by Tammy Taylor
When my Love & 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 expense as a way to finally relax the financial stress of barely getting by and of course we did – it was a breath of fresh air. But since I was already used to making a house payment of approximately $1,000 each month, 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! We decided to give it a try and it was beyond effortless. Of course at first it took discipline and watching our budget but soon it became a habit we no longer needed to even think about. Soon our CD’s began to rack up, and 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!
Then we decided that one day we’d like to have our own little place in the country. We contacted a real estate agent and found this piece of paradise in Northeast Texas and decided to call it our own. Even though the land payments were only a fraction of this amount, we started making those $1,000 payments to the mortgage company for the land and we paid it off in record time. 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 with simply continuing to set aside an amount equal to the house payment we were no longer making. 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. Wow, what a tremendous difference being debt free makes in your ability to make decisions not based on your debt load, but on your CASH!
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 feeling of freedom is priceless!
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