Post # 1
But really rewarding when you can pay off debt! I thought about posting this in the Money board but it is really related to us as newlyweds…
We have been on a pretty strict budget since July and this week we are making a final payment on one of our credit cards! One down, two to go….
We both came into the relationship with debt, me more than him. He only had one credit card and I have a couple as well as student loan debt. Before we were married we always made just over the minimum payment but never really seemed to get anywhere. Then the wedding came along and instead of paying off debt we planned a wedding (which was done for under $5,000 and we paid cash for just about everything).
When our one year anniversary was getting closer we sat down and took a hard look at our finances. I had just gotten a raise so it was time to get serious about paying off our debts. We should have everything paid off by the start of 2012 and in the end we will have paid off roughly $15,000 in debt!
I really don’t have any questions, I am just really excited about the prospect of being debt free in a little over a year! I know money can be a really frustrating topic for some newlyweds, it definitely hasn’t been a cake walk for us, but we have learned a lot about communicating and how important a budget can be.
Post # 3
Congrats! It sounds like you made some hard decisions, but are seeing results. It makes me want to take another look at my finances and the pay-off periods for my loans. You’ve motivated me!
Post # 4
We are in a similar boat! Paying for the wedding was rough for us and we were so stressed out about the money especially because we then put a 20% down payment on our home a month before the wedding on top of everything else. Owning our own home has definitely been worth it though because our mortgage payment is even lower than our apartment rent used to be so we have saved a little there. Then we were hit with another blow when we got married and our health insurance jumped to over $900/month due to my husband’s diabetes and I have a preexisting condition of my own. It has been a struggle, but we managed to pay off 2 credit cards so far and now have 2 more to go. Plus in January with the new health care laws we can go back on our parents’ insurances which will be amazing and will save us about $500-$600/month. It feels amazing to be able to breathe a little easier! Debt can really take a toll on you for sure. Congrats to you both!
Post # 5
wow good for you! i hope fi and i can say that one day too
Post # 6
Good for you! Its great to hear that it can be done. So many people think that its impossible for young couples to be debt free but it really isn’t. My husband and I are working towards that goal too.
What was the hardest thing to cut out of your budget? We didn’t have to cut too much out, but more cut back on the impulse big purchases. Now if the money isnt’ there we wait until it is.
Post # 7
Thanks ladies! What really helped is that I have set up recurring payments every week through our bill pay so the money automatically goes out and we don’t miss it as much. Plus I found that it is easier to make weekly payments so that you aren’t seeing one big payment going out each month.
Going out has been the hardest thing to cut back on. We love to go out on the weekends and do stuff with friends or even just the two of us. We would go to the zoo or the aquarium and end up spending a lot more than we should have for just a day trip. We are also huge sports fans and living in the bay area means we have a lot of teams we can watch! I love the atmosphere of seeing a game live, but the amount of money we spent was ridiculous!
Post # 8
Congrats!! H and I have been using mint .com, which is a great (and free) money management site. I get excited each month when I move money into savings accounts for various things and see the charts that show progress twords our goals!
Post # 9
That is such great news! Your financial situation when you got married is eerily similar to mine–I have much more debt than he does, and we are trying not to go into more debt with this wedding.
Initially, we’d planned an afternoon wedding and evening reception, but after realizing that we’d probably save quite a bit of money by moving the ceremony and reception so that everything would be done by dinnertime, we are now rethinking things. Hopefully our vendors and venues will be open to the idea…
Good job! You’re inspiring all of us!
Post # 10
I signed up for mint.com and added everything but I just can’t get into the habit of using it every day. I think I am so used to my spreadsheets that I have a hard time using a different tool! Plus I work in accounting and I love spreadsheets 🙂
Post # 11
We are just sitting down and doing similar in terms of finances. We dont have consumer debt, but we are working out how much we will need to retire and making a plan to get there. IE $ amt set aside, how to invest it (type of accts as well as asset allocation). As well as determining where to keep and how much we want for an emergency fund, what we can spend on luxuries/entertainment etc.
Its a lot of work, but it is well worth it. Congrats on the CC being paid off.