Beyond Step 7

Over the last 12 years we have been trying to obtain freedom from our debt. It has been a process that hasn't been easy. It could have been done faster if we would have focused. But before my daughter turns one year old, before my wife turns 36 and I turn 41 we are proud to say that we will completely debt free after the last $16,609 dollars are paid to our mortgage. The only payments we will have is our property taxes that are due once per year, utilities, insurance, gym memberships, streaming services, and food. The main resource we used to start this process were Dave Ramsey's Baby Steps. He has some clear steps forward once you reach step 7. Though they aren't as clear as steps 1 through 6, and 7.

So this is my ramblings around what happens after step 7. We can sit here and imagine what it will be like when we get to the point of having zero debt. Dave always mentions the feel of the grass when your house is paid for. Somehow the grass will feel different when you own your home. We have been on a mission for 12 years to get where we are today. There has been so much focus and achievement and now I am not sure what to do. I even feel ashamed that we are debt free. There has been so much influence in our lives from the banking industry, our friends, family, and also the great consumer marketing machine. Even when we were going through the process of paying off debt we had countless people tell us that we were doing things wrong. After years of hearing that, you start to believe it. But now I sit here and dream about a vacation home. I want a beach house and a mountain house. I could go get a loan tomorrow, and with our income, we would have zero problems doing that. The bank would be happy to give us money to buy the house. After all, most people would say that we deserve it. But there is this voice in my head that sounds a lot like Dave Ramsey. It is telling me that I should save up and pay cash for the next home. Honestly I would much rather have a vacation home that I don't have to make payments on.

As for the raw next steps, I know that my wife and I want to drastically increase our charitable giving, and need to invest up to our annual max allowed for tax deductions. This will be done on all fronts, 401K, IRA, Roth, HSA and any other advantage that we can take. Beyond that you end up having a lot of income that can be used for other things. But ultimately I am thinking about how to create passive income that doesn't require me to do anything. I want our dollars to continue working while we are sleeping. We have talked about saving for and buying residential real estate. We have thought about commercial real estate. I haven't landed on why I like the idea of having commercial over residential. But that is the current direction that I am looking.

As for other ways to spend money beyond giving, investing, and saving... I have a hobby of flying airplanes. This is an expensive hobby. Over the last three years we only spend $500 per month on it. A lot of people spend more on that to drive a new car.

One of the things that has helped me over the years is using my desire to dream. I have been dreaming about being debt free for over a decade. But now that I am here, I am trying to dream of what our future looks like. I want to travel abroad with my family every year. I want to have enough passive income that I could ease off on trying to make money to survive. A wardrobe that is full of ethically made goods, and perhaps a portal to another world. I wouldn't mind an electric truck. Rivian in style but Tesla in functionality. An airplane to travel with would be fantastic. The ability and time to have a season pass to ski with my family. A mountain house to go to for skiing. The winters would be spent skiing. While we are dreaming, I would like a personal chef and massage therapist. I would like a garden on my property that is taken care of by someone else. But I get to harvest.

As for the rest of this post, I want to address the feeling of shame surrounded by our debt freedom. We are beyond blessed and absolutely privileged to be in the situation that we are in. The shame is something that concerns me though. Why would I take something that feels like such a gift and then hide it under a basket for nobody to see. I know for a fact that the banking industry would rather people believe that they can't do life without debt. Over the years I have given the banks over $100,000 in fees and interest payments that I will never get back. In a sense when people talk about the benefits that credit cards give them, I have to laugh. The free points, or travel vouchers that you use, are actually earned off the backs of the poor. The people who can't make payments on their principal are only making interest payments. These interest payments go to pay the inflated salaries of the bankers and the leftovers go to your "free" airplane tickets. So I single handedly paid for over 500 people to fly for "free". So in an effort to continue against the grain, I want to tell you all with confidence that I am happy we took the path that we took. I don't miss the $400,000 that we spent over the last 12 years to become debt free. This side of the fence is much greener than I expected.