Summary

The article discusses the journey and benefits of becoming debt-free, emphasizing personal strategies and the emotional and financial impact of paying off debt.

Abstract

The author of the article advocates for the empowerment that comes with being debt-free, suggesting that individuals can achieve financial freedom by paying off debts and avoiding unnecessary expenses. The article shares personal anecdotes about the author's decision to forgo lottery tickets and other small expenses to pay off bills, leading to a significant reduction in financial stress. It also outlines the steps taken to achieve this goal, such as creating an emergency fund and paying off debts from smallest to largest, while highlighting the importance of intentionality and sacrifice. The author reflects on the advice received from an investment professional and the decision to sell a rental property to expedite the journey to a debt-free life. The narrative emphasizes the transformative power of becoming debt-free, not just for the individual but also for their ability to positively impact others' lives.

Opinions

The author believes in the power of small changes, like skipping lottery tickets, to make a significant dent in personal debt.
There is a preference for paying off bills from smallest to largest, which may not always align with the highest interest rate first strategy, but it's what worked for the author emotionally and financially.
The article suggests that the traditional financial advice of prioritizing high-interest debt may not be the only effective approach.
The author values the peace of mind and options provided by an emergency fund.
There is a critical view of the side hustle culture, suggesting that focusing on debt repayment can be more beneficial than seeking additional income.
The author expresses skepticism about free financial advice, implying that the advisor's excitement about the potential to earn from the author's financial decisions may not be entirely altruistic.
The decision to sell a rental property is presented as a strategic move to capitalize on low interest rates and high demand, rather than a long-term investment in real estate.
The author reflects on past regrets about not taking action on debt earlier, emphasizing the importance of starting the journey to debt freedom as soon as possible.
The article conveys a sense of community and shared struggle, suggesting that becoming debt-free allows individuals to be more generous and supportive of others.

Live Debt-Free

Give Yourself That Raise

Pay off your debt and keep more in your pocket

Many of us are chasing that side hustle to make our first Million. What if you don’t have to? What if you pay off your debt and keep that money for yourself instead of giving it to the creditor?

I used to play the lottery. But I decided to keep that money and use it to pay off my bills instead. It was only $30 or so, but that’s $360 over a year, and my lowest bill is gone. My ex-husband recently won $250,000 on a scratch-off ticket. Well, it was his sixth wife’s win, not his, but I digress.

You may wonder what this debt-free thing has to do with making money. If you haven’t asked, I’m going to tell you anyway. Recently my company offered a free meeting with an investment professional. What the hell it’s free, right? You can’t go wrong with free.

How the call went

I tell him my life story with money, how I sucked at it and what we’re doing to change that. We go over the numbers and know he’s thinking, well, this will be a waste. Then he asked what my husband makes.

I hear numbers punching on the calculator, and he realizes my husband’s income covers all our monthly expenses. (At this point, I’m glad this advice is free because I did this in my head.) His excitement picks up, and he starts suggesting all the things to do after we sell the rental house. Again, glad it’s free.

Now, he wants to talk when the money comes in so he can help us. He can help himself more likely, but hey, we all need to earn a living, right?

Here’s the Steps We Took

You’ve probably read the importance of an emergency fund. If you haven’t, there’s an abundance of articles. An emergency fund gives you options and gives you space between you and desperation. You get an opportunity to breathe, and assess the situation and act clearly.

We paid off bills from smallest to largest. There’s talk about paying the higher interest rate first, but do what matters and makes sense for you. In our case, money and emotions are the key here. You’re smart, you know what to do, you just want that shiny thing NOW, and you don’t want to wait for it.

What’s Your Why?

Paying off your bills is the easiest thing and most challenging thing. It comes down to intentionality. What are you willing to give up to stop living paycheck to paycheck? We reduced our phone bill, our entertainment bills and paused some monthly subscriptions.

Maybe you’re able to take on a side hustle? Perhaps you’re able to work over-time. Great, you’re willing to trade your time now to be debt-free later. Whatever you’re ready to give up, it will pay off. Do you want to keep paying for your past, or would you like to give to your future?

The Voice of Regret

It’s been a goal to be debt-free for a long time. Years ago, I listened to Larry Burkett and then Dave Ramsey. I didn’t have confidence in myself to follow through. Thirty years later, I’m following my instincts and changing my life.

My self-talk includes: “You’ve never given that up.” “Don’t stop now. You’re almost there.” “Just not yet, but you want to be!”

It’s been a challenging journey, but the thing is, it doesn’t have to be this way for you. Don’t waste all this time. Just start today. I made the decision to let someone else direct my future. I can’t change that, but you can.

Even when I told my husband my dream, it still took time to convince him. Once we started working together, we made progress. It’s a good thing I’m stubborn and persistent.

Rental House — We did the math; it’s time to sell.

Interest rates are low, and so is the inventory. Who would have dreamed that we could sell this house now? We did.

My husband loves real estate and dreams of being a landlord. But so do others who are now desperate to collect rent so they can pay for their properties.

It’s a drain on our energy, but it’s worth it. We’re not into a major renovation, just some fresh paint, and new floors. Of course, the dishwasher died now; go figure? But it’s a good selling point with a new HVAC system, new roof, and a new appliance.

The equity we have in this house will catapult us into our debt-free future. We might not be everyday millionaires, but we’ll be able to hang on to more of our money instead of writing checks and giving it to the bank.

You’re about to break free.

Your life is going to change in ways you can’t imagine because you’re caught up in the details now. But if you keep working and making progress soon, you’ll be anticipating paying off your last bill.

I can personally tell you that it feels damn good right now. It’s intoxicating to think about it. I remember when we paid off the car a year and a half ago. You don’t live in fear of the Repo man coming to take it away.

You see that tow truck driver and can flip him off and tell him to keep looking; it’s not this car. But something else happens, and it’s a great thing. You stop and pick up breakfast because you’re running late and bring some for your co-worker.

Or you look in the rearview mirror and see a frazzled mother, and you pay for hers as well. What I’m telling you is you not only have the ability to change your life, but someone else’s as well. Your motives may seem selfish at first. But when you eliminate fear, love will shine through.