Achieving Financial Freedom: A Journey to Debt- Free Living

Exciting News: We Are Debt-Free!

In our financial journey, a pivotal crossroad emerged as we grappled with the decision to pay off our truck. Seeking God's wisdom, He answered us not once, but twice with Romans 13:8. Yet my persistent doubt led me to seek further affirmation. God's steadfast guidance unfurled through the pages of Dave Ramsey's book,The Total Money Makeover.

During our early years of marriage, we participated in Dave Ramsey’s Financial Peace University through our church. The class was a true blessing as it taught us to synchronize our financial goals through budgeting TOGETHER. We united in following the baby steps leading to a debt-free life (excluding our home).

Thanks to this course, finances seldom caused discord in our marriage. I highly recommend this class to newlyweds. In fact, I plan on my children taking his Foundations in Personal Finance class their sophomore year in high school.

We aspire for our children to embrace financial wisdom by not falling for the lie that credit is a necessity. I hope they recognize early that debt should be approached cautiously and that preserving their inner peace is paramount, rather than succumbing to societal pressures to keep up with others. 

Lessons in the Rearview Mirror:

In 2016, about the time we moved to San Diego, life caught up with us. We felt the need for AMEX due to the enticing “cash back benefits”. We opted to purchase a house beyond our means and committed to a substantial car payment. We even booked two cruises and a trip to Canada despite living paycheck to paycheck. Essentially, we undid the progress we had worked so diligently to accomplish. 

We longed for our simpler past, prompting us to sell our house, with Scott regaining his former job, leading us to relocate back to the Joshua Tree area. The sale yielded a profit, enabling us to clear our debts and secure a down payment for a new home. 

However, instead of embracing a fresh start, we repeated the same pattern, purchasing a house beyond our financial means and committing to a monthly payment of a new 4Runner. Our old habits from San Diego followed us to the desert. We did the exact same thing expecting different results. By definition, we are insane.

After selling our home and beginning the Full- Time Journey, we aimed for a targeted savings amount to guarantee a comfortable future settlement. While this mindset enabled us to buy our fifth wheel outright, our fear of depleting those savings led to a hefty $830 monthly payment for our truck.

Wake Up Call: Embracing Financial Wisdom

About a year into our Roadschool journey, we had a wake up call. Numerous aspects of our lives underwent a transformation, including our perspective on finances. Recognizing the desire of sustaining this lifestyle, we committed to reestablishing and strictly adhering to a monthly budget. We have been faithful in doing so, learning, and growing every month- working out our self- control muscle. As we have been building that muscle, the weight of our truck- related debt became apparent, motivating me to invest in, The Total Money Makeover.

Approximately a month ago, we listened to about 5 minutes of the Audible, only for me to quickly switch it off. I found Dave Ramsey’s delivery to be forceful, harsh, and patronizing. Attempting to return the audiobook proved unsuccessful, although I had successfully returned books in the past. Regardless, I accepted it as an unfortunate loss.

Two days ago we faced a five hour drive with no cell service. We had exhausted our collection of audiobooks, so we decided to revisit this particular book. God is so good! I heard it in a new light, and upon reaching our destination, we had completed the book, feeling an immense sense of peace and confidence. It not only reinforced the wisdom of paying off the truck, but also provided a solid financial and future plan. 

Dave Ramsey's Seven Baby Steps

1. Baby Step 1: Save $1,000 for a Starter Emergency Fund

• Timeline: Aim to achieve this within 1-2 months

2. Baby Step 2: Pay Off All Debt ( except the mortgage) using the Debt Snowball Method.

• Timeline: 12-24 months (depending on amount of debt)

3. Baby Step 3: Save 3-6 Months of Expenses ( your monthly income) in a Fully Funded Emergency Fund

• Timeline: Plan to accomplish this within 3-6 months after Baby Step 2

• If you plan to save to buy a home in cash or your 20% down payment on a 15 year loan for a home, accomplish that before moving onto Baby Step 4

4. Baby Step 4: Invest 15% of your Household Income in Retirement, learn how How to Save for Retirement.

5. Baby Step 5: Save For Your Children’s College Fund find out how here. 

• Here are some other great tips for saving for college, especially if you are late to the game (like me) and your kids are older.

6. Baby Step 6: Pay Off Your Home Early: Dave Ramsey has some great tips to achieve this goal. 

• Timeline: This may take several years

7. Baby Step 7: Build Wealth and Give Generously 

A Path to Financial Peace

After listening to his book, I am convinced that Dave Ramsey’s approach is practical, biblical, and responsible. It paves the way not only to financial peace and stability, but more importantly- the ability to live a life of generosity. I appreciate how he mentions in the book that this is not complicated, just difficult. Like any other valuable pursuit, it requires dedicated effort and sacrifice. 

• My goal is to persevere through the difficulties and steer clear of debt. As Dave Ramsey exclaims, “ If you live like no one else, later you can live like no one else.”

• I appreciate his insight on the futility of enduring a job you despise for the hope of a happy retirement. Here are some solutions if you find yourself in this situation. 

Secret to Inner Peace

• Ultimately, Philippians 4: 11-13 holds the secret to inner peace. We must learn to be content in any situation through reliance and acceptance of God’s strength and grace. This is vital for understanding the difference between fleeting happiness and lasting joy. 

PEACE: Powerful Experience Accepting Christ’s Embrace

Bible Verse of the Day

Psalm 119:32 NIV

I run in the path of your commands, for you have broadened my understanding. 

Learning from Mistakes

• Because I hesitated instead of promptly obeying God's command, we incurred thousands of dollars in interest and carried an avoidable burden for two years.

• Fear can hinder our progress, even when we believe we're leading a simple life not controlled by money. It's easy to be deceived. I hope we all learn from my mistakes and embrace this lesson by swiftly acting in the future, acknowledging that God truly knows what's best for us.

Prayer

Heavenly Father,


We come before you with humble hearts and gratitude for your abundant love and faithful promises. May you grant us the ability to steward our finances wisely resulting in financial peace, freedom, and generosity. I pray that in the midst of our daily routines and the world's burdensome expectations, you will fill us with joy in the mundane by opening our eyes to see the beauty in each moment, the blessings in the ordinary, and the opportunities to glorify you through simple acts of love and service. Father, instill in us a desire for a life set apart from the ways of this world. Help us to discern your unique path for us, granting us the strength to resist conformity and embrace your will for our lives.


In Jesus’ name, Amen




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