball approach to eliminating debt. I have chosen to do this instead of investing, because I want to be free from the grips of creditors, and also because having debt is like having a negative investment – if you carry a balance on a 20 percent credit card interest rate and you are investing in stocks at 5% gain, you are losing out. The interest you owe is wiping out any gains
For those who follow this snowball debt strategy, especially those with a lot of debt, it can be a slow process. I have been working on it for years, with a few slip ups (wedding bills, international vacations, new cars). This blog will give me a chance to share my progress with you, and provide place to channel all this anti-debt energy into something productive.
Hopefully it can fill some of the idle time between the two days per month on which I pay my bills and reduce my debt.
Help others see how they can escape debt slavery:
For a few years now I have wanted to help people organize their finances, determine their goals, eliminate their debt, and reach financial independence. We live in a changing society, and we no longer have to follow the old “rules”of thumb that convince us we need to work only for the purpose of acquiring debt to rent a lifestyle we can’t yet afford.
With the lingering economic recession, more Americans are realizing that financial security is more important than Stuff. It is my intention to be transparent with my debt, spending, and what I am doing to improve.
See if readers can help me plot my financial future:
This is where I admit that I am not prepared for the future. I have generally shunned saving in favor of debt elimination, and within 12 months I plan to be debt free (except my mortgage). I already have no credit card debt and carry no balances, and we have two paid-for vehicles – all that is left for now is two student loans totaling $16,000. But I need your help on what to do when I reach that point next year when the student loans are gone, and a major cash flow opens up.
Thanks for reading and joining in on this voyeuristic journey.