29
Feb

Living Debt Free And With $3,000 Less In Expenses

Living Debt FreeThis month marks a significant milestone in the financial part of married life with my wife Jean. For the second time in our 14 years of being together, we are again debt free. We paid off our 0% loan on our 2005 Toyota 4 Runner at the beginning of the month and combined with finally selling our investment home this past September, that was a poor investment, we now have approximately $3,000 less per month in expenses.

The expenses on our real estate investment were staggering just knowing we were literally throwing that money away every month. By the time we accounted for the house payment, taxes, utilities, insurance, home owner’s association fees and other fees and maintenance, it was costing us around $2,100 per month for the home. Fortunately we formed an LLC a couple of years ago to handle our real estate ventures (and now will be handling my web businesses) so our taxes will very low because of the losses.

Our 4 Runner payments were around $800 per month and that was paid off in January and we received the title about a week ago or so. It’s a great feeling to know that you actually own, free and clear, the first brand new vehicle you’ve ever had. This vehicle could have been paid off much earlier or we probably could have paid cash for it, but during our real estate dealings we wanted to use that money for a down payment on a third spec home, which we never bought. The thought was that we could get a 0% loan and use someone else’s money, while using our money for a down payment.

All in all it turned out to be a good thing we made payments on the 4 Runner. Since we sold the investment house last September in a short sale (not a foreclosure, but it does hurt your credit some) hopefully making a few payments on the vehicle will help to recover our good credit score. However, the most important thing is that we now have a little extra money every month. Even though we have almost $3,000 less in expenses, it doesn’t mean we have that much more to spend every month because $2,000 of that was money we really couldn’t afford to waste in the first place. I’m glad that little rabbit trail in life is now in the past.

Some of the extra money will be spent on advertising for this blog and having our back porch enclosed which Jean is dillegently saving for. We’re not in any rush however to start racking up expenses again. it will be nice living on the debt free side of life for a season.

I fee like I can relax and breathe again…

Alan

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15 Responses to “Living Debt Free And With $3,000 Less In Expenses”

  1. Good to hear that, I think now days you have so many good news to blog about.
    Did making money online contribute to your paying of your DEBT?

  2. Congratulations! The weight that is lifted off your shoulders is a priceless feeling when you pay off your debt. It makes you never want to go back. Now you can put that energy in to other things.

  3. Hey Alan, kudos! You are now probably in the 10% nationwide. Considering this is your second time around lets hope it’s the last, you’re double fortunate because a lot of people can’t even make it the first time around.

  4. Thomson, Yes, every bit of income contibuted to paying off debt.

    And I am never planning to be in debt again.

  5. Congratulations Alan! :)

  6. Congrats on being debt free. I understand about the property and the good feeling of having a burden lifted off your back. We had another property also and thought it was a good investment but over a 3 year period, we finally decided it was a liability instead of a good sound investment and we were lucky to sell it to someone we know. The finacial burden that was lifted was good for our soul. You and your wife are a few of the fortunate ones to be debt free and I for one congratulate you both.

  7. Congratulations! Maybe one day I will make some money out of blogging…That would be nice…

  8. Congratulations! I paid off my husband’s car in November, and as of today I paid off the remaining $11.94 on my mini-van. It’s an awesome feeling, isn’t it?

    Now if I could only finish paying off our mortgage. *sigh*

  9. Wooww.. nice saving, being debt free is almost no worry life. I’ll try to discipline myself also.

  10. Never been in debt. Nor plan to. Glad to hear that everything is fine there :)

  11. Congrats Alan! I’m glad your out of debt and can finally relax and breathe again ;) Hopefully your financial status will keep improving!

  12. That’s really great Alan, congrats and enjoy it!

  13. congratulations buddy .. yeah Real Estate does get kind of dragging especially in Florida right now because the prices are getting lower every day.

  14. Congrats. Being debt free is empowering. Read Dave Ramsey’s book last year and really found it motivating. It has to be a great feeling.

  15. @ANCA I hear you there. I have made small amounts but can’t get any consistency let alone make a living with it. I am, however optimisitc about the future.

    @Online Affiliate Network well I wouldn’t say “worry free” but for me it did help me sleep better at night knowing I didn’t have debt (except a mortgage).

    The key to staying debt free however is good management and hoping your financial endevors don’t take a nose dive.

    BTW, congratulations Alan.

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