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April Monthly Debt Payments

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I’ve mentioned before how it can be a motivator to add up all of your minimum monthly payments to debt. For me, seeing that number helps me realize how much money could be available for other things in life, like saving for retirement. That’s something I hope to be able to start soon.

I’ve added up the April payments, and here they are:

Mortgage: $337
Auto Loan: $258
School Loans: $208
Credit Cards: $950

The grand total $1,753 / month. That’s 52% of our monthly gross income.

Assuming those minimum payments did not change (but they will as the balance on the debt is reduced and as I obtain lower interest rates on the credit cards) that would be over $21,000/year.

What an eye-opener!!!

What Hit Me Like a Brick Yesterday

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What hit me like a brick after starting to read, “The Millionaire Next Door,” is that perhaps my way of thinking is why I am not farther ahead in terms of my net worth and financial well-being.

Let me explain…

I have heard and read repeatedly that when you dream, you have to dream big. Dreaming big often means dreaming of being a millionaire. Well, in my mind, I could never dream that because I didn’t want that life. I don’t want the fancy cars or the homes so big that you do not even use every room. I just wanted (and still do) a simpler life and I always felt that large amounts of money brought trouble.

So what I have done is dream small, so to speak, and perhaps that has hindered my progress on a subconscious level.

The book gives a great example of a Texan that sticks out in my mind. At first glance, no one would think he was a millionaire. The material possessions in his life did not follow the “traditional” millionaire items. No fancy suits, no fancy watches, no fancy house, etc. If I could be a millionaire – that’s the type I would want to be right there. And I realized it is possible be a millionaire and live the life I want.

I have been trying to say to myself, “I will be a millionaire” and I still cannot say it. But I am working on it. I have a feeling once I can say it and truly mean it, then I will be open to more possibilities in my life.

It’s funny because this is supposed to be about my journey to become debt-free. But I now realize that becoming debt-free can only be achieved by undertaking another journey – the journey for personal growth.