Wednesday, February 7, 2007

Here is my story.....

I was frivolous with my money, very rarely making any purchases of any significance,and before I knew it I had nickeled and dimed my way to over $30,000 in debt. I had no idea how large my debt total was, but when I added it up I nearly got sick! I knew I wanted more from my life than paying for things that were long gone, meals, clothes, etc. I started reading everything I could get my hands on in the way of financial information and how to clear my debt out asap. I sold anything that I could on ebay and half.com. I pinched pennies whenever possible, I didn't see a movie in the theater for over a year, I put on a sweatshirt when I was cold instead of turning up the heat, I brought my lunch to work everyday, anything to save a little bit of money. I started line drying my clothes instead of using the dryer (also better on your clothes), I ate the free snacks at work, I stopped going to Starbucks, you get the idea... I also added two things to my wallet, a sticky note with my debt total and a picture of my dream home. Both of these things made me think twice whenever I thought I needed to spend money. I put my nose to the grindstone and this past June I finished paying off all of my debt. Now, when I get paid, the first thing I do is figure out what I need for my bills and then transfer a chunk to savings. I use to get excited seeing the debt total go down, but there is nothing like the feeling of watching the savings GROW!!

3 comments:

Anonymous said...

Wow! You are really diciplined! Good for you! I'm happy to hear you're saving up for that dream home.

Regaring your most recent post, it is amazing that people won't even contribute the minimum amount to an employer matched account... I can't bear the thought of free money being tossed away every month. And chunks of money left in a savings account... every time I hear that, I think of my great aunt who used to keep $60k in her savings account because mutual funds were too risky (the rest of her money was invested in one stock.....)

-LP

Jonathan said...

Would you mind telling us how long it took you to pay off your debt? Also, I would love to hear the strategies you used. Congratulations!

AndyfromSimi said...

I've got to say it... GOOD GOING KID!