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shooter mcgavin
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# Posted: 28 Mar 2013 08:47pm
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I would love to tell you about the piece of property i just bought or the cabin i built but i cant.
Cant afford one..........yet.
Been married 15 years this year, 2 kids,house, dog. Sounds like most people right? Well, my wife and i also share something in common with a lot of people. We have credit card debt. A good amount.
Thats why i dont have a piece of land or a really cool cabin like most of you.....yet.
A year ago we took an honest look at our situation and totaled up what i call "stupid debt".I almost cried.
Ive hunted and fished all my life which is probably why i didnt end up strung out on drugs like most i grew up with and always had that "dream" of a cabin in the woods or a lake. With my debt now it would never happen.
So one day im screwing around on the internet and start looking at cabins in the woods in Michigan. Unfortunately for those who live there real estate as an investment sucks but for buyers its great. I start running some numbers, ask the wife to get her notebook with our bills and stuff in it. We look at what we were paying every month, i show her what a nice cabin in Michigan would cost after 20-50% down and she just gave me "that" look. We made a promise to each other that we would eliminate all our debt within 3 years and buy our cabin the fourth year.
So to keep the audienced hooked here's where we are at less than a year later. For those of you reading this who may be in my situation, maybe you can learn from my mistakes:
1. Neither one of us have used a credit card in over a year. We have a new philosophy, "If we cant pay cash,we cant afford it" (Actually ill credit my parents who used those words when i was a kid. I thought they were cheap,they were smart.)
2.We drastically reduced the amount of times we go out to eat. Actually, our favorite is a pizza joint where i feed the 4 of us and maybe a beer or two for $35.00. No more $100.00 restaurant bills.
3. I brown bag my lunch everyday, so does my wife.
4. We paid off our Menards card in 6 months. Ran that sucker up to $3300.00. Word to the wise: Do not let the bigger stores rope you into their credit cards. They give you a ridiculosly high limit and try everyway to make you keep it there.
5. We stay out of the bigger grocery stores. We are fortnate to have a family run store a few blocks away. For meat, i make an early saturday trip to the packing houses on Chicagos Westside for huge discounts. The neighborhoods are dangerous but i learned if you mumble to yourself, people leave you alone. In an all black neighborhood, no one messes with the crazy white guy.
My oldest at 13 knows why things are different at home now, why Dad wore beat up work boots for six months longer than he should have. I dont sugar coat life with my kids. Id rather make the mistakes for them.
Wow it feels good to get that out. Also, my wife and i dont blame anyone but ourselves. We got in this mess, we will get out.
So, right now we spend a little time on the weekends looking at homes on the internet, different towns in Michigan and so forth. I spend some time on here taking notes by learning from you guys and gals, and the great stories.
So, i hope i didnt bore you and to those that run this site, great job! Of all the forum based websites ive been on, this seems to be the best run.
For the rest of the members, keep on keeping on!
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toyota_mdt_tech
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# Posted: 28 Mar 2013 09:05pm - Edited by: toyota_mdt_tech
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I have been using the pay as you go plan for decades now. When I was 50, (52 now) I owned my home, owned my 20 acres, paid cash for and built my cabin and was basically debt free. My debt to income ratio is about 2% and that is just utilities. I have found with no debt, I actually have the money to get everything I thought i had to put on credit in order to obtain. I just have the money in the bank now. And I transfer from savings to checking if I need more and when I do, I replace it ASAP. I have packed my lunch for years. Everyday. We dont do movies, eat out maybe once a year. Wife shops at Winco, Wal Mart. I wear Carhartt, spendy, but when I'm done, they are barely suitable for rags. I drive an old Corolla with 270K miles, paid $800 for it, bought the wife a 96 Tercel for $1000, it has 280K on it. These are our commuter cars. I did buy her a new Toyota Highlander, she still has it and love it. I also own a brand new RAM 2500 diesel. But use the cheap cars to rack up miles to go to work, bare bones insurance, both do over 35 MPG's and up.
I own no credit cards, havent for y ears. Have a VISA debit card. I manage all the finances and pay all the bills. Wife is thrifty too. She wasnt at one time, but does real well now.
Just keep knuckling down, stay on course, frugal living, get it paid down, then once the debt is paid down or off, you will find the savings piles up and then, in no time, pay cash for your land.
Go over your expenses, drop the "extras" or anything you dont need to help pay down the debts.
Good luck, it will happen much faster. It will seem slow, but once one bill is paid off, then double down on others, its a snoball affect and then the pace picks up. Before you know it, debt free!
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trollbridge
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# Posted: 28 Mar 2013 09:58pm - Edited by: trollbridge
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Congratulations! You are on the right track AND you are optimistic! That's awesome! The key to paying off credit card debt is to stop using them and you already realize that-you've won half the battle!
You aren't alone here. We are working on paying down our debt too. When the economy soured, our income suffered. Being a self employed contractor in a crappy economy is not fun. Jobs are fewer and the labor rate is far less then what it was.We have cut expenses where we could and keep an eye on where every dollar goes. I wish we had the income we use to have...I would do things so differently-I cringe at the way we use to spend without really even giving it much thought 
When we bought our land and started building it was 2007 and I remember saying " if we can't do it now, we never will be able to" I think we jinxed the economy! It's been hard to build once we started because our permits were only good for so long. Once started, we had to continue. We've had to do what we've had to do, but I'm also relieved that most of the expenses are behind us now. Don't give up on your dream to own a home in Michigan. That desire will keep you motivated to improve your financial situation 
Best of luck to you! I'll be pulling for you to get to the finish line soon 
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gsreimers
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# Posted: 28 Mar 2013 10:23pm
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A wise man once told me there are two ways to be financially better off. You can either raise your income or lower your expenses. Since, as a contractor, in this economy, raising my income is extremely difficult, the wife and I have lowered expenses.
Dave Ramsey says not to pay off your highest interest item first but pay off your lowest balance item and then roll that payment into the next one. Keep doing that and pretty soon nothing is left.
After we saved the amount we committed to helping our 2 daughters with college, we killed all the credit cards and then paid off the cars. No new cars needed and then an additional 500 a month to pay off the land we will build on.
Now with no car payments, no credit card payments and no lot payments, an extra 1500 a month to the house and the mortgage will be done by the end of this year.
Next year, no debt, and we start building on our 5 acres on an 11,00 acre lake in northern Minnesota
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spencerin
Member
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# Posted: 29 Mar 2013 12:44am
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"It's not what you make, it's what you spend."
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shooter mcgavin
Member
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# Posted: 30 Mar 2013 09:43am
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The one thing i like about this board are the politeness. On other boards, i would have been called an idiot or whatever.
To Trollbridge, yep the economy has really hurt a lot of us but fortunately ive been moving up as far as income. I was a line mechanic/electrician for 15 years and last year turned in my tools for a desk and computer and became a Maintenance Planner. Now instead of turning the wrench, i schedule the guys that turn the wrench. Four weeks ago, i started at a new company, same position but with a 25% increase in salary.
Sounds like you had the same problem as us in terms of spending but at least you acknoleged that and made adjustments. I know people with almost maxed out credit cards that refuse to change their life style.
This past christmas, we paid cash for all christmas presents. When i needed an iPad to make my job easier, it was cash. When my hot water heater crapped out last month and cost $415.00 to replace, i paid cash and did the work my self.
Toyota MD Tech, i tried to figure out a way to PM you about your cabin a while ago. I have a lot of admiration for your work.
GSREIMERS, i hear you about helping out the kids. Mine arent in college but my 2 boys 9&13 cost some cash too. My youngest plays hockey, a goalie so the equipment he need is expensive but its for his safety so i dont mind. My oldest doesnt play sports but is really into woodworking so i help him out where i can.
I have to split right now but one last question and i need as much feed back as possible. We are debating of buying a piece of land with a house on it, land and build later, nice land crappy house level house later and rebuild, yadda yadda yadda.
One thing, an outhouse is not an option. My wife had that on our honeymoon and it didnt go over well.
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Dillio187
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# Posted: 30 Mar 2013 10:04am
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all I can say is good for you man. I applaud you for taking responsibility for yourself, your family, and your finances. It's something most in this country will never do. I wish you well in finding your dream cabin, you WILL get there as you sound very engaged.
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VC_fan
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# Posted: 30 Mar 2013 10:43am
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Dittos to Dillio187. I wanted to say the same thing but couldn't find the words.
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trollbridge
Member
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# Posted: 30 Mar 2013 12:17pm
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That's great about your job, and pay increase 
It is hard with kids. Our oldest played hockey and also was a goalie...I remember all too well the expenses involved!
We have 2 in college...a high schooler who sucks money out of us with football, drivers ed and a social life. It is the one time where living in the country is difficult. If he were to get a job at this age, we would be the ones to have to drive him there and back...and when do employers want high schoolers to work? Nights and weekends then it interferes with going to the cabin . Grrrrrr...
It encouraging to hear what others have done!
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hattie
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# Posted: 30 Mar 2013 12:47pm
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Congratulations on getting your finances under control. It is surprising how little money you really need to live if you stop eating out and buying clothes and shoes and "stuff" you don't really need.
My daughter used to laugh at me for my red sweater (actually I'm wearing it now *LOL*). We would take family photos at Christmas and she noticed in a few of them (all different years) I had on the same red sweater. I said it was still in good condition so why would I stop wearing it. I like it. She explained that it was "old" and I needed to buy new clothes. Now she is a Mom and she noticed in her pictures last Christmas and the Christmas before, guess what? She had on the same top. HAHAHAHAHA......She came to me, head down and said that she understood it now. Clothes were just things - not important. If they are still functional you keep them and spend your hard-earned money on the things you REALLY need.
When my kids were little (8 years and 5 years) they shared a newspaper route. They kept that until they were teenagers and then got better jobs. Now they are adults (29 and 26) and both have very responsible jobs (teacher and meat manager of a major grocery store). My neighbours used to shake their heads at me and say I was a bad Mom because I made my kids have paper routes. They likened it to child labour. I'm glad I did it and they have learned the value of a dollar. Both live very frugally and I have no worries about their future.
"A penny saved is a penny earned."
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trollbridge
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# Posted: 30 Mar 2013 01:24pm
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Too funny Hattie! So true!
Our kids too...when they turn 16, time for a JOB! Anything they can do before that-babysit, bale hay, work with their dad...they were expected to do if it earned them their own money. During college was when some complained. "Everybody else's parents pay for this or that" whaaaa whaaaaa...now they've learned how to deal with money. Some have done great and others occasionally get lazy managing their funds, but at least they know better than to come running to us to bail them out!!!
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MJW
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# Posted: 30 Mar 2013 03:50pm
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Quoting: hattie Clothes were just things - not important.
So true.
It is sad that so many people are so attached to a certain logo or trademark and refuse to wear anything without it. I am so glad my sense of self worth isn't tied to having a lizard on my shirt or a swoosh on my shoes.
We still get the "look" from many family & friends because of our decision to start living a much simpler life. My mother in law recently told my wife that her husband (my wife's step father) thinks we are "hurting for money" because she coupons. How do you make people like that see that her couponing is one reason we are NOT "hurting for money"?
Some get it and some never will. I am so thankful we wised up when we did.
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shooter mcgavin
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# Posted: 30 Mar 2013 04:23pm
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The other thing i like here is the vast amount of common sense.
Trollbridge, i didnt pay for all his gear, i was able to borrow some stuff like his chest protector, blocker, glove, and i did a small favor for a set of leg pads.
Hattie, if you were criticized for a paper route i must really have some people flinging dirt my way. Both my boys started doing laundry at 6, my 9 year old has the responsibility of making lunches for the 4 of us, everyday regardless if he needs a lunch or not, they clean the house,and the poop in the yard. My oldest is on a pay freeze right now. Too many times reminding him to do his chores to justify his allowance so now he just does his chores for free. Hes cracking under the pressure, got up early this a.m. and without a peep cleaned the yard. I can say i actually won a fight for once.
MJW, i know where you are comming from. My brother and sister think the same about my wife and i because when my sister was up for a visit, there were times i told her and my brother we couldnt go with them certain places. My answer was that it just didnt fit our budget. It hard sometimes when my youngest doesnt understand why his cousins get everything they want and he doesnt. The universal answer of "Someday you will understand" fits good.
Another question. Has anyone here moved to their cabin or second home permanently and i dont mean retiring. I mean just sold the other house, found a job that probably pays a lot less and are happy they made that decision?
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trollbridge
Member
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# Posted: 30 Mar 2013 04:23pm
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Quote:Some get it and some never will.
Same with the cabin thing!!!
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MJW
Member
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# Posted: 30 Mar 2013 04:30pm
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shooter, the answer to your question is our life story.
Here it is copied from our construction thread:
My wife and I decided a little over a year ago that we wanted a much simpler life for us and our son, now 5 years old. We had both spent years working for someone else, living and doing as most everyone else we knew did, paycheck to paycheck with a mortgage and debt.
We decided that for things to change, we had to change so we started doing a better job of living within our means and paying off debt. We were both fortunate enough to do work that could easily move from doing it for someone else to doing it ourselves and even though that meant a cut in pay, it was worth it being home and together all the time. We sold our home, got rid of our mortgage and bought a used 5th wheel RV. In late March 2012, we loaded the RV up, had a massive yard sale to get rid of things we didn't/wouldn't need, put the rest in storage and hit the road to see this great country of ours.
In the past year we have traveled from TX to South Carolina, Kentucky to Missouri, Nebraska to South Dakota, Iowa to Arkansas and back to Missouri seeing everything in between.
Our plan was to see as much of the country as possible and in the process, choose the place that would be home for us. We would also save during this time to build our new home with cash so no mortgage. We put a 2 year timeline on it but it didn't take long to find the place we really liked, Missouri. Once we settled on the place, finding the land became the mission and we looked all over, logging hundreds of miles driving all over Arkansas and Missouri until we found the right parcel. 10 acres on a beautiful ridge with a great view 10 minutes from a small town that had everything we needed.
We bought this property in December and pulled our RV here this week. My father in law is coming out in a couple of weeks to help us get the place dried in and we will complete the rest of the building over the next couple of months. Our target move in date is March 15th.
Weather delays and general construction mayhem have pushed our move in date to early - mid April but all in all, we are still pretty much on track.
We are VERY happy with the changes we have made. Yes, it has required some adjustment and changes to how we do some things but we are still 100% certain it was the right decision.
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Borrego
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# Posted: 31 Mar 2013 03:44pm
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Quoting: trollbridge You aren't alone here. We are working on paying down our debt too. When the economy soured, our income suffered. Being a self employed contractor in a crappy economy is not fun. Jobs are fewer and the labor rate is far less then what it was.We have cut expenses where we could and keep an eye on where every dollar goes. I wish we had the income we use to have...I would do things so differently-I cringe at the way we use to spend without really even giving it much thought
Wow, I could have written that myself. After 2008 when things went down for me, we've been downsizing and cutting back since it was not possible to make more, we traded homes twice now and are further out in the country (which we love now). We own both this and our cabin free and clear and after selling our rental property (which I bought when times were good, and the market is ripe now where it is) we will be able to pay off all of our debt and owe not a cent to anyone or anything! A very freeing feeling....
Our vehicles are all older, but very nice, I'd never buy a new vehicle again...
Only difference in what shooter is doing is we bought our land when times were tough for us, borrowed the dough and just did it. It's paid off now and no regrets, so I would say get your land and figure the rest out, but that's just me.
Good luck, you're on the right track!
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shooter mcgavin
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# Posted: 8 Apr 2013 08:01pm
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Yep, still moving along.
Borrego, thought about it but just cant do it.
Already knocked out a good chunk this year and will move forward.
For all of you, thanks for the encouragement!
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