She Strengthens

Breaking Free from Debt: My Journey to Financial Freedom

In 2017, I achieved the unthinkable: I paid off a staggering $7,761 in debt, saved $2,000 for a dream vacation, and invested $2,000 in my pension. It wasn’t easy, especially considering I was unemployed for two months, in a long-distance relationship, and had just moved back home. But I did it, and here’s how.

Facing the Music: Taking Stock of Your Debt

The first step towards financial freedom is acknowledging the elephant in the room: your debt. Take a deep breath and make a list of everyone you owe money to. In January 2017, my car loan stood at $5,796, and I had a whopping $1,965 on credit cards. The total? A daunting $7,761. Don’t forget to plan ahead for future expenses and debts.

The Harsh Reality of Spending Habits

As I delved into my spending habits, I realized that paying off my debts was only half the battle. I had to confront the harsh reality of my spending choices. What does your bank account say about your priorities? For me, it was a laundry list of unnecessary expenses: takeout, unused gym memberships, and post-grad courses that didn’t yield any results.

Designing Down: A Reverse Approach to Planning

My ultimate goal was to pay off my credit cards and car loan, but I also had a vacation planned with a friend. To make it happen, I employed the “design down method” – planning in reverse to achieve my goals. By focusing on the end result, I was able to break down my tasks into manageable chunks.

Staying Motivated

As the months went by, it wasn’t easy to resist the temptation to splurge. But with the help of my supportive partner and a countdown app, I stayed on track. Every time I made a payment towards my vacation, I reminded myself of the joy it would bring me in the end.

The Light at the End of the Tunnel

By September, I was close to achieving my goals. Seeing the finish line in sight made it easier to make sacrifices and stay motivated. When I finally made it to The Wizarding World of Harry Potter, it was all worth it.

Lessons Learned

Looking back, 2017 was a year of adjusting my expectations and prioritizing my finances. While I achieved my goals, I didn’t emerge unscathed. I learned that staying on top of my finances requires constant vigilance and self-reflection. If you’ve made a money mistake, don’t be too hard on yourself. Instead, use it as an opportunity to learn and grow.