She Strengthens

Breaking Free from Debt: My Journey to Financial Freedom

As someone who’s always been mindful of their credit score, I thought I was doing everything right. I paid off my credit card balance in full each month and had even tackled a whopping $15,000 in student loans. But despite my best efforts, I found myself stuck in a cycle of debt. I’d use my credit card for everyday expenses, pay off the balance with one bi-weekly paycheck, and then dip into my line of credit when “necessary.” It was a vicious cycle that I couldn’t seem to escape.

The Reality Check

I rationalized my low-interest debt, telling myself it was fine as long as my credit score remained decent. But deep down, I knew it wasn’t justified. I was using my credit as a crutch, enabling my bad spending habits. It wasn’t until I took a hard look at my expenses that I realized the truth: I was spending money unnecessarily, and it was holding me back.

The First Step: Cutting Unnecessary Expenses

My first instinct was to curb unnecessary expenses, and the most obvious one was my daily habit of buying coffee, tea, snacks, or lunch at work. It was a staggering amount of money over three years, but I was determined to change. I started packing my lunch and bringing a thermos of tea to work, and it made a significant difference. To track my progress, I used a small notebook to monitor my daily habits. It was a simple yet effective way to make positive changes.

The Power of Tracking

By tracking my progress, I was able to identify areas where I could improve. I started baking weekly treats to bring to work, eliminating the need to spend money on snacks. But despite my progress, I found myself redirecting those funds to other non-essential spending, like skincare and luxury vacations. It was a hard lesson to learn, but I realized that I needed to be more intentional with my money.

A New Approach to Debt Repayment

This year, I’ve taken a more proactive approach to debt repayment. I set up 26 automatic transfers to my line of credit, coinciding with my bi-weekly pay cycles. It’s a relief to know that I’ll pay off my debt by the end of the year. I’ve also taken stock of my annual expenses, creating a budget that includes those costs. By setting up “sinking funds,” I’ve been able to save for those expenses without relying on my line of credit.

The Key to Success: Deliberate Purchases

The final piece of the puzzle is being more deliberate with my purchases. I’ve committed to waiting until my next credit card cycle before making a purchase, and I take the time to research and prioritize my wants. It’s a simple yet effective way to avoid splurging and stay on track.

Embracing Financial Freedom

As I look to the future, I’m excited to redirect my debt payments towards my sinking funds and savings. It’s a journey, but I’m proud of the progress I’ve made. By being more proactive and less reactive with my expenses, I’ve taken control of my finances. It’s a feeling I won’t soon forget.