Hello Friends!
Spring is here, and today is such a beautiful day as I sit in my writing haven to compose a bit! I have a wonderful feeling of well-being. Do you ever have that feeling of happiness down in your soul? Everything may not be perfect, but you can feel the goodness of the Lord.
That’s how I feel today! Such happiness!
My happiness is also because we are debt-free. I must tell you it was difficult! There were days I questioned the constant belt-tightening, but I stuck with the program and could retire at the young age of 58, after 25 years in the classroom.
Due to a subscriber’s request on my YouTube Channel, I’ll be revealing the five key tips we followed to become debt-free and reach retirement.
1. We created a plan a few years before my retirement schedule.
This is our first tip because it was an intensive push to get our budget in line with a retirement lifestyle. However, my husband and I have pretty much always had a budget and were conservative in our spending. We knew to retire comfortably that we had to tighten our belts more and get serious.
I had about three years before retirement, so we put our financial debt reduction plan in place and kept our eye on the prize, which was early retirement for us both. Because of a budget lifestyle and smart investing, my husband was already retired. Therefore, the goal was to get me to live a retired life.
2. We always tried to live below our means with a budget.
Because we both watched our parents budget and take care of large families successfully, it was already in us to live in a comfortable but frugal manner. My husband used to tell our children that we were ‘thousandaires’ when it was time for a little splurge time, like a trip to Disney. But even on these vacations, we still followed a budget and scouted for vacation deals.
3. We used the Dave Ramsey plan to tackle our debt.
The Ramsey plan is pretty intense, but my husband, Phillip, read Dave Ramsey’s book called Financial Peace and then put the debt reduction plan into place. He started with our smallest bill, paid that off, and then moved to the next outstanding bill, which is what Ramsey suggested in his book, along with other budget recommendations.
After about three years, we paid off our debt so I could retire at 58 years young. Now, it took much focus and determination, but we kept our goals in mind when minor frustrations would creep in.
It was rough; however, the end goal was beautiful!
4. We always buy slightly used cars with low mileage.
Another tip is to purchase slightly used cars. I know the allure of buying that brand-new shiny beautiful car is always there. However, we still buy beautiful cars, but they are slightly used and have low mileage. Because of the rapid depreciation of cars once you drive off the lot, it makes sense to choose one that was maybe a lease vehicle or a loaner car. We have found some great deals with some beautiful cars over the years by using this practice.
I received this beauty for a Christmas present as a retirement car. It was on the showroom floor but was a loaner car. Therefore, we did not pay full price for it, and we could pay it off early.
5. We try to avoid high-interest and department store credit cards.
The next tip is we avoid high interest rate credit cards and department store credit cards with high interest rates. Those shiny cards are so tempting and come with wonderful rewards, but you have to look at the interest rates. If retirement is your goal, then you will have to forego the temptation, unless they are having a special with low interest or no interest or you are planning to keep the balance low or pay it off each month.
Phillip is a real stickler with credit cards because they can create angst in your life if you are not careful. They are wonderful to have in your household, especially for emergencies; however, Dave Ramsey says you need to make sure you have an emergency fund and doesn’t recommend using credit cards. We still try to follow this plan, but we have them for travel and emergencies, we keep the balance low and pay it off as soon as possible.
Just a reminder that this is what we did to retire early! Every household is different, so you must create your version of budget planning. At the beginning of this blog, I told you that a viewer on my YouTube Channel was interested in our budget-friendly plan, so I shared our plan.
Please do what works for you. But I must tell you I’m thankful that I could retire from the hustle and bustle of full-time employment.
Are you planning on tightening your belt and moving into retirement? What are some of your tips?
Well, that’s all for now! I hope you are well! Please be kind to someone today! Our world needs it!
Best,
Shelly
Love your advice and insights here, Shelly! When Marc and Carrie got engaged, Carrie’s dad and I took them to go see Dave Ramsey with us. They were just finishing college and would be starting their marriage with some loans. Those two buckled down HARD. We really admired the way they kept debt-repayment as a high priority and they took care of business. Doug and I have been totally debt-free for the past 13 years, when we were able to finally pay off our mortgage. We’ve tried in 47 years of marriage to never let our so-called lifestyle get so far ahead of us that we wouldn’t be able to pull it back when we retired. Doug worked until age 70, mostly because he really enjoyed his work but also because those last few years of work made a big difference in how much we had in retirement savings. He’s been retired one full year now, and he loves it. He has a vibrant creative life, mostly involving songwriting and recording in his home studio. I still economize in a thousand little ways, like I have enjoyed doing throughout our life together, so that our financial outlook remains secure. So far, so good!
Wonderful! I love it! I know it takes effort, but the payoff is so worth it! I’m so happy for y’all!
I would love to interview him on my podcast about his creative life! I think it’s so interesting! Thank you for sharing! 💕
Great insights on how to prepare and live stress free in retirement. I too started about 6 years before retirement paying off everything possible and achieved 90 percent my goal, paying off credit cards gave me the power to retire at ease and with flexibility to work part time or not. My only regret is my mortgage, I still need a plan for the next 5 years or less so I will take your advice and look into Dave Ramsey book or his advice. Cars are easy to pay off in 6 years but mortgages are set to crucify us over 30 year periods and I want to destroy that stronghold, any advice would be great. As for transportation I too agree to always buy preowned cars and even retired my strategy is to always have reliable cars ready for road travel but with grace and beauty—a must have for the next 5 years— after 70 that will change to economy only (Lol). Thanks for giving great advice and keep us living creative lifestyles with sound advice. You are a blessing to our community.
Awe! Thank you so much! I really appreciate your kind words! I will consult my financial guru (Phillip Dahmer) and get some advice on the mortgage. You have some great tips too.