She Strengthens

Taking Control of My Finances: A Journey to Debt Freedom

As I reflect on my financial journey, I realize that I’ve made significant progress in managing my money. But it wasn’t always this way. After graduating from college in 2010, I found myself drowning in student loans, with a staggering $73,000 worth of debt. Luckily, my parents were able to help out with the monthly payments, but I soon realized that I needed to take matters into my own hands.

The Wake-Up Call

A few years into making minimum payments, one of my loans was sold to another vendor. Unfortunately, I ignored the mail from the new vendor, which led to a few months of missed payments. This mistake severely hurt my credit score, and it was a harsh reality check. At 26, I knew I had to make a change.

The Turning Point

I made the tough decision to move back in with my parents to tackle my debt head-on. It wasn’t easy, but it was necessary. Fast forward to today, and I’m thrilled to say that I’ve reduced my student loan debt to just $5,000.

My Monthly Breakdown

Here’s a snapshot of my current monthly expenses:

• Rent: $300 (I’m grateful to be living at home and contributing to household expenses)
• Car Payment: $329 (I’m focused on paying this off by the end of the year)
• Car Insurance: $104
• Phone Bill: $120 (I’m looking to negotiate a better deal soon)
• Gym: $250 (I prioritize my fitness and use a ClassPass membership to cross-train for my upcoming marathon)
• Student Loan: $1,000 (I’m committed to paying off my loans as quickly as possible)

Savings and Debt Repayment Strategies

I’ve also set aside funds for:

• Weddings and Vacation Savings Accounts: $500 (I’m prepared for upcoming wedding expenses and vacations)
• Credit Card Payment: $600 (I’m working to pay off small balances on my revolving credit cards)
• Investments: $60 (I use apps like Acorns and Stash to invest small amounts)
• Spending Money: $1,000 (I’m mindful of my daily expenses and trying to be more conscious of my spending habits)

The Power of a Side Hustle

In addition to my full-time job, I’ve had a waitressing job on the side for over 10 years. This extra income has been instrumental in helping me pay off my debt and build lifelong friendships.

Starting Small

If you’re struggling with debt or financial management, remember that every small step counts. Whether it’s paying off one credit card or finding ways to reduce your expenses, taking control of your finances is worth the effort.