Windfalls
Early last November I shared the following message privately with some fellow graduates of a Dave Ramsey total money makeover class. I shared that by the end of November we expected that:
We will be debt-free except for the mortgage- the only other debt we've had for years is our van, and we pay that off ths month.
We will have the full emergency fund.
We will be able to fix my great-grandmother's former home which we own debt-free to the point that we can rent it out for more income.
We will be able to start our sixth child on some much needed orthodontia, which we can get with a large discount because we've saved up enough to pay it in full.
I hesitated to share this in a Dave Ramsey setting because, while we have been saving like crazy and living frugal (as I type this I am wearing winter shoes that are five years old, my skirt is at least that old, and I think my shirt is ten years old and both of them came from a thrift shop to begin with. My necklace is fifty years old and I inherited it.=) ), it's not merely that we saved up enough to pay off the van, etc. A windfall sale is allowing us to do these things.
But we have had the thing we're selling for many years now, and we've had two previous offers to buy it, both of which were such low-ball offers that I seriously think the persons making the offer were criminal-minded (we're talking the actual value is sixty times what was offered- and- they knew that). We weren't looking to sell- we'd kind of given up. And this new offer came out of the blue and is so different from before that I feel like I would be disrespecting God not to say that I believe He is blessing our attempts to focus on getting of debt rather than materialistic goods.
We paid off the van. We paid for the FYG's braces (and because we paid up front and in full, we were able to save several hundred dollars on that bill). We filled up the emergency fund. We tithed and were able to help out in some additional charitable enterprises. We started the work on getting my great-grandparents house (which currently has no running water, and no appliances in the kitchen, to name just two problems) ready to rent out (should be done by spring), which will be good for us, and good for the small Christian contracting business we were able to hire. If we can find the right renters, then we hope it also will be good for the people we rent to, as we will be able to rent it out for less than the going rate since we have no house payment on that house which the rent payment will need to cover. We paid the van off just in time. We had intended to immediately apply the van payment to our two mortgages (we have not been able to sell the house we lived in before my husband retired from the military, but we have had renters in it the entire time), but with all the family emergencies we had in November/December, and the time I spent in the NICU with my daughter and her new son while her husband worked, we needed that extra money for gas and the added expenses that come when Mom is not at home overseeing things. My girls are VERY capable, but running a homeschooling household of six people, one of whom has multiple handicaps, is a big job to take on when you are already stressed and upset about your nephew's traumatic birth and first few weeks of life, so we encouraged them to take a few short cuts with meal preparation. So freeing up the van payment just when we did was a blessing in a way we had not anticipated.
I still felt, I don't know, almost guilty about suddenly having that extra money to do all those things we'd been saving up to do for so long.
And then two friends put things in perspective for me, or at least helped.
One told me she thought it was totally appropriate to share our story and our joy with others still struggling to get out of debt, because it was an encouragement, and an example. She pointed out that getting out of debt is not just about how much you save and how frugal you are, but it's also about what you do with those windfalls. Another agreed that frugality isn't just about how you save, it's what you do with the windfalls that really matters, because this indicates where your head and heart are. See a windfall as an excuse for an indulgence, and that indicates that material things are where your heart is. Rather than using it for "stuff" you use it to pay down debt faster. Do this long enough and diligently enough, with single minded purpose, and most of us would be much better off.
This is also an excellent lesson to teach our children. What a legacy! Can you imagine how much further all of us would have been if we had learned the saving habit as young children? If we had learned not to be fulfilled by spending money on fleeting things such as eating out, material goods, and trips to the mall?
Just as many children grow up to be overweight adults because they learned to associate fattening, high carb, high sugar foods with fulfillment and love and comfort, many of us learned to associate happiness with stuff, with material goods, with treating ourselves to restaurant meals, new shoes, a new hair style, and other treats that have to be purchased with money. Begin now to help your children associate happiness with relationships, with bonding experiences that happen over read alouds, long walks, picnics of simple fare, and other free activities. You will give them a legacy worth more than any merely material legacy, and there are no inheritance taxes!
What are some debt-free, low cost or no-cost ways you build magical memories and relationships with your loved ones?
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10 Responses to “Windfalls”
January 21st, 2011 at 11:51 am
Also, I think sharing this story as you did, giving God the credit for the difference in this offer (compared to the others) also shows how God rewards faith and hard work, and that he wants us to be free from all earthly bondage (including debt) so that it’s not hanging over our heads and allows us to serve him even more.
January 21st, 2011 at 1:54 pm
Oh yes! Share your story because it can be discouraging sometimes, especially when there is a lot of debt. My husband and I made very poor choices while I was in college (which was another problem all together- student loans). If I only knew then what I know now. Anyway, we racked up lots of debt quickly and finally started tracking it. It took two years to pay off all our credit card debts. now, we only have our mortgage and my student loan debts left (and I’m now a proud stay at home mom!). But, hearing inspiring stories such as yours keeps me well focused at paying off that mortgage too some day.
Thanks for sharing!
January 21st, 2011 at 2:21 pm
As a young new mom, I am so glad you shared your story. We just had our son on the 6th, and while we are so blessed to have him, the difficulties we are facing have truly put things in perspective. While we don’t have a mountain of debt outside of student loans, we are budgeted to the dollar- with nothing left over for emergencies or savings. I’m honestly not sure where we’ll find the money to start making student loan payments when they go into effect in June.
Really looking at our spending has caused me to see just how much we actually waste monthly. In order for me to be able to stay home with our son, huge changes will have to be made in all areas of our life, which includes relocating to a more affordable rental property despite our love of this home. We’re absolutely living above our means if we want to pay off debts and put money away. So while some may not like reading about the success of others, I find it inspiring.. and embarrassing. I’m embarrassed because we have the highest income of any of our extended family, but we’re stretched the thinnest. That embarrassment causes me to hold us accountable for being so frivolous at a time when we should be planning for our future.
I hope your new grandson is doing well. Following your experiences with him has helped to understand how truly blessed we all are to have these little ones in our lives.
January 21st, 2011 at 5:01 pm
I am glad you shared about your windfall even with the caveats (it was something we had for a long time…who cares where it came from?) It is hopeful PLUS it is better for those of us who do not have a windfall in the offing (I know of a blogger who bragged about getting out of debt by the hard work way…it came to light that the family had actually received a large inheritance. That’s dishonest.)
Congratulations~
January 21st, 2011 at 10:06 pm
One of our favorite low-cost ways to have fun as a family is to have Nerf dart wars. We each have a Nerf gun and the “wars” we have get pretty crazy sometimes. So fun though.
About sharing your success, it is a motivator for me. We have worked long and hard at Dave Ramsey’s system, and are very close to being debt free ourselves. We’re planning on using our tax return this year to finish paying off that debt, Lord willing. It is so helpful to hear how others work and to know that we’re not the only ones making do with less to get the debt gone as quickly as possible.
January 22nd, 2011 at 12:00 pm
I like that you shared what hard work and focusing on debt can accomplish. It makes it seem possible for others to do the same. You must be proud of all you have accomplished. and isn’t it amazing how God takes care of things is we just let Him instead of trying to do it all ourselves. It took me years to learn that lesson and sometimes I still have to be reminded.
I, too, hope your grandson and daughter are coping well with the challenges they are facing. God only gives such special children to the special people he knows can deal with them. I will keep them in my prayers.
January 22nd, 2011 at 4:03 pm
What an encouragement to be able to “taste” God’s blessings in your life! Your example and wisdom on living the frugal life have been often helped me to keep the proper perspective. Now it brings much joy to hear this news.
January 23rd, 2011 at 8:32 am
God is truly a genius! Our Father Almighty, Thank you very much for all the blessings.
January 23rd, 2011 at 8:46 pm
We found that when we became convicted that (voluntary) debt was sin and set our sites on getting out of debt, God blessed us in entirely unexpected ways, helping us accomplish that goal.
That’s not to say that it’s an easy path or that it will be the same for everyone, but I do think that God blesses those who seek to serve Him – sometimes in very tangible financial ways.
March 1st, 2011 at 5:37 am
Also, I think sharing this story as you did, giving God the credit for the difference in this offer (compared to the others) also shows how God rewards faith and hard work, and that he wants us to be free from all earthly bondage (including debt) so that it’s not hanging over our heads and allows us to serve him even more,Thanks keep it up
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