Our Financial Peace Journey: A Reset

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I’ve been avoiding writing a post about our need for a financial peace reset for a while because I have a confession to make. On High-Heeled Love, I used to write an update on our financial peace journey every single month, but I stopped last summer…because we fell off the wagon.

Not like we went out and financed a new car or opened new credit cards off the wagon. But we got a little too relaxed with our budget.

It started when I got behind with tracking our expenses in Every Dollar and not regularly pulling cash out for specific budget categories, so we were swiping the debit card when we were out getting groceries, having a bite to eat with friends, etc.

And then, we put some travel and education expenses on a credit card with the intention of paying it off the next month. This is EXACTLY why Dave Ramsey says you have to cut your cards up and close the accounts.

Don’t do what we did. Cut your cards up. Close your accounts.

I’m bummed to admit that getting distracted has basically slid us back to where we started with our Baby Step 2. And the sad thing is that this was mostly my doing; I’m the one who kept choosing to use a credit card when I could have chosen delayed gratification.

And then I turned all our tax info into the accountant and realized that in 2017, we had our best income year yet as a married couple. And I got angry.

It’s absolutely ridiculous that we’re carrying the amount of debt that we have while making the type of money that we do.

I’m over sending a full paycheck each month to credit card companies. I’m done with it. It’s time to get down to business.

So, it’s time to shine a light on this problem and get back on the program. Here’s our current state of affairs:

Consumer Debt

We currently have about $30,000 in our debt snowball. This is spread across three credit cards and one personal loan. I want this gone by the end of this year!!!

As soon as this post publishes, I’m making a big in-your-face visual so I can’t hide from this number. Then, I’m making a list of every side hustle opportunity we have so can get going on this.

Business Debt

There are two debts in my business’s name: one credit card and an SBA loan that we used to purchase the agency. This is scheduled to pay off next year. I want to be┬ádone with the credit card by the end of this year as well.

Upcoming Expenses

We have basically two challenges coming up in the next quarter: we’re going to owe some amount in incomes taxes (having a growing business does have drawbacks) and the Mister’s car needs to be replaced.

I’ve been planning for the taxes and saving like crazy inside the business. I’m expecting a call any day now from our accountant with the number we owe; we still have a couple more weeks to hustle any difference between what’s in the bank and what we’ll owe.

The Subaru has reached the point where it’s got more projected maintenance than we can sustain in our budget; even our mechanic has advised that we replace it. We do have a small sinking fund for each replacement and repair. We’ll combine that with whatever we can sell the car for. Fortunately, our mechanic is also willing to go to help us locate a newer vehicle at auction that we can pay cash for.

Okay, y’all. I’m putting it out there. We’re back on the Dave Ramsey wagon.

Hold my feet to the fire. And expect to hear more about this journey because we’re focusing hard.

Do you want to join us in taking control of your finances? Let me know in the comments. Then go get a copy of the Total Money Makeover by Dave Ramsey.