What really changes when you are out of debt? Since I'm a few years away from being free of non-mortgage debt, I haven't really given much thought to how life will change. But now I am thinking of it: will life be any different?
I mean, I'll still have the bills to pay. Food and gasoline to consume. Insurance, utilities, and I'd better not forget taxes. Plus, there will be a large chunk that goes to retirement. Perhaps even some cash will be diverted to my kids' college fund. Last but certainly not least, the mortgage company will still want its hefty share.
So, how exactly will life be any different? I know, I won't technically be debt free until I kick BB&T out of the house. But still, shouldn't I feel something once I'm no longer throwing money at stuff that I purchased ages ago?
Sorry for the downer post. Probably should have known better than to blog while exhausted.
Does your life change when you're out of debt?
April 29th, 2011 at 02:22 am
April 29th, 2011 at 02:35 am 1304040935
April 29th, 2011 at 03:45 am 1304045129
Interesting that paying off the cards didn't make an impact on you. I guess that is what I'm worried about; that getting out of debt won't really make me feel any better or worse than I do now. In my mind, the extra cash that is freed up will instead go to funding retirement, education, and paying off the mortgage ... not exactly exciting stuff.
April 29th, 2011 at 03:59 am 1304045969
April 29th, 2011 at 05:59 am 1304053150
April 29th, 2011 at 09:25 am 1304065554
April 29th, 2011 at 12:47 pm 1304077655
The logical side of me knows you are correct, but emotionally I'm trying to ignore you . For me, Dave Ramsey does such a great job of making debt payoff fulfilling that life afterward seems mundane in turn.
J-Money,
Exactly! It is a bit childish, but when I first started thinking about being out of debt, I thought there would be all of this extra money to spend as I please. The discipline that I've acquired in managing my finances is, like parents, shaking its head and firmly prodding me towards responsible stuff like investing instead.
LuckyRobin,
Congrats on the progress you've made and being so close to being out of debt. I understand what you mean about having so much to pay off, as I have yet to knock out a debt that is more than a grand or so. Yep, over $16,000 paid off and I'm still dealing with the same debts hangin' around.
April 29th, 2011 at 01:29 pm 1304080188
April 29th, 2011 at 04:20 pm 1304090441
April 29th, 2011 at 04:21 pm 1304090484
I've personally never been *in debt.* Definitely have a mortgage, but I could erase that quite easily by selling the house. Never owed more than an item was worth - that is for sure.
Talking to others, I Feel we have far more financial freedom. It's the being fiscally responsible in addition to the no debt (the two kind of go hand in hand).
That said, I think you are wise. I've seen people with very high incomes do the Ramsey plan and their eyes were opened to a whole other way to live. They didn't dream of fiscal responsiblity so much, it seemed to me, as being able to afford everything their heart desired. I don't think they really *got it.* That big incomes don't last forever and a little more saving for the future was probably more prudent.
Likewise, I have financially troubled friends who think all their problems will magically go away once they are debt free. They get annoyed at how frugal our lifestyle is. What do *we* have to worry about - we don't have any debt!! I think Baselle's diet analogy is good. We are on a lifelong diet. It makes life easier, but it's not always easy. I've also been on this diet my whole life, so maybe I don't feel I have to work so hard at it. But I still think it is hard work. Staying out of debt has certainly NEVER been EASY!
So, yes your life will change, but it won't be magic, it won't be easy, and you will always have to work to stay fiscally fit. But like anything you work hard to achieve, it is rewarding.
April 29th, 2011 at 07:20 pm 1304101225
Coincidentally, I am 32. Of course, a major difference is that my house is not even close to being paid for. Must have been a huge blessing to be mortgage-free at my age, congrats!
MonkeyMama,
Great insight. I think one of my biggest problems with Dave Ramsey's baby steps is that once you arrive at the seventh (and final) one, everything he has been building it up to be turns out to be a big mystery. Like, "Hey! I've finally arrived ... now what?"
I was raised by great parents that, unfortunately, were not very frugal and did not pass on practical financial knowledge to me. While I feel I have a lot of lost time to make up for, at least I'm finally getting it.
Your comment about friends with financial issues has inspired me to make my next blog post about that exact topic.
April 29th, 2011 at 08:43 pm 1304106212
Jerry