My Biggest Financial Mistake

We left off on my last post in 2005, driving a gas guzzling 2001 Dodge Durango while commuting an hour and gas being $4 a gallon. 😬 Go back and read Part 1 if you haven’t, because there’s lots of entertainment there that I can look back on now and say..what the?! πŸ˜‚

Back to the Durango part of the story..I had just started Financial Peace University and had also just started dating my now husband in 2007. I really wanted to do the debt snowball and keep the Durango and pay it off. But I was young and stubborn..and well..still financially irresponsible and just flat out stupid. πŸ€·β€β™€οΈ

Sooo..long story short..in 2008 I traded that ole Durango in for a gently used 2007 Nissan Altima. I couldn’t qualify for a car loan with under a 16% interest rate on my own, so my boyfriend (now husband) co-signed. Why are y’all out here enabling my bad decisions by co-signing..can we say enablers?! While I am absolutely grateful for the help on the loans, the now wiser older version of me is like..well..that was a sign I shouldn’t be getting a loan..period!!! If I wouldn’t have had that option, then maybe I would have figured out a different solution that didn’t involve another loan and $300 car payment. πŸ™…β€β™€οΈ

With marriage, my husband brought a 2002 Nissan Maxima that was paid for. We ended up deciding in 2015 to trade it in for a 2014 Nissan Pathfinder SUV that we “needed”. So we did make that Maxima last a minute, and we even kept the Altima after we paid it off. (and my husband is still driving it today with over 200k miles) It smells weird and has different sounds, but it runs and that’s what our requirements list looks like for a car these days. 😜

We ended up selling the Pathfinder because it had transmission issues and pissed me off at the wrong time on the wrong day. The Altima was also causing some troubles, so I decided it was no longer safe to commute in. We ended up doing some minor repairs and my little brother used the car for a year or so. Fast forward to 2017 and impulse buying my 2015 Infiniti Q50..cause I need a luxury car that my kids can spill their drinks and empty snacks all over in, and slam the doors into anything that is there when they open them. It’s also important to have premium gas for a commuter like myself. πŸ€¦β€β™€οΈ

Happy ending though..sold the Infiniti and replaced with a paid for in cash 2013 Nissan Altima with 124k miles on it. So we now have NO car payments and two Nissan Altimas to get around in.

I think it’s time to analyze the overall effect this financial mistake of having a car payment for 18 years had on my overall financial wellness. Hopefully this will help prevent it from happening to others in the future. If you take an average of $350 a month over that 18 years, that’s $75,600.

πŸ™„πŸ˜¬πŸ˜­πŸ€’πŸ˜³πŸ€¬πŸ€”πŸ€¦β€β™€οΈ

I could have easily had one or two cars last me through that timeframe for under $10,000. What would life be like had I taken that money and invested it or saved it and used it for down payments on 4-5 rental properties? I could have used the cash flow to pay for a car of my choosing. Also, did having to ensure I could cover that $350 every month make me less of a risk taker on chasing dreams and playing it safe for a steady paycheck? Deep thoughts and questions we will never know the answer to.

What I do know is that I drove myself down a road paved with bad decisions for 18 years, but better late than never to realize it’s time to take a different road. πŸ˜‰

I’m curious..what is your biggest financial mistake and what did you learn from it?

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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

Chase your dreams for FREE

As the lyrics to one of my favorite songs go:

Are you a dreamer also and just don’t know how to take action? Keep reading…

I sometimes find myself surprised at what I stumble upon at the local library. We’ve gotten kids books, music, audio books, downloadable books,DVD’s, and even watched a magic show or two. I’ve seen puzzles and games there, and they even have computers with games for kids or internet access for people who need it.

They do a lot of free events also, like the summer reading program or the Random Acts of Kindness December where kids can earn free books. We do these things every year and my kids love the library and to read. Seriously can’t think of anything better than my kids getting smarter while feeling entertained for free. πŸ€·β€β™€οΈ

While my kids have gone once a month and filled a bag of a bazillion books for years, I haven’t really taken full advantage for myself. I occasionally grab a trashy audiobook for my commute, or the book we’re reading in the book club I’m in, but just recently I realized something epic.

I’m NOT too old to learn new things. Im NOT too old to follow my dreams. I’m definitely NOT smart enough to know everything there is to know out there either. So why not take advantage of the free resources I have available?

As you have likely noticed, I AM a dreamer and I always dream big. I’m on a journey to improve the financials of my family and really into the F.I.R.E. movement (Financial Independence Retire Early). I have also been interested in real estate investing for years. The library was that next step for me that took me from dreaming to doing. I have already read 6 books this year, and have gained the confidence and knowledge I was lacking to just go for it already.

What have you been dreaming about and what are you waiting for? I bet there’s a book that can turn you into a doer at your local library. πŸ“š Still scared that you won’t be able to turn your dreams into a reality? I bet there’s a book for that also, and seriously..don’t be scared..it’s free, so you have nothing to lose and only knowledge to gain. πŸ€“