...in the real world, with a middle-class income?
I want to be debt-free so much I can taste it.
I am in charge of our family finances, and I am going full-steam ahead with killing all of our debt.
I guess what I am wondering is- if it sounds too good to be true (that *we* can be debt-free!), is it?
I don't want to do all this hard work, give up vacations, etc, for nothing!
Has anyone here -on a modest income- really went from having the average American debt-filled life-style to being totally debt free? Or at least built up enough investments that you could be debt-free if you wanted to be?
I have read it takes the average person about seven years to pay off their debt using the domino/snowball plan. That is what we are doing. We got a really good fast start, have no credit cards anymore, are paying our last car loan off three years early, then moving onto the mortgage (we will be making at least double payments on it), and we allready have decent savings in order to prevent future debt. But sometimes it seems there are so many years stretching ahead of us on this that it is never-ending...
We live in a house with a $200,000 mortgage, and I think that is half the problem. It is worth almost twice that, which makes me feel better, but doesn't really help us financially because we aren't selling it. I do not work outside the home, and my husband makes about $65,000 a year base salary with a lot of benefits and potential for bonuses, and hopefully his income will go up. He also has a side hobby of buying/fixing/selling antique cars, which is starting to bring in more money as well.
I was just reading the recent blog post about investing in whatever you know... and that is exactly my husband. He just bought an old classic car for $1000, and can put just a little into it, and easily sell it for $6000 or more. He could keep working on it and sell it for even more, but he is looking at the quick turn-around to get an even better car, to fix and sell again.
So, do you think we can do it? Or is it pie-in-the-sky to pay off a $200,000 mortgage in seven years on our income, with kids to feed, etc?
I look at my kids and think of the financial life I want to give them (security, giving them a great start in life, etc), but then I wonder if they will like the trade-offs, like less Daddy-time and less huge vacations- at least for seven years. They are all still rather young, so I can't really ask them yet.
Anyway, thanks for listening to me ramble on here.
I just found this site a few weeks ago and I really enjoy it.
I know it's called Getting Rich SLOWLY, but I just can't help wanting to dig out of the debt FAST!