A Modest Accomplishment

I recently received the following text message from our bank: "Checking withdrawal posted for $876.10". This was the final payment on our home and land loan, and we are for all intents and purposes debt-free. Now in our mid-fifties and after thirty years of marriage, we are the proud owners free and clear of our home and land, three old cars, an old travel trailer and three kayaks. We've also managed to build an emergency savings account and invest a bit for retirement. Here I'll reflect on how we accomplished that.

There are four factors that I would consider foundational to our modest achievement, and which are not available to all. First, we have benefited tremendously from unearned privileges. I don't know how to measure the impact, but I am confident that they improved our odds enormously. Second, we both had parents who not only provided generous gifts and support, but also models of good financial management. Third, we never became parents. Fourth, we've never experienced a catastrophe such as out-of-the-ordinary health care costs or extensive uninsured property damage.

Here are some other factors that were more directly under our control:

• While Kate had to borrow money for college, it was a relatively modest amount with a manageable interest rate. 
• We've moderated our spending. We've never spent money on expensive home furnishings, top-of-the-line appliances, high-end electronics, expensive cruises, designer fashion or five-star dining. 
• We paid off our land and home in 20 years. This required living in a single-wide mobile home for seven years, and then building a small house once we were ready to build. 
• We've bought relatively inexpensive cars and hung on to each one for several years.
• We've both had full-time jobs with modest salaries but good benefits for the past 30 years. 
• We've led reasonably healthy, active lifestyles. 
• We've avoided debt, except for vehicles and real estate and the aforementioned student loan. OK, I did take out a loan once to buy a tractor. In all cases we made significant down payments and kept loan terms relatively short (usually two to three years).
• We both graduated from college, and then spent significant time and money on additional training after entering the workforce. 

This is a major milestone to cross, and we are thrilled to have gotten here. It will likely continue to have a major impact on our financial health and resiliency moving forward. And while we are proud of the steps we have taken, we must acknowledge that for others who do not have the same foundation, it could be a much longer and more difficult road, and still might not result in the modest level of wealth that we have achieved.