Sounds like you are being smart – Robert Brokamp had a great article a month or so ago that addressed this. He suggested that “worriers” play through the worst-case scenarios and actually come up with a plan for them. This can involve things you do now – getting more insurance, saving more, building more employability for yourself, etc – and things that you know you can do later if you need to – cashing out investment funds, etc.

I have been doing this a bit at a time, and it does seem to help.

This would be hilarious if it had happened to somebody else! Still, it makes for some good stories, doesn’t it?

We too seriously underestimated the cost of building our house. We lived in the basement for 6.5 years while we worked to finish the house. Every year we got a little closer until finally, we were able to move in to the main part. We even had our first child while living in the basement. She learned to crawl on concrete. She’s a tough little thing. LOL!

Good luck with your project. It is so easy to underestimate the costs of a project like that. Trust me, you are not alone! You will never again take for granted things like plumbing, finished floors, appliances, etc.

We did Financial Peace University and eventually became debt free except for our house. I became so passionate about learning about personal finance that I developed my own course (Celebrating Financial Freedom) and now have a blog to go with it.

It has been quite a journey and I love it. I can’t wait to see where it leads, maybe even to lake Titicaca.

Keep up the financial good news J.D.!

“When you help me with money, you help the world prosper.”- J.M. DuMont

That’s my freedom day.

My freak-out moment came when I finally sat down to tally up all the debt and I literally thought I had picked up an extra cell in my Excel spreadsheet: But the formula was right–I was looking at $194,000 in debt, not including my mortgage. While about 65% of that was due to the cosigned debt, I had also bought two new cars and was paying $1000+ a month in car payments. I was also paying back my daughter’s student loans, which I had pledged to her when she picked an expensive liberal arts college.

When I realized that I had absolutely no clue before that sad moment what was happening to me money-wise, I knew I had to figure out how to stay on top of and in control of my finances.

My overall biggest mistake was, not just cosigning the documents, but believing, after struggling financially for years and then experiencing a higher income than I had imagined possible, that I could now buy anything I wanted. Where I had always been used to doors closing in my face; now lenders were calling ME, saying “don’t you want MORE money?” I guess I just was giddy with the opportunities.

Like others here, I adopted Dave Ramsey, too. It’s been two years and I’ve paid off 82,000. I will never never never never go into more debt. Debt truly is slavery, and a mortgage on your future.

i had earned quite a bit over the years and spent exactly that, so there was no debt. But no savings either.
now, about 1 1/2 years later, i have an emergengy fund which will keep me going/alive for 7 month plus a move to a less expensive part of the country. i have a travel fund, a fun fund, two accounts for retirement (which will allow me cutting down hours to about half when i am 55 and then retire normally) and some money which goes to some fonds each month.
i feel so much better: safer and more self- confident.

my boss does not hate me anymore, and even though i still hate him for shaking my world and terrifying me that much, i am really, really thankful for that shock which made me get my financial things in order! and if he ever talks to me like he did that dreadful day i now am able to just walk away – if i want to.
priceless!

Your website really helped me too, so thank you for that.

spedie

My parents were broke and died broke.

After we put “those kids” through school, and raise them in a good home, our job is done.

What they do with their lives..well is over.

It makes good, solid people, if they do this.

Spedie

PS: Makes them focused and get a set of balls, does not it?

There is no one who can convince me otherwise this is bad.

I get flack for no credit card, and a house payment on a 10 year, 3.25 percent loan, that is less than 25 percent of my take home pay.

I am truly weird.

But, as you go on, you will realize the strength of your convictions.

I will not do debt, for any kind, ever, unless I am dying.

Oh..I heard it all, about how my FICO would drop and I get bad rates in insurance..yeah, my lowest FICO is now 771…I suffered badly after four years.

Read it and weap.

Spedie, debt free, and loving every minute of it!!!

DR rocks! and I am living proof of it.

It wasn’t until I got married that I learned how to manage my finances. And it wasn’t my wife that taught me. It was Dave Ramsey. At some point we had racked up over 30K in credit card debt trying to start a business. Stupid. I have since paid it off. Took me 4 years and LOTS of hard work and sacrifice. But, it’s gone and so are the credit cards. In fact, haven’t used one in 5 years (it’s been a year ago that I paid it off).

Yes, we’ve traveled. Yes, we’ve rented a car. Yes, yada yada yada. You don’t need a credit card to live. You simply don’t. We pay for everything either in cash or debit card. (Hint: look at your debit card. More than likely it has a Visa or a Mastercard logo on it. It acts just like a credit card.)

I’m not saying that Dave’s way is the only way, but that is what worked for us. If you couldn’t tell, I’m a big Dave fan, but I don’t worship him. I do disagree with him from time to time, but on the whole, he’s dead on.

All we have left now is a school loan and a mortgage. Life is so much easier without the debt and we look forward to the day we can scream, “I’M DEBT FREEEEEEE!!!!!!”

Thanks for reading.

The job I ended up with was 90 miles from home. I got a room there and came home when I could, after working at least 2-4 p/t jobs while there. It solved two problems – the debt and the fact I knew no one there and didn’t want to sit around in a single room watching tv.

It took us 15 years to get the cc’s paid off. I had once worked in a financial institution and had learned one absolute fact-pay your bills on time; each time, every time. At one time we had 12 cc’s. If I had to borrow from one to pay the other, I did. As a result, I began to get the best offers from cc companies. When a financial magazine said you were ahead of the game if your cc’s were at 14% interest, mine were down to 3 cards at 9.9% “until paid off.” Later, I got an offer and consolidated my cards at 4% “until paid off.” The last 3 years I got a new card each year at 0% for one year. Those cc offers helped me to get out of cc debt.

When I retired, all we owed was on a vehicle we had bought 6 months before. I took my first withdrawal from my 401k and paid it off. DEBT FREE for the first time in our married life. Still that way. I use 2 cc’s all the time and charge all I can on them and pay them off each month. They pay me, I don’t pay them. It is so freeing.

I have enough in savings that I can buy another car for cash if this one runs out. My 401k goes for home repairs or traveling. It is only about 74k, but it should last me at least 20 years taking only the minimum out each year. I have enough income (SS & 2 small retirements) to live on okay and save some also.

In fact, my 401k is invested only in a straight savings account. But it has paid well enough that I had $78k when I retired and after taking out nearly 15k, I am now only down 4k. Ain’t interest grand?!!

Love reading about how others are working it out too. Which I had access to this info when I was in my 20′s.