This was taken when I became a financial Coach, after my debt-free journey!
Can I tell ya a story about my debt-free journey?
I think it’s essential that you know where I come from and the financial struggles I have faced to get to where I am today. Life hasn’t always been gumdrops and lollipops over here. It has gotten better, though! I want to share my debt-free journey with you in case you are in debt and are struggling to see the possibilities for your financial future. Maybe like me, you feel stupid when it comes to money, creating a budget, or being ashamed that you didn’t know better or do better. I gotchu, because I’ve been there!
Bottom line: I paid off $106,000 in debt in just under two years. But before we get to that part, let me tell ya how things started for me!
For most of my life, I had managed my finances well. I had credit cards and continuously paid off the balance in full every month. At 18 years old, I got my first credit card. At that time I had heard all of the cautions about having a credit card, so I paid it off in full every month. I went to buy a car at about 21 years old and was told by others (family, friends & even car dealers) that I would absolutely need a co-signer. People kept saying there was no point in having a credit card if you were going to pay off the balance in full every month. Guess what? I did it anyway, and I bought my car without needing a co-signer because my credit score was excellent.
Lesson Learned
People are well-intentioned and will give you advice, but don’t take everything they tell you as truth.
If they have specific knowledge about personal finances (or the question you’re asking) that’s fine; consider their opinion. Ask questions, be curious, and even a little skeptical, but don’t listen to a well-meaning friend or family member who is unknowledge about the topic. Let me give you another example as to why you want to ask experts for advice. If you have issues with your kids, are you going to ask someone who doesn’t have kids, how to handle it? No, likely not. Seek advice from experts (other parents) not well-meaning friends and family who have no experience in what you are talking about.
As I got older and was married, I found myself more and more in debt. I was depressed and spent money to feel better. I also adopted my spouse’s spending habits. Do you ever do that? When you’re around someone a lot and adopt their habits (whether its spending habits or otherwise) or find yourself saying things they say? It’s funny how that happens. Now to be clear, I am not blaming him for my financial problems.
I was a grown-ass woman making my own decisions. He and I had separate bank accounts. So, it really was on my shoulders, and there were financial problems that I had created.
One of the ways I tried to solve my life problems was by buying things. Whenever I wanted something, I bought it. Kind of like the little girl on Willy Wonka and the Chocolate Factory that said I want the Oompa Loompa now daddy! I stopped waiting for things and just bought everything I wanted when I wanted it.
Breaking Points, that led to my debt-free journey!
One of my breaking points (financially) was when I was on the first day of a 10-day vacation with the family, and my debit card was declined. I was mortified! I was making a decent amount of money and still couldn’t seem to pay my bills. If you don’t have a financial plan, then it will result in you making more money just to spend more.
On occasion, I had to ask my parents for money. Yes, you read that right. A grown-ass woman was asking her mom for money. How embarrassing is that? I should have had enough money to cover my bills, but I never seemed to.
The third thing that tore me apart was not having a savings account for my stepdaughters. If something had happened to my husband (at the time) or me, how would the other spouse afford our expenses? What would happen to the kids? The thought made me sick to my stomach. The kids deserved better!
Sometimes you have to have these breaking points because they motivate you to start your debt free journey!
I felt stupid, so I stuck my head in the sand!
Ever been in a funk? I was depressed, unmotivated, overspending like crazy, and had $106,000 in debt. Here’s the thing, I had no clue how much money I was actually in debt; literally, I had no idea. All I knew was my spending was out of control & I started borrowing money and bouncing checks. Yikes, I hate the thought of it, because it puts me right back in the moment.
When it came to my finances, I didn’t have a budget, paid little attention to my spending, and stuck my head in the sand. I didn’t want to know how much money I owed to different companies because my spending was out of control. Just thinking about the bills was stressful.
Get over worry, stress, and fear by taking action.
I worried that if I didn’t get control of my finances, I would be filing for bankruptcy. The thought was terrifying. I was also incredibly embarrassed by my behavior. Never had I ever been close to that amount of debt! How was I going to get out of it?
As you will hear, I eventually started creating a budget & listing my debts. Here’s the thing, if I hadn’t actually written out how much debt I owed, I might not have taken action.
I may have kept worrying and feeling uncomfortable, all the while, never taking action. Like I said, sometimes it feels more comfortable to put your head in the sand and ignore the problem. If you’re doing that, I’m not judging you; I get you. I was there too.
Write it down!
There is so much freedom in writing down how much money you owe. It gives you a starting place. That way, you know how much you owe and to whom you owe it to. It can be overwhelming but also exhilarating and freeing.
Let that overwhelm be the motivation for you to get out of debt!
Write down the total amount of money you owe (to include everything except your mortgage) and put it somewhere where you can see it often! That note will be a reminder of where you are going and what you are pursuing.
Listen to those who have gone before you.
Sometimes you just need expert advice. If you’ve never learned about personal finances, so how would you know? I was always overpaying all of my debts. For example, I would pay $10-100 over what I owed every month. I thought that would get me out of debt quicker, but I never seemed to be moving the needle. You can keep struggling or you can look to those who have been through what you have. If you listen to those who have gone before you it could speed up your debt-free journey!
From the advice of one of my favorite authors and bloggers, Ruth Soukup, I purchased a Financial Peace University program and tried to get my finances squared away. I found out that I was $106,000 in debt. YIKES. It was so overwhelming. Up until that point, I knew I was in trouble because I could feel it. Yet I had no idea how much trouble I was in. When I saw the amount of debt I had, I felt both exhilarated and overwhelmed—exhilarated because I now had a plan and overwhelmed because that was a lot of debt.
I also felt very, very stupid, and didn’t understand money. I was horrible at math. How was I ever going to pay off $106,000 in debt? HOW?
If you are feeling stupid, know that you are not. If I can pay off $106,000 in debt, so can you. You can pay off more even. Don’t let your feeling stupid get in the way of creating something Badass.
Creating the dreaded budget!
When it came to creating a budget, I hated it. Even now, I don’t even feel like hate is a strong enough word to describe my feelings towards a budget. All I could do was create a list with all of the bills I had to pay each month. For that first month, I collected bills and wrote down all of the information in a spreadsheet for that particular bill. For example, I wrote the company’s name, contact information, date due each month, the total owed, and monthly minimum. Do you want that spreadsheet? Cool, click here!
I kept watching every video I could find about budgeting. I just didn’t want to create my own budget because I felt stupid. Eventually, it all clicked, and I started doing making a budget. After completing about five budgets, I felt better.
A key ingredient is taking action.
Get it on paper! It’s easy to say you don’t get it when you never actually try!
As you know, month after month, I paid off the debt. I worked as much overtime as I possibly could so that I could pay off my debt as quickly as possible. Take your debt-free journey into your own hands and make some extra money. It will give you the momentum that you need!
There were hard times and mistakes!
There was no part in my debt-free journey where I was perfect. I went through a divorce (no that didn’t cut down the debt) and had several unexpected large bills popped up along my debt-free journey. Mistakes were a routine! When you make a mistake, learn from it and then get back on track. What you don’t wanna do is beat yourself up over it. If you can do that, you’ll be so much better off. Just stay the course, and you will get there!
What happened after I paid off debt?
As I mentioned, I paid off all of that debt in just under two years. What a feeling it was to be debt-free! I then went on to be a certified financial coach. I ran several marathons too! After that, I started Ordinary to Badass. None of that would have happened if I hadn’t created a budget and started planning for my future! My life changed and my confidence shot up after getting out of debt.; because of that, I am so excited to see how it will change you!
What this means for you.
Let’s agree that you are smart and you can figure this out! Escaping your debt is part of your Badass debt-free journey!
Take action today.
Listen to someone who has been through what you are going through and solved the problem.
Make a list of your debts.
Create a plan (Budget) to pay your debt off!
I’ve gotta know. What questions do you have for me about getting out of debt and saving money? I’d love for you to have a debt-free journey of your own!
To your, Badassery,
Marie
PS Make sure to leave a comment and let me know what your questions are about getting out of debt and saving money.
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If you liked hearing about my debt-free journey make sure to check out “How to Become a Badass with Your Money!”