For some reason I can't get that song out of my mind when we are discussing our finances and out goal for becoming debt free.  LOL  You remember the theme song to the Jefferson's right??? LOL  My grandma used to laugh so loud at that show she would practically fall out of her recliner while watching.

For me, moving on up, is not to the apartment in the sky, but debt free living.  I recently bought Dave Ramsey's book after seeing it mentioned here on other blogs too many times.  LOL  I figured God was really trying to tell me that I needed that book.  Then when I received it, I thought, you know what I don't need this....we have no debt except our mortgage!!!  We aren't in any money problems.....I just need to stick to a budget and save more.   So we went through our budget together (hubby and I) and we were feeling pretty good about it.

Two days ago I think it was, I started reading the book, and I tell you....I can't put it down!!!!  It has some great (GRRRRRRRRREAT!) information in there.  Dave is a Christian and he has been a millionaire twice.  He is honest about telling you he made mistakes and lost it all, but made his mind up to get it all back.  He is honest and forthright, and makes it simple for people like me who don't understand all the financial speak or interest rates, and cd's and bonds, etc.

So far, I am about 1/2 way through the book and although we are doing most everything right so far, I am really excited to get to the chapters of paying off the house quickly and investing our money to make money.  One of the steps is to get current on all your bills.  Done.  Another step is to put $1000.00 aside fro emergencies only (keep it liquid so you can get to it easiey if needed).  Done.  (We already had that before buying the book) The next step is the debt snowball.  This is a process of paying down all debt (except for your mortgage) by taking the smallest one and making extra payments on it, then when it is paid off, the next and the next, etc. using the money from the debts you have already paid off for the next one, until all are paid off.  We have never had a credit card, and all other personal loans and doctors bills are paid off, so this one is Done.  The next few steps for us is a little confusing and we are still trying to talk about it, pray about it and possibly seek some advice from a Christian friend of ours on what to do next.  Dave says you should have 3-6 months of expenses set aside in emergency fund now, in case someone should get hurt and can't work, or looses a job, get down-sized, etc.  Then start paying down on the house, weather that means refinancing, paying extra payments, etc. etc.

In a short amount of time, we will be receiving a large chunk of  money from the sale of my mother's house (she died in March of last year.  The house was then owned by me and my two siblings, but one brother brought me and my other brother out.  So he has paid us in two installments.  One we have already received and went to paying down some personal debts, medical bills, etc.) and we are either going to put it all in savings, put half in savings, and half on the principlal of the house, or put the whole amount on the principal of the house.  We are as Dave says gazelle intense about getting out from under this debt umbrella as soon as possible, so we might take some chances that I wouldn't suggest others who are not in this all the way to do. 

With some figuring, we have figured out that with a large payment on the principal, a refinance, and then making the same amount payment we are now (even though the payment would be about half of what it is now), we could have the house paid off completely in 9 years.  Which is pretty good since we got the house on a 30 year loan and have only lived here 2 years!!!  We would be taking 28 years down to 11 years and not paying all that interest!!!! 

The friend we are thinking about asking some advice from is a good friend from our church and Bible Study who used to be the president of a local bank who is now retired.  He has also written a book on how to invest your money so you can become more wealthy, thus leaving your children's children an inheritance.

Matthew and are have a toddler who will be 2 in April, but we are already thinking about his future, a college fund and wanting to teach him the financial things we are learning now as he grows up, before he moves out on his own.  My parents didn't know the stuff we are learning now, and made mistakes.  We make mistakes in the past as well....but we want to save our son from making the expensive mistakes we made if possible!!!

We no longer want to be slave to the lender.  We want financial freedom.  We already know the thrill and joy and peace it brings to be debt free except for our mortgage and we want more.  This for now, is my drug of choice so to speak.  LOL  This is my high!!!

We have a friend at church who reccently bought a BMW (we go to a church with lots of wealthy people), but I can't imagine what that car payment is like. No it wasn't a brand new one, and he has saved and wanted one for years, and I am happy for him.  But my thought was, thank goodness my car is paid for.  My hubby drives a Nissan Sentra for the gas mileage.  It isn't a beautiful car, but no rust and no car payments!!!  (It has no air conditioning or radio........one of his financial mistakes before I met him! LOL)  My car is a Buick and is has no rust either, no payment, a few quirks but that is what makes me love it.  LOL  We drive these cars, and not a newer model (I really want a mini van with all the extras including dvd player) because we don't want to make a payment and be slave to the lender.  We plan on saving up, trading in the car, and paying little to no payment on a car when we buy one.  Sure it may be several years before we can afford one, so what??!!!  We aren't suffering.  We aren't even uncomfortable with what we have, or what we don't have.  We just get the "I wants" sometimes, and as soon as one of us does, the other one says, but do you want to write that check out to the company each month on it?? NO!!!!

Well, I have babbled enough.  Back to the game!!!  Go Patriots!!!!  Hope you all had a wonderful weekend!!!

God's Blessings,

Amy Jo