Comments on: When You Run Out of Money

By: danielle

danielle — Fri, 04 Apr 2008 11:30:38 +0000

I am glad that figure includes the mortgage. Without the mortgage, the debt figures don’t seem that bad. I think db can dig his way out of student loan/credit cards, etc debt in a realistic amount of time, and by that time, the housing market may turn around, so you should be ok.

By: AJC @ 7million7years

AJC @ 7million7years — Fri, 04 Apr 2008 03:00:10 +0000

It’s tough saving youe way from -$200k to Just Over Broke. It’s equally tough to save your way to real wealth.

The solution to both is to KEEP the great financial habits that you are showing the rest of us how to build, then ADD increased income into the mix.

Safe Money Habits + Some Appetite for Controlled Risk = Wealth.

I should know … I’ve been where you are, then actually REACHED the ;light at the end of the tunnel’.

All the best … AJC.

By: Mr. Debtbeater

Mr. Debtbeater — Thu, 03 Apr 2008 23:47:32 +0000

Twiggers – thanks, and thanks for sharing! The important thing IMO is to work through it together and keep your relationship strong through all the struggles. My wife and I are preparing for quite a beating before managing to get out of debt, but we both know it has to be done…and we’re absolutely determined to not let it have a negative impact on our marriage.

Danielle – I’m not so sure it’s the children that caused us the financial troubles, but our bad overspending habits that did it. I know many large families that don’t have the issue because the really ARE responsible with their finances as well. Children are expensive, that’s for sure, but it is manageable if you prepare for it properly.

Thanks again for the opportunity to post for you Tricia! I’ll be around if anyone has any other questions!

By: Tricia

Tricia — Thu, 03 Apr 2008 23:32:35 +0000

Danielle – oh, that’s right *blush*. JW has six children. I can’t remember off-hand how many are still at home. I think that’s what I was thinking of.

Here’s a link to DB’s net worth. The debt total includes a mortgage, 2nd mortgage, a student loan and credit cards.

By: danielle

danielle — Thu, 03 Apr 2008 22:45:38 +0000

Wow. Does his debt include mortgage? (I can’t find info on his site).

“need to be debt free” also has six children.

IRL, I know two families, five kids and six kids, who have massively horrible financial situations. It’s opening my eyes that as much as I love children, it may be a good idea to stop now, so that I can remain debt free. Oy, I can’t imagine.

By: twiggers

twiggers — Thu, 03 Apr 2008 21:16:23 +0000

Brilliant and moving post! So very well written! Thank you for sharing your story! My husband and I are deeply in debt because of stupidity and instant gratification, but to this date we have never gotten to the point of not having enough money in the bank to cover necessities! The problem is, if something were to happen to my husband and I we would be out of the streets because we were living beyond our means for years and now it is catching up. My income alone would not cover the car, insurance, food, mortgage, or utilities!

I also think involving your kids is fantastic! I really think our society encourages spending, debt, and instant gratification without any regard to how this impacts our future generations (I’m a developmental psychologist so I’m always thinking about the kids!)!

I will say…in my younger years of first being out on my own I was broke as broke can be. I lived on potatoes and cooking oil for 3 weeks, refilled sodas at 7-11 for a discount, borrowed electricity from a neighbor, and handwashed my clothing.