I received this email from Debra recently and I thought it might encourage some of you. Her email shows how working hard to become debt-free can really pay off when you have unexpected expenses and opportunities arise:
About three months ago, my husband and I reached our goal of being debt-free — with the exception of our mortgage. We had three+ months salary in a savings account, and a small amount in a car savings account. We were so relieved and proud of our hard work and sacrifice to reach these goals.
Then, over the twelve weeks that followed, we were challenged financially by some unexpected blessings and expenses.
Our 1st expense:
We were notified by the state that our name had been drawn out of a lottery to receive state funding for a safe room (storm shelter). This was a blessing because living in Oklahoma and not having a cellar or safe room meant worrying every time tornado season rolled around.
The funding would pay a little less than half of the cost of the safe room. So we proceeded with purchasing the safe room, tapping into our savings just a bit. What a blessing is was to have the shelter during the month of May; it was rough here in Oklahoma!
Our 2nd expense:
Our church was sending a group to Russia for a mission trip and both my husband and I felt like he should go. The cost of a ten-day trip to Russia including all air and land expenses was a hefty one.
Without fear we proceeded forward, knowing God was calling him. While saving up in the weeks prior to the trip, an anonymous donor paid $1,000 of each team members expenses; about 1/3 of the total cost. What a blessing!
Our 3rd expense:
We had our van in the shop, undergoing several repairs to the tune of $900. On the way to pick up the van, in my husband’s car, we were hit from the behind. The impact pushed us into the truck in front of us — so our car had rear AND front end damage.
The car was over 10 years old and had very high mileage, so the insurance company totaled it. We weren’t ready to purchase another car and were worried that even with the insurance money we wouldn’t have enough to purchase another vehicle with cash only.
We prayed that God would lead us to the right vehicle and He did. We were able to purchase a used small crew cab truck for my husband paying cash; using the insurance money, car savings fund and a little from our checking account.
All of this has taught us to be faithful and patient and in each situation God worked out a way for us to pay cash!
Debra is a stay-at-home mom and mother to three boys; Kalen age 10 and Jordan and Josiah (twins) age 5. She does some contract work from home and teaches a few fitness classes each week at my gym. She is passionate about being frugal and saving money.
It hurts to have to spend it, though! After staring on the Dave Ramsey plan in Jan, we chose to use our tax refund to put into our savings account, instead of doing sooo many things I really wanted. I had dreams of paying off bills, or fixing garage doors, or buying a pool, etc. lol ( Never really goes as far as your mind can dream). But, I sacked it away into savings. Seriously, not a full month later, I had to undergo some tests at the hospital that required several doctors visits, specialists, etc. I drained the entire savings writing one check to the hospital. I cried while meeting with the financial director that day. She felt bad, I could tell, but while doing it, I realized God had me do the savings for this reason. I had the money and didn’t have to take a payment plan or a credit card to pay. Plus, there was a little boy there who had been to 2 other hospitals because they couldn’t find out what was wrong with him. I sat looking at him thinking about my 2 healthy children and how money isn’t everything. Long story, but since Jan ( and all of this) we have still been able to pay off 2 credit cards, and (hopefully) are well on our way to paying for a new heat/ air system for house in Sep with cash (God willing!)
We can attest to the peace that being debt-free brings. In 2013, a month after paying off two car notes and a hefty mortgage, my husband lost his job of 16 years. It took my husband 12 months to find another job, but we were able to pay our household bills and community college tuition for our son solely with my income as a school teacher. We also saved all of my husband’s unemployment benefits. Forward a year later, we continue to live on my income, save my husband’s net salary and pay for our son’s state university tuition. It takes determination to become debt-free but it is so liberating.
I have 6 more weeks of daycare to pay for before my son hits Kindergarten and then I can start paying some things off. At the moment I’m just proud to say that I survive each month without borrowing money from family or having to do any of those paycheck loans (which are a major rip off). I can’t wait to get started on my debt free journey!
Congratulations in accomplishing your goals! I hope to be in that position soon.
I am deep in debt and the past 2 years have been a struggle due to all the scheduled monthly payments I have to make, while at the same time trying to cover my family’s living expenses. I keep telling myself that in 2 more years it’ll be better but some days I just want to cry.
I am currently living paycheck-to-paycheck and there are months where I am completely broke before the next check is deposited. I am grateful that I have a job since there are many people who don’t have one, but it’s so difficult when I can’t seem to get ahead.
I need to remember to ask The Lord for his help and guidance; obviously, I am not doing so great on my own. Thank you for the reminder and may God bless you.
We have been blessed again and again by focusing on paying cash and reducing debt Last month, we purchased a 2008 Chrysler Town & Country with many pricey upgrade options and only 20,000 miles on it. The original cost was $37,000 and we paid a little more than 40% of that price in cash.
Our only debt is currently our mortgate. We’re working on paying it off. Our home is valued at about 160,000, we’ve lived here for 7 years, and we only owe $23,000 (we borrowed 67,000.) Our oldest will go to college in 4 years, so our goal is to have the house paid off by then.
It wasn’t always easy to pass on “wants” in order to put extra money into savings for our next cash car purchase, emergency, onto the mortgage, etc., but we’re really seeing the fruits of doing it now, with college approaching.
This is so encouraging! We have had several difficult YEARS and have repeatedly drained and replenished the emergency fund. I’m looking forward to getting back to that place again, where emergencies are no big deal. (At this very moment I’m cleaning up water leaks in TWO parts of our home…last week the car needed an $800 repair…last month we had to replace the fridge…and on and on!)
Great testimony!! Thank you for sharing. It really helps you see how important it is to save!!! So glad everyone was ok after the car accident!!!
I loved reading how God has provided for you!
Way to go! We’re just about two months from being debt free, minus the mortgage ourselves. Now is the time we’re mapping out future savings, padding our emergency fund from 3 months to 6, etc so we’re truly prepared for whatever life brings.
Thank you for sharing, this story is very encouraging. It is wonderful to hear stories of God providing.
Just had to comment on your boy’s name. We have a Kalin also, ( I know, different spelling) he is 19! You don’t hear the name very often and would love to know how you came up with it.
Thanks for sharing! I was talking to my husband last night about us having more gratitude for what God has given us and praying more to put our finances in His all-knowing hands.
We are in a great place financially (saved 20% down payment on a house, 6 month emergency fund, funds for future expenses, etc). However, we’re significantly underwater (somewhere between $10k-30k depending on which appraisal you look at) on our condo.
Our goal now is to pay down our mortgage with everything extra we can scrape together so we can break even when we go to sell. I know we can, but I also know we’re trying to rely on ourselves too much instead of thanking God for the nice place we are living in now and trusting His plan for our future. There are so many people out of work and so many people around the world who would LOVE to live where we live. I try to remember our problems are few and our blessings are many. I appreciate your attitude.
Amen. I find this all the time too. There is a constant ebb and flow of blessings that cover expenses that we did not expect.
God’s timing is always perfect! Just “restarting” our journey to become debt free and have spent a good amount of time figuring our new budget! We will be transitioning to a bi-weekly income in August and it has been challenging to make sure all our payments (10 credit cards! + the usual monthly bills) are scheduled so that nothing is late. In essence, we are having to make all of August payments this month so that everything is payed on time with the new income cycle! Our God is so good, He has provided overtime and a 2 week reprieve from our mortgage payment (we have it set up so that the payment is automatically deducted each payday, therefore we are ahead in our payments!) Making this transition will be very doable, and we will have our $1000 emergency fund completely funded by the end of August!!
Thank you for this very encouraging post, it gives me great hope!! 🙂
Thank you for sharing. I find these stories motivating ! It helps me to continue to focus on our goals as a family. I am blessed to have connected with your blog and your contributors… Thanks from Alicia in Ontario, Canada 🙂