The 3 Best Things I Did To Become Debt-Free

OMG, I finally made it! 

I’m 100% Debt-Free! Woot Woot!

I have to admit there was a time when I was so bogged down with bills that being debt-free didn’t even seem like a real thing.

I mean, it was more like some beautiful mirage always shimmering in the distance and promising me a better life. 

But every time I tried to move a step closer, it just remained out there — in the distance — taunting me. 

Needless to say, it certainly was not all rainbows and lollipops to get here. 

I guess that’s why 73% of Americans never make it! 

And when you stop and think about it, how many people do you know that are debt-free?

In my life, I sure as heck didn’t know any. Not my parents, not my family, not my friends. Not even my colleagues. Nobody!

But I finally said, ENOUGH! I was not going to stay complicit and let debt control my life any longer!

So I went on the attack! And I successfully paid off 52K in 2.5 years! Phew!

Now you’re probably wondering, how did she do it?

Well, I could tell you. But then I’d have to kill you! 

(Haha, just kidding!) 

The truth is that it was actually a combination of many things. And I’m going to share 3 of the actions I think were extremely helpful.

But before I do that, you need to understand one critical thing.

I can’t emphasize enough that the First and Most Important thing I did was make a HUGE money mindset shift. 

I  know that may sound a bit like psychobabble. But it’s true!

It took a total transformation in my attitude toward money before I was able to see a change in my behavior.

In other words, I needed to understand WHY I was spending the way I was spending?

That’s what led me to create my Destroy Debt ebook and bundle. I dive deeper into the mindset secrets that helped me. And, I provide tons of strategies for knocking out those bad spending behaviors.

So be sure to check it out if you’re struggling to understand some of the motives behind your spending madness.

But for now, I’m going to help you out.

Here are 3 of the best things I did that can also help you get started on your path to being debt-free.

1. Spend Intentionally To Be Debt-Free

I’ve only recently become familiar with this term. But I have been doing this for a few years.

If you haven’t heard of it yet, then you’re probably wondering, what the heck does it mean?

Well, here’s a great quote that I feel sums it up perfectly:

“Don’t tell me where your priorities are. Show me where you spend your money, and I’ll tell you what they are.”

James W. Frick

So basically, spending intentionally means — putting your money where your priorities are.

For instance, after my transformational mindset change, I realized that I didn’t care anymore about driving a luxury car.

Now, there’s nothing wrong with driving a luxury car. The trick is — not to go into debt to drive a luxury car!

And when I was ready to get out of debt, I asked myself, does driving a luxury car add value to my life? Then, I considered the pros and cons.

The only pros that I came up with were status and aesthetics.

But on the other hand, the cons I came up with were:

• Years of payment hardships
• Exacerbated costs for car repair and maintenance
• Large chunks of cash being devoured from my paycheck every month
• People asking to borrow money because they assume you have some

Hmmm. 

I’m sure you’ve probably guessed it by now. The answer was a resounding, “NO!” Having a luxury car did not add value to my life!

What adds value to my life is making unforgettable memories with my family.

For instance, traveling to breath-taking destinations and having amazing adventures on family vacations.

Traveling is one of my passions. And it’s something that I love to spend my hard-earned dollars. Plus, I never have regrets afterward.

So do you see my point? 

When you spend intentionally, you don’t have to settle for less. It’s just the opposite. You actually enjoy life more!

And in this video clip, Ramit Sethi gives his take on what he calls conscious spending and how it works.

So just like in the video, there are two main principles behind intentional spending:

• You save, plan, and spend on the things that you care about the most. 
• Then you ruthlessly cut out the things you care about the least.

It’s that simple.

For me, I am perfectly happy driving my Nissan SUV. 

It’s dependable, comfortable, fuel-efficient, affordable, and still aesthetically pleasing to me. It’s also 100% paid in full! So that makes me even happier! 

The bottom line is, I never feel like I’m missing out on anything! 

On top of that, now I have money in my bank account!

And that my friends is THE ICING ON THE CAKE!

*Related Post: 5 Reasons Why I Still Respect The “B” Word And So Should You. 

*Related Post: Warning: 3 Money-Sabotaging Chains Can Hold Your Finances Hostage.

2. Buying On One Income To Be Debt-Free

My husband and I weren’t very money-savvy at the beginning of our relationship. 

But, there is one thing we were smart about doing.

And that was — buying and affordable home!

Once I graduated from college and got my first nursing job, I had the potential to make a lot of money.

It was certainly tempting to buy something a bit more extravagant with our combined gross incomes. 

However, I’ve always had an intense fear of long-term financial commitments. (It probably stems from my childhood.)

And even though we wanted a “nice” home, what we didn’t want was to be reckless.

Plus, we’ve heard horror stories of people losing their homes when they get approved for home loans based on their joint gross incomes.

That doesn’t leave any room for error.

Think about it. If one person stops working due to illness, loss of employment, or lack of childcare, now what?

Nope, we were not going down that route! 

Our thinking was:

“It’s better to have two incomes and only need one than to have one income and desperately need two!”

That’s why we made sure to purchase a home that we could afford on just his income alone.

And thank goodness we didn’t go overboard! Because after our first child was born, I began working only two days a week to avoid paying those childcare costs.

However, this was before I experienced my money mindset shift. So, even though my income decreased, my spending habits did not!

Needless to say, that hugely contributed to my downslide into debt. By the way, I talk more about this in my Destroy Debt ebook as well.

So getting back to our mortgage, we started with a 30-year loan. But we were able to pay our home off 12 years early. 

Again, it wasn’t lightning fast. But it was faster than most people.

Here’s what we did:

• We made extra payments to the principal whenever possible, even if it was just $50
• After six years, we refinanced for a lower interest
• We also cut the loan from 30 years down to 12 years 

The best part is that refinancing saved us nearly $120,000 in interest payments!

And that was extremely important. Because by the time I began my debt-free journey, our home was only a few months away from being paid in full.  

So that put me in the perfect position to focus on my personal debt. And to achieve my debt-free goal sooner rather than never.

3. Increasing My Income To Be Debt-Free

In my case, this is hands down the single most powerful action I took to become debt-free.

But making more money did not happen quickly in my case. I didn’t know anything about all the side hustles and passive income options that exists today.

So I had to go back to school and obtain another degree. And that allowed me to qualify for the higher paying job that I wanted.

That process took me 2.5 years. Then, it took another 1.5 years for me to get the job I was longing for. 

Nevertheless, it eventually worked out! And I was able to increase my income by almost 50%..

But here’s the big secret. 

THIS TIME — when my income increased, my spending DID NOT!

That is the pivotal point where so many people go wrong every time they earn more money. 

And there’s even a quote from the best-selling book Parkinson’s Law which says:

“Expenditure rises to meet income.” 

~ C. Northcote Parkinson

Of course, it’s exciting to earn more money. But instead of thinking of faster ways to spend it, I was thinking of how fast I could save it and pay off debt!

I was on a mission to be debt-free. 

And 2.5 years later, I finally am!

The cool thing is, with so many great money-making options available, you can boost your income much quicker than I did! For instance:

• Pick up a flexible side hustle like driving for Uber
• Start a blog that you can monetize
• Work from home teaching kids English online with VIPKids
• Open an online store and sell your unique creations on Etsy.
• Create instructional videos on Udemy
• Earn revenue with a YouTube channel
• Becoming a social media influencer

Then, of course, you always have the more traditional options of:

• Asking for a raise or promotion
• Working overtime, if allowed
• Applying for a new job that pays more money

Also, be sure to check out these related posts for even more great suggestions.

*Related Post: 12 Great Paying Ways To Earn Money Fast.

*Related Post: How To Start A Blog The Right Way In 7 Easy Steps.

The Takeaway

As this article shows, it was a process for me to get to the place of being debt-free. 

And unfortunately, it didn’t happen at lightning speed, although that would have been awesome!

But, I begin to look at it like this — time passes anyway. 

What I do with my time has a tremendous impact on my life and happiness.

So I decided to stop procrastinating and take action!

The result?

Here it is 2.5 years later, and I’m 100% debt-free. Versus it being 2.5 years later, and I’m still stressed over bills and wishing to be debt-free!

So, are you ready to take that first step to feel good about your finances?

Great! Then I’m ready to help.

I’m happy to gift you a FREE 30-minute NO JUDGEMENT financial clarity call. So, click the link below, and let’s chat!