Tag Archives: rightsizing

$69,176.76

Many people view education debt as good debt; we don’t believe this to be true. Although education loans often sit at lower interest rates than credit card loans or mortgages, they encourage borrowers to make minimum payments for many years, accruing lots of interest while continuing to purchase new cars and houses and living life as if any money that comes into their hands is not already spoken for.

We have a pretty huge goal. We are planning to pay down the remainder of our student loans by December 31, 2011.

Ali and I have been thinking about this idea and preparing our lifestyle since we moved to Portland in August. We have been experimenting with levels of frugality, envelope budgeting, and finding areas where the money leaks out. We’ve been making a grand attempt to “right-size” our lives, taking into account the fact that we don’t need as much as we think… and most of all finding ways to live in abundance mentality. Finding joy in what we have rather than concentrating on anything that seems to lack seems to be the key to success.

Frankly, we find it surprising that so few in the US talk about personal finances. We think about money constantly, but few people share details of their budgets. Since the US is at the absolute front row when it comes to personal spending, disposable income, and consumer mentality, we should know the most about how to handle our finances. And yet, few people even know how to live within their means let alone think that’s a good idea.

We’re going to open up this space and share some real numbers with readers in an attempt to encourage others who may be in similar situations. We’re withholding specifics on our salaries, but will share details of the loans and our spending/saving patterns. We understand this may draw criticism on all sides, but we’re hoping for the grace that comes from knowing we are doing our very best to make decisions that will take our little family in the direction of true freedom.

As of December 1, 2010 our loans total $69,176.76.
We have $0 in credit card debt (we no longer use credit cards), our car is paid for, and we do not have a mortgage. When we pay off our student loans, our goal is to be completely debt free.

This blog is an invitation to readers to join us as we fight our ingrained overspending tendencies and battle our student loans to the death. Are you ready for an epic journey?

If you’d like to join in the fun, we’re going to take reader submitted questions in old-school mail format. So once a week or so (or however often we get them) we will post reader questions and challenges for us and for Spencer. The more entertaining, the better! Find your stash of stamps and envelopes, and submit your message:

Ali & Rachel H
PO Box 11506
Portland, OR 97211

For future reference, you can always find this address on the ABOUT US page from the blog menu.