The joy is in the journey
Posted by John | Filed under Uncategorized
Six years ago, (age 60, spouse age 64) I was not working and my husband was. He unexpectedly lost his job (life event not planned for). We were about 70k in debt (40K bal of mortgage, 10 k car balance, rest cc debt)
Jerry immediately signed for social security, I was not age eligible. Our income went form $ 6000.00 a month to $ 1500.00 per month. We had about 50 K in retirement savings and NO emergency fund. We mutually made the decision that EVERYTHING was on the table. We immediately quit the golf club, dropped cable, reduced or eliminated everything we could think of and sold everything we were not currently using. Jerry was able to secure a new job at a significantly reduced salary but was able to have our health insurance included in his benefit plan (at no cost to us). Now the $4500 / mo shortage had shrunk to about $ 2500.00. At the age of 60 I found work as a telemarketer further reducing our mo shortage to about $ 500.00 per month. And we cut up all credit cards! NO MORE CHARGING!
We immediately starting reducing our debt. I listed all debt and the interest rates. We first paid off all the credit cards, paying highest interest rates first. The first two years we were able pay off everything but the house. Because of my job, I found another job that paid significantly better and I was able to go on social security. Now our income was greater than the 6K we had when this all happened. but WE STUCK TO OUR DEBT DIET PLAN! Because we reduced our expenditures so much we were able to fully pay off the house by the end of the third year! Now we were debt free!
At that time we reviewed all our assets and decided we would stay in our house (no mortgage) and take the next two years to make the house as senior friendly and maintenance free as possible. New roof, windows, doors, siding, hot water tank, furnace, air conditioner and everything else we could think of. At my second job I was able to fully contribute to the retirement plan.
In five years we had not been out to dinner even once, reduced our gift giving to children and grandchildren, cancelled all magazine subscription, went to basic cable, gave up cell phones, no new clothing, no vacations, I cut my husband’s hair, he wouldn’t cut mine lol, no movies, etc. etc. etc.
I cannot tell you what a wonderful journey this has been. No gym memberships, we walk the dogs instead (the dogs love it), made quilts (that are treasured) as gifts and gave coupons for Jerry’s talents (he is very handy)! Invite family and friends to dinner (I do the entree and have everyone bring a dish to pass). We do our own lawn (gave up lawn service and snowplowing) and snowblowing. We get books and movies from the library. Jerry golf’s at our local municipal course at a greatly reduced price from the country club.
One of our goals was to be able to have Jerry retire at age 70. This past June he retired. Now he is my house husband while I continue to work. I only have to have one job now, our income is $ 5k a month and our expenses are only $ 2500.00 per month. That is what happens when one has NO debt and lives frugally.
Because we set up automatic savings while this was going on…..we have $ 50k in an emergency fund, significantly increased our retirement savings, and my job provides a retirement after 5 yrs. and I have been there six yrs now. I am hoping to reach 10 years.
To all those that say it can’t be done…..they are wrong. Our life is so much better today, by living well below our means and valuing those things that really count. Ourselves, our family, our friends, NOT THINGS!
I even make my own laundry soap @ about a penny a load. I wish this was long enough to tell you everything. Please remember” The joy is in the journey” and our frugal life is a wonderful life!
July 23, 2012 at 9:57 pm
Your story is so inspiring. For all those young people that still stuck in the mud, it is never too late to have a plan and got out of debt. Keep up the good work. So happy for you.
July 23, 2012 at 10:30 pm
WOW you have been through a lot. Loved the lesson, we can all make do with less, I suppose.
I will take your inspiration and keep working on our emergency fund to help us because even though we are debt free, we never have enough saved when a surprise bill pops up.
July 25, 2012 at 7:11 am
I think this is the best story I have ever read on here…congratulations!!!
July 26, 2012 at 9:17 am
Really inspiring! And I have to know: What’s the laundry recipe?!
July 26, 2012 at 1:51 pm
Wow this is an amazing story! Congratulations!!
I am only 24, but have a lot of student loan debt (~95K), luckily no other debt though. Sometimes I feel like I will never be rid of it.
You have inspired me to stay strong! Thank you for sharing your story!
July 26, 2012 at 7:56 pm
Very inspirational story! It is amazing what people can do when they don’t have a choice. We, I think, can all be lazy in what we actually strive for. Is it that we don’t think we actually deserve to be debt free?
Also, my wife is looking for the laundry recipe!
July 28, 2012 at 1:43 am
I am just getting started by reading and gathering our info etc. It is definitely a bit overwhelming when you do that “Own up to your Debt worksheet” that is for sure!!
So i thought I would read as much as possible of the books and on the website to give us the best start. Everything I have read has been amazing! Great ideas and tips but it hits home the most when you read other peoples stories and successes.
Thank you for posting your story. I was kinda feeling that we were so bad off at 42 with no RRSP’s (after cashing them in…cough cough) much accumulated concumer debt and no cash savings to be seen that we were deeper than help!
Reading this made me believe that we have a really good chance of not only doing well but doing really well!!!
We have a great relationship and talk things through so we think we will be able to still set a good example for our kids (12 and 18) even though we are starting late!
Just took my daughter to the bank and helped her get set up with RRSP and TFSA on auto debit! She is excited but i think we are more so!
Thank you Gail, we look forward to being one of your success stories in the next 3 years!
Life is Good
PS I would also love the laundry recipe
July 30, 2012 at 8:58 am
Amazing story…very inspirational, gives me hope…thank you! My husband and I are 45 and 49 and feeling overwhelmed. The “Own up to your debt Worksheet” scared the hell out of me yesterday…your story helps put the way ahead in perspective!
August 13, 2012 at 6:17 pm
I am so inspired by your story. Too many financial companies make us think that if we are not in the game early in life, we’ve missed the boat! Thank-you so much for telling us your situation and congratulations on the amazing strides you have made. Well done!
August 20, 2012 at 2:15 pm
Love your story – husband and I are doing the same kind of thing to prep for our golden years! Would love your laundry soap recipe. Thanks for sharing everything.