Surprise Post...BIG NEWS!

So, I'm going out of my weekly format for a very special brag post.

We are officially DEBT FREE!!!!!!!!!!!!! OMG, I cannot get enough of that. Other than our mortgage (AKA, good debt), we are free and clear. No credit cards, no car loans, no second mortgage, no ANYTHING. It feels so amazing. It definitely has not set in yet. We received our Federal Tax return this morning, and I immediately paid off our Visa. The last remaining penny of (unsecured) debt that we have.

Several years ago, we stated getting into trouble. Through a series of unfortunate events, bad planning, and hasty decisions, we got ourselves into quite a bit of debt. An expensive wedding that came with some additional expenses we were not anticipating; buying our "forever" house too soon after said expensive wedding, with no down-payment, leaving us with a ridiculous mortgage payment; and an unplanned pregnancy and start to our family. So, I started on the path of getting us up on our feet again. Becoming obsessed (OBSESSED!!!) with our budget, and figuring out what I ended to do to get us out of our mess. This involved each of us opening a line of credit, and using it pretty frequently, and racking up some credit card debt along the way (not on anything fun or exciting, but on necessities, and bills - I NEVER thought I'd see the day when I would be charging BILLS). Over time, we paid off each small debt, little by little. We continued to claim 0 on our tax withholdings, so that we could get that big refund and actually put it to good use, resulting in paying off Christian's truck last year (I've never had a car payment). Last summer, I was able to modify our mortgage, bring it down significantly (to what I refer to as a "normal" mortgage payment). Finally, we DID finally breakdown and change our tax withholdings last summer as well, to get a bigger bi-weekly income to make sure we stayed ahead of the game.

So, for years I've used an excel spreadsheet to track our income and budget. Basically, I list every paycheck (we both get paid every other Friday), and everything that comes out of that check (from gas for the cars, to every actual bill, to spending money - which is everything from toilet paper, to birthday party gifts, to family outings). So, I can see where we stand at any given time - estimated, but after several years, it's pretty accurate. Right now, our budget goes all the way through the end of 2014, so that gives me a good glimpse into the more distant future. I have daycare cost adjustments built in as the girls get older and when they'll start full time, and I've built in extra daycare costs later next year, when we hope to have our 3rd child. So, it's pretty in-depth.

Every payday, I go in and update our budget, and pay any bills for that pay period that aren't automatically withdrawn. Every morning when I get to work, I pull up our checkbook (which I track on another spreadsheet) and our budget, balance our bank accounts and update our budget as needed. The next time we get paid, I balance out that pay period, start on the next, and double check "the future" to make sure everything is still on track. I have this down to a science!

Now, in the past, this process was a lot more trying and stressful. It involved a lot of transferring money around, borrowing from our lines of credit, charging things here and there to make sure we could cover everything (hence the credit card payoff need). With time, things have gotten a lot cleaner, and a lot better - especially over the last year since paying off the truck. Now, there's no more worrying. It's done, we're on the road to much greener pastures!

I'm now in the process of closing Christian's bank account, so we'll just have our one account. I've moved all of our bills to withdraw from my account, Christian handed in his direct deposit paperwork to go into my account, and he's being added on as a joint. YAY, no more tracking two accounts!!!

It feels so amazing to have something we've worked so hard towards come to fruition. All of the "sacrifices" and all of the countless hours I've spent looking at and adjusting our budget have paid off. All of the clipping coupons, signing up for every freebie and sample imaginable, and entering every contest that comes my way. We don't go out much (and, usually do only if it's free/we won free tickets/etc.).We don't get to go everywhere we want to go, we don't have everything we want, we don't do everything we want to do. We don't have the latest, fanciest gadgets (unless gifted to us), the best clothes or go on vacations more extravagant than "Up North" or "Groupon" purchased. But, it's all been worth it. I feel like a huge weight has been lifted off of my shoulders.

So, that's my story. That's our financial background. That's our journey. While it's a difficult journey, I'm actually happy we've gone through it. It's made us stronger, individually and as a family, it's made us realize and accept what's really important in life and it's taught us a lot. And, most importantly, we can forge ahead with our next adventures in life!

The next goals are 1) to get my car to hold out until next year, when we should essentially be able to pay cash for a new vehicle.2) lose this weight, hopefully by the end of this summer! No rest for the weary, time to keep pushing through!