Debt Free, Motivation

We Are Living Debt Free – 5 Years And Counting

As I mentioned in yesterday’s post, my wife and I just celebrated our fifth year of living debt free. Here’s how our decision to get out of consumer debt changed our lives: We do not pay interest.  We earn it. This one is pretty obvious.  Instead of paying interest to various credit card companies or financial institutions, we earn interest on our savings.  Even though rates are relatively low, it feels much better to earn than to pay. We do not feel the weight of debt.  We have escaped it. This one might be more important than the first one.  I simply hate the feeling associated with having debt.  As a human being, I am extremely risk-averse.  Before we decided…

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Budget, Debt Free

Living Debt Free – Part 2

I have decided to do a series of posts, ten in all, exploring the concept of living debt free.  This is the second post in that series. Click here to read Living Debt Free – Part 1. Planning For Future Major Purchases If we are going to live debt free, we have to have a solid plan for making future major purchases.  It’s never good enough for us to simply save money and hope that we’ll have enough when we need to buy something.  Instead, our goal is to be prepared – forward thinking – and ready for when those major purchases need to be made.  Here’s our process. The Conversation Once every three months or so, my wife and…

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Debt Free

Living Debt Free – Part 1

I have decided to do a series of posts, ten in all, exploring the concept of living debt free.  This is the first post in that series. Defining Debt Free Let’s assume that I take my daughter to the doctor.  I schedule an appointment, my daughter sees the physician, I give my insurance card information to the doctor’s office manager, and then my daughter and I go home.  Three months later, I receive a bill from the doctor, for the balance on my daughter’s account, the portion not covered by insurance.  Technically, this bill is a debt – a debt that I owe and a debt I am obligated to pay. Let’s now assume that I take my son to…

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