Debt Free

 

At the age of 62, my wife and I became debt free...  that was 15 years ago in 2010.    The only debt we had back then was our mortgage.  While we used credit cards, we always paid off the amount before any interest was due.  Back in 2000, we arranged it so that we had no vehicle debt either.

From 1975 until 2000, we were just like any other couple, struggling with our debt, deciding which bill to pay and which bill to let ride for another month...  sometimes, working a second job to pay off the debt so we could live like we perceived other people lived.

The problem was that we were well educated but living in the south in a low wage jurisdiction which meant our desires exceeded our means.

One of the ways that one gets debt free is to reverse that concept and have one's means exceed one's desires.

That is typically easier said than done.

For us, it was cutting back on cost of a vehicle and the cost of a house, while working second jobs to pay down as much debt as we could as quick as we could.

For instance, instead of buying a $300,000 house, you buy $150,000 or 1200 square feet instead of 3000 square feet.  Another example might be a $30,000 vehicle instead of a $50,000 vehicle.

One (or couple) must decide what's important...  For us, we thought no debt and saving for retirement was more important that a fancy car and large house.

Today, the money that we have been able to save is now invested in a CD (not the stock market) and generates $4,000/month.  This money along with our social security, gives us plenty of money to live like we want without having to do without anymore.