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Old 02-25-2011, 09:56 PM   #73
Registered User
Join Date: Mar 2008
Location: SC
Posts: 184
My Ride: 99 323i, 04 ZHP
After reading TMM, we were inspired to start the process. We had admitted to ourselves that we were in a vicious cycle. We would buy something on credit and/or run up our card, get fed up, spend our time sweating about paying off the debts only to get them paid and run the debt up again. After reading TMM, we buckled down and applied the steps.

We started sometime in '07 with a car payment, CC debt and a furniture store debt. I had a 401k started in '93, so I didn't feel the real need to put money away in a savings account and spent it freely. Oh, another problem the wife and I had was the inability to tell the other "no" when it came to purchases. That's why we ended up buying a time share and her BMW when we did.

We saved the $1k E-fund, then started working on the debt snowball. By the time we got to the car, we were able to put $1200 per month on it instead of the regular $373. We paid it off about a year early. Then we started working on saving the 6 months' living expenses. That seems to be a harder step, believe it or not. You would think if you were dropping $1200 per month on a car payment, you would be able to put that same amount in the bank each month no problem.

The savings account seems to suffer the same cycle the debt did. We get the account built up a bit, then it gets hit. We build it up a bit, hit. The last hit was my daughter's car. We got her a '99 323i for $4k. Just a few short years ago we would have borrowed the money to get the car, then work like mad to pay it off. It felt good to be able to just buy the car.

We are still saving what we can while still attempting to live and enjoy a little of what we earn (I say "we" although I'm the one working while my wife goes to nursing school). I also refied my house in '03 with a 4.875% rate for 15 years. For the last two years, we have put an extra $50 per month towards the premium and this year, we've decided to pay an extra $100 (on a payment of less than $600).

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