For a couple that recently paid off a giant pile of consumer debt, the months after reaching zero can be a bit of a dangerous time.  The time that we spent in full-on debt reduction mode was filled with sacrifice and boredom, and we both emerged with some serious withdrawal. Our cash flow is in a much better place without all of the payments to our creditors, which means that there should be a buffer to handle some of the things that we have been putting off.

However, we didn’t work this hard for this long just to dig ourselves another hole. While we no longer have to live a life of lacking, we also can’t drop back into the bad habits where we were spending more than we earned.  My wife and I promised each other that we wouldn’t go back into debt, no matter what.  To make sure, there are certain strategies that can be followed to keep us on the right path, and to keep from slipping back into a bad financial situation.  The skills that we learned during our 14 month frugality marathon can continue to work for us.

Don’t Fear the Budget

Budgeting is absolutely essential when you are in debt reduction mode.  In fact, I advocate a system where you track every dollar that you spend and do anything it takes (take on extra work, sell old valuables) to make sure that your budget is happy.  Now that our cash flow situation doesn’t look like a scene from a horror flick, that type of fine-grain analysis is not a requirement.  However, you still need to have a general idea of how much money you are pouring into various spending categories.

In addition to tracking our (mostly) fixed expenses around utilities, our new budget sets basic guidelines around how much we should be spending on variable expenses as well.  We have buckets for everything from home supplies (cleaning products, paper products, etc), to work lunches, to girly beauty supplies.  If the spending for these categories is approaching the budgeted amount, we force ourselves to put off additional purchases until the next month.

To accommodate some larger goals, we recently added some new buckets as well.  We have a bucket for clothing, which accounts for new shoes, replacing worn-out jeans, etc.  We have three kids and they go through clothes pretty quickly at times, so we had to make this bucket large enough to accommodate that.  We also created a few savings buckets to help us reach our long term goals as well.

The Path Less Costly

As our debt-free date approached, many of our readers asked us if we were going to take a huge expensive blowout vacation to celebrate the occasion.  After all, we went without during the entirety of 2012,  and all five us were itching for some some sunshine, waves, and a few days of escape from the grind.  Now that we have reached that goal, we have a number of things in the works.  First and foremost, my extended family is all getting together this summer in southern Texas for a large family reunion.  We had considered flying down there and renting a car for the occasion, but the cost of doing this would be nearly $2000.  Instead, if we drove the 15 hours, we would only pay a fraction of this cost and would be able to potentially stop and visit some other family on the way down.  Although flying would certainly be easier, the practical and frugal route is to drive instead.

In addition, I have long been wanting to take my wife on a romantic vacation just for a night or two somewhere out of town.  This type of trip can certainly be cost prohibitive, so I have been developing a strategy using credit card reward points to help cover the costs (don’t worry, we are paying the card off immediately each time we use it).

Of course, vacations are only a small part of the costs that creep into our lives on a daily basis.  We are using the knowledge and lessons learned from our debt reduction phase to make good choices on a seemingly daily basis.

Keep the Communication Lines Open

I am always grateful for the fact that my wife and I have a completely open marriage.  No, not THAT kind of open marriage–gross.  I am talking about our communication and finances here.  We share our bank accounts, and we share responsibility for keeping the finances in good order.  Each month, we build our budget together, and whenever we are making a major purchase, we both spend time researching the nuts and bolts of everything about that purchase.  When times are tight, we both are willing to tighten our belts a little bit and find ways to scale down our spending.   In addition, when we find ourselves needing to scramble to overcome a shortfall, we are both willing to hustle and find some additional income sources.

Money is the number one thing that couples fight about in this country, and the benefit of open communication is that there are no surprises.  If there is something that either of us wants to spend money on, it is never an issue– we aren’t each other’s babysitters.  In this scenario, we just check the current state of our finances, and make sure there is room to fit that particular purchase in.  If there isn’t, then we may have to wait a paycheck or two to slot it in, which certainly isn’t a big deal.

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After fully understanding the gravity of what it means to be buried underneath a pile of consumer debt, we don’t plan on ever going back.  We want to be the ones who decide how we allocate our cash flow, instead of just pouring it into the coffers of a bunch of creditors.  If you are currently in debt and looking for a way out, don’t panic.   You can do it too.  The articles and stories told here on See Debt Run can help you show the way.  Click here for more information.

The following is an excerpt from the eBook “The A-to-Z of Saving Money”, which features 26 amazing articles by some of the best bloggers in the business. This book is now available for the new amazingly affordable price of $4.99. That’s right, for less than 5 bucks, you will get access to an outstanding eBook that includes previously unread articles written by both Michelle and myself.

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I remember the day that I realized that I needed to make it a bigger priority to teach my kids about money. I was at the local electronics store playing with the iPads with my ten year old son.

“Dad, we should totally get one of these“, my son told me.
“They are fun. But I can’t afford to buy one right now”, I responded.
“That’s okay, dad. You can just put it on your credit card.”
“Uh, but then we would have to pay it back, with some interest. You can’t just put things on a credit card if you cannot afford them.”

My response was met with a completely blank stare. He was completely baffled by the concept. He clearly had no idea what interest was, what credit was, or what it truly meant to swipe that little plastic card. It was clear that my wife and I needed to open up our kids’ tiny little heads, and start pouring in everything that we knew about finances.

My Story

In my childhood, my parents really didn’t put forth much of an effort to teach me about money. I received a small allowance as a teenager, but never had to work very hard for it. My parents lived a fairly frugal lifestyle, and I certainly learned by watching them, but I never developed the skills to manage my own finances. At some point everyone must learn to understand the difference between wants and needs, and to realize that in order to get the good things in life, you need to put in the work and have patience.

When I graduated from college, I found myself a single man with zero responsibilities and a healthy paycheck. But with no idea what to do with this money, I managed to remain living paycheck to paycheck, spending my money mainly on bar tabs and concert tickets.

A few years later, I met my wife and we started a family together. We bought a house and traversed through a cycle of spending and budgeting for years and years until the levee eventually broke and we found ourselves deep in credit card debt, needing to make dramatic changes. We have since righted the ship and vowed to never go down that path again, but it took a serious wake up call to get us there.

I know that our story and our struggles are not unusual in today’s society, but I do want my kids to have a more healthy relationship with money than my own. A few years ago, my wife and I spent a few months reading everything that we could on the topic and decided to make some changes that would help our kids to begin to understand the world of finance.

Model Behavior

The most important thing that you can do to teach your children about finances it to walk the walk yourself. If you are constantly lusting after the newest possessions or dreaming of something bigger and better, than you can be sure that your children will do the same when they are older. If you drag your kids along to endless shopping expeditions to the local shopping mall or mega-store, then by proxy you are teaching them that the proper way for adults to entertain themselves, is to go out and spend money.

Contrarily, if you incorporate healthy money habits into your life, your kids are much more likely to adopt the same behaviors. If you keep your house clutter-free and sell or donate items that you don’t use, it helps to show that there is more to life than material things. If your kids see you comparison shopping, hitting the clearance racks, or clipping coupons, they will start to understand the value in saving a few dollars wherever possible. You might even be able to include your kids in the family budgeting process!

Many adults are afraid to talk about money in front of their kids, but it doesn’t have to be a taboo topic. Money can be a powerful tool to get the things that you want in life, but there is no reason to shroud it in secrecy. I certainly don’t tell my kids everything about our financial situation. They have no idea how much money I make, and their guesses on how much our house cost range from $5000 to $5 million dollars (obviously, the true value is somewhere in the middle). However, I will freely admit to them when times are tight and we won’t be able to go out to eat or go to a movie. In the past few years, I have talked to them about everything from retirement savings to mortgage refinancing. I figure, the more that they are exposed to the concepts that make money work, the more that they will absorb.

Feeling the Savings

Every kid seems to receive money, at least a few times per year. However, what the kids will do when they get this money can vary wildly from child to child. Our oldest son often started begging us the minute that he received a cash gift to take him to the nearest toy store so that he could pick something out. Since it was his money, it felt wrong to tell him that he wasn’t allowed to spend it. After a few days of nagging, we would eventually relent and he would spend every last cent on Pokemon Cards, or another toy that he would love for a few days and then promptly forget about.

His little brother on the other hand, was content to just put every dollar that he received into his wallet, where it would stay untouched. While an instinct to save came naturally to him, it was obviously a much greater struggle for his big brother. We needed to find a way for his brother to learn how beneficial this type of behavior can be.

This is where custodial savings accounts come in. A few times each year, many popular banks offer a special where they give a small cash bonus for opening a savings account. We used this opportunity to open up an account for each of our kids, giving them each a nice little financial bonus to step into savings.

The benefits of having a savings account for the kids are many. First and foremost, the money earns interest while it is sitting in the bank. This news was music to the ears of our middle child, who was thrilled to learn that his money could grow on its own when he saved it. For our older son with the strong urge to spend, the biggest benefit of the savings account was the fact that his cash wasn’t immediately available for impulse spending. It takes 3-5 days to transfer the money from the savings account to a usable format, typically enough for most impulses to die down. This is a similar strategy to the concept of freezing your credit cards in a block of ice that some financial experts advocate.

A year after opening these accounts, it is clear that our oldest is starting to understand the benefit of saving your money instead of spending it immediately. Instead of a drawer full of cheap toys that he forgets that he even bought, he now has a few hundred dollars in the bank. This is enough to purchase something that he can truly enjoy, or to just sit back and watch it grow until he will really need it.

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This is an excerpt of my “Teaching Kids About Money” article from the eBook “The to A-to-Z of Saving Money”. To read the rest of the article, along with 25 other articles from some outstanding financial authors (including one by the heart and soul of See Debt Run, Michelle), you will need to purchase the eBook for only $4.99.  You will receive your copy of the eBook immediately after making your purchase, including the entire article excerpted above.

Thanks to the celebrity-obsessed media, we constantly hear stories of professional athletes who squander their bloated salaries, lottery winners whose winnings are spent before they’re even counted, and celebrity millionaires who can’t even balance a checkbook. We the common folk rarely get to see this up close and personal, and even fewer live it. For Jefferson and myself, we still haven’t tasted riches, but we have successfully made the switch from carrying debt to having a surplus and the question of what in the world to do with it. We recently sold our house and will be moving into a new home later this month. While we won’t be rolling in the dough necessarily, we will have a nice chunk to play with, so to speak. We are so relieved to be free from debt that we are in no way planning to splurge on all new furniture (Our broken couch gets to stay. It’s a conversation piece after all.), but we do have a new understanding of the riches to rags phenomenon. The less-known phenomenon is a little easier to grasp, and it’s called the debt cycle.

Looking back at how much debt we paid off in a little over a year’s time, you can easily see that we were super motivated and frugal as you-know-what the whole time. A lot of what got me through with my sanity intact were my dreams of our better life that was just around the corner. Undoubtedly, a lot of my dreams were of what I was going to buy and where I was going to shop once I was debt-free. Sounds great, right? Wrong. We still have to budget and we definitely can’t get all of the things I’d been dreaming we would. Not now, and maybe not in the next ten years. We are getting a new house, and that is an amazing feat for this recently debt-burdened family. However, that’s probably where our spending will have to cease until later this year. Don’t get me wrong; we are in a great place where we *can* go shopping for clothing if we want and even splurge on an actual bottle of wine instead of the box stuff, but why go crazy now? This is exactly why people who suddenly fall into money have a hard time living within their means, and precisely why people who have climbed out of debt find it so easy to slip back down the hillside. If I bought every single item I’d been daydreaming about since we started this process, I might find myself right back where we started in no time flat. Trust; it’s not hard to rack up debt! In fact, it’s really fun to spend wads of dough you don’t really have! However, it’s just not worth it. Budget will always be a part of our vocabulary, even if we ever found ourselves in the upper middle, or even upper upper class. I’ve grown so much in the last several months and know now that this is just reality for most people. Yes, even the uber riche Beyonce and Jay-Z have to say “no” to themselves occasionally.

If you are still wearing the shackles of credit card debt and looking forward to the commencement of your debtdom like it is the end of a prison sentence, stop. My husband and I feel much lighter now knowing that our future is more secure and that our children will be able to go to college and get a car even, but getting out of debt in no way means that we can go back to spending like we once did. That’s exactly what got us into the mess in the first place. We *will* be taking a vacation this year, though! Maybe we’ll see Beyonce and Jay-Z on their yacht. Wave back if you see us, guys! We’ll be the family of 5 stuffed into a small pontoon boat. Livin the life!

When I first started working for my current company, the first few weeks were filled with frustration.  It took forever to get a laptop, and there was much confusion about what access I needed, and what forms needed to be filled out in order to get that access.  When all of that was finally sorted, I began to ask my teammates about documentation that I could go through to get up to speed on the team’s processes.  I quickly realized that the tasks that my team was responsible for were being done by folks who had been doing them for years, and the only documented list of what we needed to do, and how we needed to do it– was inside of their heads.

Upon noticing this, I realized that there was an easy way to make this learning curve a little bit less severe for the next person to walk this path.  I documented all of the processes required to get a new employee all of the access and supplies that they needed, our team’s very first “New Employee On-boarding Guide.”  From there, I began to document my team’s processes, one by one.  Through this process, I was able to contribute to my team from the first day, and to create something that could be used for years to come.

Documenting History

This wasn’t the first time that I had used documentation as an easy way to impress at a job.  It started years ago, when I realized that I was having trouble remembering the exact steps that were needed to complete some routine tasks.  My ability to write has always been better than my ability to remember, so I started writing down these steps and saving them in a text file, where I could pull them up as needed.  As a bonus, the act of writing things down was a very effective memory tool, which meant that I often didn’t even need to reference the documents that I had just created.

At the same time, I was quickly becoming the go-to guy on my team for solving problems.  When my teammates would come to me with a question, I had often created a document about that exact scenario. Instead of just solving the problem for my teammate, I could just send them the document and let them solve the problem themselves (and learn in the process.)  Soon, my troubleshooting documents were being cycled around the team (and others), and my reputation within the organization began to grow.

How to Document

One reality about documentation is that sometimes it needs to be modified; processes can change, software can be upgraded or replaced, and roles and responsibilities can shift.  Because of this, it is wise to serve up documentation via a web repository, instead of emailing documents around.  When you share a document with your team, encourage them to bookmark the link to the document, as opposed to saving a copy of it locally.  That way, they will always get the newest version.  Most methods for saving online documentation are also indexed and searchable, meaning that your teammates can always search to see if a document has been created which answers their question. If not, perhaps they can create one!

When it comes to online documentation, there are a variety of software choices out there.  The most common choice in the current corporate world is Microsoft Sharepoint, which offers a full suite of web pages, online spreadsheets, and so much more.  The best part about Sharepoint is that it is fully access controlled, meaning you can choose who you share each document with.  Some documentation may be fit for public consumption, while others (like a contact list, perhaps) may be appropriate for your team only.  I work in the IT realm, so in the absence of Sharepoint, we can typically just install an Apache web server and/or some Wiki software to host our online documentation.  If this isn’t an option for you, there are always sites like 123 Reg that offer online web hosting for cheap, and even offer tools to help construct your documentation web page.

Leaving a Legacy

Creating documentation is neither fun nor exciting, and from a writing perspective– it really doesn’t get much drier.  But I can promise you that it is always time well spent.  I have found that being willing to create documentation for a team not only impresses management and my teammates from the get-go, but it provides a way for me to leave a legacy when I leave the team and move on.

One of my goals in my career has always been to leave each team that I work on a little bit better off for having me on the team.  Creating documentation allows for an easy method for me to accomplish this goal.  To this day, my first team at my current company still uses dozens of documents that I created when I was on the team.  It makes me happy to know that a little bit of work on my end has continued to help others for years down the road.

It wasn’t all that long ago that Michelle and I had over twenty thousand dollars in credit card debt.  During the years that we lived in that reality, I did my best to pretend like the debt wasn’t there and just to live my life.  I told myself all kinds of things during this time to make myself feel better about my financial situation:

• “Everyone has credit card debt, it is totally normal”
• “We’ll get out of debt one day when we stumble across a large pile of money”
• “Unexpected expenses happen. Debt is a inevitable when you live paycheck to paycheck”

Of course,  I was kidding myself and I knew it.  The debt was real and was weighing my family down like a millstone around our necks.  We couldn’t afford to take vacations.  We couldn’t afford to fix the issues in our home.  We couldn’t afford to save for retirement or our kids’ future colleges.  Every time I received a paycheck from my employer, it felt like the entire check was already spoken for- just to pay off the minimums to our  creditors.  We were broke, and going nowhere fast.

Taking the First Step

Since we started this blog and went public with our story, I have had a number of friends ask me how to take the first step.  Truth be told, stories like ours are quite common and there are many people who are stuck in the cycle.  When asked, my best advice to my friends is to start by being honest.  If you want to get rid of your debt now and forever, you are going to have to stop pretending like it isn’t there.  Be honest with yourself by admitting that you have a problem that is making your life far more difficult than it needs to be.  Accept the fact that life is going to be a little bit harder during the time that you are in debt-reduction mode.

In addition, don’t be afraid to share your situation with friends and family.  For Michelle and I, accountability was such a huge part of our success.  We not only felt accountable to our readers here at See Debt Run, but we felt accountable to our friends and family who we had brought into the story.  When we told people what we were trying to do and why, we received nothing but support and love.  Nobody ever judged us or made us feel bad for the situation that we had created, but instead our support system became cheerleaders for us to work towards our goals.

Walking the Walk

It all starts with honesty, but after that- you will need to make some changes.  Your previous mindset towards money got you in this predicament to begin with, and it will have to change if you are planning on having success.

You will need to start by building an emergency fund, to cover you when unexpected expenses arise.  Without an emergency fund, you will find yourself taking two steps forward, and immediately three steps back.

You will have to create a true budget that includes everything from morning coffee to car payments.  By listing all of your expenses, one by one, you will likely see that you are living beyond your means and need to find some places to scale back.  We were able to save money on everything from groceries, to our utility bills, to family activities. Every time you save some money on your monthly expenses, the extra money needs to go towards paying off credit card debt.

Finally, you will need to find a way to bring more income into your bottom line.  You can find part time work, or sell things that you no longer use on eBay.  You can fill out surveys or even try some freelance writing.  Whatever money you earn, should immediately go towards helping pay your debt down,

The Long Road Ahead

It took Michelle and I fourteen months of buckled-down laser-focused debt reduction to get rid of over twenty thousand dollars of consumer debt.  Once you start this journey, it may take you shorter, but it may take much longer.  As we documented in the archives here at See Debt Run, the time and effort put towards our goals was challenging in many ways.  As a parent, it isn’t easy to tell your kids that we aren’t going on a vacation or purchasing any new toys until we are out of debt.  When you aren’t letting yourself spend any money, you spend far more evenings at home than you would like, and this can put a strain on a family.

We were able to climb out of our hole with lots of patience and persistence.  We didn’t take out any loans and we didn’t consolidate any of our debts.  Our goal was to change our lifestyle and our relationship with money, and that change had to permeate through our entire lives.  It worked for us, but others may find themselves needing help with debt, and there is nothing wrong with that.  The most important thing is making the decision to change your direction today, and starting to work towards that goal.   And yes, freedom from debt *is* everything that it is cracked up to be.

The following is a guest post

Bills are unfortunately a way of life. With the ever-increasing cost of living, it may seem near impossible to cut costs. Do you really need that high end latte? Making purchases less habitual and more of an every-now-and-again treat will certainly help with budgeting restrictions. I, for one, am a lover of coffee. Sweetened iced coffee, to be exact. Chocolate drizzle, whipped cream, and maybe even some tasty sprinkles to top everything off. These drinks, however delicious, could be cause for financial ruin. One latte a day at five bucks a pop would total over a whopping $1800 over the course of a year! Say to yourself, “Is it really worth it?”

We live in a time when scrimping for change is necessary to control our finances. Every penny counts. Now, I wouldn’t go so far as to buy 2-ply toilet paper and separate the layers to create two distinct 1-ply roll. That’s going a little overboard. However, I do brew my own coffee at home, refrigerate it and make my iced latte before heading to the office in the morning. It gives me just as much energy as the brew from the coffeehouse, and can be just as tempting with the right toppings. I reserve the high-end stuff for the occasional pick-me-up, or when I’m running late.

But saving money isn’t just about restricting expensive purchases. In fact, there are little things you can do in your home throughout the year to cut back on costs. For starters, the energy efficiency in your home determines how much you pay in utility costs. According to construction and energy companies, a house’s insulation is the main cause for absorbent power bills. Fiberglass insulation is a must in any home, but the amount you need varies by state and local municipalities. The factors that determine the amount needed is based on the climate the home is in. For example, more insulation is needed where average temperatures are extreme; in more moderate climates, less is more.

Along with the fuzzy stuff in the attic, the right windows will not only add aesthetics to your home, but they also insulate the insides of the house from the outside elements. Security and peace of mind for your family and your wallet are the end result if you decide to have your windows repaired or replaced. Simply re-caulking old or loose window panes may do the trick, but you should really take a longer look to see if that window is worth salvaging (or better yet, have a pro assess it). Nowadays, vinyl replacement windows offer an elegant look, higher energy efficiency, and relatively low financial burden. Experts estimate a house with all-new windows saves the homeowner up to 31% in utility costs. In fact, the energy savings are so significant, the government is offering tax credits for installing these and other energy saving devices.

Over the course of the first year after replacement, the savings in your energy bill should come close to deferring the price you paid for the new windows. You see, it pays for itself, and it gives your home more value. The curb appeal alone will have prospective buyers banging down your door to have a look around the inside of your home.

A simple way to lower power bill payments is to review your consumption of anything plugged into the wall. Some suggest unplugging your charger when you have no device connected. Sure, it may cut back on costs, but probably in tiny amounts. Still, over time, those pennies add up. Remembering to keep my charger disconnected from the outlet when I’m not using it is not my priority. I’d rather look into larger electronics that are always on the ready.

In our home, the television seems to always be on. It’s an older model flat panel unit. Whether anyone was actually in the room watching a show was hit or miss. Someone would turn the TV on for “background noise”. No one likes a quiet house. But it burns warm. I found that fact disconcerting, as the TV is rated by Energy Star. Still, even an efficient appliance uses electricity. I compromised with my family to leave the television off if no one was actually watching it, but using the radio as background noise is totally acceptable. As a result, our power bill has dipped a little.

One more bit of sound advice when controlling the costs of things may actually have you scratching your head. It may appear you’re locked in with whichever energy company is in your area. Truth is, this would cause a monopoly. You do have other choices when it comes to energy providers; you just need to find them. Texaselectricityproviders.com provides Texans with comparison rates on local utility companies. The site is designed to help you determine which business will help you best budget for your household. You can also find detailed tips to help make your home more energy efficient.

Doing without gourmet caffeine, efficiently upgrading your home, and being mindful of energy consumption will leave you with more funds at the end of the month. Feel free to treat yourself to that iced mocha-loco-frappe when you see what these steps can do to your bank account. Stow away the extra cash and save for retirement or pay down your debts. Thinking creatively about saving on bills will help you cut costs and up your appreciation for home ownership.

Hi, friends. I’m Kathleen, and my corner of the internet is FrugalPortland.com. Come visit me, it’s fun over there!

So, you’ve decided to pull your head out of the sand, and take a long, hard look at your finances. Somehow, you’ve believed in the past that ignorance is bliss, and you were mistaken.

You’re in debt, and it sucks.

So, you decide to do something about it. Maybe, like Jeff and Michelle, you sit down to have a real talk about money. You bring the kids around to talk about personal responsibility (which can mean a hiatus on vacations, for example) and you hunker down and focus.

Everything you do centers around getting out of the mess you created. You find a $5 bill on the ground? If you’re anything like me, you deposit that $5 into your account and transfer $5 to your debt-of-highest-pain. Birthday money, bonuses, every extra dollar gets you closer to the finish line.

It’s a little like extreme weight loss. “The Biggest Loser: Debt Edition,” let’s say. You’ve made it through! There were temptations (for me, invitations to dinner were the same as the plates piled high with donuts and cookies for the folks on that show) and it was hard, but you won. You scrapped and saved and canceled cable, stopped getting your hair cut, and you made it.

Life After Debt

Continuing the “Biggest Loser” theme, let’s talk about what we do now. We had a tough goal, or a series of tough goals. Pay off credit cards. Pay off student loans. Head down, focused. We lost all the weight. We got out of debt.

And now we get back into real life.

Where temptations abound. We can’t stop at one piece of pizza, so we avoid pizza altogether, or we eat a whole pizza in one sitting. We backslide. Or we get so darn scared of backsliding that we do nothing.

I’ve been out of credit card debt for over a year. I know how to use my credit cards to get the points or the miles or whatever, and pay my balance in full every month. I can honestly say that I’m in recovery and have changed my habits such that I’m not ever spending more than I’m earning.

Still, the Transition is Rough

I’d been busily eliminating debt after debt, like a sharpshooter in an old Western. Credit cards: BAM! Student loans? What student loans? BAM! Then I focused on my last remaining debt: the car loan.

I successfully navigated my way down to owing just under $1500 on my car. The end is in sight! WAHOO! Never mind what I’d do once I shot that down, too. Wait for my car to die?

New home, new fireplace

Luckily, lady destiny had other plans. I got a note from a realtor letting me know that my dream home was now in my price range. Within a matter of weeks, my offer had been accepted. Now I’m miles and miles from the finish line. What was once so close is now so far away.

The New Normal

The hardest part about this whole process is coming to terms with being “the kind of person” who has debt. What was I going to do? Wait until I’d saved up enough to buy something in cash? Or worse, wait for “some man” to come along so that I could afford to buy a house?

I’m adjusting to the new normal. The new normal includes a mortgage. And yes, I am one of those people who have debt. But I’m coming to terms with it. I don’t think it’s quite the same as a person who pays off their car loan only to finance a new car.

It’s just that I had my head down so long that I’m a little afraid to come up for air.

I think it’s a lack of trust on my part. The voice in my head asks, “have you really learned all your lessons?”

The Moral of This Story

Chasing debt is a strategy. Not a goal. Jeff and Michelle have seen their debt run. But their story is not over, not by a long shot. They were able to buy a forever home because they kept their heads down and paid a huge amount of debt in a short amount of time. Debt does not define you, friends. You’ll be the same person once you’re on the other side.

You’ll just get to make more rational decisions once you define your new normal. It’s okay to be scared. But don’t let the fear of sliding back into your old habits keep you from making smart financial decisions today.

“No showings until Saturday,” the agent’s notes clearly stated. It was Thursday night and my husband and younger son were at a hockey game together. He was a top reader in his third grade class and had won a ticket to that night’s game! I’m so glad my husband is the kind of father that enjoys spending time with our children and that he was able to make it to the game that night. Our team won and my two guys stayed out til after 10, saying “whatevs” to the fact that it was a school night. Every once in a while, it’s important to show your kids that staying up late and being tired the next day can totally be worth it.

After putting a sugar-buzzed boy to bed, I excitedly showed Jeff a house I had just found online. “While you were out, I found our next home.”

“Oh really?”

“Yes, it’s perfect.”

“How much?”

“It’s well within our budget!”

He cocked his head at me. Our incompatible perceptions of ‘within budget’ had recently begun to drift apart in the past several weeks of looking at houses; mine ever increasing with each house I saw and subsequently didn’t love, his ever-remaining, steady like a drum beat, annoyingly loyal to his ideals and practicality.

Psshhh. Practicality shmacticality. Mama wants a walk-in closet!

Back to reality. I prodded my husband to look at the “amazing” house. As if I had discovered it, or built it, or designed it myself, I watched with pride as his pupils dilated and his lips curled up. “Wow, that meets a lot of our criteria.”

Way to go, Mr. Logical. Way to suck out every bit of emotion I feel for this house by dismissing it as just another money-sucking keeper of checks on a list. This one meets a lot of them, great, but for once I just wanted my husband to giggle and squeal, shoving aside any inkling of right-brained, level-headed, number-crunching scalability and just…fall in love.

“It does! Isn’t the kitchen beautiful?” I sang in response.

“What’s the asking price?”

Here we go again, wanting to know the asking price. I should have known. Of course I have to exit out of the beautiful pictures to even find such an animal. Who CARES what it costs?! It’s PERFECT! I secretly roll my eyes as I obligingly back out to the numeric (boring) part of the listing.

“Wow. That’s not bad at all!” I imagine I hear a teensy bit of raw emotion from my ever pragmatic groom.

For the first time, I look at the price and am equally wowed. “So,what do you think we should offer?”

Jefferson laughed at me. This wasn’t met with surprise, as he often laughs at my illogical spontaneity. “Baby, we haven’t even seen the house yet in person. Maybe we can see it this weekend.”
“JEFF! We have to see it this weekend! This is our house!”

The next morning, I called my agent. Unfortunately, the beginning showing date was firm. They wouldn’t have opened their home for the president that night, let alone little ol’ me. We would have to wait until Saturday, like every other house hunter that had already fallen head over heels. As we already had appointments to view houses that Friday evening, we decided we should continue as planned. Earlier that day, my agent had warned us that listing agents often set home showings to begin on a certain day when they know a home is a gem. Having showings begin on a weekend like that ensures that it will be full all day, and it is likely that multiple buyers will be at the house at the same time. In a market of low inventory, low interest rates, and an economy that seems to be perking up a bit, it can lead to an agent’s wet dream; a full-on bidding war. This warning didn’t deter me. Make fun of me all you want, but I somehow knew this was going to be our house. We just had to live through another day or two of tortuous waiting and second-guessing. The next day was Saturday and we made an early appointment for that morning since my son had a soccer game at 10:30. When we arrived, another couple was inside planning out where to place their furniture and talking openly about what size moving van they would need. As I walked by the female house hunter, we exchanged smiles, both of us thinking we had this house in the bag and then realizing quickly that there was surely going to be a heartache tonight. We just didn’t know whose. Just then, the listing agent showed up and started chatting with our agent.

“They’ve been here all morning” and “I’m pretty sure they’re going to make an offer” were among the tidbits I caught. I even heard her giving detailed directions to another property just down the road that she thought we might like! The nerve! The house was mine! I looked around, trying to keep my poker face in check, but every detail made me gush. Every square foot made me giddy. After our rushed tour (had to get to a soccer game!), we told our agent we had to get going, leaving the other couple alone to further discuss where they’d put their sofa and loveseat set. As we got further out of earshot, I winked at my agent. He had told me the night before to do so if I loved the house and wanted to make an offer. His eyes widened as he winked back and said “Yeah, you’re right…it’s too bad about that yard. I’ll be over around 12 so we can discuss that other property you wanted.” Love that guy!

If You Like It Then You Shoulda Put A Note On It

As I waited for our realtors (a husband and wife team) to show up with our contract ready to go, I whipped up a handwritten note to the sellers. I told them that I could tell their home had a lot of love. I told them I thought the neighborhood was adorable and that I couldn’t wait to meet everyone. I mentioned that my children were so excited as well. My agent advised against making an offer above listing price, but said she’d deliver the offer expressing that we loved the house and could possibly be swayed to increase if needed. We leaned on her expertise for this situation, instead just making it for listing price exactly but still attaching our love note. Then…we waited.

We gave them until noon the next day, remembering their first open house was scheduled from 1-4. Around 8pm that same night however, we got the call.

“Congratulations” isn’t a grand enough word for such a time when you make one of the biggest, most important purchases of your life.

I squealed and giggled. “Really?”

“Yep, they accepted your offer exactly as written, no counter.” More squealing. My agent let me know that they had received several offers that day, but that they picked mine after reading my note. It was such a great feeling. Someone picked me! Someone felt good about me living in the house that they so obviously loved and lived in for years based on a note I had written.

Later that night, I received a text from my agent asking the ages of my children. Apparently, the sellers are putting together a book of nearby amenities and a map of the children in the neighborhood that our children can befriend. My heart swelled as I took in this kindness of a stranger. A stranger who designed and was now handing over the keys to my dream house, and with it–relinquishing the keys to my new life.

I couldn’t have been happier.

The following is a guest post

Generally, last minute deals are either offered directly from the car rental companies, or can be found from online deal websites such as Expedia or Priceline. These significant discounts—usually offered online only—tend to pop up after car rental companies experience cancellations, as they can still cover operating costs, as opposed to taking a full loss.

If that little insider’s tidbit is something you weren’t privy to, here are a few other tips, tricks, and advice that you might find financially enlightening. You can find out more about car hire Melbourne at DriveNow.

1.       Wait to Kick Off Your Search… but Be Careful!

If you want to wait and try to take advantage of last minute deals, it’s a good idea to kick off your search about two weeks before your trip. This will give you a week to do your research as most deals come into effect a week prior to the rental date.

Remember: Timing is everything! If you’re travelling during a peak season for your desired destination, you do take the risk that the car rental you need won’t be available, or will be highly expensive. This is especially likely if your booking is for the weekend, or for a holiday; book during the week where possible.

2.       All the Best Deals Are Found Online

 There are three ways to find great last-minute car rental deals online:

• Check out deals offered directly from the car rental agency websites. For example, National has their own Last Minute Specials section that is updated every Tuesday, usually a week to two weeks in advance. You can check out this section under their “SPECIALS” tab, or you can use coupon #6600435 while making your reservation.
• Diligently search through the various online deal websites: Expedia, Priceline, and Hotwire are a few for you to start with. These websites are ideal for comparison shopping, as they’ll layout all of the deals from all of the different agencies.
• Use Google! Search for eCoupons for various agencies, or for those online deal websites and you can sometimes save an additional 25%!

3.       When Possible… Go for an Economy Car

Economy cars are small and not always ideal for most people’s travel plans; due to that, these are usually the cars left available when you get down to the wire. If an economy car works for your travel plans, you’re likely to find bigger discounts.

4.       Weigh “Non-Refundable” Against What the Deal Is

Here is where it’s important to do the math. If there’s any chance that your trip could be cancelled, you should make a reservation with an agency that allows for refunds.

Furthermore, going with an agency that doesn’t have “non-refundable” in the fine print can save you even more money, as you can continually check back for better deals and exchange your deal for a new, cheaper, one.

In fact, you might want to consider booking through the online deal company Autoslash, as they not only offer comparative shopping, but will also search for better deals after your reservation and auto-book you for them!

If you are thinking of selling your home and purchasing a different one,  you may be wondering how the timing of everything will come together.  You have to find a house,  secure funding, make an offer, negotiate a purchase price, agree to a closing date,  provide earnest money, complete inspections, and that is only half the picture!  For most folks, you will also have a house to sell, and none of that fun can even begin until you have a firm contract on your own property.

The simple reality is that many folks just can’t qualify for two mortgages.  This will keep you from truly being able to go house shopping, until your house is sold.  In order to purchase a home and take on a new mortgage, you are going to have to close out your old one first.  Additionally, you will probably want to use any profits you might make from the sale of that first home, as a down payment on your new house.

But wait, stop the car.  The timing of all of this sounds very confusing.  Once you do find a buyer and sell your house, the agreement will come with a closing date attached.  Frighteningly, this means that you must have a house selected, take care of the items above, and still give the home sellers the standard 30 days notice- all in a potentially very small window of time.

Imagine a scenario where the selling process is thoroughly disruptive and exhausting, and then finally– after some of the longest weeks in memory– you get an offer, negotiate a price, and go under contract.  Wheeew. Relief.  Hugs.  Drinks.   And then, you are immediately launched into a different kind of stress, where you have to quickly make a decision on what will be one the largest purchases of your entire life.

If you haven’t figured it out,  this is indeed the situation where Michelle and I currently sit.  Yes, we sold our house, which is a wonderful feeling.  Statistics say that the average time  on market for a home in our zip code is 177 days, and we feel very fortunate because we sold our home in only 45.  In spite of that amazing news, the situation is now quite tense, because of the timing situation.  We are scheduled to close at the end of May, and have no idea where we are going to live after that.

Ever since we made the decision to sell our home, we have been taking a close look at virtually every house that comes up for sale in the area that could potentially fit our needs.  Sites like Zillow and Trulia make this easy, and you can find a good reason not to buy almost every house that comes available from the comfort of your own home.  During the time that our house was listed for sale, there have been 3 or 4 houses that came available that seemed absolutely perfect. Michelle and I both probably looked at pictures of these houses dozens of times each, even going so far as to plan out what furniture would work well in each room.  Of course, all of these houses sold before our home did, meaning that we weren’t able to make an offer on any of them.

As of today, I can say that there doesn’t seem to be a single house available that we are ready to buy.  There are a few that we will probably take a look at this upcoming weekend, but all of them seem to have issues that may end up holding us back.  We are hopeful that our dream home will pop up out of nowhere in the next few days, as they truly do seem to just appear.  In reality, we have about 10 days to get everything sorted out.  If we can’t find our home before then, we will likely have to find an apartment for a month or two to get us through the summer months.  This is certainly not our preferred route, because it will necessitate a double-move.

In the meantime, we are relieved and happy to have found a buyer for our house, and we are excited to begin the next phase of our life.  Until our house sells, we are stuck in the middle, but our glass is certainly half full.