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?! 😂

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. 🤷‍♀️

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. 🙅‍♀️

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. 🤦‍♀️

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.

🙄😬😭🤢😳🤬🤔🤦‍♀️

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. 😉

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

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Haircuts At Home

Well..against several people’s wishes 🤣 I went for it and cut a little over an inch off using the Unicorn method. 💇🏼 🦄

BEFORE:

My thoughts 💭 ummm..I wish I would have tried this sooner!! I haven’t looked at the back, but my husband said it was straight, and he has to be seen with me, so pretty sure I can trust him. I feel very accomplished trying something that terrified myself and many others for me to try. It was actually so super easy, only took about 5 minutes, and was absolutely FREE. (my husband had scissors so I didn’t have to buy anything) ✂️

AFTER:

Just kidding 🤣..

THE REAL AFTER:

My family may be a little scared of me venturing out to their heads next, but going to try and earn their trust through “gentle” persuasion and possibly bribery . 💁‍♀️

With a family of four averaging $25 per cut, that adds up to around $900 a year and $15k over an 18 year period. This doesn’t include color, which I already stopped all together 9 months ago, or eyebrow maintenance, which I’m still trying to navigate on my own, literally one tweeze at a time (had a bad home wax incident of 2013 I’m still recovering from). 😬

The verdict: Go get you some nice shears, watch a few YouTube tutorials, put on a brave face, and go for it! If it goes well, send me a shout out. If it doesn’t go well, take comfort in knowing it will grow back soon. 🤷‍♀️

What can you do with that $15k I just saved your family? Feel free to Venmo it to me. 🤑

What else do you do at home or what should I try next on my new DIY kick?!

(Disclaimer: I am not a cosmetologist and your results may vary, so you have been warned that it’s all on you whatever actions you decide to take after reading this)

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 “perfect” 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. 🤷‍♀️

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. 😂

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. 👀

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. 🔥

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?

👇🏼👇🏼👇🏼👇🏼

Be a Goal Getter

I don’t care who you are..you need goals. Think of the old cliche saying that totally applies here..how are you supposed to get where you’re meant to go if you don’t know where that is? I firmly believe that if you take everything else out of the equation, mindset and goals are the biggest drivers of if you will or won’t do something. It also doesn’t matter if you’re on a different path than me and think I’m crazy for my recent FIRE movement 🔥, you still need goals and the right mindset for whatever your movement is, whether financial, personal, professional, relationships or health related.

Don’t be a flake and say something vague like “I want to pay off my debt” or “I want to lose some weight”. If that’s your goal, then you may as well replace it with “I don’t want to accomplish anything ever” and just get excited about carrying around those extra 15 lbs and all that consumer debt for the rest of your life. We wouldn’t have paid off all of our debt and bought our first rental by being flaky..period.

Instead, set yourself some SMART goals for whatever you are trying to achieve. Stop and brainstorm your life, past present and future state. I know everyone is “busy”, but sometimes you have to make it a priority to stop and reflect. Think about tomorrow, end of the year, two years from now, and maybe even think even farther, like 5-10 years from now. With us being halfway through 2019, it’s also a good time to look back on the past six months. What do you see? Do you like what you see? What will happen if you continue the way you are? Will you get where you want to go?

After you think about your path and your big picture, which will be different for all of us, think about 3-5 micro goals over the next 6 months that will help you get that much closer to your big goal. Get all high tech and write them on a post it and put them on your fridge…where you see them every day. 👀 (bonus points if they fall off all the time so you have to look at them even more when you pick them up off the floor)

As you can see, I have crossed out and updated a few of mine when my priorities shifted and opportunities came my way that altered my original timeline. Be ready to adjust as life comes at you, but even when things don’t go as planned, don’t ever give up. Remember to set your goals high enough to push you while making sure they are also attainable with some focus and hard work.

Don’t forget to stop and celebrate your successes as you hit your goals. Then make sure you continue to set new micro goals to get you that much closer to where you want to be! We need to think bigger and get some new goals since we’ve already paid off the student loans, currently looking for our second rental and also pretty sure we have increased our net worth by $25k just in the past few months. So I’m curious..what are some goals you have crushed and what are some that didn’t go so well?

Flirting with Fear

I remember in high school and college becoming physically sick about public speaking. To the point where I would accept lower grades just to get back to my comfort zone..which was not being in front of people. I went for perfection in the areas that I knew, and didn’t feel comfortable trying anything different.

I promised myself I would NEVER get in front of crowds after graduating. I would occasionally have to speak to small groups early in my career, and every time it would cause me to lose sleep and have an upset stomach.

I got to a point in my career about five years ago, where there were new promotions I could go after, but part of that would require me to get in front of mid-sized groups. I almost stayed where I was, because it was comfortable and easy and I almost gave up on ever getting over my fear. But instead, I went for it, scared as hell of failure, very anxious and certain I wouldn’t be “perfect” at it.

It was outside of my comfort zone, but I continued to practice, visibly shaking the first few times I had to present, lost a lot of sleep, practiced some more, but watched as the groups slowly started growing in size, so did my confidence and I found that it’s something I actually enjoy.

I have also found some deep breathing and yoga routines that help get me in the right mindset if I am feeling nervous or anxious. I currently present frequently to small to mid-sized groups, and it gets easier every time I do it.

Today, 5 years after making a professional and personal development goal of getting more comfortable with one of my biggest fears, something happened. I had my largest stage and largest audience to date. And I wasn’t nervous or anxious at all, but rather felt EXCITED and GRATEFUL for the opportunity. I didn’t even use the notes that I made for myself.

Making a long story longer. 🤷‍♀️

I definitely think this book had some impact on my mindset shift and highly recommend reading this, along with listening to Reshma Saujani’s TedTalk. Be brave, not perfect!!

What fear do you have that you’ve been able to overcome or that’s still holding you back today?