PocketCoinage

I just wanted to announce to the world that I am DEBT FREE! Debt free except the house, that is.  It’s such an awesome feeling to know that you do not owe another lender any money.  When I first started out on my own with finances, I just assumed that student loans and auto loans were just the normal thing to do and it’s true.  Debt is really just normal in America.  It’s very abnormal to be debt free.

My debt free fire really started with my auto loan.  I really disliked Chase Auto Finance.  They would apply my principle payment as monthly pre-payments!  A large tax return helped put Chase to bed 3 years before I was scheduled to pay it off.

Once the auto loan was paid off in early 2010, I rolled that payment into my student loan.  That brought it down from a 10 year payoff to roughly a 5 year payoff.  I thought to myself, 5 years to get rid of $16,000… There has to be a faster way to get rid of this.  That’s when I discovered Dave Ramsey in August of 2010 and really got fired up.  I listened to his radio show via podcast on my way to work.  I’ve also followed JD Roth from GetRichSlowly.org for about three years now and watched his progress of paying off debt and working towards his dream job.  If thousands of people can become debt free and pursue their dreams, I knew I could too.

At first, I wasn’t totally on board with Dave’s plan.  The thought of cutting up credit cards struck a little fear within me.  What if there was an emergency?  What if I needed to rent a car?  What if?  What if?…  That’s when it hit me: fear was paralyzing my decisions.  I had some money in my emergency fund, but I did not want to part with it “just in case”.

By October of 2010, I had one foot on the debt free boat.  I used $2000 from my “extra” mortgage payment to jump start my student loan payoff.  The “extra” mortgage payment is from being paid bi-weekly: 26 pay periods in 52 weeks equals one extra month’s salary.  This got me motivated like you would not believe.

By December of 2010, I cancelled three store credit cards and cut them up to display to my friends on Facebook.

Since December, I have not used any credit cards what-so-ever.  By March, I cancelled and shredded 2 out of my 3 credit cards.  I had this idea to keep one open “just in case” I run into any emergencies with my small emergency fund.  I am looking to cancel this credit card by the end of the summer.

Just this past month I made my final student loan payment to Sallie Mae of $4,283.46.  How did I achieve this?  I took $2000 from my vacation fund, $1200 from my tax return, and roughly another $1000 from scrimping and saving.  I paid off $16,000 in roughly one year from May 2010 to May 2011.  The outcome: DEBT FREE EXCEPT THE HOUSE! I still plan on going on vacation this summer, but I figured I would just work harder and save more to get there.

Right now I am on Baby Step 3 of Dave Ramsey’s Total Money Makeover.  Baby Step 3 is where you save for 3-6 months of expenses in an Emergency Fund.  If I keep up with my current plan, I should have 6 months of expenses saved in about a year.

I can sum up the feeling in two words: worth it.  The feeling is so amazing; it’s like a weight has been lifted off my shoulders.  If it feels like you’re not getting anywhere, I know the feeling.  Just keep pushing forward and you’ll succeed.

It all starts with a plan and a budget!  My plan was (and still is) to be debt free and the budget got me there.  Just think of it this way, how would you get to your vacation destination without an itinerary (plan) and a map (budget)?

A few weeks ago I wrote about if the Sam’s Club Advantage Plus membership is worth it.  To recap, a plus account adds “eValues”, which are digital coupons, to your account.  You log into your Sam’s Club account online (or at an in-store kiosk) to see what’s available.  From there, you are able to email or print the items on the list.  All you need to do is buy the items and the discounts appear at the register.  According to Sam’s Club eValue FAQs, “eValues means $300 in guaranteed savings. With eValues, you have the opportunity to save an additional $200 a year on top of the savings you already enjoy.”

Checking back on the eValues page, I now have $378 in “savings”.  Unlike last month, I am noticing a few useful items that I would actually buy.  This would include $2 off paper towels and $3 off toiletry products; none of which I would have bought during my next trip.

I guess a $5 savings is a start.  I only $15 more in eValues to go before I recoup my costs and two more months until I renew my membership.  Will I choose the Advantage Plus membership again?  If the eValues do not become more relevant to my shopping; probably not.

Here’s a PDF of the eValues page.  Keep in mind, a lot of the items listed have restrictions such as “you may choose 1 of the following 5 eValues”.  An example of this would be the Pampers Cruisers diapers.  You can choose sizes 1-6 and save $3 on any one.  However, you cannot buy size 5 and 6 and expect to save $6.

I will be posting another update after I obtain some more eValues.  Have you found savings with Sam’s Club eValues?

I’ve been a Sam’s Club member for almost two years now and I enjoy the tremendous savings of buying in bulk.  I am able to stock up on many non-perishables and leave the local grocery store (or farmer’s market) for fresh fruits, veggies, and meats.

Recently, Sam’s Club has been asking me to upgrade to upgrade my account to a “plus” one.  A plus account adds “eValues”, which are digital coupons, to your account.  You log into your Sam’s Club account online (or at an in-store kiosk) to see what’s available.  From there, you are able to email or print the items on the list.  All you need to do is buy the items and the discounts appear at the register.  According to Sam’s Club eValue FAQs, “eValues means $300 in guaranteed savings. With eValues, you have the opportunity to save an additional $200 a year on top of the savings you already enjoy.”

So a few weeks ago I broke down and upgraded my account for $20 (this price depends on when your account will expire).  It took a few days to see the “e-values” appear under my account online.  Once there, I was offered $203 in offered e-values.  These included $100 off jewelry, $50 off a mattress, $40 of laminate flooring, and $1-$2 off various food products.  The only thing I would most likely buy is the Bertolli extra virgin olive oil at $2 off.  Other than that, I am not seeing savings for anything that I normally buy.  I usually pickup cat litter, cat food, milk, eggs, and OJ on a bi-weekly basis.

Hopefully I will get a few more “eValues” on my account over the next few weeks to make a decision if it’s worth it for me.  To make it up, I need to at least break even with the $20 upgrade fee by April.  If not, I may not continue my plus membership with them.

Do you have a Sam’s Club Advantage Plus membership?  What’s your take on the program?  Are there similar programs out there?

I posted an update to this topic in another blog post: “Update: Is Sam’s Club Plus Worth It?”  Please check it out.