Financial Peace ... Is it Possible?

We have seen so many homebuyers ... wait, I should call them home-wanters.  We have seen so many home-wanters be priced out of the market.  Not because they cannot afford to buy a home.  But because they don't have the fluid cash to put down a competitive deposit.  

I have an 18 year old.  He just graduated from high school.  I sorta recall being 18.  I knew nothing about money at 18.  I knew nothing about money at 28.  38.  Sigh.  I don't want my story to be his story.  What was my story?

My Story:

We were in debt.  Serious debt.  I mean serious debt.  We were living the American dream more than 10 years ago.  What is the American Dream?  Debt.  Lot's of it.  Loads and loads of debt.  Car payments? Check!  Home Mortgage 1st loan?  Check!  Home Mortgage 2nd loan?  Check.  HELOC (Home Equity Line of Credit)?  Check.  Maxed out credit cards? Check Check Check and Check!  Family loan?  Check!  Medical debt?  Check!  We were the epitome of the family that things looked good on the outside...but don't look behind that door.  

I had just transitioned to real estate not long before this because all real estate brokers make gobs of money while driving convertibles and the best suits...uh, right?  Oh, and we had just had 2 kids.  Did I mention we were in the Great Recession?  Did I mention that our house was deteriorating in front of our eyes?  I mean it...falling apart.  Have I painted a picture for you yet?  Not a pretty one I know.  We were borrowing from Peter to pay Paul.  I would mentally be spending the money from a commission check that I had not even earned yet.  "Taxes?  Ugh.  We have to pay our own taxes on these checks?"  Sigh.  This was us.  This may be someone you know.  This may be....you?   

Supposedly I was "successful".  My former brokerage would have me as one of 3 speakers at our annual company convention.  They took a senior agent, a broker that had been there for a few years and a newer broker (me) to share our successes.  I spoke my message strongly to those 600+ people. Felt like a celebrity on the outside.  Felt like a failure on the inside.  My wallet was empty.  My dreams were huge.  There were no ballgames with the kids, no vacations that did not include staying with family.  We hid it well.  I hid it well.  I was failing.  

Listen, I am going to do what I did in high school english class....skip to the end of the book.  The difference is I will also go back and fill in some blanks.  The end of the book?  Well the end isn't quite here yet but I can tell you that today we are debt free, have a paid for home, all cars are bought in cash, college savings for our kids has been accomplished, we have an emergency fund in place and racing towards our first significant goal for retirement.  Gang, this was a 10 year journey.  The days were long, the years were short.  When I tell you we were living that American Dream...we were many tens of thousands of dollars in debt in addition to our mortgage.  Every time one of the cars went to the shop I held my breath.  Sleep?  Nah.  Not much.  Shame?  Lots and lots of shame.  I am still scarred today from those days. 

I share this all with you because I know many of you may be in this same boat.  I am not here to tell you how to move forward.  I am not going to tell you I didn't make mistakes along the way.  I am here to tell you how we did it.  I am here to tell you that it is possible.  I am here to tell you that you have to have hope.  Most of all you have to lose the ego.  You have to be patiently impatient.  

A bullet point list of the things we did/do:

• We set aside what others thought
• We gave every dollar in our budget a job.  Each dollar was assigned.
• We followed many of the Dave Ramsey teachings and started paying off the smallest debts first.
• We drove (and still do) our cars until they reached 300,000 miles.
• We bought used cars, furniture, etc...
• We took staycations.
• We stopped eating out.  (HUGE)
• We worked more hours (lots)
• We worked when others were sleeping,
• We called every lead...repeatedly.
• We enveloped our cash for the week.  (Budget)
• We found inexpensive family things to do.
• We moved our kids to less expensive leagues.
• We kept it cooler in the winter and warmer in the summer.
• We become intentional.

While this is by no means an exhaustive list it is a start.  And let me share with you that we never felt deprived.  We got creative.  And you know what else???  By giving our time to the community, our friends etc we actually found ourselves receiving so much more.  We've missed out on very little.  We are so fortunate today to be able to jump to New Orleans for a Final Four game or head to Pittsburgh last fall for a Raider Steeler game, or take a week on a lake house on Lake Glenville or....but during those thin years our friends would have extra tickets to games and we saw many Tar Heel, State and Duke games.  We were able to do so many wonderful things all while focusing on larger financial goals.  

Gang, if you make the decision to change the way you live.  To truly set a goal and a plan.  To work together with your spouse and start with accomplishing small wins.  Gang...you can do this and you can change your lives, the lives of your children.

If you do not have a plan and if you do not have a clue where to start, call me.  I am happy to privately share with you my thoughts.  

Build a community of people. Buy a house. (and call us if you want help to buy that house)