Thursday, October 4, 2007

Never Forget the Tough Times

Most people have gone through financially and personally tough times in their lives. We certainly went through a tough few years:
  • Failed Business Venture
  • Main income earner out of full-time work for more than 15 months
  • Mortgage going up instead of down (up $20K)
  • Credit card max’d out for over 2 years at over $10K
  • Accumulated line of credit personal debt of $25K that took 5 years to clear
  • Personal health of myself and my husband became very low.
  • Bouts of depression – we tag teamed on that one
  • Caring for a young child throughout – kept us focused on what really mattered in life
I don’t mean for this to be a depressing post and I want to show the great points that have become part of our lives as a result of the life challenges we faced five years ago. Here are some of them:
  • We learned to manage our costs really well
  • We bought in bulk and cooked in bulk
  • We cut wants such as cable TV and focused on what we really need
  • We focused on developing a really tight budget that was easy to use once it was made
  • We focused on legally minimizing tax liabilities for the higher income earner
  • We looked at alternate sources of income apart from our main jobs such as online businesses with residual or passive incomes
  • We sold unwanted or unnecessary items on eBay and the local fairs and markets
  • We eliminated several high fee bank transaction accounts by consolidating into one transaction account
  • We focused on paying our highest interest debts first
  • We changed our spending habits looking first for value and quality rather than just low cost
  • We cleared most of our debts excluding our mortgage debt and now focus on the mortgage as our pseudo-savings account (we have a redraw facility)
  • We focused on improving our physical and mental well-being
  • We spend more time together as a family
We focus on enjoying our lives now with each other and our families but we never forget the tough times because we prefer the better times :)

1 comment:

Ed said...

Debt really is a type of legalized slavery. That you could raise a child in that environment really speaks about your character.