Howdy! I’m proud to share that we are consumer debt free!
As great as it is to explain certain things I’ve learned along the way, I find it equally as important to walk the walk.
One of them is by living the rules of money that I mentioned on a previous article. Having proper money management is a key to growing your wealth.
Once you are debt free, you now have hundreds or thousands of dollars you can put away towards future goals and aspirations. It truly is a freeing feeling!
Last week marked a significant milestone in our journey towards financial freedom — we officially paid off $62,000 in consumer debt in just 12 months! It’s been a whirlwind of dedication and hard work, and while we didn’t take the time to celebrate then, this post is all about that victory and how we achieved it.
The Power of a Plan
The first and perhaps most crucial step in our journey was creating a clear and actionable plan.
I’m a really big fan of having a WRITTEN plan, and one that was a little scary but definitely achievable for us if we stayed focused.
We set a goal at the beginning of the year to be debt-free by December 31st, 2023.
With determination and focus, we achieved this goal on December 16th, just a couple of weeks before our deadline.
The key was having a “North Star” — a constant reminder of what we were working towards.
For us, it was a laminated list of goals and reminders placed right in front of the computer, a daily nudge towards our financial objectives.
Staying the Course
With a plan in place, the next challenge was staying focused. It’s easy to get distracted by other potential investments or expenditures.
We had to remind ourselves constantly of the importance of paying off our debts, even when other more lucrative financial avenues seemed tempting.
We decided to stick to the snowball method popularized by Dave Ramsey, which meant tackling the smallest debts first and rolling those payments into the next ones.
This method provided us with small, early victories that kept us motivated and helped maintain momentum.
Making Sacrifices and Increasing Income
To truly accelerate our debt repayment, we had to make significant sacrifices and increase our income.
I took on two full-time jobs, which was incredibly demanding but necessary to make large payments towards our debt.
We minimized our expenses to the essentials and occasionally allowed a small budget for dining out to keep our spirits up. Every extra penny was directed towards our debts.
The Emotional and Psychological Impact
Paying off debt isn’t just a financial journey; it’s an emotional and psychological one as well.
Each payment made us feel a little lighter and more in control of our future.
The day we made our final payment, we realized that we weren’t just shedding financial burden — we were gaining a sense of freedom and possibility.
We’re now able to put every single dollar that we earn to put it away towards our future and lifestyle down the road.
What’s Next?
Now that we’re debt-free, our next goal is to build an emergency fund that covers six months of living expenses. We’re also exploring the idea of geoarbitrage — living in a country where our American dollars will stretch further, allowing us to save and invest even more.
A Message of Hope and Encouragement
To anyone out there struggling with debt, let our story be a testament that it’s possible to overcome even what might seem insurmountable.
It requires a plan, discipline, and a willingness to make tough choices, but the freedom you gain is worth every sacrifice.
Remember, it’s a short-term sacrifice for a long-term benefit. Stay committed, stay focused, and you too can achieve financial freedom.
If you’re in a place where you’re not sure if times will change, remember that there’s not going to be a magical moment that will change everything for you.
The only way that your circumstances can change for the better is if YOU take a stand and change your situation.
Nobody is going the do it for you. If you want to win the game, you have to change the rules. If you can’t change the rules, ignore them.
Please use this post mainly as a vote of confidence towards your goals and desires. If you’re also in debt, use me as a cheerleader in your corner because the one thing I’m certain of is being debt free is indescribable.
Leave a comment below on your thoughts about this article and any feedback you have!
