Andrea told me about a couple on TV this morning who were seeking help from Dave Ramsey. The woman had recently decided to stop working and be a stay-at-home mom. However, the couple didn’t adjust their spending accordingly, and had accumulated $12,000 in debt in only a few months.
Here’s the crazy part. Their house payment is $2300 a month. Total income is $2500 each month. Really? Did they not think this through? We all make bad financial decisions, but that one is off the charts.
The family was unwilling to adjust their standard of living. I’ve got to think that they were living beyond their means even when she was working…
I was talking with Mike Snow Sunday about the upcoming “Financial Peace University” classes at GracePoint. There was some discussion about Andrea and I leading a class. However, our living room isn’t really big enough to host a small group.
Warning: I’m going to get on my soap box and brag for a second.
When Andrea and I bought a house nine years ago, we bought a house that we could afford on my salary alone even though she was still working. Not my salary in the future. My salary nine years ago. Sure, I’d love to have a second bathroom, a two-car garage, a music room, etc… But I really don’t want your house payment. It’s probably more than double mine. Our relatively small mortgage frees us up to do things like pay down school loans faster, save money for retirement and rainy days, and most importantly, give generously.
The downside is that my living room isn’t really big enough to host a small group… It’s okay. We don’t really have the gifting of hospitality anyway…
We don’t always make the best financial decisions, but I’m quite proud of that one nine years ago.