Anyone else have this experience after baby step #2?

[mrsklamc]

We became debt free (except the mortgage) in April. We are about 2/3 of the way through step #3...BUT...

I was SO focused on step #2...totally motivated..scraping every dime. Since starting #3...I've become kind of complacent. We're still making progress but occasionally, I'll think 'we can afford it, we're debt free!' I'm not busting the budget or anything, just making little splurges, but I feel like I should really buckle down until we finish up the last third of the emergency fund over the next few months. Anyone else experience anything like this?

 

[tinker&belle]

We became debt free (except the mortgage) in April. We are about 2/3 of the way through step #3...BUT...

I was SO focused on step #2...totally motivated..scraping every dime. Since starting #3...I've become kind of complacent. We're still making progress but occasionally, I'll think 'we can afford it, we're debt free!' I'm not busting the budget or anything, just making little splurges, but I feel like I should really buckle down until we finish up the last third of the emergency fund over the next few months. Anyone else experience anything like this?

May I ask how long it took for you to do BS2? For us we will be paying off a car in the next few weeks. It has taken us a year and a half to do that (due to DD2 being born with a medical condition and having significant medical expenses draining us on top of paying down the debt). Although we still have student loan debt I could see us getting complacent very easily. It is hard to remain gazelle intense for too long.

 

[DawnM]

No. We have continued to live frugally because we wanted at least 6 months of salary saved.

Now that we are on BS5, I worry that we don't have enough saved up for a replacement car when necessary, not enough saved for the kids' college fund, and on and on.

I don't think I will ever be fully complacent.

 

[Gr8t Fan]

We got that way for a little while, and then we became really focused and started running numbers and found that if we pay an extra $600 a month on our mortgage we'll be done paying it off in 24 months. We were already paying extra toward it on a regular basis but the payoff seemed so far off. Bumping our extra payments up to $600 a month really made the difference and makes the final payoff date seem like a concrete date instead of some date off in the future. In fact, I find that even when I have a surplus of $25-50 I send it in because that will make a dent too.

We're not following the baby steps to a T , we've put maximum retirement contributions on hold for a little while (no employer match) so we can get the house paid off, but the peace of mind I'll have when our house is paid off is well worth it to us. By the time we've paid off the house our oldest DD will be just starting her junior year of HS and we'll add some to her college savings and some to retirement.

Good luck to you!

 

[mrsklamc]

May I ask how long it took for you to do BS2? For us we will be paying off a car in the next few weeks. It has taken us a year and a half to do that (due to DD2 being born with a medical condition and having significant medical expenses draining us on top of paying down the debt). Although we still have student loan debt I could see us getting complacent very easily. It is hard to remain gazelle intense for too long.

About a year; would have been less but I had to go and get cancer in the middle of it...

And we have continued to live very frugally; All told it's a total of $25-$50 (and it is budgeted) a month-buying myself a few clearanced clothing pieces for example. I'm just so used to not buying ANYTHING- not just from DR but I've always been a tightwad. In comparison it just seems like a massive guilty pleasure that I'm not used to.

 

[mrsklamc]

We got that way for a little while, and then we became really focused and started running numbers and found that if we pay an extra $600 a month on our mortgage we'll be done paying it off in 24 months. We were already paying extra toward it on a regular basis but the payoff seemed so far off. Bumping our extra payments up to $600 a month really made the difference and makes the final payoff date seem like a concrete date instead of some date off in the future. In fact, I find that even when I have a surplus of $25-50 I send it in because that will make a dent too.

We're not following the baby steps to a T , we've put maximum retirement contributions on hold for a little while (no employer match) so we can get the house paid off, but the peace of mind I'll have when our house is paid off is well worth it to us. By the time we've paid off the house our oldest DD will be just starting her junior year of HS and we'll add some to her college savings and some to retirement.

Good luck to you!

Thanks! I was hoping to hear of SOMEONE else who had a small break and then got right back on track! We should be able to wrap this step up in the next month or two

 

[tinker&belle]

About a year; would have been less but I had to go and get cancer in the middle of it...

And we have continued to live very frugally; All told it's a total of $25-$50 (and it is budgeted) a month-buying myself a few clearanced clothing pieces for example. I'm just so used to not buying ANYTHING- not just from DR but I've always been a tightwad. In comparison it just seems like a massive guilty pleasure that I'm not used to.

So sorry to hear about the cancer. It did feel when we started to go off track with medical we got a little off the ball because it was sort of like a diet. We felt like we'd blown it so it made it a little easier to go off track.

Hope your treatments are going well.

 

[mrsklamc]

So sorry to hear about the cancer. It did feel when we started to go off track with medical we got a little off the ball because it was sort of like a diet. We felt like we'd blown it so it made it a little easier to go off track.

Hope your treatments are going well.

We're about to find out! It was thyroid cancer, which can be easy as cancers go, and it has been (relatively) so far. Went off my meds yesterday for a scan mid-August. Hopefully it will say I'm now cancer free! I hope your family is well, too!

 

[tinker&belle]

We're about to find out! It was thyroid cancer, which can be easy as cancers go, and it has been (relatively) so far. Went off my meds yesterday for a scan mid-August. Hopefully it will say I'm now cancer free! I hope your family is well, too!

Glad to hear you're doing well. My cousin had to have half of her thyroid removed this past year, but thankfully it was benign. It seems like it is one of the most treatable cancers which was a comfort when she was going through all the testing.

DD is having surgery this September and has a pretty tough 6 week recovery period but then it sounds like she will need some therapy but be fine in the end so we are very blessed. Dreading the surgery and recovery though.

I just noticed you live in Indiana. We do too!

 

[CowboyCO]

The key is the budget. I can't live on rice and beans for two years, but I can do it for 6-12 months.

Then I need a little breathing room. Once the debt is paid off - (9 months left!!!) We will re-work the budget to include a few luxuries. A FEW! We're never going back to our old lifestyle, but we will go on a vacation before we have 6 months in the bank.

 

[bumbershoot]

Are you a member at llnoe.com? From what I've seen, it's pretty common to hit a wall after finishing BS2. If you don't belong over there, join and start reading! And then post. I'm sure you'll get lots of support and been there done thats.