Drs. Khalil and Adrienne Lee Gave Sallie Mae “The Boot” by Eliminating $61,012
It is still Financial Literacy Month! Therefore, I am back with another amazing story of debt freedom. This story features an amazing couple who are dear friends to my wife and I. I remember when were all on the phone and mentioned how they discovered Dave Ramsey and planned to get rid of their debt. Well, here we are!
To have people around you that are doing things like what we are celebrating today and this month is so important. The commonly referenced quote that states “Birds of a feather flock together” is a real thing. Having friends and family around you that encourage you with their success and actions that back up their advice is key.
so, without further ado, we have....
khalil & adrienne lee
Age and residence location?
- Khalil (31) and Adrienne (30), Bradenton, FL
Total debt you paid off (close as you can)?
- $61,011.97
How long did it take you to eliminate it all?
- 30 months total; however, it took 26 months once we focused in and decided to pay more than the minimum requirement each month.
Range of income during that time (only if comfortable)?
- Started at ~$110,000/year (combined gross income)
Story – what happened to accumulate the debt?
- Khalil: The debt was all my doing! J No, seriously, this was a result of the loans I took out to help me get through college (your typical student loan debt). I took out a fairly small amount of loans during my bachelor’s degree, but the bulk of my loans were acquired to cover my tuition and room/board expenses for my master’s. After graduating, my loans were deferred for the next four years while I completed my PhD (thankfully, I didn’t have to take out any loans for this). However, that’s when the interest really did its damage. By the time the deferment period was over, the total balance ballooned to $61,000!!
- Adrienne: Though I was fortunate to attain all of my degrees without having to accumulate any debt, we knew that Khalil’s student loans were OUR responsibility to work through (not just his).
Your why for creating this goal of debt elimination?
- Our goal has always been to build a legacy for our children and the generations to follow, having the ability to pass on a wealth of resources – not only financial resources, but the wisdom and knowledge to help them become good stewards of the resources they attain. Simply put, we understand the importance of eliminating any and all hindrances to reaching this goal. Eliminating our student loan debt was more than just a need; it was an urgency.
If asked, what was the toughest part AND what was the key to get it done?
- Overall, getting it done required great focus and discipline. Once we focused on the goal at hand, we chose not to think about what else we could be doing with the money.
During the first four months of marriage, we paid only the minimum monthly balance (by the end of December, the total balance had only gone down to $59,383.92). But for Christmas that year (2015), we received Dave Ramsey’s Financial Peace University as a gift from our good friends. The program really gave us a fresh perspective on wealth and building a legacy, and it was the catalyst to our aggressive approach in paying of the loans (beginning in January 2016).
From then on, we were on a mission. We buckled down and set aside a portion of our monthly income towards paying above and beyond the minimum amount. Any bonuses or extra income we received during this time were also applied towards the loans.
Our strategy began with paying off the smallest loans first, specifically those under $5,000 (this gave us a confidence boost!). Then, we chipped away at the largest loans, getting each loan to under $9,000. From there, we knocked out each of the remaining loans from those with the largest interest rates to the smallest. This strategy proved to be very feasible for us, and each loan payoff felt like we were reaching the next level in a video game.
How did you handle saving/investing while eliminating debt? No saving or investing, a dedicated percentage of income, company match only, etc.?
- Although we were focused on paying off the loans, we made it a point to allot a portion of our finances towards areas that were of value to us. This included:
- Charitable Giving: in honor of The Lord (to people, ministries, and other non-profits)
- Savings: continuing to make monthly contributions to our emergency fund.
- Investments: we maintained our retirement investment plans through our jobs and made a small stock investment in a solar company. (**It’s also worth mentioning that we purchased a home during this time as well. We consolidated some of our assets and set aside a portion of money each month for the down payment.**)
What do you plan on doing with the extra money that was being used to eliminate debt?
- Now that we have the capacity to do more with our finances, our first desire is to give more as The Lord leads us. We certainly would not have been able to accomplish this feat without Him, and we hope our testimony can be an encouragement to others. Aside from that, we plan to build our emergency fund to approximately 3-6 months’ worth of our monthly income. We will also continue exploring other investment opportunities, such as real estate and other stocks.
As you can see, there is no "one size fits all" to obtaining debt freedom. From simply comparing the debt free story of Austin Hope to this one, you can feel okay knowing that your plan can still work. It doesn't matter that it is different. To me, it is all about being aware of your current financial location, creating goals and Having a plan to ATTACK!
“Just as iron sharpens iron, a person sharpens the character of his friend.”