It’s official…… I just made my last debt destruction payment! I’m finally Debt Free!
My debt destruction journey took 44 months (3.66 years), which is about 8 months longer than I’d hoped. However, with a focused strategy and a healthy dose of discipline I was able to pay off $73,000 of debt and $15,000 worth of accrued interest. Due to my debt payoff and 401(k) contributions I was able to increase my net worth by a total of $115,000 in that time period.
Debt Tracker
Take a look at my Debt Destruction below!
My progress slowed some during the end of 2018, as I left the job I’d had for a few years. I took a couple of months off to travel, relocated, and then started settling into my new job. While I didn’t meet my goal of paying off all my debt in three years, I’m still satisfied with my work and proud of all the decisions I made to get here.
I honestly don’t feel wildly elated or anything. I’m happy and proud, but almost feel a little strange. I’ve been working toward this day for years, and the goal has been met. The outcome was expected. The journey is done. Now on to the next one I suppose!
I’m sure I’ll enjoy the freedom of being able to be fully in control of my income from here on out. I just currently have more of the feeling of contentedness that comes with climbing into bed after a long, hard day rather than the emotional high of winning a sporting event or something.
How’d I do it?
You can read about my journey in detail in my other blog posts. Basically, I attacked the three biggest common expenditures (housing, transportation, and food) while utilizing credit card point benefits and leveraging work perks to make the most of my money. I tracked spending meticulously and followed a budget outline. I allowed myself leniency to enjoy life (travel, concerts, nights out, etc.), while making sure I was staying the course on my overall projections. My Spending to Savings/Debt payment ratio was 37-63, meaning I lived off of 37% of my income while using 63% of my income for debt payoff and savings.
What’s Next?
Destroying my debt was just the first part of my long term financial journey. I’m looking forward using the excess funds that I’ll have to expand my investments and continue striving toward financial independence. I’ll take some time to assess my current financial position, and then set a few more goals for the next couple of years. Overall, I’m excited to have reached this goal and look forward toward attacking the next ones!
How is your financial journey coming along? Have you been able to get started destroying your debt? What obstacles or life events have thrown you off course?
If you’d like some help regarding your debt and personal finances, feel free to click here to learn about the consulting services that I offer. I love personal finance and I’d be happy to work with you on your journey!