My biggest financial mistake

Y’all might want to grab some popcorn. 🍿 I promise you will experience a wide range of emotions when reading this, including disappointment, anger, humiliation, sadness, confusion, and hope. At minimum, some good laughs as you get a glimpse into one of my biggest financial mistakes EVER.

I still remember 18 year old me getting my first car back at the turn of the century. πŸ‘΅ I remember it to the day..because it was on September 11, 2001. I became the proud owner of a 1997 Geo Prizm that I signed up to get a loan on, and since I couldn’t get the loan on my own, my boyfriend co-signed for me. 😳 I was a full time college student and was working part time delivering pizza and taking the max in student loans that I could. πŸ• I remember my car payment being $225 and my car insurance being just as much. So I was paying $450 just for my car and insurance. That Geo started me on the road to bad choices..so buckle up and come along for the bumpy ride. 🀣

When that boyfriend and I had a bad breakup two years later (shocker), I wanted him out of my life completely. Now that I had two years of payments, I really showed him by walking into a dealership and buying a brand new 2003 Chevy Cavalier off the showroom floor with..wait for it..ground effects. πŸ€¦β€β™€οΈ Everyone please take a minute and reread that and laugh WITH me. It’s best to get a visual, so imagine me delivering pizza to you. But stay with me..it gets even better. I rolled in a few thousand bucks from that Geo Prizm that I traded in because I was “upside down” on that loan. My payment was now $364 a month and I can’t remember insurance cost, because I likely blacked that out of my memory.

I somehow still had friends for the two years I drove that thing around, so thank you to those who stuck with me through the hard times. πŸ‘­ Luckily my brother was driving that thing one day and totaled it. (don’t worry..he was fine) Also lucky me that the dealership saw nothing but dollar signs on my naive ass and sold me GAP coverage, along with everything else they sold. So I was now free and clear of that additional $10,000 that I was “upside down” in with car and old boyfriend baggage. 🧳

This is the part where you started fresh..right..Mindy..right..please tell me..oh geez. One may have taken that clear break as a sign. I took it as a sign to get that SUV with the third row I always wanted..as a single full time college student..still delivering pizza and now also working another job at a video store just to get by. πŸ™„ The year was 2005 and that 2001 Dodge Durango cost me $293 a month, and I’m still blocking insurance costs out, but we can assume around $125. I eventually got a job that was an hour commute, and this was when gas was $4 a gallon, so I was basically working for free. But that job also introduced me to the coworker who heard my bitching about money on the daily and sponsored me starting the Dave Ramsey Financial Peace classes at her church.

What do you all think I did next? What would Dave had done? πŸ€”

Stay tuned for Part 2..

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This is us

I thought with all the new followers, it’s a good time to re-introduce the magic behind mysemibasiclife (you read that right..I totally referred to myself as the magic). To celebrate, my daughter humored me with a photo shoot, and my favorite was one of the bloopers. 😜

Sometimes life is more about what happens behind the scenes, between the β€œperfect” pictures, when you’re trying to pose and get the best lighting, hide that lazy eye, those wrinkles and those frizzy grey hairs. She captured all of these things, all of my imperfections, including crows feet I didn’t even know were there. How fitting to show my imperfections to all of you who have been following along on my imperfect journey to financial freedom. This is me..always laughing at my own jokes, never taking things too seriously, currently staring off into space like only a true dreamer can do. πŸ€·β€β™€οΈ

This is the entire family that puts up with my latest crazy schemes, understands the bigger picture behind those crazy schemes, sometimes appreciates my hilariously witty comments and penny pinching ways, and packs in the car with me for that fifth trip to the library in a two day period. πŸ˜‚

You weren’t there for the early years, the dark debt days 😬 where we were living beyond our means and got ourselves into a financial spot where all of our paychecks were going towards debt. But you have now followed along as we ditched the debt, got rid of car payments and paid our last student loan off, which puts us at a grand total of $165,000 in consumer debt paid off!! You’re following as I am feeling weak, but holding strong and halfway through my #nospendyear. You followed along as we bought our first rental property and are following along now as we now search for the next one. πŸ‘€

We are excited to continue sharing our life after debt journey, including our ever changing goals, working on growing our net worth, celebrating the success, overcoming the setbacks, and the blood, sweat and tears along the way as we define what financial independence looks like for our family. πŸ”₯

Enough about us though..I want to hear from you..what’s your story? What topics that I’ve covered have helped or would help you along your journey?

What questions do you have for me?

πŸ‘‡πŸΌπŸ‘‡πŸΌπŸ‘‡πŸΌπŸ‘‡πŸΌ

$113,108.34 The true cost of our education

In the above picture from eleven years ago, I see a couple of crazy kids having fun at Mardi Gras without a care in the world. This was pre-marriage, pre-kids, pre debt-free lifestyle and pre-multiple bad hairstyles, including a year with bangs. 😬

The crazy kids above had been in the job force for several years, although I’m not really sure what Matt did then or what he does now even, but I had begun down the insurance career path. Along with entering the job force, I had adopted a lifestyle of debt and had been led to believe that’s just what people do, and student loans are just something you pay back for the rest of your life. So we had around $50k combined student loans and our “almost degrees” to show for it, meaning we each had enough credits to qualify for a bachelors, but didn’t actually have a bachelors degree to show for it. πŸ€¦β€β™€οΈ

Matt had been at least paying the minimum on his loans..I was too busy saying I couldn’t afford my monthly payments, yet I could eat out and go party all the time wearing new clothes and driving a new car. πŸ€¦β€β™€οΈπŸ€¦β€β™€οΈ

Things changed shortly after the above pic when we found out we were pregnant with our daughter. We both made the choice to go back to school and get those degrees wrapped up. We paid cash for my last few classes, which I finished up online, while working full time and having a baby at home. It was tough with Matt also working full time and taking night classes three days a week. 😴 πŸ‘Ά 🍼

We weren’t paying on our loans during this time, or the interest that was just stacking up on those already high principal balances. To top it off, Matt’s new career change into a Computer Science degree from a for profit university added another $40k to our already giant mountain of student loan debt. πŸ€¦β€β™€οΈ

Fast forward to about six years ago, when we finally started paying the minimum monthly amount on our loans (only because we had to get them out of forbearance). So if your name was Sallie Mae, Mohela, Nelnet, Fedloans, etc., you were on our payroll for the past six years. The amount we were paying in minimums was around $1500 a month, which was more than our mortgage at the time. πŸ˜¬πŸ’ΈπŸ’ΈπŸ’Έ

I often wonder what else that money could have been doing..for us, for investing, for our kids, for donating, for the economy, etc. It would probably make me sick to run any actual math on what we missed out on not investing the money, and how much total we paid in interest. 🀒

We decided to get serious and use the debt snowball method, and continued throwing every extra penny we had towards them. I skipped eating out, meal prepped, bought used clothes, and budgeted like a badass. It felt like the slowest process, and that we would NEVER pay them off. Some of these loans had 6% interest, so a lot of times I was barely even touching the balance when I made a payment. πŸ™„

We set a goal of being debt free by August 2019, because that’s when my son would be starting Kindergarten. It was always a big goal, and even through each of the setbacks, I knew we would just have to adjust and keep going. I would like to say there was some big secret program we used, but we literally just made a goal and made the necessary sacrifices on a consistent basis to crush it. I can’t even say how good it feels to finally write this post, and even ahead of our goal. πŸŽ‰πŸ˜Ž πŸ‘©πŸΌβ€πŸŽ“ πŸ‘¨β€πŸŽ“