The Mays Eliminated $44,167.23 in 29 Months
Being in debt can ruin so many of our dreams. For many of us, it’s like the Freddy Krueger of our financial nightmares. You never know when, but the terror always seems to pop up and remind you of how much everything sucks. Well, out in the world there exists a group of people that choose to not be terrorized. They choose to banish those debts and eliminate those nightmares by taking a stand. To take that stand you will need a plan and that is just what our special guests have done to accomplish DEBT FREEDOM.
I present to you De’Varus and Jasmine May. They went from a negative debt balance in Montgomery, AL to debt freedom with growing investments while residing in Los Angeles, California. Check out their story below:
Age and residence location?
DeVarus (30) and Jasmine (28)
Our place of residence at the time of becoming debt free was in Montgomery, AL
Total debt you paid off?
$44,167.23
How long did it take you to eliminate it all?
2 years and 5 months
A range of income during that time?
Not disclosed
Story – what happened to accumulate the debt?
The majority of our debt was accumulated through student loans in undergrad at Auburn University and while in nursing school at UAB. They were a mixture of subsidized and unsubsidized loans that we did not start paying on until after both of us graduated. Before we got married, we technically had already started individually paying on our own loans, respectively. However, once we got married, we grouped them together—which were about 4 in total—and began to pay each one off starting with the lowest amount first.
Your why for creating this goal of debt elimination?
After becoming more conscious of personal finances, through various mediums (reading, podcasts, etc.), we decided that becoming debt free was not only a good next step, but a necessity. We believed that financial freedom was not just a long term goal, but something that was more attainable even before we got married. We also evaluated some of our short term and long term goals after becoming newlyweds, and it became apparent quickly that our financial health was and will always be at the center of those goals. We made a strong agreement that finances will not be the factor that holds us back from our personal goals, nor will it tear us apart as a couple, as statistically finances are one of the leading causes of divorces in America. Thus, we were pretty adamant about eliminating debt as soon as possible!
If asked, what was the toughest part AND what was the key to get it done?
The toughest part of the journey, in our opinion, was staying focused and consistent. Life happens, and there were always factors (events, last-minute expenses, etc.) that came up that had the potential to derail us from our goal, whether good or bad. Creating a budget was honestly the main way we stayed the course. We not only budgeted every dollar that came into the household, but we also held designated 'budget meetings’ (yes they are boring, please bring the wine) every pay period, so that there were no surprises. Budget meetings, starting out, were difficult as well, because, like in everything else, we had to make sure we were on the same page. So yes, even though we could always find other interesting ways to spend our time together, the meetings were (and still are) the key to achieving our financial goals.
How did you handle saving/investing while eliminating debt? No saving or investing, a dedicated percentage of income, company match only, etc?
The category of saving and/or investing while eliminating debt is an interesting topic that we believe should be understood on a case by case basis. In our situation, we were very blessed and fortunate enough to be able to invest and save while being in debt elimination mode. We saved money and invested money through our company match 401K options, in addition to other investment options. We did not initially start saving or investing (outside of establishing an emergency fund) at the beginning of our journey, but once we got to a steady rate of debt elimination, we made the decision to start investing. Our goal for saving came from our short terms goals, as we knew in the near future we would have something come in the horizon that would require for us to have cash on hand. In addition to saving, we have always kept tithing and donating money as top priorities throughout our journey as both are very important within our family. It is also important to note that all of our financial decisions (saving, investing, debt elimination) were percentage-based, with eliminating debt being the highest percentage.
What do you plan on doing with the extra money that was being used to eliminate debt?
Since accomplishing our goal of eliminating debt, we have continued saving to the point where we were able to accomplish another goal of ours —> RELOCATION! We always had the desire after getting married that we wanted to manifest our lives outside of our hometown, but we were aware that in order to do such, we needed to have our finances together so that we did not have to limit ourselves in where we wanted to go, ultimately explaining why obtaining financial freedom became a priority. As a result of eliminating debt, we not only saved in order to relocate to Los Angeles, but we are continuing to save so that we can use our finances to accomplish our future goals! These goals include home ownership, building a family with several kids, periodic traveling, and furthering our education without debt.
IF THEY CAN DO IT, SO CAN YOU! START YOUR JOURNEY, STAY ON TRACK AND, YOU TOO, CAN REACH YOUR FINANCIAL DESTINATION!