It’s been a while since I’ve talked money, but a reader asked how we were doing with our debt after I initially paid off my $50,000 in debt almost seven years ago (before my wife and I got married).
Here’s the quick answer on where we stand – we don’t have any short term debt. I drive my wife’s 2003 Toyota 4Runner with 178k miles on it, and she drives the Volvo we bought with cash a few months ago. We pay off our credit cards in full every month, and we even managed to pay for our round the world trip with the money we made off of renovating and selling our house in New Orleans.
We have a mortgage, but we kept well within the 2x income rule, so it’s affordable. We don’t have any immediate plans of paying it off, but we took a 7 year arm mortgage, so we hope to either have it paid off or expect to move by then!
Here’s what I think has helped stay in control of our money:
- We’re on the same page financially
- We enjoy experiences more than buying “things”
- We work hard to spend less than we make
- We’ve continued to increase our incomes through job changes and promotions
- We’ve lived off of one income since 2009 (and saved/invested/paid for renovations with the other salary)
- We’re not afraid to buy and drive used cars
- We invest a healthy chunk of our incomes
As I mentioned in my post last week, we are working hard to get somewhere with our saving and investing. We may not know exactly what that is yet, but I think we’re getting closer!