For Richer, For Poorer: Say No to Debt, Say Yes to Freedom . . . 5 Quick Steps

by Meygan Caston

Our world was shattered in our fifth year of marriage. Casey lost his job, we had a newborn, and had over 100K of debt. We lost our friends, our independence, our home, our cars and our identity. We were broken and embarrassed. We pointed our fingers, trying to blame each other and then it hit us like a ton of bricks.

We had NEVER spoken about our finances together. We didn’t do a budget, or have a savings account, no plan B, and we honestly thought the money would always come in. No wonder we were in this predicament. It was 100% our fault and there was no one else to blame but ourselves.

Did you know that the average American in debt carries $15,252 of consumer debt (not including cars, student loans or mortgage)? Our total consumer debt for this nation is in the billions! We must love to spend money we don’t have.

Debt is a huge burden you cannot afford to carry around in your marriage. Debt is the result when people don’t have the control to wait and save their money. We were those people who put things on credit card, paid the minimum payment each month, bought more things, repeat and spend, repeat and spend and so on. We lived our life thinking that money will always be there and my job will always be there. We had to learn the hard way and we wouldn’t wish that on any family.

People who have debt also have a higher risk for cancer, heart disease, sleep loss and headaches. Casey and I lost several nights of sleep when we owed money to what seemed like everyone we knew and found ourselves stressed out a lot. Anytime a small emergency would happen, like a flat tire or a trip to urgent care, we panicked and had little to no resources. Because we didn’t have any money and were living paycheck to paycheck, a $50 urgent care co-pay felt like a million dollars.

But there is HOPE. If you feel like you are drowning in debt and can’t seem to pay all of your bills, remind yourself that thousands of people daily choose to make wiser financial decisions. You can too and just like we did. It takes dedication, intense focus, a plan and the will to make sacrifices, but it’s possible and so freeing when you work as a team.

It took us 3 years, 4 weeks and 18 days to pay off all of our debt, but we did it and with the help of Dave Ramsey.

Start with these 5 steps:

1. Cut back on nonessential spending, such as eating out at restaurants, impulsive trips to coffee shops, buying name brand prescription drugs, lottery tickets, bottled water and those silly singing birthday cards.
2. Add up all debt (student loans, car payments, even personal loans from a friend or family member count). Post the grand total up in your office or refrigerator.
3. Start an emergency fund of $500-$1,000. DO NOT TOUCH IT unless there is a true emergency. Common emergencies are a trip to the ER, a broken water heater, or a flat tire. Wanting that new blouse or the absolute latest smartphone is not an emergency.
4. Start a budget. There are tons of apps and free budget sites you can use if you’ve never done one before that walk you through all the steps. The key to having a successful budget is doing it with your spouse and doing it each month. Our favorites are Mint.com and Dave Ramsey’s budget forms which are both free.
5. After you and your spouse have done your budget, take any extra money and put any extra cash to the loan with the smallest amount owed. Each month you will pay as much as you can to that one loan and pay the minimum payments to all the other loans you have. This is for a quick win! It will feel incredible to get rid of that credit card payment. Once the debt is paid off, cut the card and throw it away so you’re not tempted to rack up more debt.

Why is it important for couples to be wise with their money? When we have a financial plan, we are free to live a simpler life with our mate. When we say no to debt and yes to being wise with our money, we are able to give more to those in need and work smarter, not harder. There will be less stress, less arguing, less anxiety, more sleep, more date nights and more time for fun.

Marriage Challenge: Choose one of the 5 steps above and start practicing it in your marriage. Let us know how it goes. Is money something you can talk about with your spouse? What are your biggest issues when dealing with money?

 

Meygan is an author and blogger along with her husband, Casey, at marriage365.org. You can also follow them on Twitter @marriage365. 

Reposted with permission. Article originally appeared here.

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