As I close the books on my 2018 budget binder, I felt it only appropriate to take a moment and look back at some highlights of the year. While there were several highlights, I narrowed them down to my top three.
My first highlight was in January when we closed on the refi of our home. Honestly, considering the amount of debt we still had going into this, I didn’t think we would even qualify. This refi took us from a 30-year mortgage (still owing over 27+ years) at 4.5% down to a 15-year at 3.25%. While we did roll the closing cost into the loan, this is the one time I felt it was actually smart to increase a balance. Going to a shorter term also meant that our payment increased, but the amount of interest we are saving along with how much is coming off the principle has made it all worthwhile.
My second highlight of the year was cash flowing an almost $5,000 driveway repair. While I would have preferred if this could have waited until we were out of debt, it was a necessity. True, we could have had more gravel hauled in, but doing so would have amounted to an expensive band-aid approach. I can’t help but wonder how much money the former owner spent maintaining the driveway this way. In the long run, we were far better off doing it once by doing it right. One thing was for sure, we would not have done this if it meant taking on more debt.
My third highlight is a collective one in that it has to do with the amount of debt we paid off. We started 2018 with $46,408.39 of non-mortgage debt. Ouch, ouch, ouch! This total was a collection of credit cards, hospital bills, and a car payment. As sick as this number is, we finished the year by reducing what we owed by $34,531.97, thus bringing it down to our 2019 starting debt of $11,876.42.
2018 concluded the second year of our journey to dig our way out of debt. I won’t sugarcoat it and say it was easy because it wasn’t! But you know what? Being is debt with no plan to ever get out would be so much harder. Starting with close to $55K in consumer debt, I estimated it would take us close to three years to dig ourselves out of our mess. I’m beyond happy to see the light at the end getter ever so much brighter.
For any of you wondering if it is too late for you to get out of debt, it isn’t! I’ve always loved the old Chinese proverb that says “The best time to plant a tree was 20 years ago. The second best time is now.” Hubs and I are in our 50s, digging our way out debt A Dime at a Time. You can do it too!
The driveway fix was a smart move! I have never heard that Chinese proverb. I need to write that one down!
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We feel it was. It should serve us well for many years to come.
Those are all AMAZING highlights, but the third one is UNBELIEVABLE!!!!! Just paying off that much debt is not only wonderful for you, but for the rest of us who have a long way to go and get discouraged that it will never happen. I like that proverb – a friend of mine’s mom always said “how old will you be if you DON’T do it now” so we are DOING IT NOW!!!!! Just made our first snowball (now that my car & the IRS are paid off) to Home Depot and hope to have that paid off by March…..hoping February but we’ll see.
It can be done! The journey can feel long at times, but the important thing is to keep at it. Good advice from your friends’ mom. You are making fantastic progress! It will soon be good riddance to Home Depot! Woohoo!
You are in inspiration to all trying to gt out of debt! Not only are you almost there, you have also learned how to manage the money so you don’t have to have consumer debt again.
Thank you! I do hope our journey serves to inspire others in a similar situation. Just because we started later, doesn’t mean it is too late. I NEVER want to be in consumer debt again!
2018 has been a really great financial year for you! You’re doing awesome and you’re such an inspiration! What is your plan after you pay of your consumer debt? Will you tackle your mortgage and blogg about it too?
Thank you! Plans for after the consumer debt is paid off is to build a fully funded emergency fund. After that, we will tackle our mortgage. I do plan to continue blogging as not only does it help me stay accountable, but I also hope the blog continues to inspire others. Going into retirement with any debt isn’t an option for us.
You paid off an incredible amount of debt this year. Well done! I’m so happy for you and inspired by you.
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Thank you! I’m pulling for you, too!
You had an amazing debt payoff year!! Way to go!! I can’t wait to see how you do in 2019.
Thanks, Michelle. One way or another, 2019 will be the year we pay off the rest of our baby step two debt. I can’t wait to start saving our 3-6 month emergency fund and then start tackling our mortgage.
Well done! You made some smart choices, and I see 2019 a debt free scream for you!
Thanks, Rhitter. It took us far too long to finally start making smarter choices, but I guess better late than never! Cannot wait to do our debt free scream! You aren’t far behind, so start practicing!
Hi Lucy, this is Chris. Here is my news that I alluded to in my recent comment: Hubby and I went this morning and paid off our mortgage! We are 100% paid off and are totally debt free!!!!! I know I had told you we were trying to pay off the mortgage early and that I had a goal of paying it off by hubby”s 60th birthday, which will be this July. And, I had tried to comment monthly about our progress. We re-evaluated things in Dec, and realized that we could pay off the mortgage on MY birthday, which is today, and 6 mos. before my goal of July. I wanted to post a comment on your blog since you had encouraged me in my goal, and to encourage you and your hubby to keep doing what you are doing. I am still pulling for you, and am excited at the progress you are making. I can’t wait to read that you are debt free but the mortgage sometime this year also. 🙂
Wowza! I am SO thrilled for you and your hubby! Happy belated birthday! What a fabulous gift…the gift of being 100% debt free! I’m happy I could play a small part in encouraging you. We will get there too. Cannot wait until we start tackling our mortgage. Meanwhile, I am celebrating with you and your accomplishment. Well done, Chris!
2018 was way better than 2020, haha 🙂