Debt Free by 35, Our Story
Page 1 of 13 1 2 3 11 ... LastLast
Results 1 to 10 of 130
Like Tree708Likes

Thread: Debt Free by 35, Our Story

  1. Top | #1
    JDSwan87's Avatar
    Join Date
    Dec 2015
    Last Online
    Today @ 06:56 AM
    Location
    Temperance, MI
    Posts
    1,477
    Thanks
    923
    Thanked 261 Times in 175 Posts

    Debt Free by 35, Our Story

    So I was supposed to start this thread many months ago but it always fell to the backburner. I know there was interest by some members about our progress etc.

    The story: I graduated high school in 2005 and immediately started working in a small machine shop (I had worked co-op here for 2 years prior.) I bought a house foreclosure in Nov '07.... then the Recession hit. I stayed employed at that same shop, no issues there. I made decent money and was living a good (well budgeted) life.

    I think I was greatly affected by the numerous people I saw coming in literally begging for a job during the recession. My supervisor didn't doubt their skill set, we simply didn't have the work load to support them.

    I continued working at this shop until Aug 2012, when I left for a substantial bump in pay to go do plastic injection molding work. I absolutely loved this work, I enjoy learning and this was a whole new world to me. (This is when I decided I didn't want to be in debt but I didn't really have much of a "goal" yet. I just knew I wanted to not dig a deeper hole and paid cash for things.) We used 1 credit card for everything (points baby!) and paid it off every WEEK.

    January 2013 I had my wife (girlfriend) quit her job to focus full time on her schooling. She wasn't making much anyways and it was causing her a LOT of unnecessary stress.

    August 2013 we got married (we cashflowed $10k of the total $17k bill). I was working 60 hours a week to pay for it.

    In Aug 2014 I changed jobs again for yet another bump in pay and only a 15 minute drive to work. This is when we began to pay cash for my wife's college tuition. Began paying roughly $2000/mo to her University, refused to take out anymore student loans. (It was about now I came up with "I want to be debt free by 35.") We continued cashflowing college tuition with small loans from her parents to supplement what I couldn't work OT to pay. I was working 60-70 hours a week already.

    It was Feb 2018 that I first heard about Dave Ramsey and this is when things really got rolling. I started listening to his radio show on my short drives home from work. I wanted to start following his plan but mama wasn't on board yet. Mama said "wait until after graduation." We discussed our plan for children around mid Feb, agreed we should use protection.

    Mid March 2018 we find out she's pregnant with #2 and due December 6th. (Missed it by THAT much!)

    Debt list as of May 2018:

    3038E tractor: $7,400
    Parents Student loans: $9,000
    Sally May Student loans: $23,000
    Home Equity to buy 10 acres behind us: $30,360.00
    Primary Mortgage: $31,150.00
    Total: $100,910.00

    May 2018 my wife (mama) graduated with a bachelor's in Nursing. We paid off all of the Sally May loans with our tax return and savings in May 2018. We started the Ramsey plan in June 2018. June and July went great, we had a written budget. We paid off the parents loan in late July 2018. Mama passed her NCLEX on the first try, no issues at all.

    August 2018, mama started full time at a local hospital. So while our overall income went up, our child care expenses went up with them. Also fell off the written budget band wagon (it's tougher than you think).

    Plan on paying off the tractor in the next few weeks... still trying to get back on a written budget...

    Sent from my SM-G920V using Tapatalk

  2. The Following 2 Users Say Thank You to JDSwan87 For This Useful Post:

    BigJim55 (09-30-2018), Treefarmer (10-01-2018)

  3. Remove Advertisements
    GreenTractorTalk.com
    Advertisements
     

  4. Top | #2
    Zebrafive's Avatar
    Join Date
    Apr 2012
    Last Online
    Yesterday @ 07:15 AM
    Location
    South West Michigan
    Posts
    7,268
    Thanks
    1,533
    Thanked 605 Times in 531 Posts
    Well done, even with your "falling off the budget wagon" you are still miles ahead of most people. I am sure buying 10 acres was something you could not past up, and kids "happen" Again well done!
    etcallhome, Tomfive, MDrew and 6 others like this.
    J
    John Deere 2030 w/245SL Loader
    John Deere 6415 w/640SL Loader
    John Deere 285 50" deck Stolen May 2017
    John Deere x485 62" deck AWS
    Kawasaki Mule 2510 4x4 bought new 1996
    Ford F250 4x4 bought new 1978

  5. The Following User Says Thank You to Zebrafive For This Useful Post:

    JDSwan87 (09-30-2018)

  6. Top | #3
    Senior GTT Super Slacker Gizmo2's Avatar
    Join Date
    Jan 2011
    Last Online
    Today @ 08:11 AM
    Location
    New York
    Posts
    34,476
    Thanks
    5,853
    Thanked 3,995 Times in 2,952 Posts
    JDSwan87, Keep at it and don't let $100K discourage you in the least. Many years ago we were far more in debt than that, keep looking beyond the debt.
    I always said and still do, if it were not for owing money, we would not have had a thing. We have been debt free for many years.
    For the record, MOST people have NO idea how much money they owe. So, IMO, you are light years ahead already.
    Keith

    JD 2320, 200CX FEL/61" bucket , 46 BH/16" bucket, Artillian Forks, 72" Snow Blade, Landscape Rake, Ballast Box, PHD,
    BX42 Chipper, XUV 560 Gator, Z915B ZTrak

  7. The Following 2 Users Say Thank You to Gizmo2 For This Useful Post:

    ColonyPark (10-04-2018), JDSwan87 (09-30-2018)

  8. Remove Advertisements
    GreenTractorTalk.com
    Advertisements
     

  9. Top | #4
    MDrew's Avatar
    Join Date
    May 2013
    Last Online
    Today @ 06:39 AM
    Location
    S.E. WI
    Posts
    3,991
    Thanks
    283
    Thanked 639 Times in 414 Posts
    Get back on the budget. Every dollar has a name. It is truly a different world to be debt free. I wish I had started sooner. My son will graduate college after 5 years with no student loans. My other son just started tech school, he'll have no loans. My house is paid for, my farm is paid for. I'm building a 100x50 shop, cash baby. I give to my church and a couple of other nonprofits whenever I feel like it.
    Financially, I do what I want within reason, it's pretty sweet. Get back on the budget and get after that debt.

    I watched Dave's show on YouTube the other day, much better on the radio.
    Mike

    Sometimes I'm only funny to myself.

    300, 140, 318, 430, 314, 110. Brinly plows, disk, 80 cart, couple of 49 blowers, 3 54 blades, 33 tiller, tilt dump MCS, HPX Gator, CS Gator, Model A. Struck MD 750 w/bucket and hoe.
    Drew's Performance: We screwed the last guy so we can pass the savings on to you.

  10. The Following User Says Thank You to MDrew For This Useful Post:

    JDSwan87 (09-30-2018)

  11. Top | #5
    Herminator's Avatar
    Join Date
    Mar 2017
    Last Online
    Yesterday @ 10:31 PM
    Location
    Northern Illinois
    Posts
    4,064
    Thanks
    1,776
    Thanked 862 Times in 651 Posts
    Great job JD. You will achieve your goal because you have one. We did a similar thing when the kids were young and had a dry erase board in my office with each debt. We worked hard to cross them off but it makes it easier when you realize how much interest is attached to each one of them. Once you get through them it’s like getting a raise just due to what you’re not paying in interest. Like MDrew said we don’t buy unless we can buy it, that saves money in itself and it really makes you consider a purchase if all the money for it is just gone from the account.
    etcallhome, Gizmo2, PaDave and 5 others like this.
    Welcome to Intermission.

    2017 2038R, 400, 3020 & HPX and thingies to hook to the them.
    112 - Sold in July 2017 but took me until November to admit I just cast it out into this cruel world.
    #compactfarmer

  12. The Following User Says Thank You to Herminator For This Useful Post:

    JDSwan87 (09-30-2018)

  13. Top | #6

    Join Date
    Feb 2016
    Last Online
    Yesterday @ 08:14 PM
    Location
    Wisconsin
    Posts
    451
    Thanks
    0
    Thanked 47 Times in 38 Posts
    Interested in answer if you can come up with one.

    Your wifes student loans/schooling costs.


    How much was the total bill for her schooling including interest and cost to get to school etc.., everything in.
    How much does she actually take home after deducting all costs, transportation, daycare etc.
    Most people don't take into account the cost of a vehicle and driving to a job, daycare etc when both couples work.
    Then looking at these 2 numbers how long for her education to pay back.

    She at least has a decent job that should pay well. I see too many people with kids paying for daycare, having to have 2 new cars etc etc when in the end you are not really making that much more and someone else is raising your kids.

    In the end money is not the most important issue, your wife and family are. Do what is best for them and sacrifice financially if you have to.

    My wife quit her job shortly after we had our 1st kid, she was much happier, she spent lots of time with out kids and managed to run a good house hold. We drove cheap beater cars, went without all the latest things that most had but we got by. My life, my wife and our kids life were all better cause of it.
    '06 JD 2720, FEL, Flail Mower.

  14. The Following User Says Thank You to klunker For This Useful Post:

    Zebrafive (10-01-2018)

  15. Top | #7
    JDSwan87's Avatar
    Join Date
    Dec 2015
    Last Online
    Today @ 06:56 AM
    Location
    Temperance, MI
    Posts
    1,477
    Thanks
    923
    Thanked 261 Times in 175 Posts
    Quote Originally Posted by klunker View Post
    Interested in answer if you can come up with one.

    Your wifes student loans/schooling costs.


    How much was the total bill for her schooling including interest and cost to get to school etc.., everything in.
    How much does she actually take home after deducting all costs, transportation, daycare etc.
    Most people don't take into account the cost of a vehicle and driving to a job, daycare etc when both couples work.
    Then looking at these 2 numbers how long for her education to pay back.

    She at least has a decent job that should pay well. I see too many people with kids paying for daycare, having to have 2 new cars etc etc when in the end you are not really making that much more and someone else is raising your kids.

    In the end money is not the most important issue, your wife and family are. Do what is best for them and sacrifice financially if you have to.

    My wife quit her job shortly after we had our 1st kid, she was much happier, she spent lots of time with out kids and managed to run a good house hold. We drove cheap beater cars, went without all the latest things that most had but we got by. My life, my wife and our kids life were all better cause of it.
    BSN degree cost about $92,400 in tuition and lab fees (interest included)
    Books, software, uniforms cost about $6,400
    Total approximate cost: $98,800

    (Not going to count vehicle costs since she would be driving anyways.)

    Right now she works 3 12s a week and brings home about $2400/mo.

    Our day care costs $30/day/head, so $90/week roughly, $360/mo. It's actually a little less since grandma likes to watch on Fridays but we won't get too technical. I also won't try to calculate in the arrival and watching schedule of #2.

    So she nets $2000/mo and will "pay off" her schooling costs in roughly 49 working months.


    I told my wife in her 1st year of nursing school that if she wanted to work at home that we would be just fine. She has a passion for helping people. She WANTED to be a nurse and she is going after her wound care certifications after she gets her mandatory 2 years experience.

    We do drive older cars (my daily is a 196k mile 2005 VW). Hers is a 2010 Journey which we bought used and paid cash for, it is our family mobile. I also have a 2002 truck which only sees about 2k miles a year, I only use it for truck stuff and only put insurance on it when I use it.

    Sent from my SM-G920V using Tapatalk

  16. Top | #8
    Tomfive's Avatar
    Join Date
    Dec 2011
    Last Online
    Yesterday @ 09:29 PM
    Location
    Mid-Hudson Valley, NY
    Posts
    4,184
    Thanks
    97
    Thanked 608 Times in 473 Posts


    My hat's off to you, great goal and best of luck achieving it. I didn't know who Dave Ramsey is and I had to google it after I read your post. It seems I have been following his philosophy all along. I always paid off my credit card bill each month and only had mortgage and car loan debt through most of my life. Finally paid off my house when I was 55, refinanced at least 3 times to get a better interest rate and shorter terms. I always paid a little extra each month, and it didn't seem to be much, but when you actually put everything on a spreadsheet, even $50 extra each month adds up in the end.

    It would have been nice to pay all my debt at 35, but I bought my first house when I was almost 30 and I had about a $130K mortgage. Things are expensive in the northeast.

    I noticed you didn't include any vehicle loans in your calculation, maybe not an issue. But I didn't buy the most fancy cars in my life, but I didn't want to buy beaters either. My dad always told me that it wasn't worth getting stuck all the time, even if you know how to repair cars. And I wouldn't want my wife getting stuck either.

    I also had a larger "emergency fund" in mind that I wanted to keep at hand for those unexpected expenses that keep coming up.

    There is another philosophy that I can't pinch every penny, you have to save some (if not most) of what you earn, but you also have to enjoy some of what you're working for too. As I get older, I meet more and more people and get a lot of opinions and advice. Life can change in an instant, and you should have some joy while you're young. Just don't spend every last penny.

    One other piece of advice from this older fogey, if I'm right, you're probably in your early 30's. It's never too early to start saving for retirement, be sure to put that into your budget. You've probably heard this before, but they are right, don't put it off "to next year".

    Good Luck, I hope you make your goal.

    Just my 2 cents.
    Last edited by Tomfive; 09-30-2018 at 11:16 AM. Reason: Occasionally spelling challenged
    Tom

    2011 1026R/R4's -- H120 FEL/49" -- 260 BH/12" -- Bro-Tek Ripper -- Artillian Forks/42" -- 244 lbs JD Rear Wheel Weights -- KBOH Hooks and Clevis' --
    Block heater -- 180* T-stat -- Evans HP Waterless Coolant

  17. The Following User Says Thank You to Tomfive For This Useful Post:

    JDSwan87 (09-30-2018)

  18. Top | #9
    JDSwan87's Avatar
    Join Date
    Dec 2015
    Last Online
    Today @ 06:56 AM
    Location
    Temperance, MI
    Posts
    1,477
    Thanks
    923
    Thanked 261 Times in 175 Posts
    Tomfive, sent you a PM.

    We drive older vehicles as noted in another post. No vehicle debt (other than tractor). Since insurance in Michigan is sky high, we only keep full coverage on the Journey, liability on VW and truck (when it needs it).

    Sent from my SM-G920V using Tapatalk

  19. Top | #10
    JD4044M's Avatar
    Join Date
    Feb 2018
    Last Online
    Yesterday @ 10:29 PM
    Location
    Okanogan, Washington State
    Posts
    2,781
    Thanks
    1,668
    Thanked 590 Times in 397 Posts
    If you can only get one thing paid off make it your home! The rest will fall in place over time. Myself my home, vehicles and tractor are all paid for. It was rough but did it on a cash basis except I went into hock to buy 5 acres and fixed it up and sold it for a nice profit. Bought raw land again paid cash for it and started all over. Took another 20 years to get the place finished with out a mortgage the first place took 9 years to do. Now that I am old at 67 and retired it is nice it is all finished and paid for. Most my friends are in hock up to there butts having taken some real nice vacations and driving real nice expensive cars! There cars and trucks cost more then having my foundation poured and home dried in!!! Guess what my home went up in value and there new trucks are not worth crap now! I have invested almost all my extra money into my home to build it using cash as I went. Now that it is done I can enjoy what I worked so hard for. I worked 1 1/2 years restoring a power wagon to sell and bought the JD4044M with the money. No payments on the tractor or I would not have bought it. I would have kept my $2,800.00 67 MF135 I had for around 15 years and sold for $3800.00 when I was done with it. I had bought a tractor for $500.00 and sold it for $2800.00 to get it so small investment and worked my way up. I went with out so I could have this now.Click image for larger version. 

Name:	JD 4x4.jpg 
Views:	18 
Size:	105.4 KB 
ID:	650980Click image for larger version. 

Name:	shop1.jpg 
Views:	19 
Size:	94.7 KB 
ID:	650982Click image for larger version. 

Name:	DSCF4054.jpg 
Views:	19 
Size:	208.6 KB 
ID:	650984 Nice part is my Daughter gets all of this and has added a 3200 sq ft building the BIG One and another 80 acres to the place to make it 120 acres. PS She has paid cash for her building and 80 more acres of land with her 1st business and only job she has had working at home here. She has a good head on her shoulders and is getting ahead so much faster then I did my first 32 years of life! She has a way better shop then I do or ever had!Click image for larger version. 

Name:	shop.jpg 
Views:	19 
Size:	159.9 KB 
ID:	650986Hard work will pay off and lots of playing around will keep the bills high!

  20. The Following User Says Thank You to JD4044M For This Useful Post:

    JDSwan87 (09-30-2018)

  21. Remove Advertisements
    GreenTractorTalk.com
    Advertisements
     

Page 1 of 13 1 2 3 11 ... LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •