After
posting about paying cash for our new home, a few people were asking
about how we were able to accomplish that feat. I am going to start
posting on Friday's about how we got to where we are at in our
financial journey.
Before
we started on our journey we were very much in debt. About four years
ago (2010) we became very concerned about the economy and our
impending retirement.
First,
there is a difference between actually owning something and having
something.
The
realization hit there is a fallacy in thinking that “we owned our
home”. At that point we owned three vehicles, which were paid off.
That is what owning something means to me. We had (have a house) a
house, which we were in debt on, i.e. mortgage, which actually means
the bank owns the house. There is a distinction there.
We had
built a “craft room” onto our home, which was where my mother in
law lived until she died. That was a wise choice in my opinion.
After she passed away we earned additional income by having people
live there.
The "craft room" has a bedroom, bathroom, living room & kitchen
We
are not rich. Though I often find people never define themselves a
rich. Rich is what people are who make more money than you do. We are
well educated, but both of us have chosen to work blue color, service
industry jobs. DH does several things to bring in additional money to
include teaching Utah Concealed Carry courses and fixing vehicles.
Today's
focus point is understanding your why?
We
realized we really needed to get out of debt. At that point we didn't
even have a thought about paying cash for another house. For some
reason it finally clicked we were committed to getting and staying
out of debt. 2010, that was the year.
Why
do you want to get out of debt? Really think about it. How serious
are you? What are you willing to give up to attain that goal? Write
that reason down, post it on your fridge or carry it with you in your
wallet. Wrap it around your credit cards.
We
are all at different points in our financial journey. Only you are
able to make the decision to change your thought process and take the
first steps to get out of debt. You can use any excuse you want to,
but the reality is you got yourself into debt (there are few true
exceptions), only you can get yourself out of debt.
I
want you to feel free to chime in and share your “why” if you
want to.
Next
week I will talk about how important is your why...
For more information...
10/10/14 I am currently adding more blogs posts to explain a little more in detail about how we got to this point in our journey. These posts are listed here under "Financial".