Just over 2 years in, and we’re still truckin along

November 24, 2008 at 12:14 pm (General nonesense, Inspiration)

My wife and I realized that we’re just over 2 years in to this bankruptcy. A lot of things have changed since we started this. We have made a new chart of our progress, and we’re still trucking along.

Here is a new picture of our chart:
New chart - halfway

As you can see from the chart (and the surrounding stuff) my wife and I do our best to motivate ourselves and our 2 kids with quotes that we find that are helpful, reminders of how far we’ve come (the chart, including the filled-in spaces for braces and 2 used replacement vehicles we bought), and reminders of what our family is all about (the family mission statement that we made with our kids, and the Dave Ramsey baby steps).

My favorite quote from the chart so far?
“Character is what you have left when you’ve lost everything you can lose”
-Evan Espar

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Understanding debt

November 17, 2008 at 8:53 am (General nonesense)

The ‘Better explained’ blog has a great article on ‘understanding debt’:
http://betterexplained.com/articles/understanding-debt-risk-and-leverage/

Some highlights from the article:

Getting a mortgage: As we saw, borrowing money to buy a house is a form of leverage. With 5% down (a 20x gearing ratio), your house only needs to drop by 5% to lose money. With 0% down, your house has to drop… wait for it… any amount for you to lose! And after your house is worth less than your mortgage, there’s little incentive to pay it off (better to go bankrupt, depending on the debt).

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