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Has anyone figured out why we're so financially ignorant once we enter the car dealership? It's as if the dealer performs a lobotomy on us thus rendering our ability to resist that shinny car and costly car note. We recover from our horrific procedure as we drive off that lot or at the least the day after when we read the terms.
That day of realization happened for me after I took out a loan for Jeff Gordon's replacement vehicle. Of course, I am not referring to NASCAR legend Jeff Gordon's Chevy Monte Carlo, but my paid off '90 Toyota Camry with the emblazoned yellow 24 bumper sticker. Sure, the transmission was beginning to act up again, but why fix it for less than $2,000 when I can go out and finance a new car for $14,200.
What were we thinking? Just as we began the process of paying down our credit card debt (See attached financials), we decided to add more to our debt load. This one move set us back at least two years and several thousand dollars in interest. Don't get me wrong. Having an operable vehicle is an important asset, but it's no longer an asset when you're required to finance it.
If at first you don't succeed, try, try again.
To say that I was surprised with her response would be an understatement. She lovingly accepted my debts and looked to help dig me out. The caveat would be that we decide we weren't going to live the rest of our lives in debt. We sat together and worked out our joint budget for '02.
Fans of Dave Ramsey will recognize the phrase, "Beans & Rice, Rice & Beans" from his nationally syndicated radio or Fox Business Network shows. It's his go to phrase when reminding families or individuals how to live on a budget, get out of debt and begin building a financial future.
At this point in our journey, we hadn't even heard of him. In fact, I didn't start paying attention to him until last year when I visited my local library and read his books, Financial Peace Revisited and The Total Money Makeover. I don't think that it takes a rocket scientist to figure out some of his baby step principles, but he does make it simple to remember the process.
With the national divorce rate at about 50% of first marriages and the leading reason being finances, we knew that we needed to be financially disciplined in our first year of marriage. Even though we were making adjustments in other areas, we didn't allow our finances to get in the way of enjoying ourselves together.
Goal number one that year was to establish smart spending habits as a couple and begin making small steps in decreasing the credit card debt. Mmm-mmm-mmm good. Nothing was better that first year of marriage than our candle light dinners at home with bean stew.
Don't look now, but Jeff Gordon may need another transmission.
