Why I’ve Chosen a Debt Free Life?
Sometimes we are so focused on what we want, we miss the things we need.
Rewind to Aug 8th 2013.. My First Day On Foreign Soil..
Up until that point, I’ve had everything handed to me on a silver platter. As a 21-year-old living away from family, I became independent over night, started earning money, going to grad school, getting a part-time job sufficient enough to pay bills, managing my food budget, etc. That was pre-Uber era, cab fares were more expensive than airline tickets. We lived in a shared apartment with one bedroom just to save some money.
From there, I took my first step on the road to debt ….
Fast Forward to Aug 8th 2015.. The Day I Graduated..
In a grad robe I bought for $120 (which was a lot of money back then), I walked out of the graduation hall with pride and a job offer. Higher education has its own set of drawbacks. In my last semester of school, I got a full-time job and finished school with a debt of more than $50,000.
Having lived in a shared apartment with one bedroom for several years, I was eager to spend my money on things I wanted as soon as I accepted the job. I started my first job right after graduation as a Data Engineer and was really excited. When that happened, I was 23. I also had the misconception back then that I needed to buy a brand-new car to make my professional debut.
I was very excited to find a car that I liked. A couple of weeks later…
While society demands it, it didn’t feel right…
My student loan debt, my complete lack of savings, and the thought of a buying a fancy car at that point… I knew I was heading in the wrong direction.
In 3 years, things have changed. I paid off my student loans, supported my brother, and started saving. With the weight off my shoulders, I’m focusing now on myself by surrounding myself with the right set of individuals.
Here are some tips and learnings I picked up along the way…
A Goal Without a Plan Is Just a Wish
→ Antoine de Saint-Exupéry Quotes
Without a plan, we will either stay where we are or end up somewhere we didn’t intend to be. I’ve learned this the hard way after several failed attempts to pay off my debt. I constantly reminded myself why this was important to me, which helped me get back on track. Since I didn’t have a time-bound goal or plan, it was harder for me to stay focused. The stronger the goal, the less likely we are to deviate from it. In my efforts to pay off the debt, I have begun setting small goals and making frequent payments to tick them off. The first thing I did was pay off my friends and family who offered financial assistance to support my studies. I then paid back my student loans slowly.
The Best View Comes After The Hardest Climb.
→ Anonymous
Great wars have never been won without battle, so rewarding those who achieve their goals is only fair. This will keep them motivated. There is no need for a big reward. Simple things like going out to eat a fancy dinner, buying clothing you want, or going on small weekend getaway can do the trick. It is understandable that there are occasions when unplanned expenses occur, don’t lose your focus about this and readjust your plan or targets accordingly. For me, going on my birthday vacation was crucial to making it through the year. By looking forward to it, my husband and I kept ourselves focused on paying off the debt.
Your Time Is Limited, So Don’t Waste It Living Someone Else’s Life.
→ Steve Jobs
Do you often draw comparisons to social media?
How much time have you wasted trying to please other people?
How often do you put your own needs aside in order to follow what society says you should do?
We all know you only get one shot at life….
Our society forces us to live a high-consumption lifestyle, including owning a luxury car, taking elaborate vacations, owning big houses and throwing lavish weddings. You don’t have to buy something just because someone else can afford it. I am not against social media, in fact I maintain a healthy social life. I only encourage not to draw references from it.
Too Much Of Anything Is Bad
→ Terrence
I am someone who prefers one good thing over too many, rather than a lot of things at once. The first thing I did was to get rid of too many credit cards. Over the years, I have found that it is tedious to maintain them as well as difficult to control ourselves from overspending. Some people might disagree with me completely, arguing that things like the number of credit cards and the number of years they’ve been open matter a lot to your credit score, which it does, but I’ve managed to maintain some great scores with just a few.
You Sacrifice The Few To Save The Many
→ Joel Osteen
Why is everything nowadays a subscription? Everything from spas, movies, fitness memberships, health articles/news, to libraries, to cloud storage requires a subscription. By the end of the month, if you check your credit card statement, you’ll have spent well over $500 on these. Using a spreadsheet or even writing down expenditures on paper may seem old-fashioned, but keeping track of all expenditures is important, as is identifying the subscriptions that you would need for a minimalist lifestyle and eliminating the rest. I use Notion and Apple Notes to keep a track of my expenses.
Begin With The End In Mind
→ Stephen Covey
Make a list of things you want to spend money on even before you begin your debt repayment journey so you can focus on something worthwhile. Things like going on a holiday with your significant other or buying #Tiffany & Co studs or a solitaire for yourself…
Finding a Balance, That’s What We’re All Trying To Do.
→ Princess Tatiana
You might be wondering, Does becoming debt-free mean giving up everything or sacrificing the little things? No, absolutely not. It’s a matter of finding the right balance. If you spend too much on one, try to keep your spending low on the other. I’m a car enthusiast. I didn’t want to buy an expensive car soon after graduation, but I did after a few years. I currently drive #BMW M2. However, I’m currently trying to reduce other expenses on unwanted subscriptions. Right, you lose some and you win some.
Honesty And Transparency Make You Vulnerable. Be Honest And Transparent Anyway.
→ Mother Teresa
The final thing I can tell you from personal experience is that paying off debt can be one of the most difficult things to do, especially when we are doing it as a family. You just need to be transparent with your family and be honest with yourself as much as possible which builds the right attitude and mindset eventually.
I will conclude by saying this: Life is about learning to distinguish between what you WANT and what you NEED…
Signing off.. Until Next Time..
