Recently, my husband and I sat down and agreed…we needed to start figuring out a way to pay off our debts. We have two car loans, three credit cards, medical debts, and my school loans from college. We realized that a huge portion (actually most) of our household income was just going to DEBT-things that we had already consumed or benefitted from and that were in the past…and it wasn’t leaving very much (or any really) wiggle room for extracurriculars or to put towards our future. We currently are renting, but would like to use this year as the year to purchase a house. My husband has been aware of this concept for a while now, but when we had first married it took me a while to realize that it really was something we needed to focus on. I’m a stay at home mom who recently started a skincare business, my husband owns his own electrical contracting company. Now we have two toddlers (1.5 and almost 3 years old) and although I love living int he moment with them, I am starting to realize how much we are affecting THEIR future by the choices we make today. In the past week we’ve paid $700 towards our smallest credit card ($1200 credit line that was basically maxed out)-following the Dave Ramsey method. His method is to create a debt snowball by creating little victories for yourself. Start with the smallest debt and just throw everything you have at it. When that debt is gone, move on to the next one until you are debt free. This has only been the beginning of our journey to be debt free, but every story starts somewhere. The biggest thing for us right now is that we are now TOGETHER on the concept. I will admit, i didn’t fully grasp what being debt free would mean for our family and for my husband. The lightbulb has clicked and I’m so excited to see this journey unravel.
What would happen to your income if you literally had NO DEBTS to pay?