by Tammy Taylor
When RancherMan & I married I already had a house of my own. As a single mother I was making ends meet, but just barely. Of course he had his own home as well. So when we married we sold my house since his house was easier to fit our growing family. The kids and I moved in with him & his children. Now of course with a larger brood the previous household expenses were bound to go up, but certainly not by double.
Most people would find this blending of homes, income and expenses as a way to finally relax the financial stress of barely getting by. And of course we certainly did, it was a breath of fresh air! But I asked RancherMan, “I’m already used to making a house payment of approximately $1,000 each month for my house. How about we continue to make that payment but put it into a CD every month instead?”
It was hard to wrap my brain around the potential of us having $12,000 worth of CD’s in one year! But we really wanted that financial security, so we decided to go ahead & give it a try. We were thrilled to find it was beyond effortless. Of course at first it took discipline not to just consider it spending money. We still had to watch our budget, but soon it became a habit we no longer needed to even think about. Then our CD’s began to rack up.
After that first year we were never more than 30 days away from a renewal if for some reason we needed the cash. With each new renewal we would simply add this month’s $1,000 payment to the renewing CD and put it back out there for another 12 months to earn yet more interest. This was brilliant! And because it was using money we were already used to spending, it didn’t even come out of our budget.
We both dreamed of a day when we’d have our own little place in the country. Could it be possible?? We contacted a real estate agent and found this piece of paradise in Northeast Texas. I fell in love with that old 1880’s Barn & he loved the lay of the land. We decided to call it our own. But we didn’t want to risk our financial security by using the nest egg we’d built up. So even though the land payments were only a fraction of our monthly CD amount, we started making those $1,000 payments to the mortgage company to pay for the land. We paid it off in record time yet it still didn’t come out of our monthly budget. Wow, that’s exhilarating. NOW WHAT?
Well now we needed a tractor, storage buildings, fencing, ponds, etc. These things were all taken care of with that same effortless step started years ago. We simply continued to set aside that same amount equal to my old house payment that we were no longer making. Our equipment and our pasture improvements were all paid using that method. And ponds were dug and fences were built using that method as well. The beauty of it was that we weren’t going into debt. And it still wasn’t coming out of our monthly budget. Effortless!
Fast forward a few years. We built our home & moved from the big city to live our dream of country living. And when we decided we wanted to pull the plug on corporate employment and run the ranch full time we were able to do so. With no debt looming over our heads, our monthly income requirement was already low. Wow, what a tremendous difference being debt free makes in your ability to make decisions. Those decisions are not based on your debt load, but on your CASH!
Are you longing for financial security? This is a more effortless way to build that nest egg. I urge you to try it in a way that works for your household. Maybe make a small monthly payment to yourself into a savings account each payday, just like any other bill. You won’t even have to take it from your current budget if you can free up a little budget money by skipping a night or two of eating out each month, eliminating ‘boredom shopping’ or saving money by buying groceries cheaper in bulk from Amazon. When that washing machine goes out or the lawn mower dies, the money will already be in the bank to pay for its repair or buy a new one. If you start small and build on it you won’t feel the pinch at all. And the freedom of financial security is priceless!
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