Debt and improbable goals

I have gutted the emergency fund and paid down the credit card. We are in debt again but it’s not insurmountable. We should have enough money to pay more than the minimum on the card and have enough to live on. It’s difficult when we’ve been spending so much and so freely to scale down again, but we’ll manage. And this time we’ll stay at a reasonable spending level even after we have paid off the debt. There’s a closing costs fund that we need to save for as well as an emergency fun after that and then the house to pay off. I don’t plan on keeping us totally deprived or anything, but we’re not going to spend profligately this time until we have no more debt. I give it 12 years. Maybe less if my job pays well.

We can’t keep spending like we did when we were young and childless. We never ate at home, spent money on restoring a car and playing at our hobbies like it was going out of style. That kind of thing is what got us into trouble in the first place. And, while we’re not nearly as bad anymore, we still have a tendency to spend when we get money. As does everyone. I will set a cap on our money for the pay period and we’ll stick to it. We will not get back into the consumer debt go-round. I refuse. The timing on this was unavoidable, and there may well be times throughout our life when that will be the case, but I plan on having enough put by to keep it from being an issue.

They say there’s power in writing down your goals. Well, here goes. I want to be out of debt in 12 years and have a million dollars in liquid assets by the time we retire. Seems a long shot when we have exactly $1000 in savings and a small retirement fund from my husband’s work. But, that’s what I want. If I manage the debt free bit within my time frame, the million dollars will still be incredibly difficult. I will only have 15 to 20 years to amass it. That’s a hell of a lot of money. $50,000 a year. I love the sound of “millionaire” though. It can’t hurt to aim high. I may never see a million dollars, but I will continue to work toward it and try for it. What the hell, right? It’s nice to have a goal. And I do so like big, round numbers.

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2 Responses to Debt and improbable goals

  1. Howto$tuffYourPig says:

    As long as you can pay a little more than the minimum due on a credit card, you are making great progress! Debt takes a long time to pay off and it seems like an impossible task at times, but you will get there!!!

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