My Debt Free Year In Review

Let me start by saying that losing $165,000 in debt FEELS REAL GOOD..like REALLY REALLY GOOD. This may be one of the top reasons that I keep shouting about the debt free community and trying to recruit all of you to join me. Believe me when I say that a debt free head just hits the pillow different at night.

So I’ve now had a whole year to reflect on my decision to get out of debt and wanted to share three things from my reflection with you. So keep reading to learn why I got out of debt, how I got out of debt and how I have and will continue to keep the debt off.

THE WHY-YOLO..so that was my mentality back in my late teens and twenties, but I interpreted it wrong. I thought it meant that I should party it up, buy what I wanted when I wanted it, and just be making minimum payments for a lifetime..the American Dream. Pay for everything on credit and work until my mid sixties and make jokes with everyone else along the way about how “I will never pay these student loans off” or “At this rate I will be working until I die”. Looking back, YOLO now means to me that you in fact only live once. So live the life you want and not the life society tells you to. Figure out your own path and your own way to to make a living.

THE HOW-I contribute 3 things to my how. One being a mindset shift. If you don’t first believe that you can be debt free and that you also deserve the freedom of a debt free life, then no budget or even a large sum of money will be able to help you. The second was zero budgeting during the payoff. This just means that I literally took every additional penny that I had and put it to work for me paying off the debt. I turned down a lot of stuff during this time, including eating out or going on a bunch of trips. I got dramatic with my expenses and cut them down to the bare minimum. (or so I thought) Then I woke up one day and realized that I was making excuses for some expenses that weren’t necessary, such as two newer cars that we didn’t need, and an SUV that sucked down the gas. I was also still budgeting for clothes, hair and makeup. When I cut down to the ACTUAL needs..I found out that none of that stuff was included. Actual needs are just that..basic food, shelter and transportation are it…period. So once I got rid of all the excess through a No Spend Year and getting rid of the cars, things really started to accelerate. The 3rd item that helped was the debt snowball method. Every single extra penny went towards the smallest debt, paid that off, then rolled that into the next smallest, and just kept going. When I got towards the end, I also dabbled with the debt avalanche for a student loan that had a high interest rate.

KEEP IT OFF-I have come across a lot of temptations now being debt free, including getting an itch for a new car occasionally or to upgrade in other ways. I think it’s human nature and it’s hard to deprogram from a lifetime of consumerism and instant gratification. It would be very easy to get led right back down that dirt road to debt. But I’m proud to say we haven’t. I ultimately switched from zero budgeting to value based budgeting. So now, if it’s something I value, such as my family, health, or education, then I will spend the money on it. When you know your values and align your spending with them, then you will notice that most of the items that require consumer debt don’t fit anywhere in the budget. The occasional big items, like upkeep for our family home, just require me to save up until we can pay cash for them, and we keep that emergency fund for the unexpected. The rest, like family and education usually are worth the most yet cost the least to add value in my life.

So as you can see..no get out of debt quick scheme or magical inheritance or lottery winner over here. Just some boring stuff that paid off in our current lives and will continue to do so over the long term as we head down a trail we are blazing on our own that builds wealth.

Author: mindytempleton7371

Tales of my imperfect journey towards financial freedom. Paid off $165,000 in debt and now working on building wealth instead! Follow me as I share all things on money, retirement, real estate investing, minimalism, and wealth and wellness. Sharing why you should believe in your wealth and invest in your wealth..because you are worth it!

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