I'M 100% DEBT FREE
October 22 was a HUGE day in my debt-free journey!
In December 2019 I paid off my student loans and last week I turned in my very last leased car!!! I'm officially 100% DEBT FREE! No student loans. No car payments. No credit cards. No nothing.
When I was 16, my parents gifted me a used Hyundai Elantra. I drove that into the ground for ten years until someone blindly turned into me and gave me a good ol' smashing. At the time, I was in grad school living on a small stipend, so I took my insurance payout to the Honda dealership and leased a new Honda Fit for $230/month (while making $1,300/month and paying $950/month for rent ).
I truly didn't understand what I was getting myself into and didn't think that there were other options for paying for a car. Nobody ever educated me on the topic, so I did what seemed NORMAL.
Three years later I became entranced with the Kia hamsters and traded in my perfectly good Honda Fit for a new Kia Soul for $270/month. Three years later I traded in that perfectly good car for a new Kia Sportage for $300/month. Notice a trend? 📈
Dumb. 🚙
Dumb. 🚙
Dumb. 🚙
I recognize that it is an incredibly painful time for many people right now (including my partner who lost his sales job a few weeks ago). Un/underemployment numbers are through the roof and stimulus checks still aren't coming to the rescue. Most states continue to be highly restricted for business. I'm not ignorant of the total shit conditions that are happening in our communities, which is why it honestly feels very uncomfortable documenting the successes I've experienced this year despite all of the chaos.
I hope I don't sound like a total braggy asshole, but instead a humble idiot who knew absolutely nothing about stewarding her resources in a way that would ever be beneficial. Even if you took out 100k in student loans 🙋♀️ or have nothing saved for retirement, things can turn around.
After spending the last three years saying no to most things that could be enjoyable, and learning how to more intelligently manage my money with a zero-based budget, this year I finally:
paid off my student loans in full
have no consumer debt and only use a credit card when I think the travel points could add up quickly (don't tell Dave)
received a raise and promotion
took a corporate job that pays me a living wage (buh-freaking-bye higher ed and non-profit life)
saved $10k for my emergency fund and put it into a high-interest account
completed the Financial Peace University program and will now be leading it at work with colleagues
saved $20k out of $35k for a house down payment
started investing 15% into my 401k and am finally taking advantage of my employer match (only took turning 35 to start doing any of this)
am working to max out my Roth IRA (because I actually know what a Roth IRA is now!)
purchased my first individual stocks (10 shares in Peloton)
turned in my last leased car and am currently car-less and car payment-free until I find a used car for $5-7k that will be paid for in CASH
feel more peaceful and confident about money and my finances than I ever have
Onto baby steps 3B/4/7! You on board yet? Let me know how your debt snowball is rolling!