Wednesday, October 17, 2007


I was listening to Dave Ramsey’s podcast the other day and I literally burst out laughing. He said there are two reasons that people are broke. I don’t even remember what reason number 2 was because I was laughing so hard.

“The first reason people are broke is because they are STUPID!”

Brutal, but very true. I’ve been very stupid in my past. Stupid purchases are usually those that make you appear wealthy and successful to others. I’ll be honest – I always felt like I was doing well since I could afford the monthly payments on all of our stuff. Now I know that making monthly payments does not make you wealthy and successful – it makes you broke.

I used to drive a GMC Yukon. Wow, did I love that thing. Leather interior, all the gadgets you could imagine. It was huge, so the gas mileage was horrible. My monthly payment on the Yukon was about $535 per month. We also had a truck payment of $485.00 per month. Yes, folks, we were spending approximately $1000 per month just on vehicles. VEHICLES!!!

One day after sending in another $535 (yes, just the minimum) to the bank, I felt sick inside. I distinctly remember that day because it was the day that changed our financial lives. It was the day I realized that living with payments isn’t fun. I wanted to do something better with my money.

That very night I drove to the car lot. I didn’t care what I bought, I just needed to dump my Yukon and the $535 payment that went along with it. I found the car I’m currently driving and was able to get a payment of only $339. I picked the car up the next day and breathed a huge sigh of relief.

Now I’m working to pay off that car. I never make only minimum payments anymore. When this car is paid off, we will have given ourselves a $1000 monthly raise by dumping the debt. It feels great.