How we paid off our house in less than 5 years, our debt free story.
This is not something I ever talk about because this isn’t a debt free living or financial blog. But, it has been an important step for our family and I think its worth talking about.
We have been 100% debt free for almost four years now.
We don’t have a huge income. I am a stay at home mom and my husband works for the water department in the city we live in. We are just average Joes, but we live totally debt free and here is how we did it.
Picture of our house before we renovated it
Our debt free story video
1. We bought an inexpensive house
Ok, this has to be first. The main reason we paid off our house so quickly is we bought it right in the first place. We stayed within our means and bought what we could afford.
That means we have some pretty crazy before pictures!
Although it looked like it was in pretty rough shape, several gallons of fresh paint at least made it livable.
2. We set a goal
When my husband and I first got married we were almost slightly fanatical about debt free living, so much so that we were hesitant to even buy a house at all. Even though it wasn’t super pricey, we still couldn’t imagine paying close to $100,000 for anything. We had quite a bit of money saved up for a down payment and we knew we would have to pay rent if we didn’t buy a house. So, we decided we would purchase the house and make it a priority to have it paid off before we were in our 30’s. We knew the debt was a temporary thing that we hoped to get out from under as soon as possible. We were slightly obsessed with saving money so we could pay down our debt.
2. We made no renovations until it was paid off
Except for new paint, we did absolutely nothing to the house. We really are just now starting to renovate it, with the kitchen renovation we did earlier this year and the new built ins in our living room. In a few months we plan to completely redo the master bathroom. Hopefully soon after that we will get to the guest bathroom.
I am so glad we waited so long because it has given me a chance to pin a lot of inspiration and really think through the design. I’m sure if I would have rushed into it eight years ago I would have made choices that I would now regret.
Plus, we couldn’t have afforded it back then when we had a mortgage. Yes, we could have made the monthly payments, but you can only really afford something if you actually have the money.
3. We only use cash
If we can’t afford something we’re not buying it. That’s why you will always see me in a car that is at least five years old. I don’t look cool in it, but I’m also not stressed wondering how we will pay the next bill. I have done this since I was 16 years old. It is what my parents did and they taught me to do the same. And, let me tell you, we drove some serious clunkers when I was a kid. A vehicle is an expense and nothing more, so it makes sense to get by as cheap as possible, unless you have the cash to buy something better. In which case, go for it! We, on the other hand, drive an eight year old minivan.
4. Every time we had extra money we put it towards the house
If we had a couple hundred extra bucks we put it on the house. At tax return time we would take the entire lump sum and pay down our mortgage. We didn’t consider new furniture or appliances because we knew we couldn’t afford them. We still have the same $80 second hand couch set in our living room. I did make new white slipcovers for them three years ago to cover the ugly ripped green fabric. We just recently (finally!) bought a brand new stainless steel refrigerator to replace the 20 (plus) year old one that came with the house.
You can see the ugly countertops, refrigerator and sink we had for the first seven years we lived in our house.
5. Cheap vacations
We never sacrificed on vacation. We have taken at least one every year since we have been married. When our oldest daughter was 18 months we went to Niagra Falls, Boston, Plymouth Rock, Rhode Island, Long Island Sound and Pennsylvania. We drove the whole way and tent camped while we there. I wouldn’t want to vacation like that now with four kids, but it worked at the time.
A few years ago we drove north about six hours and enjoyed beach time on Lake Michigan. We stayed in a couple of Airbnb places while we were there. It was so simple but one of my most favorite vacations ever.
Last year was our first vacation as a family of six. We drove the 12 hours down to Gulf Shores, Alabama. We stayed in a big Airbnb house near the beach. My sister and her family of five came with us and split the cost of the house. We bought all of our food at the local grocery store and cooked our meals at the beach house. It was a simple laid back vacation, but it was perfect for making memories as a family, which is all I really want out of a vacation.
So what has debt free living the past three and half years allowed us to do?
Well, since we became debt free, we also had two more kids and our older kids grew A TON. So, now we spend our money on FOOD. And lots of it! I see these blog posts where women say they feed their whole huge family for like $100 per month. Let me tell you, that’s not happening over here! I like to buy organic meat, vegetables and fruits. Those things are pricey and our grocery budget is outrageous, but we can afford to feed our growing children healthy food, because we are debt free.
It has also allowed me to make a few investments I may not have otherwise made, and given me the freedom to pursue my dreams. I was able to purchase some expensive sewing and embroidery machines for my online sewing business that I started earlier this year. Also, since it isn’t necessary for me to bring in a second income, I am able to stay home with my kids and pursue my blog with any extra time I have.
Honestly, if we weren’t debt free I don’t see how we could afford four growing kids. I’m so glad we got that out of the way while we were so young and our family was small. Now we are able to enjoy our growing family without the stress of financial strain.
I really feel like debt freedom is a worthwhile pursuit and if you have the opportunity to achieve it, I would encourage you to go for it.
Thank you so much for stopping by and reading along
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Julia says
Amazing and inspiring. Thank you so much.
Lisa Bass says
Thank you so much for reading!
Linda says
AWESOME post !!!!!! I am 60 years old, and my husband and I did the exact same thing, and it works and it is not that hard, if you set you mind to it !!!! It is so refreshing to read your story, wish more people were like you and your husband. Keep up the good work !!!!
Lisa Bass says
Thank you so much for your sweet comment! I love that you did the same thing!
Susan says
What a great story and kudos to you and your husband for not buying into the "gotta have it now" syndrome. My husband and I are also debt free. We bought 86 pristine acres with no road, no power, no well, no nothing…Back in 1989. We paid off a 10 year note in 1 year 5 months. We didn’t do a single thing to develop the property until it was paid off. (We were living out of state at the time). We built a 900 sqft garage/shop to live in while we built the house. Truth is, we never built the house. Our little garage shop has served us well as our tiny cabin. All purchases are cash, including my 2016 Subaru Forester. I applaud you. Somehow things mean more when we work and save for them. Your home is lovely, as is your beautiful family!
Lisa Bass says
That is so awesome! Paying off a farm like that is a huge accomplishment and a great investment! Way to go!
CLB says
Great story & thank you for sharing it! We are debt free except for our house & we do not owe much on it. Thanks for the inspiration to buckle down & get it paid off!
Lisa Bass says
Thank you so much!! And way to go!
Erica says
Lisa! Hi! I randomly stumbled across your blog and thought ‘she looks familiar’! What a beautiful family you have, and I love the blog too! I have many fond memories on your parents farm growing up. ~Erica
Lisa Bass says
Hi Erica!! How ever did you come across my blog??? That is so awesome! I have thought about you over the years and wondered how you are doing!
Stephanie says
I just discovered your blog and I love it! I’m a thrift shopper, bargain hunter like yourself. I’m in a new home, but hoping it give it the older farmhouse vibe! Can’t wait to keep reading!
Lisa Bass says
I am so glad you found my blog! So fun to be in a new home full of possibilities! 😉
Vaalotu Iakopo says
I love it. Sorry my English not really good but I wanna let you know you are helping me out in my budget. Awesome article and thanks for sharing.
Lisa Bass says
Thank you for visiting!
Susan says
I just found your blog on Pinterest and absolutely love it! I too agree with debt-free living and the peace of mind that it gives. Thanks for your encouragement to keep on track! I look forward to reading your future blogs. Happy New Year!
Lisa Bass says
Thank you so much for visiting and the nice comment! So fun to find like minded people. So glad to have you as a reader!
Lisa Bass says
So fun to find like minded individuals! Yes I am a total health nut. LOL I use a Nutrimill, Bosch mixer and Berkey water filter. Still haven’t gotten the Vitamix but that will probably happen eventually!
Rachel says
I love your blog! I especially enjoy the idea of being debt free and clutter free 🙂 Double amen! Thanks for the inspiration Lisa!
Lisa Bass says
Thank you so much for visiting my blog and the sweet comments! I seriously appreciate it so much!
Tiffany says
Congratulations to you and your family on this! That is a huge sacrifice that you have made to be more financialyl secure and accountable.
You are an inspiration!
Lisa Bass says
Thank you so much for reading Tiffany!!
Terry says
Hello,
Your home is beautiful! What is the name of the gray exterior paint? I have been looking for the perfect gray to paint our house. There are so many to choose from. I think I found it with your home!
Lisa says
Thank you so much! We just have plain white paint for the exterior! 🙂
Lauren says
Hi Lisa,
I just stumbled across your blog from the YouTube video on how you paid off your house, and have been so encouraged! Thanks so much for sharing your story! My husband and I have the goal to buy and pay off our first home by the time he’s 30, so your experience really spoke to me. 🙂 I’m always excited to hear stories like yours, and I’ll definitely be coming back here often (love your blog)!
Lisa says
Thank you so much Lauren! Comments like this are so encouraging. Glad the story could inspire you! You can totally do it. 🙂 So glad you found my blog through Youtube. 🙂
Amber says
This is very inspiring! We raised our kids in old cars that were paid for as well. One of my daughters is walking to work 2 miles each way every day to avoid going into debt for a car. Neither of my daughters is enrolled in traditional college because of the enormous debt it entails. Instead, they are pursuing vocational certificates they can pay cash for. Once they have those, they can earn plenty to survive or use to pay for further education.
I agree with you about the cost of having more than 2 kids. We easily spent $400-800 a month on groceries (nothing organic) when my three were all teens, and I was homeschooling them with no side income. Paying for their books was always about $1000 a year. We made a LOT of sacrifices for me to be home with them, but it was more than worth it.
Now we need to find a home to buy and have paid off before my husband retires in 15 years. Thanks again for the inspiration!
Lisa says
Sounds like you guys have the same mindset we do! No sense in taking on extra debt. 🙂 So glad this story was inspiring to you! All the best to and your family.
Meredith says
I’d love to know more about your grocery budget before paying off the house, and your current grocery budget. We have the same priorities as far as quality food goes!
Lisa says
Hey Meredith! I have to admit I’m not the best budgeter. I try to spend as little as possible, but I never have a set budget in mind, nor do I keep tack. I always figure I am probably spending the least amount I can, as long as I am buying no processed foods and we aren’t wasting anything.
Debbie says
Hi Lisa,
Thanks so much for taking the time out of your busy life to share all that you do! I throughly enjoy your posts. You are very refreshing and furthermore I am so impressed that you have a business for a side income but you are willing to post “how to” videos for the items you sell, what a blessing you are!! I know without a doubt both your parents are very proud of both you and your husbands accomplishments. I am single, 55 and have just recently purchased my first little “farmhouse” out in chicken country, I love it, it has been entirely furnished by God’s grace through thrift store online and local shopping. And of course many Pinterest DIY projects. Many blessings to you and your adorable family!
Lisa says
Oh that is the sweetest Debbie! Thank you so much for following along. 🙂 I’m sure you will enjoy your new little farmhouse!
Morgan says
So glad y’all were able to pay off your debt with a good amount of sacrifice and patience! I do have a question though: you mentioned that now you spend most of your money on food since you prioritize organic, non-processed, etc… so does that mean that while you were paying off debt you didn’t have such high standards for your food? I see the same people you talk about (“here’s how I feed our family on $50 a week” or, basically, “we only ate beans and rice for a year”) and wondered if you were saying that you’d be ok with that because your MAIN goal at that moment was spending all extra $$ on your debt. My husband has a strong conviction to only eat humanely raised (expensive!) animal products but we are a one-income family of four and need to get serious on paying off our debt — it helps to hear what others have decided. Thanks!
Katie says
Thank you for sharing this 🙂 This is soooo inspiring to me!
Lisa says
Great! Thanks for reading!
Bvm198538 says
Hi. I am a French mother with 5 children, 2 daughters and 3 sons. I find your articles very inspiring. I did a lot of your peasant dresses and blouses.
Unfortunately, when my husband and I got married and I was a stay-at-home mother, it was no longer worth going through the door of a bank for a loan, they laughed: you can’t be a mother at home and take out a loan, not with savings and a single salary!
So we are still paying rent, which is huge with 5 children. In addition, we had to leave France because we made the choice of birth and school at home and the social services bothered us a lot about this and about the fact that I was at home. We are struggling but we are happy!
Lisa says
Thank you for your kind words and sharing your story! I wish you all the best!