We’re Debt Free!!!

After 16 months of being gazelle intense about our finances, we are debt free!  In total we paid off:

  • $49,276 in Student Loan debt (Jeff’s Master’s degree)
In addition, there were several unexpected expenses that we cash flowed during that time:
  • $12,000 in medical expenses
  • $4,344 in replacement car
Here is a graphical summary of all of the craziness we have been through since we got married 10 years ago:

Honestly, when we started Dave Ramsey’s Total Money Makeover, we thought it would take about 3 years.  But after we started to see the loan amount go down, we got more focused and were able to knock it out much more quickly.  It was hard putting any extra money from bonuses, tax returns, etc., toward the loan, but those kind of things helped to take larger chunks out of what we owed.

Now that we are finished with Baby Step #2 … (I think it is funny that Dave calls paying off all of your debt a baby step… I mean really, it seems like it has to be the hardest one for most folks).  Anyway, now on to Baby Step #3 of saving a 3-6 month emergency fund.  We think we can do that in about 5 months total.  Honestly, I think that step is almost more exciting, because it puts you on very secure financial ground.

After saving the 3-6 month emergency fund, we should be in good position to start paying off the house.  Worst case scenario, we should have it paid off in 11 years.  But I am hoping for 7.

Oh, and guess what!?  We did book that Hawaii vacation yesterday to celebrate our 10-year anniversary.  We are so glad that we cancelled the original booking to pay the debt off faster.  The flight ticket prices didn’t change much at all.  They only went up by 66 bucks.  And, it was better too, since we got to pick our seats which are exit row seats all the way there and back.  We are super excited about it!  😀