The countdown is on – 8 months until we’re debt free. How crazy is that? We started this journey on 1/4/16 and we’re already so close to crossing this Baby Step off the list. I’ve discovered that there’s no end to this debt free journey because when you’re dedicated, it’s a new way of life – not just a phase of life.
James and I are already planning for the next step: Baby Step 3: 3-6 months saved income. Typically the debt free community is as aggressive in this step as they were in Baby Step 2 (Paying off consumer debt). James and I will obviously be saving each month; however, as soon as we become debt free in November, we will begin to renovate our home.
We bought our house in March of 2016, and since then we have done nothing to improve it. In November we will begin pouring money to fix the landscape, façade, and interior so that we can flip it, and move out of Wilmington. We’d like more land, in a quiet area outside of the city.
In addition to renovating our home, our big ‘Getting out of Debt’ celebration is a trip to Nepal. Since Junior year of high school I have been obsessed with visiting Bhutan, Nepal, and India. I want to see and hike the Himalayas, and experience a completely different culture. I knew going into this debt free journey that traveling was a main priority in my life. Becoming debt free will offer us the possibility to see the world. I’ve never been out of the country, unlike James, so this is a HUGE deal to me. First stop: Nepal. I know I’d like to save between $8k and $10k for the trip, so it may be a while after November before we actually go — but trust me. It’s happening!
We will also be saving up for my biggest cash purchase, a new(er) car. I’ve had my 2004 Saturn Ion since freshman year in college (2011). It’s pretty much the definition of a Dave car, so as you can imagine, I am ready to upgrade!
Saving for a new car, renovating our house, planning a trip of a lifetime, and throwing money into a savings account will all happen simultaneously, so we expect to be completed with Baby Step 3 in 1-2 years. The greatest thing? After we get out of debt, we can literally do ANYTHING we want with our income.
That is the absolute best thing about being debt free: All of your income is yours.
Once Baby Step 3 is complete, we will have 0 debt, a huge savings fund, and the ability to do whatever we want without fear of the future.
That’s financial freedom at its finest. What do you want to do when you become debt free? What are your plans? What will you do to celebrate that achievement? Let me know!