The equation to having a positive net worth.
*Live BENEATH your means+
*Increase your income (ie, get a second job)
*Pay off debt
Positive Net Worth!
So I lied….it’s actually not easy at all. It’s one of the hardest things we’ve ever done! It’s interesting that our goal wasn’t to have a positive net worth, our goal was to pay off the house……having a positive net worth just happened to be a side effect of decreasing our mortgage debt. It was SO EXCITING to not see a
bold, red and italicized negative net worth in our budget, but instead to see the friendlier bold and black numbers that reflected our recent positive net worth.
It’s exciting knowing that our + net worth is only going to grow as our mortgage debt decreases. In about a year, we will be able to keep every dollar we make because we will have no debt and I can’t even imagine what that will feel like. This is me giving myself a pep talk because it has been everything but easy. I have recently had to pass on several different outings because I want to stay on budget. I know if I go to these different events it will result in excessive spending that I don’t need, and it is difficult to say NO to yourself and to say NO to others. I’ve never practiced saying “NO” to spending before we got on our budget…..but I have to say that everytime I did it, I lived. The world kept turning, I didn’t spontaneously combust, and most importantly, I got a chance to practice my “frugal” muscles. I’m starting to realize that Dave Ramsey is 100% correct when he says: “Live like no one else so that later, you can live like no one else.” Sacrificing and learning to have self-control are essential to building wealth and keeping it.
Questions for you: To all you frugalites: Is it hard to say “no” to yourself? Is it hard to say “No” to others? Are others understanding? Any specific examples?