She Strengthens

Breaking Free from Debt: My Journey to Financial Freedom

As I walked off the college stage with my degrees in hand, I was burdened with a staggering $96,000 in debt. The weight of this financial obligation threatened to define my life, but I refused to let it hold me back. After years of living paycheck-to-paycheck, I realized that life doesn’t wait for debt to be paid off. It was time to take control and find a balance between prioritizing my finances and living in the present.

Finding Balance in the Midst of Debt

Over the years, I’ve achieved significant milestones: switching careers, buying a house, starting a family, and more. Through it all, I’ve learned to prioritize my goals and make conscious financial decisions. My debt journey has been long and arduous, but I’ve made significant progress, reducing my debt from $96,000 to $29,000 in just six and a half years.

Creating a Goal-Based Budget

The key to my success lies in creating a budget that aligns with my priorities. I set clear goals, whether it’s saving for a down payment on a house, a wedding, or paying off debt as quickly as possible. By doing so, I’m more likely to stick to my budget and make adjustments as needed.

Prioritizing What Matters Most

Life is full of compromises, and paying off debt is no exception. I’ve had to make tough choices, like having a longer engagement to save for a wedding without going further into debt. By prioritizing what matters most, I’ve been able to make progress on my debt while still enjoying life’s milestones.

Setting Realistic Goals

Travel has been an important priority for me, but I’ve learned to right-size my expectations. Instead of saving for extravagant international trips, I opt for domestic vacations and start saving months in advance. This approach has allowed me to enjoy my travels while still making progress on my debt.

Taking Control of Debt

The most important lesson I’ve learned is that I’m in control of how my debt makes me feel. By accepting and embracing my debt, I’ve been able to live my life on my terms. I’ve realized that having debt doesn’t define who I am; it’s a part of my journey to becoming a better version of myself.

Additional Strategies for Success

In addition to creating a goal-based budget and prioritizing what matters most, I’ve employed several other strategies to stay on track:

• Starting a side hustle to increase my income
• Withdrawing money from my IRA (after careful consideration and consulting with a financial advisor)
• Treating extra money like it never existed and throwing it at my debt
• Using cash to avoid credit card debt and stick to my budget
• Utilizing balance transfer offers to reduce interest rates
• Cutting unnecessary expenses, like cable TV
• Working out at home to save money
• Debt snowballing to pay off smaller debts quickly
• Refinancing my private student loans to reduce my interest rate
• Paying more than the minimum payment to accelerate my debt payoff

Remember, Everyone’s Journey is Different

Paying off debt is a unique experience for each individual. What works for me may not work for you, and that’s okay. The most important thing is to find a strategy that works for you and stick to it. Be kind to yourself, and remember that paying off debt is a journey worth taking.