Small update

[Christopher Calhoun]

Not that, I have something extremely amazing but a small, compounding victory: I finally have one debt paid off! I don’t deny snowball or anything. Not saying I shouldn’t, I just methodically paid off a little at a time until it was done. Now on to the next one.

I find it interesting though. Ever since I signed on as a member of this site, I’ve changed my mindset toward how I conduct the business of my life. Maybe not wholesale changes but small improvements here and there. For instance, here is where I learned about the book Extreme Ownership by Jocko Willink and Leif Babin. From there, not that I wasn’t already taking ownership of my struggles, but I stopped making excuses and started making changes. Like Jocko says, “if you don’t have discipline, get some.” So through gritting my teeth and knuckling up, I just started making small yet important changes. Those changes started to add up. Bought a heavier kettlebell. Added five more minutes to my workout, then ten, then more meaningful reps. Upped my percentage paid to my 401k for a long-term solution. Started to make even more changes to my diet.

All because this is a place I can “casually” visit and gain a lot of knowledge, but when I come to sit and stay a while, I gained and am gaining...a better mindset. Next item on the list will finally be my first RMR. With cash. Because I refuse to go into more debt. No offense to those that use credit cards, they’re just not for me right now.

As I’ve said many times before: thanks a bunch to Gabe and WarriorTalk. You guys are great. I really appreciate it.


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[Chaos]

Congratulations on the accomplishment! Now on to the next 25 meters...

[Duck52]

Good for you. One step at a time. Liberty is directly tied to financial freedom. Learning to manager money effectively including credit and debt is an important life skill.

[paknheat]

You are doing great , keep up the strong work.


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[Sharkbite]

BRAVO! Getting out of debt is a wonderful thing. Reduction in fixed overhead brings freedom. My co-workers marvel at the fact I have no house or car payments. I use credit cards out of convenience and pay them off completely every month. And, no, the last name is not Rockerfeller or Vanderbilt. This makes other uses of funds more agreeable and fun. Like high quality training and products purchased from Arizona Pirates, for instance....

Keep up the good work. I, too, have noted a positive influence in the way I conduct myself since becoming part of the tribe!

[Froghalla]

Way to go! They say you can learn a lot about someone, by looking at who they associate with. This is as good as it gets, for a group to hang out with. Many analogies illustrate this for sure. The rabbit and the hare, points to a relentless approach of one small step at a time. Another is that nobody can do everything, but everyone can do something. So don't even think about doing everything at once, just a small step at a time. A good reason why crash diets never work long term, but a changed lifestyle does.

Again, way to go!

[Steven Spaugh]

Mr. Loaf,

Congrats! Learning, and applying said learning, is wisdom. Something to consider? Using basic arithmetic, a credit card (or other debt) that charges 19%, costs you more than you will earn in your 401K. Perhaps with an employer match, that would be wrong. An alternative, would be to borrow from the 401K. You make payments, but you are paying yourself the interest. Of course, the money you borrow will not be earning interest. Still, that is usually cheaper than what a credit card is charging you. And, with borrowing, you don't lose the employer match.

Another area to look at, would be your mortgage. If you have equity, borrowing from that to pay off higher interest rates might also be something to consider.

Whether any of this is helpful, or not, keep chipping away. Getting out of debt is something to celebrate. Plan a party for that event.

Cheers!

[ZeroTA]

Congratulations! Sending in that last payment is always a good feeling.



Mr. Loaf,

Another area to look at, would be your mortgage. If you have equity, borrowing from that to pay off higher interest rates might also be something to consider.

Whether any of this is helpful, or not, keep chipping away. Getting out of debt is something to celebrate. Plan a party for that event.

Cheers!

This. I'd take a 5% loan to pay off an 18% loan any day.

The rest is just math. I have my home financed at 3.3%, and truck at 2.9% While I could start throwing money towards my mortgage (and could've paid cash for the truck), it's better off investing that money now at a higher rate and paying low interest on my loans than paying everything off and than having to catch up on investments. Compound interest on the back end pays off in spades.

[Steven Spaugh]

Thanks, for the hat-tip, ZeroTA. It's just basic arithematatics.

Steven