Since I started this blog last year and wrote the initial posts, I haven't posted any new entries. I think I still go back and forth about whether to add my "thinking" entries to this blog or just have them on my family blog. But anyway, tonight I had a lot on my mind, so I thought I would just write it out here. I don't think anyone I know really reads this blog anyway, and if they do, that's fine too. But this may not interest anyone but myself . . .
First, the title of this post is just the goal of my past week. As a Christian, it should be one of my life goals . . . and it has been at times, just not lately.
A little history . . . about 5 years ago my husband and I took the Dave Ramsey Financial Peace class at our church. At the time, we maybe had about $7,000 worth of credit card debt. Most of it was from medical bills we couldn't pay in full. Even with insurance, having each of our two children cost us generally $3,500 out of pocket for each one. Some of it was from major car repairs we couldn't cover in full also. We basically didn't make enough from our incomes to cover emergencies. And the $1,000 emergency fund never was enough. Plus, once the emergency fund is gone, then you have to work to rebuild it. Without much income for anything extra, it takes a long time to rebuild. My husband was already working a second job, and I was working more hours than I wanted to, with wanting to be as much of a full-time Mom as possible, and still work part time because our family's financial needs warrant that I do so just for our basic needs. So, we figured out that we would be on the "slow track" of the Dave Ramsey plan and just not go into debt further, and continue paying all we could towards our debt. By our calculations, it would mean we would have our debt paid off in about 4 years.
Then comes June of 2010 . . . 3 years after our debt payoff plan started. We were pretty close to on track. There had been a few emergencies that came up, but we hadn't added much to our overall credit card debt. I found out I was pregnant with surprise baby #3. Here comes another $3,500 out of pocket . . . not once, but twice (I would have to pay the full deductible amounts twice because of my pregnancy crossing over the span of two calendar years). Don't get me wrong, we were blessed at every turn, our every need being provided time after countless time. We continued tithing, even when it didn't seem that we could. Almost all of one of the deductibles was paid in full completely for us by a most generous person! But that still left the other $3,500. Also, emotionally, once I became pregnant I went through a bit of a depression. Feeling as if "What is the point?" We followed this plan faithfully for 3 years, and now it's all going to be put right back into our debt pile with the new medical bills for the baby. I became bitter at people that don't carry insurance, but are still seen and given treatment and have many babies but never pay a thing! Here I am a responsible citizen paying for insurance, and still not able to pay the portion that is left for me to pay. But I still faithfully pay on my hospital payment plan, so that the hospital is going to eventually get all of their money for the services they provided for me to have my baby. I kind of gave up for the year I was pregnant, plus the 1st year of our new baby girl's life. With the cost of formula and diapers, we weren't getting ahead, we were just surviving. Making ends meet and paying the minimums on everything. Also, to cope with my emotional non-well being of adjusting to having a third child, I allowed myself to say okay to more frivolous spending than I normally would've. My husband and I went out to eat more when we had babysitters to watch the kids because I just really needed the break! All of this was true, but also my focus wasn't on getting our debt paid down.
In the past 3 months, we had another major financial emergency. We had lots of flooding into our house, and had to professionally have it fixed - twice! The bills for these new relandscaping projects cost more than what we paid to have two of our children. So, there we go even deeper into debt. Plus I start worrying lately that my husband and I now have three children, and no significant amount of life insurance. If something were to happen to either of us, or both of us, there is not enough to cover our mortgage! We also don't have any retirement. How is this possible that we are in such bad financial shape personally, and professionally I work to keep meticulous books for a company that pays all their bills on time and has virtually no debt. Much in part to my planning and careful financial attention to detail. I have the skills and knowledge on how to do this, I just have never thought we've had the income to do anything about it. And most of the time, that has been true.
However, just recently my husband was given an opportunity for a profit sharing bonus to be earned off the company's monthly profit. This is wonderful news, as he hasn't had a raise in the past 3 years. We never know what this amount will be, but we plan to put all of it towards our debt. However, the first couple months, we get excited about it and spend it more frivolously than we should on things we could've waited on. We had the money, didn't go any deeper into debt, but didn't come out any further out of debt either.
We have been trying to teach our children that they can't get a toy every time we go to the store. We have been successfully teaching and implementing this for the past couple years with them. They must earn to the top of their chore/behavior charts before they earn money, and then they can choose how to spend the money (with our guidance, teaching them how to tithe also). So, we often tell them that we don't have the money to get them more toys, and that they have to save their money to get them.
Well, this week I realized that I want to implement the principle I have been teaching them. Before I get any more toys, I want to take care of the things that matter most. I want to have a good life insurance plan in place. I want to start saving for retirement. And I want to get our debt paid off. I still feel like we'll never get it paid off, because there will always be emergencies that we can't pay off. But if we really, really focus on choosing not to spend and be content with all that we already have, I bet it would go a lot faster than I think.
So, all of this long, long, rambling post to say that I am Choosing Not to Spend and Be Content with what I have, so that we can make a significant dent in our debt and get it paid off, be responsible and protect our children with a decent life insurance policy, and start saving for our retirement. I am praying for God's strength to teach me this lesson daily.
"Not that I was ever in need, for I have learned how to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret of living in every situation, whether it is with a full stomach or empty, with plenty or little. For I can do everything through Christ, who gives me strength." - Philippians 4:11-13
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