Living-Deliberately.com

I think I mentioned awhile back that we’d be featured in Dave Ramsey’s subcriber Newsletter, The Gazelle Gazette. The issue came out yesterday! Here’s the interview!

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When you live with a purpose, when you live deliberately … you can do great things. Dave talks about the focus and determination to become debt-free, but unless you live with the purpose of getting out of debt, then even the best advice won’t work. That’s what Tia and David and their four children have done for the past 22 months … lived with a purpose.What makes the story of the “Six Redheads” so special? The fact that Tia and David, while raising four children, paid off $14,000 in 22 months on a salary that started with $25,000! THAT’S living with purpose!

We got the chance to talk with Tia and David recently:

So, Tia and David, you and your family are finally debt-free! How did you guys do it?

Tia: For the first six months of our makeover, we just learned to live without adding to our credit, and then we shifted into “work gear”. We also raised our income, which was unexpectedly low due to some company issues. Even doubled, with our family size, the income isn’t that high. I really want it to be known that we paid off this debt on a low income. It’s possible to do it. There are so many people that are on lower incomes in this country; they just don’t think that they can do this, but they can! You teachers, military personnel, families with a stay-at-home mom, you can do this! Break out of the lie that says you have to have credit in order to live a good life! You just have be gazelle-intense in working at it.

David: It’s those that are on a lower income that will feel the most freedom from getting rid of their debt; with it, their dreams are arrested.

How were you guys able to stretch your money like that?

Tia: The most effective place to save money is in the grocery budget. Make a meal plan for your week, shop with a list, and don’t buy processed or convenience foods. Feeling physically well will really help you stay focused and work hard! Make your food yourself and learn how to cook. We lived on $400/month food money for six people for 10 months. Don’t buy soda, chips, or fast food. Eat whole foods, which are healthier anyway. Hang your clothes up to dry them instead of using a dryer; that will lower your electric bill. Changing to compact fluorescent bulbs also has a hefty impact on your bill. It’s a lot of work to drive down your bills but you’ll feel like you got a raise in pay!

David: we got over our shame with our status as low income earners and allowed ourselves to be blessed with things like hand-me-downs. Our standards were simple and we didn’t go shopping very much. But that is what staying fixed on a goal is about; you keep your eye on the prize and change your status!

What led you guys to use credit and debt in the first place?

Tia: Our daughter died 8 years ago and wanted to get away from the pain. We didn’t want to say “no” to ourselves on anything, didn’t want to sacrifice or feel a pinch, and started using credit. We charged anything that would feel hard if we did without. It was bondage in more ways than one. It really helped us when we learned that we didn’t have to live in the cycle of debt anymore. Ultimately we are free AND healing.

How did you start the process of getting out of debt?

Tia: We started our plan before we ever heard of Dave. We lived in Florida and were in over our heads in debt; so was everyone in our neighborhood. In July 2005 we moved to Tennessee and lived in a two-bedroom apartment with four children for 6 months. God really blessed us and we are so glad we ended up here because all of the people around us are on Dave’s plan! We have a support group that I know not everyone has but is really an important part of the makeover. We just recently went back to our old neighborhood in Florida to visit … three of our neighbors there had declared bankruptcy and are about to do it again!

We thought when we started this that we had to live one income. Doing things like getting another job were ways we had not pushed ourselves in the past, but we were ready to now. David is in customer service management and I’m a commissioned painter, and I also started a web blogging business. David also started working at UPS and picked up a second and third shift. We learned to sacrifice, sold stuff and live on a budget. Moving into an affordable home freed up some money in our budget. Listening to Dave gave us constant hope. Now we have a plan and we know exactly where our money is going.

When you’re have low income and do a total money makeover, sometimes you have to take steps backwards to take steps forwards. Making certain moves like moving into a cheaper apartment enabled and empowered our budget. The key is … IT’S NOT FOREVER! So this harder work is temporary but very necessary. Now that we’re debt-free, even though we don’t have piles of money yet, the money we bring home is ours.

How old are your children and how has it been to do this process with them?

Tia: We’re all a team and we do everything together, including listening to Dave’s show! They are an important part of this makeover and we work together. Our kids are ages 11, 9, 6 and 2. They have their own budgets and envelope systems. They save for things and we bring them home treats every so often to keep them fired up. If they’re saving up and want to buy something that they can’t afford just yet, we don’t even say “We can’t afford that” anymore to them. We just tell them that they can buy it later if they can’t afford it now.

David: The end result has been that our children openly criticize the credit card offers that come in the mail, they pick up on the fine print in commercials, they comment on the pervasive messages that people need to borrow money … at these tender ages their opinions have been formed against credit cards!

Do you have any more advice for people out there who are trying to become debt-free?

Tia: When you’re on the first few Baby Steps, don’t think about the later ones. Just think about the Baby Step you’re on and don’t overwhelm yourself. The plan tells you where you need to be, so if you are not there, don’t think about it.

David: If you’re married, try to be on the same page. Also, getting out of debt means not feeling trapped anymore. You are going to fall down … life is a series of falling down and getting up. This is about getting up and staying up longer than you ever have before.

Tia: Dave says he did stupid with zeros at the end. I’ve said over and over how thankful I am that he got up and was willing to share it with the world in a loud way. I doubt he realized he’d change more lives than just his in doing so but we are where we are today in part because of his willingness to get back up. I’m writing a book all about it called Low Income is Better Than Owed: How One Family Decided to Live Deliberately and Became Debt-Free! Thank you Dave Ramsey!

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