Everything started at Thanksgiving in 2001 at my Mom’s in Chatsworth, Georgia (just a few minutes south of Chattanooga, Tennessee). Prior to leaving for this trip, Amy and I had watched a special on Food TV about Bea’s Restaurant in Chattanooga. We were excited the whole trip about the opportunity to try out this cool southern restaurant where all the food you care to eat is brought out and served on a lazy susan.
As we were sitting there enjoying some great southern cooking in a greasy spoon environment we wondered how great this experience would be in a modern, comfortable setting with all the comfort foods you care to eat, featuring my secret recipe fried chicken. The idea for The Lazy Susan was born, and nothing was going to stop me from making it a reality.
On August 18th of 2005 my dream became a reality. Bringing in over $1800 in just over six hours that first night, and bringing in well over $10,000 that first weekend, we were well on our way to financial freedom, or so I thought. Less than ninety days later, buried in debt, with an impending mobilization with the Army Reserve, and no one left to loan me money, the dream came to an abrupt halt. The Lazy Susan closed its doors on November 6th of 2005.
How could such a big dream come crashing down so quickly? Had I made a critical error along the way? Yes was the obvious answer, but what was that error? This was not so obvious. Could things have been better planned? Yes. Could I have spent more time in the restaurant ensuring everything was done the way I wanted? Yes. Could I have spent less in the initial investment? Yes. Would changing these things have allowed The Lazy Susan stay open longer? Maybe for a few days, if I was lucky. So what caused this colossal crash? Debt!
I had bought into the Great American Lie. I was going to make lots of money using other people’s money! That is the smart and sophisticated thing to do. Cash is King, so I should save mine and use someone else’s. After all, I had the 20% down to secure my SBA loan, and I had enough credit cards that I could surely take care of any emergencies that came my way.
Then the emergencies started coming; $6895 for an impact fee, $6400 for an HVAC unit I thought was paid for, $15,000 for interior decorators that I needed included in my overall cost that were on top of it, and on and on and on. My attitude in the days before the opening was if I can just make it until we open our doors everything will be okay. I will have this huge cash flow rolling in, and thirty days to pay for everything.
The first problem really hit at, you guessed it, 30 days. Where was all this money that I needed to pay all these vendors I had put on terms? What do you mean I can’t pay my contractor? Why is my equipment not paid for yet? Taxes, how can I owe taxes already? I guess I need another loan was my natural reaction. Looking back, that loan denial was the best thing that ever happened to me. It took until the middle of October before we had our final denial, and then we limped along about another three weeks before the doors closed for good.
November and December were spent in denial for me. I was inundated with phone messages, at least twenty or more every day. I wanted them to know I planned on paying them, although I had no idea how I was going to do it. Some of the people I owe are close personal friends, and I was literally ruining their lives along with mine. The biggest problem was that I didn’t have a plan. I had no idea how to pay these people, and I thought it just wasn’t possible.
It was at this time that I started talking to my lawyer who referred me to another lawyer who specialized in bankruptcy. I thought this was my only hope. In my first conversations, he told me that I didn’t need to file yet, but once I started getting sued, then it needed to become an option. In late December, it finally came, my first lawsuit. While back in Springfield for a few days, I needed to meet with this lawyer and get the bankruptcy rolling.
God must have intervened, and I was not able to meet with this attorney. In fact we played phone tag for over a week, and I was never even able to talk to him. Amy got my attention; however, and told me I had to read this book called The Total Money Makeover by Dave Ramsey. I started this book on December 26th and by the time my plane landed in Columbia, South Carolina on December 27th, I was a changed man. Other people’s money was no longer the way to make money, but a way to be a slave. Debt was not a tool to build wealth. Most importantly, I was not bankrupt. I had money to support the four walls (shelter, food, transportation, and clothing) and had money left over to pay on debt.
By the time everything was added up, I had a total debt of $556,848.38 and an annual income of about $50,000. The whole time I was reading Dave’s book I was looking for a story of someone who had paid off as much debt as I have with an income somewhat proportional. It wasn’t there. That is when I realized that I had an opportunity to do something extraordinary, something that a lot of people might think impossible. I am faced with an opportunity to define who I am as a person. It won’t be easy, and it certainly won’t happen overnight, but I will get out of this slavery of debt. This blog is dedicated to chronicling this amazing journey. I hope you will join me on this incredible ride!
Joel,
I’m so excited that you’ve started this blog. I’m proud of you and know that we can do this together.
Comment by Amy — March 16, 2006 @ 1:22 am
You will make it.
Comment by conda — March 16, 2006 @ 8:17 am
There are no doubt many people who care for you and are concerned about you and your family. I am pleased that you are optimistic about getting out from under this. Your situation, and how you are dealing with it, could be inspirational to all of us.
Our criminal justice club at Evangel is leaving on March 19 for our national conference in Chicago. We will miss not having you with us this year. I’ll let you know how the competitions go.
Comment by Bob Cirtin — March 16, 2006 @ 9:31 am
Most people in your type of situation, give in to the pressure and surrender to their debt. I’m proud of you for not giving up. As long as you are moving forward toward conquering this, you are still a winner. Someday soon you will be able to look back at this as a learning experience. Failure is an event; not a person. A person can only become a failure by quiting.
Comment by Jack — March 16, 2006 @ 9:48 am
Oh, I forgot. COOL LOOKING SITE!!
Comment by Jack — March 16, 2006 @ 9:51 am
If anyone has ever doubted the heart, dedication and integrity in you should take note. As I am sure your journey will have it’s peaks and valleys, remember that you are doing something that so many don’t have the strength to do. I look forward to seeing you obtain a refined dream and will enjoy watching your journey. I wish you the best and I am just a phone call away.
Brad
Comment by Brad Votaw — March 16, 2006 @ 10:02 am
Yesterday, Jami and I were just talking about how proud we are of you two!! =)
(Also, I really like your site!)
Comment by Sarah — March 16, 2006 @ 10:14 am
Soon you will be in gazelle mode! Dave an I are going through the Dave Ramsey program too, so it’s on all our minds. You are in our prayers. I want you to know you both are ALREADY an inspiration. Thank you for starting this blog. Thank you for living the Journey and clinging to the hope that only God makes possible. With Him we are more than conquerers. I’ll be closing on my home tomorrow…letting go of a smaller dream than the LS…but the hope is in getting the snowball started and obliterating debt, worry, and financial slavery. One day we’ll shout “I’m Debt FREE together!”
Comment by Tamara — March 16, 2006 @ 10:59 am
Thanks everyone for your encouragement! I hope you will stick around as I talk about the first ninety days over the course of the next couple of weeks, and then move forward to where we are now! Thanks again!
Comment by Joel — March 16, 2006 @ 11:54 am
I just wanted to let you know that I am running with you guys, praying for you. I went through Dave Ramsey’s program in April of 2004 and doing by best to live by the budget I originally set up. I’ve had my ups and downs, but God had shown Himself faithful. He “will provide all my needs according to His riches!” The hope remains that I will be debt-free one day soon! I consider you a champion. You will conquer this. Debt will not reign over you!
Comment by Susan — March 16, 2006 @ 12:23 pm
I am confused, I thought this was a sight with pictures of hot chicks.
Comment by Bruce — March 16, 2006 @ 2:41 pm
This is amazing! You have always been one of the most positive individuals I have ever known. Sometimes I thought, “Man, he is so over confident - does he really know what he is doing?” Then I thought - oh well he’s not old like me he’s young enough to recover. Little did I know how deep you were. I will continue to read this daily and keep up on the journey. I will continue to pray for you both because we know this has to be a ‘God-thing’ there is no way to withstand the pressure without him. I will always be proud to call you both true friends. Hope to see you soon. We’ll throw a steak on the grill when you get back!
Comment by Gene — March 16, 2006 @ 10:23 pm
Chief,
I’m looking forward to that steak! Your friendship has meant so much over the years. We count you both as family.
Comment by Amy — March 16, 2006 @ 10:50 pm
Wow — I discovered your site through Amy’s — thanks for recording your journey. I know that your transparency will be a blessing to many people.
Comment by Heather — March 17, 2006 @ 8:43 am
Joel, you don’t know me. I know about your story through a co-worker who knows you. Anyway, I just want to encourage you. I’m a big Dave Ramsey fan and have been on his program for more than 2 years. We have worked the plan to pay off 2 cars, several credit cards, and a home equity loan. Now, all we have left is the mortgage. Today, we’re working on a fully funded emergency fund (Baby Step 3). I’m also a big fan of selling stuff on Ebay. It’s amazing what people will pay for things. Keep working hard and you’ll get there eventually.
Comment by Rick — March 24, 2006 @ 10:50 am
Joel and Amy,
Gene told me about your blog so now I am hooked. I really enjoy reading it. I admire you both for hanging in there and doing what your doing, that says alot about you and Amy. You guys are in our thoughts and prayers. You are a very special couple.
Nancy
Comment by Nancy — April 3, 2006 @ 11:26 am
Go Joel! Hey Joel, it’s funny how we come across things that speak directly to our situations here on the Internet. Found this through the Lifehacker site (your wife posted). I just turned 24 and I’m finding myself in debt. You have inspired me to turn things around and get prepared for the big life events that are coming up in my near future (grad school, marriage, etc). Thanks for the motivation you guys.
God bless
Andre
Comment by Andre — May 18, 2006 @ 2:10 pm
Hi Joel.
Found your blog via a feature at lifehacker.com.
Started reading at 11pm last night, didn’t stop til I finished every word early this morning. Your story is truly humbling, your response profound, and in truth, you may have just tossed me a lifeline.
I will be getting Dave’s book this weekend and if you can climb your mountain, I certainly have no excuses. You are both incredibly noble and to say the least, extremely inspiring.
Thanks for the naked truth.
Comment by John — July 7, 2006 @ 12:04 pm
Thanks John, I am so glad to have helped. That is why I am giving the “naked truth” so that others will wake up and come along! Keep in touch and keep reading!
Comment by Joel — July 8, 2006 @ 2:25 pm
Joel:
You and your story remind me of one of my favourite quotes:
Knowing others is wisdom
But to know oneself is enlightenment
Mastering others requires force
But to master oneself requires courage
–Lao Tzu
Screwing up is easy, but i dare say that steping into the fire like you have will bring a level of accomplishment and peace that could never be realized without havingf erred huge in the first place. Your mettel is in all of us, and as I said earlier, in context, my debt chjallenges pale compared to yours. Thus, there’s no reason i can’t solve them - and in a much timlier manner than I ever imagined.
Again, this Canadian appreciates your compelling blog. Best to you adn your family.
John
Comment by John — July 8, 2006 @ 8:12 pm
You drank the coolaid, good for you. There is a light at the end of the tunnel. Take care and Godspeed!
Mari and gang in California
Comment by Mari Waters — July 15, 2006 @ 1:28 pm
God bless you on your journey. You can do it as so many others doing Dave Ramsey’s program have.
Comment by c5c5 — July 16, 2006 @ 10:45 am
Praise God that He has given you this opportunity to exxpose the bondage of debt. My prayer is that as God uses you and your blog that He will bless you with the strength and abundant resources to be debt free!! It has been a hard, painful, humbling, agonizing time for 3 years working to be debt free! I mean we even lived with my wife’s parents for a whole year with our 2 kids!! But it is was ALL worth it!! And we will never lose sleep over money issues again!!
Blessings
Comment by Travis Gates — July 20, 2006 @ 4:12 pm
Hey Joel!
The MyTotalMoneyMakeover staff is keeping up with your progress…all of us here at Dave Ramsey’s office are rooting for you!
After you pull this off, no one will ever, EVER be able to say they can’t do it.
Drop me a line next time you’re in forums.
Smitty
eBusiness Department
The Dave Ramsey Show
Comment by Smitty — August 7, 2006 @ 3:43 pm
Joel, Amy and I have been corresponding ever since I came across her site. I’m so glad I did! I just read your story this evening. and then I read it again out loud to my older boys (15 and 17). I am very inspired by your commitment and your positive approach. I really believe you all will get out of debt, and we will rejoice with you when you do!
(Amy and I are going to pay cash for bikes one of these days, too!) Patti N
Comment by Patti N — August 11, 2006 @ 11:25 pm
Joel, I just found your site through one of your posts on TMMO. I live in Nixa and had a few meals in The Lazy Susan. I was sorry to see it close. My wife and I have been following Dave’s plan for the last 18 months and have paid off about 50K in debt. We felt so strongly about helping others that are in the same financial quicksand, that we went down to TN and became Dave Ramsey Certified Counselors. I have been reading through your Blog and am proud of what you have accomplished and wanted to wish you the best of luck in staying on track!
Take care and God Bless!!
Mikel
Comment by Mike Dotson — August 12, 2006 @ 12:56 am
Hey there Joel! Your Mom sent me your blog address and I am really excited to be in touch with you. I am sorry for the loss of your business. It sounds like you are using this as a stepping stone to were you really want to be. Your foundation is only growing stronger with each step that you take. Keep up the good work. It is so encourageing to hear your story.Hold your head high and never give up!
Comment by Tina — August 13, 2006 @ 4:30 pm
As someone who is also pursuing the debt free dream, I pray we will both see it’s reality sooner than we believed possible. You are a true reflection of what a positive attitude can accomplish!
Comment by Alicia — August 26, 2006 @ 5:27 pm
Joel,
Your story is very inspirational and has inspired me to start my own blog about our trip out of debt and through life.
I hope that I can touch just one person in the way that your story has touched me.
Thanks,
Tim
Comment by tim — August 26, 2006 @ 5:58 pm
It is astounding how our societies teach us that debt is a good thing. My parents opened a general grocery store about 30 years ago, and they were forced to close due to unprofitability. More so, the money they borrowed became a millstone around their neck. I don’t think our family every really recovered from the stress it caused.
I do believe that blogs like yours can really help support and inspire others facing similar troubles.
Good luck
Kenneth
Comment by Kenneth — August 29, 2006 @ 10:48 pm
Joel, You are sooo not alone. There are many of us waking up to the lie. We spent (charged) $15,000 to take real estate investment classes on how to use other people’s money (go deeply in debt)now we owe american excess 30 grand and quite a few others for charges from home depot on our real estate adventure- I wish I knew this a year ago but I’m glad to know it now. We are rooting for you!! eat that elephant one bite at a time. RhondaJoy
Comment by RhondaJoy — October 18, 2006 @ 11:28 am
Hello, i was searching about debt relief and came across your blog. I am in a bad situation because of some internet business ripoffs and failures. I am in debt to the tune of about $150k and it is time for me to face the music. My income hovers in the 50k range. So if you can do it, i definately can. I have been in tears because of this and i want you to know that finding and reading your blog has given me some hope. GOD bless you with your journey and thank you for sharing it and inspiring others like me.
Steve
Comment by Steve Richard — November 14, 2006 @ 4:19 pm
Your story really inspires! My wife and I have just recently started attending an FPU class in our area. When I read your story it really gave me hope — keep drinking the Kool-Aid!!
Comment by Bryan — February 19, 2007 @ 6:56 pm
Congratulations on finding your way… Your story is sure to inspire thousands of others. Thank you for sharing!
I do have a quick question, I haven’t reviewed all of the spreadsheets (I have my own that I created), but I noticed that the formula on Cash Flow Plan in D6 is not correct (when I open it, it sums C3 & C4… not C4 & C5)… just wanted to point it out, for those who may not understand how the spreadsheet works…
Comment by Stacey — March 9, 2007 @ 9:05 pm
Joel - I stumbled on your website yesterday after googling for “zero based budget excel” and came up with your Excel budget template. I read your story today and I’m impressed. Thanks very much for being such an inspiration.
We’re starting down that road of debt freedom… after procrastinating for far too long. I ordered the Ramsey book yesterday (they didn’t have it at our local used bookstore but Ramsey was holding a Labor Day weekend sale and it was a steal at $10!!!).
It will take us a few years but we’ll do it. Thanks for the inspiration. I’m adding your blog to my daily read. By the way, best wishes… I’m a Navy vet.
Comment by Bernie — September 4, 2007 @ 6:37 pm
Just happened to find your site…you’re an inspiration. My husband and I are gazelle intense right now. Trying to break free from the bondage of debt. Check out our site if you want…we’ve paid off $25,000 in a little under 7 months thanks to Dave Ramsey. We’re not done yet, but well on our way. I’ll be back to check your updates…
Comment by Katie Neer — September 27, 2007 @ 3:54 am
Joel,
I would really like to subscribe to your updates but our server will not let me subscribe. Really appreciate all the advice and inspiration.
John
Comment by John — October 4, 2007 @ 7:05 pm
Hey Joel, found your website we live in Ozark, and know Brad Eldridge to a great friend, anyway wanted to encourage you we to are in debt and doing Dave Ramsey, our prayers are with you bro.
Darren
Comment by Darren — November 7, 2007 @ 6:40 am
Hello to both of you.
Thank you for serving our country - and thank you for posting your debt freedom story. We are in the process of digging out of the lies we bought into as well - down to $114,895.28 (hey, Dave Ramsey and Suze Orman says to be specific)
I wanted to also let you know I am proud of you for sharing the call you feel that God has placed on your life. As a second career pastor in co-ministry with my husband it is a hard life but rewarding.
-Bridget
Comment by Bridget — January 6, 2008 @ 11:24 am
Well, I think that I have finally found my inspiration. We, too, have a failed business. We kept pouring money into it using loans and credit cards and now it appears that we have about $250k to pay off and unfortunately, some of it is secured by my own home and property. We officially closed the business on December 26, 2007. I joined the forum on TMMO and someone told me to go to your website as well. I will be reading your stories for some time, but they will give me hope that there is a way out of this.
Thank you for serving your country and thank you for baring your soul on your website.
Harriet~
Comment by Harriet — January 25, 2008 @ 7:59 pm
Hi Joel - I just came across your website when I entered my baby son’s name (Joel A S Maxwell) into Google.com!
Baby Joel was born last Monday morning, in Portsmouth, England - and weighed 8lb 4oz - so am just saying hello here, from across the pond, as a Proud Dad!
Brian Maxwell.
Comment by Brian M Maxwell — July 23, 2008 @ 8:55 am
Hi Joel! I’ve commented before but this is the first time I realized your mom is from Chatsworth — we live in Dalton.
I hope you keep posting and it’s nice to see you pop in on the DR forums.
Comment by Mary — January 4, 2009 @ 1:41 pm