I finished graduate school with about $150,000 in debt and nothing in the bank. However, I was bound and determined to become debt free as quickly as possible. Right after graduate school, I wasn’t making that much money, but by renting cheap rooms, living on peanut butter and jelly and eschewing “keeping up with the jones,” I was able to pay off ~$20,000 of my debt in three years. I busted my rear to be able to do that, oftentimes working upwards of 90 hours a week.
I finally got a good paying job, but instead of blowing it on a nice house, car and fancy vacations, I continued to live my spartan lifestyle and paid off the remaining $130,000 in 2 years! As of October of last year, I am debt free!!! While paying off my debt, I would spend a small portion of nearly everyday dreaming of the day that I would no longer be burdened by debt…and now that day is here!
My new goal is to save up enough money to pay cash for my first home while simultaneously putting money into my 401K and mutual funds.
I’m so grateful for Dave Ramsey’s words of wisdom, and the joy of living with financial freedom.