How we Paid off Over $45,000 of Debt in 11 Months

Jen SmithDebt, Personal Finance15 Comments

This post may contain affiliate links. Please read my disclosure for more information.

It seems pretty normal to me now but people still drop their jaws when I tell them we’ve paid over $45K on our loans so far.

How we Paid off Over $45,000 of Debt in 11 MonthsWe still have a year to go and most days I have mixed emotions of accomplishment for what we’ve done vs. annoyance for how far we have to go.

We’ve made conscious decisions to hold off on things like buying a house, going on trips, and even getting a couch that’s not covered in stains (all attempts to clean only make it worse.)

I didn’t agree to this at first but over time I’ve learned it’s necessary for our journey to get out of debt as quickly as possible. Don’t feel like you have to go vegan straight from an all McDonald’s diet.

Wade into it with these foundational practices and build your thriftiness over time. Make the commitment and I promise you will reap the rewards, and they will be sweet comfy industrial style brown leather rewards.

 

First: Read

Or listen to Dave Ramsey’s book The Total Money Makeover. Regardless of what you think about Dave’s philosophies the man has the market nailed on the psychology of spending.

Travis and I read this as part of our premarital counseling and it was a game changer.

I was in way too over my head to figure out where my money should go based on interest, investments, credit scores, etc. I needed a simple plan I could follow and he offered that simplicity. The baby steps are the map we’re using and they do work if you commit to them.

 

Budget

I won’t harp too much on budgets but it’s the most important thing to getting out of debt and winning with money. None of these good intentioned suggestions are worth anything without a plan for telling your money where to go.

If budget sounds too negative you can refer to it as something else, like a Monthly Cash Flow Plan. It doesn’t matter what you call it just make one and stick to it. You won’t be perfect and you’ll never have the perfect budget so make it as easy as possible for yourself by downloading an app like Mint to track card purchases in real time or EveryDollar if you’re a cash-only spender.

 

Buy Secondhand

You know how I feel about the amazing wallet and environmental benefits of buying clothes secondhand, but we buy just about everything else used as well. We’re avid pawn shop browsers, they’re always willing to negotiate on price. We recently got a $100 indestructible Bluetooth speaker for $30!

We got all our furniture from Craigslist and OfferUp and we browse Goodwill whenever we have free time to see what goodies they have. This goes for food too.

WAIT, WHAT!?

My mom works in cafeterias and catering and will offer us leftovers whenever they’re available. This obviously isn’t an option for everyone but if you know someone with extra food don’t be shy to ask and offer to pick it up on site. It prevents waste and cuts down your grocery bill.

 

Eat at Home

We budget ourselves to 2 meals out per month. We have a $50 grocery budget per week and we live very comfortably off that. I plan my meals, make a strict grocery list, and we switched to shopping at Aldi.

Related: A Month of Dinner Recipes for Families on a Budget

Lunch is exclusively leftovers or PB&J but I haven’t cut a single coupon, so for that I am thankful. On another note, to my former single self, this idea sounds dreadful. My main form of socialization was eating out and my thought was how would I ever find a boyfriend if I eat at home alone every night?

Spoiler alert: It’s much easier to get to know people at home over a crockpot dinner and a bottle of wine than a crowded restaurant with a live band. Married or single, eating at home is not as time-consuming and boring as I thought it’d be.

 

Side Hustle

Sometimes there’s just nothing left to squeeze out of the budget to pay down debt. The quickest way out of debt is increasing your income. I know that it seems impossible to squeeze more into your already busy life and it is no picnic, it’s exhausting. But the more you make now, the quicker you go from rice and beans to steak dinners (I’m vegetarian though so I’ll stick with the beans.)

I don’t recommend minimum wage soul-sucking side jobs (unless it’s over the holidays when you can make bank) I mean hustles. Drive Uber during peak hours, deliver pizzas on nights and weekends and rent your house/room out on Airbnb. Use the talents you already have to freelance some work (try a site like moonlighting or fiverr to advertise.) Bringing in an extra $1000 a month now will change the rest of your life.

I could go on and on about ways we’ve changed our lifestyle to make this dream a reality but start with these and I’m sure you’ll be dumpster diving for furniture too in no time!

 

Disclosure: This post contains affiliate links. Using these links helps me keep up with my cold brew coffee addiction. Cheers!

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15 Comments on “How we Paid off Over $45,000 of Debt in 11 Months”

  1. We’ve gone a long way during this past year ! I’m glad you are using your writing skills to encourage and help others 🙂 it’s all a mindset! Love ya

  2. You are crushing it! We recently paid off ALOT of debt too using the methods you mentioned in the article. One thing that also helped us was selling everything we could get rid of. You’re right the Craigslist market is where it’s at for both buyers and sellers. We sold extra cookware, pans, art, mugs and glasses, decorations at decent prices. Crazy how hot Craigslist is right now! Good luck on your debt journey!
    Julie @ Millennial Boss recently posted…10 Reasons Why You Shouldn’t Start a BlogMy Profile

    1. Thanks Julie! Thank God for Craigslist. All the benefits of a yard sale without the labor and sweat.

  3. Hi! I downloaded the Every Dollar app and I’m curious the main differences between it and Mint’s app. The budgets look the same to my untrained eye. Is Every Dollar really better?

    1. Hey! EveryDollar is by far the simplest budgeting app but the downside is you have to enter everything manually, which for some could be a good thing. I like Mint for it’s automated ease but again could be a stumbling block for people trying to be more intentional in monitoring their spending. We’re using both this month and I’ll let you know which one I end up liking better but they both have their advantages.

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  6. I enjoy reading your posts. You sound focused. It also can be great for a marriage, to be a team . My husband and I are so proud of ourselves, and each other, every time we make a choice that puts us in a better financial position.

    1. Thank you Dee Anne! It’s so gratifying to know you’re a team in your finances rather than cohabitating spenders.:P

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