Achieving Debt Freedom

Achieving Debt Freedom: In Debt and Divorced

Are you interested in achieving debt freedom? Are you drowning in debt? I am living proof that debt freedom is possible by taking baby steps starting right where you are. After years and years of robbing Peter to pay Paul, living paycheck to paycheck, and getting loans from the cash advance places every week because I could never afford to pay them off, my world changed overnight.

One day I was married, the next day I was getting a divorce. I was left with no money, but I had a job. Our bank account was overdrawn, I discovered that we owed money to the IRS from my ex’s business when I tried to file my taxes on my own, and I had just enough money to pay our mortgage at the end of the month without anything else. I was not eligible for food assistance. I had three kids that depended on me, so I had to do something. My life was turned upside down and then right side up.

Achieving Debt Freedom: I Found Out About Dave Ramsey.

Through a local church, I found out about Dave Ramsey. The more I learned about him, the more I was hooked. It felt like I was being given a golden ticket. A ticket that would set me free if I used it the right way. I went home as fast as I could to get all of my bills together and to try my hand at budgeting. I didn’t have money to buy his books or sign up for classes, but I listened to him every day in the car and on the internet for free.

Achieving Debt Freedom: Baby Steps

I started doing Dave Ramsey’s 7 baby steps and ever so slowly, I began to crawl out of the hole. I listened to him so much that I could swear that I could hear him telling me what to do. I never had money to spare but now I had an emergency fund. I was so excited; I could hardly stand myself. What a blessing to know that there was money in the bank in case I needed a battery for my car or had a flat tire. For more information on his baby steps click here. https://www.ramseysolutions.com/dave-ramsey-7-baby-steps

Achieving Debt Freedom: Through Budgeting

Budgeting is essential to achieve debt freedom. Budgets help you tell your money what to do so that you don’t have to wonder where your money went. I had always thought that budgets were only for broke people. But as it turns out, budgets are for people that don’t want to be broke and at this point, I was broke.

Although I didn’t have anything extra to sell for cash, I did get a 2nd job. I also became best friends with my budget. All I could think about was how I could save more money. Each time I found a new way to save money, it made me more determined to find even more ways. To this day, it is one of my favorite things to do. Dave Ramsey has an app that lets you budget right on your phone for free. Meet EveryDollar: A Faster, Easier Way to Budget (for Free!) – Ramsey (ramseysolutions.com) If you need to Create A Budget The Easy Way, my post on budgeting might help.

Paying Off My First Bill

I will never forget the day that I paid off my first bill. I was so excited about saving money but when I paid off that first bill, It became real. I’m really doing this! I became more determined to find even more ways to make and save money to pay my bills faster. I was obsessed. My snowball was starting to roll down the hill. I couldn’t wait to reach the bottom.

Achieving Debt Freedom: Investing

Achieving debt freedom by investing wisely is step 4 in Dave Ramsey’s baby steps. I didn’t know the first thing about investing. I thought only rich people could do it. Boy, was I wrong. I found a financial advisor that taught me a few things and made me realize that steady wins the race. It’s not the amount of money you put in necessarily but the consistency of your investments that makes money over time.

Achieving Debt Freedom: Paying Off the House

After all of the other bills were paid off, I wasn’t satisfied yet. I had one thing left to pay off and it was one of the most important things to me. My House. During my first marriage, I had my first house taken away in bankruptcy. That time in my life was heart breaking. I was determined that no one would ever take my home from me again. So, with that same determination, I made a plan.

I went online and found a loan payment calculator with an amortization schedule. I plugged in my numbers, and I had goal as to when my house would be paid off. It wasn’t an exact science, but it was close enough. I transferred those numbers to a spread sheet that I kept with me all of the time so I could look at it. When I would pay more that I had planned on the principle, I adjusted the numbers. Week after week, month after month, I could see the principle getting smaller and smaller. Finally, the balance was small enough for me to pay in one chunk.

Achieving Debt Freedom: The Feeling Of Achieving Debt Freedom.

With Dave Ramsey’s help, I got to the finish line with my golden ticket and I have been set free. Debt Free that is. I am not endorsed by Dave Ramsey but I am a true believer in his baby steps. I love to listen to him to this day and I will tell anyone that will listen to me how those baby steps changed my life.