I interrupt my scheduled blogging to write my future self about some perseverance, sticking to the plan, and delayed gratification. I'm confident I'm going to need to re-read this in approximately a week year.
Karl & I decided during our dating relationship to start sticking to strict cash budgets. We each did separate ones but both did so in attempt to build savings for our future together. Over the course of those years, we moved towards Dave Ramsey's financial plan. So for more than 4 years we have used a cash budget (like, literally taking cash out and dividing that up into envelopes designated for different purchases- eating out, groceries, dates, gifts, etc.). Then 2 1/2 years ago we took Dave's class, Financial Peace University, and started his baby steps full force:
1. Save $1000 as an emergency fund
2. Get out of all debt, excluding your home mortgage, and cut up all credit cards!
3. Save 3-6 months of living expenses
4. Put 15% of monthly income in retirement from now until forever
...and so on. There's like lots of steps. We'll definitely be working through them forever.
We worked and sacrificed to get through these steps because, in the wise words of Dave, "Live like no one else so you can live like no one else." Does it sound like we are in a cult? It kind of is. Just kidding. Here is the gist: our culture is one of immediate gratification & a more more more mentality- using credit cards and then often not having money to pay them off when the statement comes is normal. Thank you government for solidifying this. I'm definitely not saying this is the case with everyone or that credit cards are evil... I think that they can start a bad habit and if we can avoid the temptation, why not?! Choosing to not use credit is such a small piece of what we learned but it is the gist of my #cashprobz. See two paragraphs down.
The point of all of this- Karl and I are debt free! That is through God's grace and the fruits of His spirit because it really stinks to be out shopping and not be buying because my envelope is empty :( and self-control isn't my best virtue. Part of being debt free: we are no longer paying into any student loans, we have no car loans, and we do not have any kind of credit balance at all. I praise God for this freedom...
...annnnnnd then we went to try and rent an apartment this week. and have electricity turned on in said apartment. and it was reallllly difficult. because we no longer have decent credit. because we don't have credit card bills to pay on time each month. or car payments to make. or loans. all those things that help build credit. and then also there's that whole year that just happened where we didn't have a single bill to pay. so our credit stinks. so nobody wants to rent us an apartment. or turn our electricity on.
Our good friend Dave talks and warns about this, well, not about the whole year of not paying bills but about credit scores stinking. Regardless of his warning, I still consider this a fault in his plan for young adults without a giant cash source, which would allow many to not care what their credit looks like if they never need a home loan, for example. So that's where we are at, Dave, {sticks tongue out}!! I still swear by his financial plan. I can see how beneficial it is for us now and in 30 years. What really stinks is that I feel punished by the positive choices we have been making; I am frustrated by the standard that most Americans live by which has in turn become how lessors decide who is a suitable lessee, what mortgage rate you can get, etc.
So I feel like going to apply for a credit card and buying things so I can raise our credit score so when we are ready to buy a house, we can do so more easily. There, I said it. {...and then we would be declined for the card, ha}
So now you all know The Dave Pickle.
I'm holding strong though, Dave. Hit me up. Encourage me, Dave. A dolla make me hollllla!!
I'll let you all know how this turns out. Seriously though, for Dave's thousands of young adult followers (again, sounds cultish...) this is going to be a huge problem.
Also now you all know that I have cash on me at all times
Hannah moneybag$ Burton
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