Paying down the Household Debt!

By Nerd, on May 15th, 2011%

We started our journey in August so it’s been 8 months that we’ve been working the plan to get rid of our I.O.U’s to people.  These I.O.U’s are from student loans and house loans.  So where are we at?

We have paid off 10% of our debts in 8 months!    Our debt to income ratio is now under 2.5 AND we’ve figured out how to comfortably live on only 30% of our paycheck… 70% of our pay checks get us closer and closer to saying good bye to the people we still have I.O.U’s to.

If you’re on the fence or think that “living it up today” is more important I would recommend that you try a budget for 90 days… 3 monthly budgets.  Tell me after you push through those 90 days that there isn’t something that you’ve been spending too much on.  I’m not saying give up the necessities or even all of your extras but give it a try to start with what you make and figure out a plan for spending no more than what you make.

It will change your life.

I feel like I know the value of my choices and I choose to live within my means.

Can you say you’re making choices with thought?

Have a great week!

Your Nerd, Laura

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Adventures of Nerd and Super Nerd…

By Nerd, on November 29th, 2010%

A long time ago in a city not far away Nerd (she) and Super Nerd (he) met at engineering school. Super Nerd studied Electrical Engineering and Nerd studied Industrial Engineering. They both graduated, found jobs and got married. They lived within their means but they were not consistently paying extra to be rid of the loans they had from their past. They started their married life with $120,000 in student loans. They also had financed a car for Nerd and bought a house with 5% down. So they added another $250,000 to their heap of debt by the time they were 24.

They worked hard, as young engineers do. They found new jobs, they received good benefits, contributed to 401k’s, and did what they could to pay a little extra to their loans.

One magical day Nerd, while at work,hear a colleague mentioned being debt free… a cloud appeared above her head… Hmmmm… debt freee… what a wonderful place!

She wondered “how do I get to such a place?”

The colleague said “Dave Ramsey! He will show you the way! Follow the yellow brick road to see him! Along the way you will be shown baby steps and you must watch out for the evil Murphy… his Law’s will harm you but don’t let that discourage you because you can do it! Look at me! I’m debt free except for my house and I just bought a car with CASH!”

… Nerd said “Cash?!? What a wonderful thing!”

Nerd rushed to tell Super Nerd of the tale she heard.

Super Nerd said “Of course! I love the idea! We have been doing that for a long time now! I’m glad you are ready to make a plan with me and together we can fight the debt monster we created!”  (SuperNerd wanted a cape so this is where Super Nerd’s cape is flapping in the wind)

Nerd furiously worked day and night to develop a plan, in the morning she finished and gave it to Super Nerd.

Super Nerd said “AWESOME let’s get started!”

And that’s how our budget came into the Nerd household.

The budget is now 3 months old.

Nerd and Super Nerd are going to use this web log to show you our journey to becoming debt free!!!

Welcome aboard we are glad you are here!

We are 26 and 27 years old. We plan to blog together and to bring you our life as it unfolds.

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