Tuesday, July 21, 2009

Frugal Mister finance free?

Like Frugal Missus has explained, journaling is an important part of FPU, so I won't belabor the point here. Suffice it to say, we're going to try and answer some of the questions posed to us at the end of each lesson we complete.

The one I'm going to tackle today is:

In this session, Dave introduced the notion of actually paying cash for major purchases. This is something we’ll talk about A LOT as we work through FPU. As we get started, what are your initial reactions to the idea of never borrowing money again? Do you think this is too extreme?

This lesson covered saving for emergencies and purchases. We've made it through Baby Step 1: Our $1000 Emergency Fund and now we're moving toward Baby Step 2: Paying off Debt. The concept of never borrowing money again is just that...a concept.

I find it difficult to wrap my brain around it. Since college, I've become pre-conditioned to borrow money. Hell, I borrowed money to go to college (all five of them, thank you very much). So, the idea of no longer enslaving myself to the Bank of Gimme is completely alien to me. I've been able to get some very nice things in the past 20 years. The majority of them have been paid off, but at what cost? I'll guarantee you I ended up paying far more than they were worth at the end of my payments. It's an irritating thought, but true nonetheless.

The idea of never borrowing again is at once exciting and fear-instilling. Lord knows, I am an adrenaline junkie...perhaps this can be a high of one kind or another. I don't think the idea is too extreme at all. I think this country is getting it's backside handed to itself because we've spent the last fifty years or so borrowing ourselves into the poor house.

Perhaps I'm wrong, though. Perhaps the idea is just extreme enough. Extreme enough to motivate Frugal Missus and I to right our own ship. Extreme enough to encourage us to go against where a lifetime of instruction and habit have gotten us.

So, yeah, on second thought, I absolutely think it's an extreme idea. Just extreme enough to work.

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