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Over the past 2 weeks I have shared, why I don’t like talking about our debt free journey, as well as a huge mistake we made along the way to being debt free and what we learned from it.
This week I want to tell you what being debt free, for our family, looks like and feels like.
Before we were debt free, I had this idea in my head of what debt free would look like. I had this dream idea that we wouldn’t have to worry about paying the bills anymore. My husband would work a 40 hour work week and we would have money and time to spare. We would live on a small acreage with farm animals and a huge garden to give us fresh food. I could go on but you get the idea I was thinking of a debt free utopia. Not at all realistic.
Now that we are debt free I know that although certain elements of my debt free dreaming were true most were not.
What being & staying debt free really looks like
1. You still discuss money often
My husband and I still talk frequently about how much money is coming in and setting priorities for where it will go.
We still keep a running list of non-monthly expenses that will be coming up as well as non-monthly wants so that when extra money does come in through over time, bonuses, or blog money we use it wisely and not give it to restaurants and Target.
2. You still keep a budget
Our budget is a simple piece of typed paper broken into monthly recurring payments like property taxes, insurance, utilities, and other set payments as well as a set amount of money for food, clothing and other more flexible yet still needed expenses. When we get slack on keeping ourselves accountable to our budget we spend way more than we should and end up not reaching the financial goals we desire to reach.
3. You still have to work hard to pay the bills
My husband is an RN. Shortly before we became 100% debt free he was offered a nursing job in another department of the hospital that was a lot less stress than his current position in the ER at the time. In the switch he lost his evening hour pay and his weekend pay. He also couldn’t work his second job around the new position hours.
The pay off was a hubby who enjoys his work days more and is home with his family more hours per week. The cost was that we broke even financially, meaning the cut in pay equaled the payments we no longer pay. Our budget is essentially just as tight without payments as it was when we had payments.
We chose family time over a bigger pay check and to do that means sacrificing the extra money freedom that I thought all debt free families enjoyed. You know the one you hear all the debt free advisers on the radio talk about “think of all you could do with that money you will no longer be using for payments “. We traded that money for time.
My husband’s basic pay each month pays for our “need budget” basically our food, shelter and transportation bills with little wiggle room for other bills.
Thankfully due to investing some of the inheritances we received into a rental we have that monthly income to pay the kids for chores, give my husband and I some spending money and pay for a few activities for the children each month.
My husband also often receives overtime, and as of late a I receive a small amount of monthly income from my blogging. These streams of income plus bonuses my husband sometimes receives at work pay for our “unexpected emergency needs” and a few things from our “want it” list. (I plan to write more on how we budget for these in a future post)
We feel pretty blessed to meet and sometimes exceed our bills each month. God is faithful to provide for His people.
4. You might not live in a grand home
I have no idea why but for some reason before we were debt free, I always thought that all debt free people lived in great neighborhoods in fancy homes, or could afford all the expenses that come with country living. After reading The Millionaire Next Door I know that isn’t true for all those living debt free lives including ourselves.
We live in a very average home that we bought for just under $10,000 dollars, nope I did not forget a zero we bought the home for ten thousand dollars, then spent 2 years and $30,000 remodeling it from top to bottom by ourselves.
We got a home for under $10,000 because it is in a so so neighborhood. In fact the house next door to us is quite the sight to behold (the picture with this post shows just a bit of what our neighbor’s home looks like, that is the view out my dining room window).
We really don’t mind though as the location is so near to everything it saves us a lot of time commuting giving us more time at home together and we set out on our journey to being debt free to do just that to have more family time.
5. You do worry less but you still worry
Just a few months ago my husband came home and told me his department was being bought out by another company and that he wasn’t sure at that point what was going happen.
Before being debt free with a 3 month emergency fund that type of statement would have sent me into worry mode.
Now with no payments and 3 months worth of income stored away, I just looked at my husband and said “God’s got this, no worries you are a great nurse, we will be okay” and I 100% meant it and slept peacefully that night.
Everything did work out and he is still working.
However, there are still days when I wonder “how are we going to afford the glasses the boys need, or the bill for my daughter’s emergency tooth extraction, or the ingrown toe nail bill”, but God takes care of that too. It never fails that just as the bill comes due, the money becomes available.
6. You can give more (and that is my favorite thing)
My favorite part about being debt free is how much easier it is to give. To help a person out and not wonder “if I give this can I still afford to pay the payment for …… by the 15th of the month when it is due” is a very freeing feeling.
When you are debt free you have more control over your budget and saying where your money can go, and if you wish to give you can.
Yes I know I said above that our budget it still tight, and that is true, but it seems like whenever we give God takes care of it and we once again pay our bills and have a bit left over for wants. We are blessed.
In fact, I set aside a portion of my inheritance specifically for giving. God allowed my husband and I to help out people in a pretty impactful ways with that money and I pray continually that He will use our family give in that way again. To me giving is healing.
If you are debt free what does it look like for you?
Make sure to check out the final installment of my debt free series where I share our families top 10 resources for becoming and staying debt free.
Linked to Thrifty Thursday,