Part 3 of a 3-Part Series

My husband and I decided to pay off all of our debt, including our mortgage, as quickly as possible.

We understood it was a huge endeavor and estimated that it would take us about eight years to do, but we knew the feelings of freedom and achievement once we met our goal would be well worth the dedication, sacrifice, and hard work in the end.

As the saying goes, “How do you eat an elephant? One bite at a time.”

We still have a long way to go before we are completely debt free, but in this three-part series, I am taking you through exactly what we did to pay off over $65,000 from August 2013 through June 2014.

Click here for Part 1 and Part 2 if you missed them.

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Hawaii, Ireland, and $49,000 of debt gone!

In this interview, Celeste and Rita share how they’ve balanced saving money with what’s truly important to them, the sacrifices they’ve made for their goal, and the unexpected result from their debt free journey.

Here is the interview:

ME:  Thank you for sharing your story with Our Debt Free Family! Please tell us a little about yourselves so our readers can get to know you.

We are Celeste and Rita, and we are both 44 years old. We’ve been together for five years and married for two, and we live in Portland, Oregon.

Rita works in law enforcement. She enjoys listening to podcasts and the radio show from her hometown, running, and playing with our dogs.

Celeste works as a nurse part-time, volunteers, and enjoys making things with her hands: knitting, sewing, and crafting.

We have two dogs and two cats. We both love to travel, IPA craft beers, updating our 1957 home, and ’80’s music.

ME: Welcome! What made you decide to focus on becoming debt free?

Rita will be able to retire in about 11 years so the idea of enjoying our retirement without the weight of debt is a no-brainer.

ME: How much debt have you paid off, and how long has it taken you?

With your guidance, we’ve paid off $49,048.83 in the last 18 months. Woohoo!! We now have $279,604.76 left including our mortgage.

ME: Congratulations!! What kind of debt was it?

We have paid off three credit cards, a motorcycle, two cars, and a good portion of student loans, along with making our regular monthly payments.

ME: You’ve crossed off a lot of items from your debt snowball! What did you do for work while you’ve been paying off your debt?

We both worked our jobs mentioned earlier. About ten months ago, Celeste decreased her work hours from about 35/week to about 10/week, which also decreased our income.

ME: What has your annual income been during this time?

About $65,800.00, which includes both of our incomes and rental income from the attached apartment we rent out.

ME: Did you do anything to increase your income?

Rita volunteered for two work trips where she was able to earn overtime.

ME: What sacrifices did you make to reach your goal?

Rita going on those trips was a huge sacrifice for us. She was gone for 30 to 77 days. It’s tough to be apart and away from home for so long.

We also decided to downsize from two cars to one. Now we only pay insurance/maintenance/gas for one car and one motorcycle. It has forced us to think ahead and to limit those trips “for just one thing.” We also use public transportation and ride bikes or walk whenever we can.

ME: What are your best money-saving tips?

Perhaps the most important thing we do is buy with intention. We ask ourselves, “Do we really need this new item? Can we borrow or share an item? Can we purchase the item second hand?”

We would rather spend our money on experiences than “stuff.”

With Celeste not working as much, she’s explored DIY methods to save money and decrease toxins/plastics in our home.

She makes our laundry soap, hand soap, lotion, almond butter, shampoo, and toothpaste. She’s also made produce bags from old t-shirts and reusable hankies from an old sheet.

We buy most of our dry foods (i.e. spices, rice, beans, flour) in bulk to decrease packaging and save money.

Because we produce less trash we’re able to use “on-call” trash pick up about every 6 weeks.

We wash our clothes in cold water and use the clothesline whenever possible. We both take lunch to work, and Rita has her coffeemaker at work to cut down on runs to the coffee shops.

ME: You’ve done a lot to cut your spending! What advice would you give to someone considering starting their own debt free journey?

We haven’t stopped doing the things we enjoy in order to pay off our debt faster. Instead, we just do them less often to keep us sane. Everyone is different and has different ideas of happiness. This works best for us.

Also, don’t beat yourself up for slipping sometimes. Most people haven’t been taught about money management. It takes time to learn and of course, practice and patience. Taking little steps can make a difference.

ME: That is great advice! Have you made any big purchases with cash? If so, how long did it take you to save up?

Rita is from Ireland and goes back every year to visit family. In 2015, we both visited for about $5,000. We also took a vacation to Hawaii and spent about $3,000 on the trip.

We started saving for the trips about a year in advance, saving $100 of each paycheck ($400/month). We also used some money from Rita’s work trips for these vacations.

We bought a much-needed new mattress and box spring set for $1,700. We used money from Rita’s work trip and bought when it was on sale. Celeste made a cool headboard for $200 to go with it. The fabric for the headboard was discounted with coupons.

We also put in a small deck with used composite material for less than $200. The composite decking itself would have been $800 if we had bought it new!

ME: You’ve accomplished a lot in the last 18 months! What has been the best part about your debt free journey?

Learning about healthy financial habits has been really liberating!

An unexpected benefit is how it’s enhanced our relationship.

Combining our bank accounts and debt was really hard for Celeste due to her large amount of student loans. She didn’t think Rita should pay for the debt Celeste incurred before they were married.

It’s been a process, but through it we’ve become more of a TEAM. We’ve opened up our communication, and it’s brought us closer.

We are on track with each other and our goals are now in sync.

ME: Thank YOU, Celeste and Rita, for sharing your story with us!

Now I’d love to hear about you!

What parts of Celeste and Rita’s story did you find most inspiring? Which tips can you apply to help you reach your financial goals faster? Share in the comments below.

So, you’re ready to buy a home but don’t know where to start when it comes to saving. You probably have bills now (rent, utilties, car payment, etc.) and now you’re trying to save thousands of dollars for a down payment on a home. How do you do it?

How to Save for a Home

There is no “fast” way to save for a home. When it comes to saving, finding focus and consistency lead to success. So, how do you go about successfully saving for a house? Here’s where you can start:

• Get an idea of the buyer-seller market in your area. Of course, everyone has their idea of a dream home but buying a lower cost home may help you in the long run. After years of adding to the home and any renovations you may have made, your equity will go up and you’ll be more likely to be able to afford a higher priced home in the future.
• Automate your savings. Most banks have an option to automatically deposit cash into your savings account. For instance, if you get paid on the 15th each month and want to put $200 of each check into savings you can set it up to transfer on the 16th. Doing this ensures that you won’t forget to save (or find a reason not to).
• Save every extra penny you can. In addition to automated savings, try to save 100% of all windfalls. This includes bonuses, gift money, and prizes. You may also consider participating in a money challenge to encourage healthy saving habits.
• Don’t lose focus. Saving for a home can be consuming. Don’t lose focus on the other important things in life. For instance, if you are saving for a home it would be counterproductive to skip paying your rent. Although you don’t want to be renting any longer, you still need a place to live. Saving for your home is important but so is maintaining good personal finance practices.
• Budget. Budget. Budget. Create a budget and stick to it. Budgeting will help you realize where you can cut expenses and where you can’t. This will help add to the savings for your home.
• Generate more income. If you want to save more money fast, you may want to consider looking for ways to make more money.

10 Ways to Speed Up Saving for a Home

1. Ask for a raise. If you’ve been at your job for a while, ask for a raise. Negotiating a raise can be intimidating but remember that your time is worth money. Walk into the negotiation knowing what you’re worth and so will they. Having additional money each check will help you save for your home.
2. Get a second job. Maybe you aren’t able to get a raise with your current employer. If that’s the case search for a second job. Consider weekend and part-time positions that won’t add too much to your plate but will help you save.
3. Downsize your current living situation. Not everyone is able to do this but you can “generate” more income by downsizing for a short period before buying your home. Many couples move back into their parent’s home when saving to buy their own.
4. Have a yard sale. Almost everyone has junk in their house they could get rid of and, chances are, there is someone out there willing to buy it and add it to the junk at their home. Hold a yard sale to generate some extra cash to add to savings.
5. Make money with surveys online. There are survey sites that pay fairly well. You can make extra cash to stash away using the various survey websites out there. Make sure you get signed up with one that actually pays out though.
6. Trim your budget. If you’ve taken the advice above, you have a budget. Are there any places you can cut down? Groceries are always my first go-to when I’m looking to trim my budget.
7. Sell blood or plasma. There are parts of your body you can legally sell for money. Blood and plasma are both great ways to make extra cash to put in savings, especially if your blood type is rare. Many places will pay up to $400 for donating plasma, depending on the amount you’re able to give. Most donations equate to about $25 to $50 though. You can donate regularly though so if you want to add this to your list of ways to make extra cash it’s a good one.
8. Open a high-yield savings account. Opening a savings account with a higher interest rate may help you save money faster by generating more money in interest than you would normally. However, many high-yield accounts have penalties if/when you withdrawal so before you open an account, read the fine print.
9. Freelance. If you’re a writer or know a trade that you can freelance with, do it. Freelancing is a great way to make extra money to save for a home. You generally make your own schedule and only play off your own strengths.
10. Talk to a financial advisor. Lastly, if you’re having trouble saving for your home or need more ideas on how to better prepare for your home, contact a financial advisor. They won’t necessarily help you generate more income but they can help you find money you didn’t know you had by sorting your finances.

Getting ready to buy a home is an exciting and stressful time. Wanting to get it over with is natural but, when it comes to saving for a home, there is no fast track. However, take the tips and ideas above into consideration and you’ll be on your way in no time.

Have you saved for a home? How long did it take?

You’re ready for a change.

You have committed to getting out of debt, but you don’t know where to start, right?

You’re tired of living paycheck to paycheck and seeing your hard-earned money go toward interest to the bank or credit card company.

You bring home a decent income, but before you can actually enjoy what you’ve worked so hard for, you have to pay all of the bills. And what’s left over for you? Not much.

Well, I am here to help!

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Do you ever go to the grocery store and feel guilty for buying only one thing?

I mean, while you’re there you should at least stock up on a few things you might need, right?
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Today, I have something a little different to share with you.

Instead of sharing more about my family’s debt free journey, I have a special guest who has agreed to share his debt free story.

Ron Noble tells how he and his wife Thu paid off $167,500.00 in seven years! They are a true debt free family because they have paid off all of their debt including their house!

Continue reading to find out how they did it and what they have been able to do since becoming debt free.
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It’s a horrible feeling when you can’t pay your bills or you run out of money before the end of the month. When you’re not even half-way through the month and already know for sure your account will be hitting zero soon it can be even worse.

Before depression sets in or you hit panic mode, stop and take a deep breath. There are solutions when you need extra cash this month.

Sell Stuff

When you need extra cash this month, start your spring cleaning early. Take an hour or two to go through the clutter in your home or apartment.

If you are like me chances are you usually put it off until you have time. But what better time than when you need some extra money?

Tackle that closet or dresser that is stuffed with clothes that don’t fit or new items you never used and won’t miss. Then, go online to eBay, Amazon, Letgo, or some other site and give it a new home.

Fill Out Surveys

Have you ever considered filling out surveys to make some extra money? There are plenty online to choose from that are willing to pay for your opinion of their products or services.

Some pay more than others, of course, but you could make anywhere from an extra few dollars to $90 or more. Regardless of the amount, if you have a computer already and a little extra time on your hands you could be making money in no time.

Ask for a Raise

Another thing to do when you need extra cash this month is ask for a raise. Obviously you will want to make sure you have been doing an exceptional job before you approach your supervisor. But this is one way to get some extra money in your budget when you need it.

Drive for Uber or Lyft

If you don’t mind driving you could use your car to earn some extra money. Sign up for Uber or Lyft and within a few days you could be chauffeuring others around and earning money for it.

Don’t worry if you don’t have a car. You can still sign up through HyreCar. Just fill out the paperwork and they will do a background check before matching you to a car you can rent.

Rent Your Extra Bedrooms

Having an unused bedroom can help when you need extra cash this month. With a little time and preparation you could rent it to other people such as vacationers or those traveling for business.

Check out the requirements with Airbnb to see if your home qualifies. You can either be absent or present when guests are there as long as you notify them before they rent.

You might be able to offer travelers additional services for extra money too, such a meals or transportation. However, if you do offer extras, make sure the prices are stated up front.

Offer a Variety of Services

Often people just need someone to fill the gaps in their lives. You could be that person. Advertise on Facebook, Twitter, and other places so that your community knows you are available.

The services you could provide are only limited by your imagination and what others need. You could babysit, animal sit, clean houses or businesses, paint, detail cars, tutor, clear snow, clean gutters, wash windows, buy and deliver groceries, run errands, and more.

Mend and Alter Clothes

If you have a sewing machine and are good at sewing you could tailor, mend, and alter clothes for other people to bring in extra cash. Some communities have a need for these services with no one to fill it.

Check with bridal shops, dry cleaning services, and clothing stores to see if you can get referrals. You may even be able to turn your temporary side-hustle into a permanent side business.

Bake or Cater

If you love to spend time in the kitchen and are a good cook, turn it into a money maker. Decide if you want to cater full meals or bake cookies, cakes, and other sweets.

Then, advertise and share a few samples to get customers fast. Before you know it you will be raking in the dough.

As you can see, when you need extra money in pretty short order there are things you can do to get it. Choose one or two of these ways to add to your income and help you breathe a little easier.

Have you ever fallen short on cash before? If so, what did you do to solve the problem?

Jeanne is a married mother of 2 children who works as a full-time freelancer and also helps out occasionally on the farm she and her husband own together. Her background is mostly finance and medical office management.  She’s currently working to improve her financial well-being and hopes to help others improve theirs as well.

Last week we started getting ready for your debt free journey. We discussed the importance of getting your spouse on board (if you have one) and promising yourself that you are done with debt.

Now we are ready to jump in to assessing your current financial picture. You need to know where you are starting from in order to begin your journey.

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