She Strengthens

Breaking Free from Debt: One Family’s Journey to Financial Freedom

In 2013, my husband Frank and I found ourselves drowning in debt, with a staggering $50,000 owed to creditors. As a stay-at-home mom to our two kids, I knew we had to make a change. Frank’s $70,000 physician assistant salary was being devoured by debt payments, leaving us with little room for savings or enjoyment.

The Wake-Up Call

After checking out a personal finance book from our local library, we sat down to tally up our debts. The total was a harsh reality check: student loans, credit cards, an auto loan, and a personal loan added up to a whopping $50,000. Seeing that number in black and white was tough, but it sparked a determination to take control of our finances.

Budgeting for Success

We started by creating a detailed budget, identifying areas where we could cut back. Food and entertainment were major culprits, with frequent Starbucks runs, lunches out, and family activities adding up to $2,000 a month. By meal planning, using grocery store sales, and farmers’ markets, we slashed our grocery bill in half. We also allocated $100 a week for discretionary spending, ensuring we didn’t feel too restricted.

Cutting Costs

We also tackled other costly habits. By switching to prepaid wireless accounts, we saved $100 a month on our iPhones. I negotiated with customer service providers, slashing our bills by over 75%. I even started making my own natural products, like laundry detergent and toothpaste, saving up to $50 a month.

Systems for Success

To stay on track, we implemented an all-cash spending plan, withdrawing cash for specific expenses and vowing to only use credit cards for gas. We also used the snowball method to pay off debt, tackling our smallest debts first. This approach built momentum and motivation.

Selling Our Way to Freedom

We took stock of our belongings and sold items on Craigslist, bringing in over $1,500 to put toward debt. In a bold move, we sold one of our cars, pocketing $11,000 and becoming a one-car family. While this was tough, I made sure to still get out and about, knowing these short-term sacrifices would lead to long-term financial freedom.

Boosting Income

I turned my clean living blog into a profitable venture, learning about online ads and social media marketing. By the end of 2013, my blog was netting a few thousand dollars a month, which we put directly toward debt. This influx of income was the key to crossing the debt-free finish line just 13 months after we started.

A New Chapter

After achieving financial freedom in 2014, we redirected our debt payments toward our savings account and Frank’s 401(k). We’ve maintained many of our frugal habits, like meal planning and making our own products, and have struck a balance between saving and enjoying life. Financial freedom has empowered us, giving us peace of mind and a sense of accomplishment.