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A while back I was listening to Dave Ramsey on the radio. And while I disagree with some of Dave’s belief on life insurance and investments, he is the go-to guy when it comes to budgeting. He had a couple call in saying that they paid off about $150,000 in debts in 2 years including their house. How did they do this? They both made a commitment to “live like no was else (will) so they can live like no one else (can.)” For you Dave Ramsey fans out there, this is his mantra – and it’s a good one. Let’s look at what that looked like practically for this couple.
When he asked how they did it, the wife shared that they had two decent incomes – one was a firefighter and one was a teacher – and earned a little over $100,000 per year. I don’t recall what their budget was, but that alone would normally not give a couple the ability to pay off $75,000 per year in debts. Base on their commitment, the husband took on a second job (near full time) and put all of that money towards knocking out their debts. Additionally (and this is where the real commitment part comes in) they did not go out to happy hours with friends or eat lavish meals out, but rather ate staples such as “rice and beans” for meals.
I tip my hat to them because now they have the lifestyle that many only fantasize about, but aren’t willing to take action to obtain. The icing on the cake is that towards the end of their debt destroying journey, they found out that they were expecting their first child. As great as it is to bring a child into the world, do you know how much (financial) stress it can put on families that are already strapped? Do you not think this stress (both conscious and subconscious) has a negative impact on the baby growing inside of the mother? Just another reason to be real with yourself and make a commitment to “live like no one else so you can live like no one else.”
How are you doing on your financial journey? Are you living like “the Joneses” (who are broke by the way) or are you “living like no one else?”