I look at my debt ticker on the right hand side a few times a day. I still can’t believe where it is today. Over $17,000 of our credit card debt is gone. It may sound a little sappy, but I am a sappy gal sometimes. When I really start thinking of how far we’ve come, I can’t help but get teary-eyed.
I owe our success so far to five simple words:
Spend Less Than You Earn
Sure, there are many “keys” to financial success that you will hear, but I really believe those five words sum it all up. Even if you make $1,000,000 a year you will still get into trouble if you spend more than you earn. It’s a very basic principle and one that is very simple when you think about it.
Prior to starting this blog, we had no concept of spending less than we earned. We were in the mindset that it was okay to purchase things on credit because we will pay it off later. I shake my head at some of the spending that comes to mind. If only we had grasped the concept of spending less than we earned way back when. But the past is the past and life is about learning from your mistakes.
Now that we embrace the concept of spending less than we earn and practice it, we have made a huge dent in our debt. It will also help us pay it all off. It can’t stop there, though. Even after the debt is paid off, we will still spend less than we earn and build up a substantial amount in our savings and build a nest egg so we can live comfortably in retirement.
That’s not all! There is the next generation to think about. Although I haven’t brought it up yet, my son will definitely know the concept of spending less than you earn by the time he leaves the nest. He may choose to not apply that concept (and learn it the hard way like we have), but I am going to do my best to make sure he understands it.
Oh, and I’ll show him this blog and he can see how much debt you can get into if you don’t practice the concept! 😉