HOW I GOT OUT OF DEBT
I worked for it, and it was not easy, nor was it fun.
I was $60,000 in debt and I put every free penny I had of my net income towards my debt.
This was probably 50% – 90% of my income at times while earning about $65,000 grosss per year (which is around $50,000 after taxes and fees).
Note: I was a consultant living out of a suitcase, so by the nature of my job, I was able to channel a lot of my net income each paycheque towards my $60,000 in debt.
I watched every penny, and followed a budget exactly like the one I created for myself below.
And that’s it. The big secret.
Of course, there are a lot more details to the 18 months it took to clear my $60,000 debt, but that’s the gist of it.
WHERE AM I AT NOW?
I went from November 2006 being $60,000 in debt to the start of January 2011 being $180,000 in the black.
I don’t have my old posts because I wasn’t organized AND I lost all my old monthly budget roundups when I moved from Blogger to WordPress
In about 4 full years, I increased my net worth by almost a quarter of a million or $240,000.
I hit $200,000 net worth in March 2011 but then had to pay my taxes, so I’ve dropped down to about $180,000 again in April.
For all of 2011 I decided to not work at my full-time job as a consultant, and take the year off to travel to Asia and spend the summer in Europe before traveling around the U.S. for the remainder of the year.
I am expecting to be at about a $160,000 net worth after my little yearlong adventure, and I ended up being at $155,000 net worth at the end of 2011.
SO HOW DO YOU GET OUT OF DEBT?
You can start by reading these posts:
- Stay motivated to get out of debt
- How I got out of debt
- Are you suffering from frugal or debt fatigue?
- Cut everywhere, not just where YOU want to save
FB Favorite Budgeting Tool
There are tons of Budgeting Tool out there but one stands out from the crowd: MINT! I really like Mint’s feature and it’s free!
And Now That You Are Ready to Save Money Aside…
Once you have control of your budget. The very first thing is to start saving money. You need an account that doesn’t eat your money with fees and gives your interest to protect from inflation. The ING Orange Account covers both feature perfectly: