Debt

There are not many people I know who like to talk about money. It’s a topic that makes them feel uncomfortable. Unless it’s about a bargain, or how much has been saved. A bit of a personal topic, but an important one.

This Proverb rings so true. We have a mortgage that needs to be paid, and it accounts for a large part of our expenses. The amount that our home in reality will cost us at the end of the 30 year loan is far more that what it cost when we purchased and took out the loan, due to interest. We are a slave to the lender.

At the end of 2017, I listened to a podcast by Kathi Lipp about creating a personal manifesto. As always, I customised it to our family needs, which is that my husband and I are in this together 100% and so for us, it would be a family manifesto. One of the things on there is that “we only buy what we can afford and can pay for right now”. I also started researching how else we could save to pay off the debt we owe.

You may have heard of The Barefoot Investor, then again, you may not have. This is not an affiliate link, it’s only there in case you would like to know more. Anyway, it is one of the most popular books around in Australia at the moment, dealing with money management. The language can be off-putting at times, as can the asides, but I think the concepts are solid. It is however Australia related in terms of some of the concepts discussed. If you sign up to the newsletter you can get the first 50 pages free to read. As is every case, this information may not suit your personal circumstances, so take some care.

We have implemented some of the suggestions in the book in terms of setting up different accounts and then building up savings. But not in the way that has been suggested because I couldn’t find a savings account that paid higher interest than our home loan charged.

We have decided to overhaul our financial situation in an effort to become debt free, in an attempt to get closer to our dream. We put a number on it. This means living on 20% less than we are used to – it all goes to savings and eventually the mortgage. I wasn’t sure we could do it!

At first I didn’t know how we could afford to live on less, but so far, God has made that possible. We have come a long way from where we started, where the perception of who we are was important to now being content with what we have. We buy second-hand as much as we can (sometimes it’s better not to), we meal plan, and check any desires against our manifesto.

So we have stepped out in faith, a baby step, but a step. “The Lord is my helper; I will not fear.”

We are on our way!

8 thoughts on “Debt

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