Tag: finances

Things Are Going Sh*tty, and Then A Pandemic Hits

Dave JohnsonLeave a comment

When last we (I) left this blog, my Dad had passed away. I’d like to say that is the reason my blog posting fell off, and that was certainly part of it, but it wasn’t the only reason.

While I was still reeling from the death of my Father and figuring out what that all meant, we got hit by a global pandemic. Maybe you’ve heard of it. It was in a couple of newspapers.

With this hit came a lot of changes in life. As with so many other people around the globe, life changed for me almost overnight in terms of schedules, kids in remote school, activities canceled, and a decent amount of initial fear and stress.

The best way to deal with all of this, at least for me, was to crawl into the fetal position, drink a lot of alcohol, eat horrific food, and in general listen to my skin quietly moaning like a slowly inflating balloon as it expanded and strained to meet these new life choices.

My family and I hunkered down and remained mostly quarantined for the better part of the next year.

Smash cut to 12ish months later, and a lot of stuff has changed. Even though I had already cut my drinking down to a few sips of wine on the weekend, I decided to go whole-hog and take March totally off from drinking. I call it my “March to Sobriety.” Nobody steal that idea. That’s all mine.

In the meantime, while waiting for a vaccine to arrive, I have also built out a modest home gym and have been lifting weights and running around 4-6 miles each day. My son has joined me in the gym, and this has helped to further motivate me to stick with it.

But you didn’t come to this blog to hear how jacked, swole, pumped and buff I’m getting. You came to read about finances…

AND YOU’RE IN LUCK!

If you peep the sweet graphic in the right column of this blog, you’ll see that gains ain’t just for the gym! I have paid off close to $78,000 in credit card and student loan debt, and overall I have stuck to my Digging Out plan almost to the penny.

However, that image is only a small part of the larger story…

Read More »

Year In Review – The Highs and Lows of Financial Catastrophe

Dave JohnsonLeave a comment

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I promise you’ll hear more from me in some form in 2020. I plan on doing even more blog updates, and I’m 3-4 chapters into writing a book that I’m starting to feel really good about. I don’t know jack sh*t about getting a book published, but I knew even less about responsibly managing my finances and I figured that out, so what do I have to lose?

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If you had talked to me in early 2019, I would have told you that we were losing our house. I would have also told you that we were struggling to figure out how to pay our bills, or even keep food on the table. As fully-grown adults in our 40s, my wife and I had manage to make almost every poor financial decision possible, and were now faced with crippling debt.

We formed a plan over January and the first part of February, and all of the math showed that we would nothing short of a small miracle to escape our predicament. We knew which things to pay and in which order, but if even the smallest thing went wrong, we were in some serious trouble.

We focused every single resource we had at the problem, and we sacrificed as much as possible, sometimes resorting to eating just Four Eggs a night. All the while we hid the family from everyone but our closest friends and family (and the readers of this blog), and we wallowed heavily in guilt and remorse.

I try not to exaggerate for the sake of exaggeration, so trust me when I say that it was the worst time of my life. As always, perspective is key, so I’m sure there are some of you that have gone through far worse, but for me this was the low point.

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FUN FACT: The previous low point was explaining to my Mom that in order to pull square with the Columbia House cassette tape club, she was going to need to help me purchase 300 cassettes in the next 11 days.

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I really couldn’t see any kind of light at the end of the tunnel, and it sucked big ginormous bags of ding dongs.

What a difference a year can make…Read More »

Today was a Good Day

Dave Johnson1 Comment

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We’ve learned many lessons this year, among them how to actually appreciate and value the things we purchase. It has made us a stronger family unit, and it has helped to instill values in our children that will hopefully help them in life for many decades to come.

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At the beginning of 2019, my wife and I were in a really bad spot. We owed an insane amount of money on credit cards (6 figures), and we were making $3600 a month less than what we needed to pay our bills. We had no savings, we had very little in our 401k, and we were almost certainly going to lose the house we had bought just 6 months prior.

We committed to solving our debt crisis once and for all, and we knew that part of doing that meant we had to set some really large stretch goals to keep us honest and aggressive in our efforts.

I told my wife, “We need to set a big number in terms of the debt we want to pay off this year, and it needs to be large enough to frankly make us uncomfortable.”

We set our golden number for the year at $50,000.00. Fifty-thousand. A FIVE, AND THEN A BUNCH OF ZEROS. That was a stupid number, and there was probably no way we would come close, but damn if we weren’t going to try!

When I have set similar lofty goals in the past, it has rarely worked out well…

Dave at age 10:
Goal: “I bet I can jump this canal on my bicycle!”
Result: Broken bike, broken bones.

Dave at age 22:
Goal: “I bet I can beer bong this entire 5th of whiskey!”
Result: Waking up in that same canal, wondering what happened to my pants.

Dave at age 35:
Goal: “I bet I can put a flat screen TV in each room of my house!”
Result: See paragraph 1 of this post.

So needless to say, I was somewhat pessimistic about the financial goal I had set for us to achieve, and I had a lifetime of results (or lack thereof) to back that pessimism up.

And yet today, a month and a half early in fact, we hit our goal.Read More »

This One Tip Will Get You Out of Debt and to FI Faster Than Any Other

Dave JohnsonLeave a comment

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By spending less, you’re “eating better.” You’re not wasting your money on dumb purchases that you really don’t need, just as you aren’t filling your face hole with Ding Dongs and lard.

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I have done a LOT of research over the past 10 months. I have read books and blogs, listened to podcasts, attended seminars, watched YouTube videos, and met with one incredibly trustworthy and knowledgeable financial planner.

Here are just a few of the books I’ve read:

  • Rich Dad, Poor Dad
  • Start Late, Finish Rich
  • The Automatic Millionaire
  • The Millionaire Next Door
  • The Simple Path to Wealth
  • I Will Teach You To Be Rich
  • The Latte Factor
  • The Total Money Makeover

Podcasts I have (or continue to) listen to:

  • Bigger Pockets
  • Choose FI
  • Motley Fool
  • The Money Guy Show
  • Mr. Money Moustache

You get the idea.

I have spent the better part of a year listening, absorbing, planning, and evaluating how to get out of debt, and how to get on the road to financial independence once and for all. It’s why I’ll pay off over $50,000 worth of debt this year alone, and it’s why I have a plan to be totally free of credit card debt by the end of 2020.

In the process of doing this, I think I’ve hit on something big that I want to share with all of you. Once I understood it, it changed my life totally, and given me the understanding of the mindset I need to really achieve my goals.

The one thing you need to do to pay off debt and achieve financial independence is…

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Today Was a Good Day on the Road to Financial Independence

Dave Johnson3 Comments

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2019 has already proven to be the most stressful, gut-wrenching, slap-to-the-face wake up call that we could have ever received, but by the end of this year it also has the potential to be one of the most fulfilling and personally rewarding ones we ever lived through.

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If you’ve been following this blog for any period of time, you know my situation. If not, here is a very brief recap:

At the start of 2019, my wife and I came to full terms with our debt and the stinky butthole of a situation we had gotten ourselves into. We sat down and added everything together and found that we had $126,310.77 worth of combined credit card and student loan debt.

On top of this, we were paying out close to $3600 a month more in bills than we were bringing in from income. We had absolutely zero in savings, and we were very much at risk of losing our home that we had just purchased in June of 2018.

Since then we have been scrambling to stay afloat, at times barely even eating to save money. We have taken side jobs such as my wife’s now steady gig caring for dogs via Rover.com, and targeted our debt with every ounce of energy we have.

Today I wrote checks for $23,347.12, $1,660.84, and $2763.12 to pay off and close 3 more accounts.

It was a very good day.

If you haven’t been paying attention to the graphic on the right, here it is in it’s most updated form:

debttracker

The devil is in the details though, so keep reading to see exactly how the numbers break down…Read More »