She Strengthens

Breaking Free from Debt: Our Extreme Approach to Financial Freedom

After completing grad school, I found myself drowning in $75,000 of student loan debt. The weight of this financial burden was overwhelming, and I wasn’t sure where to turn. That was until a friend introduced me to the world of personal finance, and I became fascinated with the concept of debt snowballing.

The Debt Snowball Effect

This approach, popularized by financial experts like Dave Ramsey, involves tackling your smallest debt first while making minimum payments on the rest. As each debt is eliminated, you move on to the next smallest, creating a snowball effect that gains momentum with each victory. Inspired by this strategy, my husband and I created a plan to pay off our combined $117,000 of student loans in just three years.

Taking an Extreme Approach

To achieve our goal, we knew we had to make some drastic changes. We opted to rent a room from my parents, drive older cars, and develop side hustles to supplement our income. We also made the tough decision to cut back on non-essential spending, adopting a strict budget that would allow us to allocate every available dollar towards debt repayment.

Why We Chose This Path

Our decision to take an extreme approach was driven by several key factors:

• High debt-to-income ratio: With six figures of debt and entry-level incomes, we knew we had to take drastic action to avoid being stuck in debt for years to come.
• The sooner, the better: By cutting back on spending, we could accelerate our debt repayment and free ourselves from the burden of loan payments sooner rather than later.
• Living with my parents: We made a commitment to pay off our debt as quickly as possible, out of respect for my parents who graciously allowed us to rent a room from them.
• Free is better: We’ve discovered that some of the best things in life don’t cost a thing. By finding free alternatives to expensive activities, we’ve been able to maintain a social life without breaking the bank.
• Values-driven spending: This journey has taught me to be more mindful of my spending habits, focusing on what truly adds value to my life.

The Freedom Ahead

While our approach may not be for everyone, we’re confident that it will lead to long-term rewards. Once we’re debt-free, we’ll be able to focus on other priorities, like buying a home, saving for retirement, and traveling. We’ll also have the freedom to spend our money as we choose, without the weight of debt holding us back.

One Final Thought

Our extreme approach to frugality may not be for everyone, but it’s allowed us to think creatively, focus on what we value most, and make rapid progress towards financial freedom. As we near the finish line, we’re excited to start tackling new goals and living the life we’ve always wanted.