Quote:
Originally Posted by Tehan55
You must have been spending like a maniac before if you're making up so much ground on less income. Was that the case?
You got it. Spent every cent we made. Ate out 3-4 times per week, had steak the 2-3 times a week we ate at home, blew a couple hundred a week in tournament fees at the local casinos, spend $500/month on gas (most of which was the 100+ mile round trip to the aforementioned casinos, etc). It really adds up.
We also, per the Ramsey plan, stopped all 401(k) contributions (about $600 of the amount we paid off) until we reach that step in his plan (step 4 - immediately following elimination of all consumer debt). I stopped 529 contribution (college fund) until that step is reached.
By establishing a detailed, written budget and giving every dollar a name (home), we really became more conscientious about where we spend money. We also began using cash almost exclusively by utilizing the envelope system described in his books. For example, when the cash in the "restaurant" envelope runs out, you eat at home. We actually went completely Nazi on this thing and spend absolutely no money on anything no absolutely necessary. Short term pain = long term gain. And, yes, we are exhanging only cards for Christmas and our annivesary in January. Only the kids are getting presents and those will be modest and we've explained to them why.
I have 3 more payments left on my leased vehicle. I've dropped about $13k in payments on this thing for the privelege of returning it to the manufacturer with nothing to show for it. I'll be paying cash for a beater until there is ample funds in the "car replacement account" to pay cash for something a little nicer. Funny thing is, I don't even care what kind of car I'll drive. It'll be paid for and I'll be flush in cash.