Did you set up any new resolution for this year 2020? I have to tell you about one of the greatest things that has happened in my life.
In 2018 my wife and I found ourselves sipping coffee, kind of lamenting about our finances. We had a little bit of debt with a credit card. We felt like any tax return we got was always used to pay off debt. Then again towards the end of the year we felt like it was impossible not to accumulate a few thousands in debt; maybe as a result of a car repair, home improvement or repair, birthday parties, etc. Sounds familiar?
Have you been in that situation? You know you are making more money but still seems like the money is flowing out of your hands and you don’t even notice? That was my situation, until one day after watching a YouTube video I got a link to this guy who calls himself the MadFientist. What a silly name you would think, right? But I listened to one of his podcast titled “How Much Do you Need to Retire?” An interview with Michael Kitces.
That took me down an awesome path of learning and freedom. That one interview resulted in many podcasts, books, meetups and reflection that got us unstuck. And as the beginning of this year, I am glad to say that we killed our credit card debt, and more importantly we paid off my wife’s student loan that had been looming around since 2003. Its maturity date was 2028, and it took us only from July 2018 until January 2020 to finish it off!
In other words, from now on, no debt! NADA! Other than our mortgage we have nothing else to pay back. This has been a tremendous liberating feeling, not only financially but it has also helped me to prioritize what really matters in my life and my family’s. In that short time we even managed to build an emergency fund, despite the fact that we are a family of six plus grandma and living on one teacher’s salary.
My only regret? Why I didn’t do this earlier. In the few days left of this challenge I will share some of the money strategies that helped me free myself from debt.