In August of 2015, my husband and I paid off our car. This was a time to celebrate! No more car payments! The only debt we currently owe is on a rental home in North Carolina. We were on our way to financial freedom because our income was freed up and we had an extra $450 a month to spend on other things. Around the same time that we paid off our car, we decided that it was time to put ourselves on a strict budget and find out where our money was going. My husband and I scheduled a time to sit down and go over our finances because we wanted to get back to aggressively saving for our future. We wanted to continue to put money away for our retirement, kid’s college funds, future cars and weddings, and other expenses that will come our way.
Starting a Budget:
We decided to toss the attitude of “we can afford it, so let’s buy it.” My husband and I started our first strict budget in September and started watching our finances closely, slashing some bills, and stopping any impulse buying. We even went through our food expenses in one month and found out we were spending about $1,500 on groceries and fast food! In one month after being smart about our money, we cut that expense from $1,500 to $600! Out of habit, we were just swiping our debit cards here and there. While we still had the money to buy these items, the truth is, we weren’t saving aggressively for our future and we weren’t saving enough for our kids.
Our Progress:
In 5 months, we were amazed at how much money we were able to save because we were watching our finances closely. We continue to live with zero debt (except for the rental home) and we are putting away money for college, retirement, and giving to others all at the same time! We refuse to live paycheck to paycheck and continue to stay motivated to save and set ourselves up for financial freedom in the future.
The Statistics:
If you’d like to take control of your finances, NOW is the time! Don’t wait — start today!