Author Topic: As of this day... DEBT FREE!!!  (Read 9062 times)

maxpower

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As of this day... DEBT FREE!!!
« on: November 30, 2015, 01:49:41 PM »
Today is the day that my wife and I (36 and 32 respectively) are now completely 100% debt free! With the final sum paid to my student loan, we now completely lack the following: A mortgage, auto loans, student loans, credit card debt! ZERO!

I started reading MMM about a year and a half ago. At the time we owed about $70,000 on our home and had only about $60,000 in our retirement accounts. I'm finishing up my PhD, so my income is modest. My wife makes less than $50,000 per year. We drove two newer (paid for) cars and didn't worry about our finances too much. We've never owned cable, but the amazon delivery man was at our doorstep nearly every day (as an academi, I had a bit of a book problem!).

Since converting to mustachianism, we've sold one of our newer cars and bought an older one. That netted about $6,000; it went straight into the mortgage. Our house is now on the market and we're looking to build our own in a smaller town where all forms of commuting by car can be happily done away with. Our retirement accounts are only up slightly, since debt reduction has been the name of the game. We paid off our mortgage this last June. In addition to this, I've started a little side hustle selling fine art photography!

We have a nice little spreadsheet that shows us happily financially independent in 10 years or less.

And the crazy thing is, the piece of mind these moves have given us are the very things that are making it possible for us to move to a smaller community and work from home together. Under those conditions, I'm not sure how much different financial independence will even feel when we get there!

As an aside, I'm a theologian, and I've done quite a bit of worrying about how deeply invested I've become in all this FI scheming. I used to worry that I was hanging my heart on rather base material things in this pursuit. However, the more I've thought about it, and the more I've practiced it, it seems that the opposite is true! This path has led me to eschew material possessions. It's not a matter of worshiping at the alter of the stock market. Instead what is really happening is that we are escaping from a servitude we should have never been under! Frugal living has become a deeply humanizing endeavor!

I'm eagerly awaiting what the next several years will bring! Glad to be with you on the journey.
« Last Edit: November 30, 2015, 02:00:51 PM by maxpower »

trailrated

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Re: As of this day... DEBT FREE!!!
« Reply #1 on: November 30, 2015, 01:58:06 PM »
kick ass and take names!!! Congrats :)

amyj05

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Re: As of this day... DEBT FREE!!!
« Reply #2 on: November 30, 2015, 02:04:28 PM »
This is awesome!!! Congratulations!!!

roadtrippers

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Re: As of this day... DEBT FREE!!!
« Reply #3 on: November 30, 2015, 05:17:00 PM »
Congratulations to you and your wife! How great that must feel!

And as the product of a Jesuit education, I particularly enjoyed your theological musings about Mustachianism as a deeply humanizing endeavor. What a wonderful way to look at it!

Ducky

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Re: As of this day... DEBT FREE!!!
« Reply #4 on: November 30, 2015, 06:53:25 PM »
Way to go! Congrats!

FrugalFan

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Re: As of this day... DEBT FREE!!!
« Reply #5 on: November 30, 2015, 07:07:17 PM »
Congratulations!!! Your investment accounts will be growing fast now with no debt paydown and no mortgage!

MakingSenseofCents

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Re: As of this day... DEBT FREE!!!
« Reply #6 on: November 30, 2015, 08:05:57 PM »
Congrats! Super awesome!

MrsPfennig

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Re: As of this day... DEBT FREE!!!
« Reply #7 on: December 01, 2015, 01:07:03 AM »
Congratulations!!!

tummyrubbingjesus

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Re: As of this day... DEBT FREE!!!
« Reply #8 on: December 01, 2015, 04:35:59 AM »
It's an amazingly freeing feeling isn't it.


maxpower

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Re: As of this day... DEBT FREE!!!
« Reply #9 on: December 01, 2015, 07:50:04 AM »
Hey thanks, all! The auto-contributions to begin building the 'stache kicked in this morning. There is a visceral sense of feeling "lighter" today!

Thegoblinchief

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Re: As of this day... DEBT FREE!!!
« Reply #10 on: December 01, 2015, 07:58:44 AM »
Congrats!

Bajadoc

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Re: As of this day... DEBT FREE!!!
« Reply #11 on: December 01, 2015, 12:06:39 PM »
 Good job! For me, there is something about being debt free that transcends the monetary aspects. Stay debt free and resist the temptation of credit. I have been debt free for many years and feel like I "own my life" more by being debt free. Owing someone means you have to answer to them. By being debt free I only have to answer to my dear wife and that bitch, Uncle Sam.

Katagal

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Re: As of this day... DEBT FREE!!!
« Reply #12 on: December 01, 2015, 12:27:48 PM »
Congratulations

DividendMoney

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Re: As of this day... DEBT FREE!!!
« Reply #13 on: December 01, 2015, 12:31:34 PM »
Congratulations.... it's best feeling ever. You'll never forget it. I still remember the look on the bank teller's face when I paid out my mortgage and that was almost 3 years ago now.

Now, to grow the stache at warp speed!

acroy

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Re: As of this day... DEBT FREE!!!
« Reply #14 on: December 01, 2015, 12:34:41 PM »
Badass! Nicely done!

mikefixac

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Re: As of this day... DEBT FREE!!!
« Reply #15 on: December 01, 2015, 01:17:17 PM »
Hearty congrats. The power of MMM. It must be very satisfying for this blog's proprietor to have a positive influence on so many people.

I've been debt free for years, and for me this is normal. I just live this way now and I take it for granted. Yesterday, I was in a lawyer's house attempting to fix  ~40  year old furnace. I said "you need a new furnace" and I was told it ain't gonna happen.

Whether we know it or not, we're all philosophers. And the choices we make affect our future.

cautiouspessimist

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Re: As of this day... DEBT FREE!!!
« Reply #16 on: December 01, 2015, 02:33:14 PM »
Congrats, that's awesome! I completely agree on your theological point, as well.

Conjou

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Re: As of this day... DEBT FREE!!!
« Reply #17 on: December 01, 2015, 03:27:08 PM »
Sweet! Pretty empowering feeling. Keep up the good work!

K-Dogg

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Re: As of this day... DEBT FREE!!!
« Reply #18 on: December 01, 2015, 05:05:24 PM »
Congratulations!  You made some great moves and your future self will thank you!

FIREby35

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Re: As of this day... DEBT FREE!!!
« Reply #19 on: December 01, 2015, 07:19:01 PM »
Awesome job. I'm so close to joining you a hint a jealousy crept in. But, it's been replaced by admiration.

The part about chasing money seeming base is something I have pondered a lot. It is funny, certain people in my life have made the type of comment that I'm "cheap" or a "Scrooge" because I have money but not flashy material things. Then, when I ask them to support a non-profit I founded (and funded) they "can't." Or, I see them compromising their integrity to turn an extra buck just a little quicker or constantly talking about pointless material possessions. What they don't get is exactly what you said, the frugality and consequential accumulation of money is not the end. It's the freedom and ability to realize your own potential (untapped humanity) because your mind is focused on higher values than materialism.

Anyway, great job!

maxpower

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Re: As of this day... DEBT FREE!!!
« Reply #20 on: December 02, 2015, 09:57:10 AM »
The part about chasing money seeming base is something I have pondered a lot. It is funny, certain people in my life have made the type of comment that I'm "cheap" or a "Scrooge" because I have money but not flashy material things. Then, when I ask them to support a non-profit I founded (and funded) they "can't." Or, I see them compromising their integrity to turn an extra buck just a little quicker or constantly talking about pointless material possessions. What they don't get is exactly what you said, the frugality and consequential accumulation of money is not the end. It's the freedom and ability to realize your own potential (untapped humanity) because your mind is focused on higher values than materialism.

You're right on here. And yet what you bring up makes part of me feel that I need to take back everything I said. I think the criterion for determining whether or not one is, at bottom, frugal or cheap is the extent to which one could give the whole 'stache away if that is what love called for. That, I think, would answer the question of whether one had placed their security in a transcendent love, or in a transient life free from otherwise necessary social obligations.

Maybe that's too blunt, but it's dancing around the heart of it for me. ...and it gives me the shivers to look too closely at it.

Lady Fordragon

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Re: As of this day... DEBT FREE!!!
« Reply #21 on: December 02, 2015, 01:25:24 PM »
Congrats and welcome to the club!  My husband and I became debt free a little over 2 years ago and it is indeed a freeing feeling.  We even held a ceremonial mortgage burning bonfire in our backyard (just burned a couple of inconsequential mortgage related papers) to signify the end of the mortgage and consequently our debt.

ditheca

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Re: As of this day... DEBT FREE!!!
« Reply #22 on: December 02, 2015, 03:05:02 PM »
As an aside, I'm a theologian, and I've done quite a bit of worrying about how deeply invested I've become in all this FI scheming. I used to worry that I was hanging my heart on rather base material things in this pursuit...

I've shared those concerns... even to the point where I made a rule that I need to finish my daily scripture studies before I log in to this forum!  "For where your heart is, there will your heart be also."

I'm pretty satisfied though that all the attention that I'm paying to FI is not time wasted, and DW and I plan to serve at least a few years as missionaries soon after FIRE.

FIREby35

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Re: As of this day... DEBT FREE!!!
« Reply #23 on: December 02, 2015, 08:23:49 PM »
The part about chasing money seeming base is something I have pondered a lot. It is funny, certain people in my life have made the type of comment that I'm "cheap" or a "Scrooge" because I have money but not flashy material things. Then, when I ask them to support a non-profit I founded (and funded) they "can't." Or, I see them compromising their integrity to turn an extra buck just a little quicker or constantly talking about pointless material possessions. What they don't get is exactly what you said, the frugality and consequential accumulation of money is not the end. It's the freedom and ability to realize your own potential (untapped humanity) because your mind is focused on higher values than materialism.

You're right on here. And yet what you bring up makes part of me feel that I need to take back everything I said. I think the criterion for determining whether or not one is, at bottom, frugal or cheap is the extent to which one could give the whole 'stache away if that is what love called for. That, I think, would answer the question of whether one had placed their security in a transcendent love, or in a transient life free from otherwise necessary social obligations.

Maybe that's too blunt, but it's dancing around the heart of it for me. ...and it gives me the shivers to look too closely at it.

It's funny that you said that about "giving it all away." I don't think about giving away my entire stash - it's precisely the thing that gives me freedom so I wouldn't consider it.

I guess your sentiment about giving it all away comes from the cultural current that equates earning money and accumulating money as greed. But, generally speaking, the people who maintain those beliefs are the same people who chase empty material possessions and really have no true understanding of money. Earning money as an fair exchange of value* is a virtue and I reject the idea outright that simply having money is a greed.

Your stache is the result of your savings. Your savings are the the difference between your ego and your income. If your stashe has been accumulated through a fair exchange of value and the subjugation of your ego then it is a sign of virtue.

*Check out the "Money" essay excerpted from Ayn Raynd's Atlas Shrugged. It discusses "fair exchange of value" and tackles the idea that money "is the root of all evil." Give it a read and, if you want, I'm interested in what you think.

http://capitalismmagazine.com/2002/08/franciscos-money-speech/


DividendMoney

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Re: As of this day... DEBT FREE!!!
« Reply #24 on: December 03, 2015, 07:16:14 AM »

Your stache is the result of your savings. Your savings are the the difference between your ego and your income. If your stashe has been accumulated through a fair exchange of value and the subjugation of your ego then it is a sign of virtue.

*Check out the "Money" essay excerpted from Ayn Raynd's Atlas Shrugged. It discusses "fair exchange of value" and tackles the idea that money "is the root of all evil." Give it a read and, if you want, I'm interested in what you think.

http://capitalismmagazine.com/2002/08/franciscos-money-speech/

Thank you for the above quote. The bold section, in particular, is something that I've been thinking about for some time and could not verbalize.  I'm still working with DW to get her fully on-board with my goals for a less materialistic, efficient and productive lifestyle.
« Last Edit: December 03, 2015, 09:05:30 AM by DividendMoney »

maxpower

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Re: As of this day... DEBT FREE!!!
« Reply #25 on: December 03, 2015, 07:50:19 AM »
Your stache is the result of your savings. Your savings are the the difference between your ego and your income. If your stashe has been accumulated through a fair exchange of value and the subjugation of your ego then it is a sign of virtue.

I also really like this quote. I've started reading the Rand piece, but I'll have to give it more time. I suppose, the central issue in my own life these days is that my mustachianism, though humanizing in other respects, has resulted in a decrease in my generosity. Prior to my financial awakening, contributing financially to a cause with no monetary return simply did not have the same kind of sting it does now. "To give" has become "to give away life and freedom."

There were many years in our young married life where we gave 10% of our income away and saved nothing. Now days the thought of doing something like that has me calculating how many more years of working such a move would entail.

Guesl982374

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Re: As of this day... DEBT FREE!!!
« Reply #26 on: December 03, 2015, 10:08:19 AM »
Your stache is the result of your savings. Your savings are the the difference between your ego and your income. If your stashe has been accumulated through a fair exchange of value and the subjugation of your ego then it is a sign of virtue.

I also really like this quote. I've started reading the Rand piece, but I'll have to give it more time. I suppose, the central issue in my own life these days is that my mustachianism, though humanizing in other respects, has resulted in a decrease in my generosity. Prior to my financial awakening, contributing financially to a cause with no monetary return simply did not have the same kind of sting it does now. "To give" has become "to give away life and freedom."

There were many years in our young married life where we gave 10% of our income away and saved nothing. Now days the thought of doing something like that has me calculating how many more years of working such a move would entail.

maxpower - First of all congrats!

I would consider another option of continuing to work after reaching FI to establish additional funds to donate to charity. My wife and I are planning to continue to earn money after FI is reach (most likely in a different way prior to FI because it is riskier) to be able to fund causes that we are passionate about. I figure that we can donate a higher % of our lifetime incomes by delaying post-FI vs. donating 10% (or whatever %) along the way. It may be selfish (first our freedom then charities) but its more generous than just more materialism.

maxpower

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Re: As of this day... DEBT FREE!!!
« Reply #27 on: December 03, 2015, 10:17:08 AM »
I would consider another option of continuing to work after reaching FI to establish additional funds to donate to charity. ... It may be selfish (first our freedom then charities) but its more generous than just more materialism.

Thanks for that, Liberty Stache. This is actually my plan. I may just have an internal conflict between my inner idealist and my inner pragmatist!

Ideally, I'd be "The Man Who Quit Money." But I have a wife and two kids... and they're not keen about dumpster diving and living out of a cave. So I've guiltily settled for MMM. :)

Davids

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Re: As of this day... DEBT FREE!!!
« Reply #28 on: December 03, 2015, 05:43:57 PM »
Congrats, that is awesome.

Jack

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Re: As of this day... DEBT FREE!!!
« Reply #29 on: December 03, 2015, 07:59:05 PM »
I'd like to offer my condolences for the loss of all the low-interest leverage you could have employed to grow your investments even faster.

maxpower

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Re: As of this day... DEBT FREE!!!
« Reply #30 on: December 04, 2015, 08:07:30 AM »
I'd like to offer my condolences for the loss of all the low-interest leverage you could have employed to grow your investments even faster.

Appreciate that. No need to send a card. ;)

FIREby35

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Re: As of this day... DEBT FREE!!!
« Reply #31 on: December 05, 2015, 07:07:31 AM »
Max Power - One thing I believe is that "charity" can be about much more than giving money. For example, I participate in lots of different community activities without pay. I'm talking about Boards of Directors for multiple organizations with missions I agree with or soup kitchen hours. The biggest project I have is a scholarship fund that has awarded 12 full tuition scholarships in that last two years.

What I've learned is that most of these types of community activities, that are about giving and serving others, don't take much, if any, money. I see most community resources are fragmented. Simply organizing existing resources and people solves most problems. For example, we've awarded 50K in scholarships but I've only donated a few thousand - most of it comes from organizing and receiving funds from others who were on board with the mission but didn't know how to help. So, a person who takes it upon themselves to organize and lead others is really valuable to their community - maybe more valuable than someone who simply gives money.

I guess my conclusion is, again, not to overemphasize the money aspect. Really, if you want to be generous you can be be generous with your time and talent - which is much harder and rarer than simply giving money.
« Last Edit: December 05, 2015, 07:14:31 AM by FIREby35 »

FIREby35

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Re: As of this day... DEBT FREE!!!
« Reply #32 on: December 05, 2015, 07:12:00 AM »
Also, I agree with everyone else that I will be much more generous with my money when I have secured the financial future of my family. I'm married with three children under 5 years old. So, I am very focused on becoming FI for the benefit of the people that depend on me.

Money Badger

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Re: As of this day... DEBT FREE!!!
« Reply #33 on: December 05, 2015, 06:52:07 PM »
@maxpower,   Bad ass!!!   Every day from here, you're free.    Now constructively enjoy EVERY day!

cawiau

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Re: As of this day... DEBT FREE!!!
« Reply #34 on: December 05, 2015, 07:08:20 PM »
Congrats!!!


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ptgearguy

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Re: As of this day... DEBT FREE!!!
« Reply #35 on: December 10, 2015, 11:27:53 PM »
Congrats, that must be an amazing feeling. I look forward to being there myself in the next year and a bit.