It just dawned on me the other night that Sean and I are COMPLETELY DEBT FREE (including no mortgage now)!! Seriously, what a relieving feeling!! It is because of the fact that we are content with money at this point in our lives, and when you aren’t burdened with money, it doesn’t stress you out. How did it not even occur to me that when we sold and closed on our house that we are completely debt free? This is how and why…
From previous blog posts, most of you know that my husband and I are big Dave Ramsey fans and have been following The Total Money Makeover plan and completing the baby steps 1-7 since about January 2011. My husband and I paid off over $70,000 in debt in less than 2 years. It feels so good to have the debt gone. We just finished baby step #3 (fully funded emergency fund) and were already on baby step #4 (investing). We don’t have children yet, so we haven’t moved onto to baby step #5 (saving for children’s college fund). We had actually built a brand new house about three years ago, and we were planning on moving on to paying that mortgage off, but due to my husbands job we have the opportunity to move back “home” and get rid of that mortgage for now.
Instead of buying right away, we are going to rent one of my parents farmhouses and save a 20% down payment for a house. That is one mistake we made with our first home was not having the 20% down, and we were stuck paying PMI (insurance). No thank you! We are sick of paying that extra $200+ a month towards absolutely nothing. Therefore, we are taking advantage of being able to get out from under a mortgage, and we are going to take the opportunity to save 20% down.
I cannot tell you how great of a feeling is to know that we do not OWE ANYONE ANY MONEY. We can start fresh and do it right this time by saving a down payment that is substantial enough to not have to worry about paying the PMI. Luckily we are renting from my parents, so we will not have to worry about a time constraint of finding a house that we like when we are ready or building. We have been given another blessing in disguise.
Some people seem to be questioning our decision or looking at us like we are crazy for going from a brand new house to renting an old farmhouse, but we must remember that we make our choices for ourselves and the future of our family, not based on what others think is good for us. No need to keep up with the Joneses’ here! We are willing to make sacrifice now in order to build a better future!
Stay tuned for a blog post on the farmhouse we will be living in. This could be an interesting journey. The house is an OLD farmhouse. My husband is more of a “city boy” than a “farm boy” for sure. I told him that he better get used to the smell of cow manure! The house needed/needs a lot of work, so I will be posting some before/after pictures for you all to see the progression. I see a lot of remodeling, renovation, and DIY projects in my future, which is actually fine with me because I LOVE DIY projects!! Hello, Pinterest!! I was actually getting a little bored with our “brand new house” because there was not a need for as many “projects”. There will be plenty here to keep me busy!! YAY!!
Here are my previous blog posts on our journey of financial freedom, if you’re interested in the background:
Living Debt Free-Dave Ramsey and The Total Money Makeover
WE’RE DEBT FREE: