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We interrupt this series of Staff Writer auditions to bring you a brief success story from a Get Rich Slowly reader. I receive several of these a month (often several a week), and sometimes wish that I had a place to share them all. Instead, I just make the time to share a handful every year.
This morning, Jay wrote to share his own tale of dedication:
Hey JD! I am very excited to tell you that I have paid off just over $12,000 in the last 11 months (I only make about $2,000/month) and am now debt free!
Thank you for your tips on saving and making the best choices! Once the psychology of my money problems got worked out, it became easy and even FUN paying my debts off ahead of schedule!
I’ve also started contributing to my company’s pension plan (they match my contribution up to 5% of my gross pay) and even started building my emergency fund past the $500 I had set aside.
Thanks for what you do here to help so many people like me change their thinking and start making better choices!
What I usually tell these folks is: “Thanks for writing. I love hearing success stories like this. Your kind words and your inspiring story are what make writing Get Rich Slowly all worthwhile.” And it’s true.
Actually, now that I think about it, maybe it would be possible to erect a “Success Stories” page where I could collect these stories (or at least those that people gave me permission to share). Hm. I’ll have to think about that.
Anyhow, I hope that you are well on your way to meeting your financial goals. And I hope that you’re enjoying the posts from the prospective Staff Writers. I thought these auditions would make it easier for me to choose whom to bring on board, but so far that’s just not the case. I still love all seven!
This article is about Debt, Real-Life Sunday, 9th August 2009 (by J.D. Roth)
August 9th, 2009 at 5:05 pm
J.D. — Yes, enjoying the staff writers, but getting eager to hear more from you again too. Miss your voice.
August 9th, 2009 at 5:38 pm
My vote is to continue to feature all the staff writers - why not? Each person comes from a different place - just like your readership is diverse as well. So far the quality of each post that I have read has been excellent. Simply put them on a rotating schedule. As long as we keep hearing your voice too, three or four days a week.
As for success stories, a big YES. These stories are inspiring, educational, positive. I would love to hear more of them.
Thank you again JD for your great blog.
August 9th, 2009 at 5:49 pm
This is AWESOME! Congrats to Jay; that takes some serious dedication to do what he’s done.
JD, you really should feature some success stories in a dedicated section. They really are a testament not only to the readers who share them, but to your advice, as well.
August 9th, 2009 at 5:56 pm
All of the staff writers are providing a different slant on personal finance which I have been enjoying reading each day.
I also think that a success stories page would be great! I hope to be able to add my own in some day.
August 9th, 2009 at 6:03 pm
Jay stated the most important fact of all:
>>Once the psychology of my money problems got worked out, it became easy …
There are all sorts of challenges, but it is the (as he put it) “the psychology of my money problems” that is the hardest to deal with.
Congrats and keep going!
August 9th, 2009 at 6:39 pm
Finally, someone who earns a modest living. Not everyone is married and has two incomes.
Some times I feel isolated on this website because I earn considerably less than many people who visit this site.
August 9th, 2009 at 7:10 pm
I am very interested in hearing this guy’s story… I want to see the budget he made. It’s great he was able to pay off so much debt. Good job!
August 9th, 2009 at 7:13 pm
Yes! Great story! Goes to prove anyone, modest income or otherwise can get out of debt and that not only the rich can handle money.
Would also enjoy success story section.
August 9th, 2009 at 7:40 pm
I would love to see a success story page on your site.
I agree, it would be nice to hear about folks who don’t have two incomes and make $2000/month ish…
August 9th, 2009 at 7:41 pm
I always enjoy reading success stories like these. I had my own “moment of clarity” about six years ago when I was quite literally homeless due to a job loss, bad financial decisions and a bank account that was in shambles. I was able to turn it all around in a year. It was painful, and it wasn’t fun, but the journey was worth it.
August 9th, 2009 at 7:50 pm
Very cool! I think the success stories page would be great too.
August 9th, 2009 at 7:58 pm
AMEN @Slackerjo, I earn 24k a year, have a 400+ a month car note and am trying to buy a house. If I pull THAT off I’ll submit photos so JD can show what a modest home really looks like!!
August 9th, 2009 at 8:00 pm
I love the idea of a success stories page.
August 9th, 2009 at 8:08 pm
I’m gonna require this guy show what his expenses are otherwise… is he paying rent or does he live at home? Health insurance? Roommates?
August 9th, 2009 at 8:49 pm
I also love the idea of a success page. Would show the hard look of the reader and your great inspiration JD!
August 9th, 2009 at 9:09 pm
Yes. I also would love to have a success story page on GRS.
August 9th, 2009 at 9:18 pm
Yes, it’s great he paid that much debt in a short period of time, but I would have liked more information…
How? What choices did he make? Where did he cut costs? What was the “psychology” and how did it effect his spending/saving?
More details would be great.
August 9th, 2009 at 9:21 pm
Yes, a success story page would be great! More twenty-something voices too.
Great job, J.D.! You’re helping people.
August 9th, 2009 at 9:30 pm
That is awesome. And you are really helping so many people. It keeps me in line with my goals to continue reading.
August 9th, 2009 at 9:49 pm
A success stories page would definitely be great to read and see updated! … Also, I wonder if there’s still a way to include all the staff writers? Maybe change the position to a rotating staff writer position?
August 9th, 2009 at 10:11 pm
Folks, I know that it would be helpful if reader e-mails included details on how they achieved success, but that’s just not what most people send. This e-mail is very typical. If I were doing a longer piece about each e-mail, I’d ask for details, but unless the authors want to come and chime in, we’ll have to be content with the knowledge that some how, some way, they did this…
August 9th, 2009 at 10:44 pm
Yes, I’d like to hear about this person.
Paying off debt when earning only 2K a month is one thing if you are living at home, single, etc., and totally another if you have a wife, kids, renting or buying something, etc.
We also were able to pay off my son’s birth in one year (we had to put it on credit since we had no insurance) while earning only a couple hundred a week while working at a children’s home and my husband was in grad school. We lived very “close”, but we didn’t have a lot of outside expenses (and very little time to go shopping). I think we owed about 6K for the birth but paid it off by the time he turned one. For his first birthday his “party” was a cake which I made from a box –no gifts. A 1-old doesn’t know about birthday presents and the presents are for the parents and friends and the sake of pics–!
It all helps if you don’t go out “partying” or night clubbing. That seems to take a lot of money. Since I’ve never been part of that scene, I certainly don’t understand the appeal and I’m grateful. I’m sure we’ve been able to live on a lot less because of it.
August 9th, 2009 at 11:04 pm
I love hearing about success stories from those with little to nothing. If you haven’t read Scratch Beginnings, get it in amazon(Link’s at the bottom) . Quick read and very inspirational. Anyways, I wish I and many of my friends would realize the opportunities to be successful do not lie in how much we spend but how little.
Great advice and thanks…
Scratch Beginnings (didn’t write but wish I had):
http://www.amazon.com/gp/product/0061714364?ie=UTF8&tag=lifeex-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0061714364
Dave
LifeExcursion
August 9th, 2009 at 11:17 pm
Wow, paying off $12,000 in debt in one year while earning only $2,000/month (gross or net?) is huge! If it’s $2,000/month gross, that’s more huge and inspiration for many out there.
I’m struggling with paying off my school debt, b/c it is the smallest of the bunch (the rest are mortgages on my rental/vacation/primary). But, the school debt is only at 2.65%! That’s almost like free money with the way inflation may hit us in the next several years with all this monetary ease.
In fact, I would argue that one should accumulate as much “good debt” as possible now before inflation takes hold.
I hope to tell all you guys my success story in 8-10 years when I’m retired in my early 40’s!
Best,
RB
August 9th, 2009 at 11:31 pm
The staff auditions have been great but it seems A.J. is racking up the comments!
August 10th, 2009 at 12:32 am
Paying of 12000 in just 11 months is amazing. I’d like to know how he did it!
August 10th, 2009 at 4:19 am
I currently make about $2100 a month. Living with 2 roommates makes rent and utilities about $350 per month. I can save about $1000-$1200 a month in this situation.
I really don’t need/want much space. So this is actually quite comfortable for me.
August 10th, 2009 at 4:59 am
Readers should post these in the success stories forum, that way people can ask questions and learn from others.
August 10th, 2009 at 5:27 am
I also would like to see a page dedicated to success stories (I know it’s over on the forum but I spend more time here)
As well what about a once a week post by a staff writer, perhaps a different one each time.
August 10th, 2009 at 5:39 am
This is nice to read. My hubby and I are currently living on about $2400 per month take home. We’re doing pretty well….but it’s hard to get really far ahead. We’ve also got a plan to be debt free by the fall.
August 10th, 2009 at 6:32 am
J.D. I think a success stories page would be great. I love reading about other people reaching their goals and use it as a motivator for me to keep striving for mine.
August 10th, 2009 at 6:39 am
For those who are wondering… I do not live at home. I make about $2,000/month take home and I am not married to take advantage of a second income.
My whole process started about a year and a half ago when I read Dave Ramsey’s book “Total Money Makeover” and started getting a healthier perspective of my debt (if you haven’t read it, I highly recommend it). I wrote down all my debts and started paying the lowest one off… My problem was I hadn’t changed my opinion of debt and so I only put a couple bucks down at a time… That changed one week last year when I got harassed by a debt collector… I decided that enough was enough and I would do whatever it took to get out of debt!
To put the process simply, I cut costs mercilessly on EVERYTHING!!! I moved so that rent/utilities only cost $500/month and cut my food/entertainment/everything else budget to only about $500/month. This meant I couldn’t go see all the latest movies or eat at all the cool new restaurants, but it didn’t kill me! This usually left me with right around $1000/month to throw at debt. (Some months I had a little more, some months a little less) Once I paid off the first debt, it gave me momentum to keep on going to pay off the rest. I was also able to have one collection debt reduced by making a solid arrangement to pay. It never hurts to ask
It wasn’t an easy or enjoyable process but the end result was SO WORTH IT! I think if I could only give one tip to people struggling with debt it would be to keep hanging around and reading blogs like GRS! The encouragement and community helped keep me on target and gave me the motivation to keep going at times when I only had $10 for food and a week to go before pay day…
Good luck to everyone working on paying off debt out there! Keep on keeping on! The way you will feel when you make that last payment is more exciting than a wild roller coaster
August 10th, 2009 at 6:50 am
A great big, fat YES to a success stories page. Everyone needs to know that there are real people out there acting on and doing what all the “how to” blogs are recommending.
August 10th, 2009 at 7:01 am
I think that a success stories page would be great. Maybe cull from the forum for guests who would be willing to write something a bit more developed (like Jay’s response in the comments).
As I trudge through paying off my own debt, it’s really encouraging to regularly see that others have succeeded.
August 10th, 2009 at 7:38 am
Congratulations, Jay! JD, I’d love to see stories like this from time to time. It must be nice for you to see how your work affects your individual readers. I’m enjoying the staff writers, but also looking forward to hearing from you again.
August 10th, 2009 at 7:41 am
Hooray!! Can’t wait until the day I pay off all my student loans and will be *really* debt free. (Right now, I’m consumer-debt free, save for the car loan to build credit. Which has less than a year to live, according to my own payment schedule.)
I’m in agreement with everyone else — A success page would be awesome. Even though I don’t have a ton of debt, I still draw inspiration from those who work through tough situations to get out. Makes me feel like I should be more responsible myself!
Also, it’s nice to have them posted here… Not all of us make it over to the forums. My attention span, for one, doesn’t allow it when I’m online. Too much good stuff to read.
August 10th, 2009 at 7:50 am
would LOVE a success stories page - they’re really helpful when my motivation’s flagging
August 10th, 2009 at 7:59 am
oh, wanted to add, i also make about $2K a month in take home pay, and thanks in large part to having the same cost of housing that jay (the guy in the story) has and being able to do some freelance, i paid off $12,815 in 2008. honestly, just having everything in front of me on a spreadsheet gave me focus, and the progress felt easy (most of the time). i still managed to have fun and to splurge every now and then, so debt reduction never felt oppressive. it’s really fun, though, to read about other people with similar situations and to draw inspiration from their success stories when i feel like i’m not making any progress.
August 10th, 2009 at 8:04 am
That’s awesome Idub! Congrats on paying that much down in 2008! You bring up a good point… Having everything put into a spreadsheet that I looked at a couple times a week (OCD maybe?) really helped keep me organized and allowed me to see how much progress I had already made and prioritize where my money would go each time I got paid.
August 10th, 2009 at 8:22 am
This is great to hear. Great job! Such an inspiration.
August 10th, 2009 at 8:27 am
JD, I would LOVE a recurring series of these, with details. THANKS!
August 10th, 2009 at 8:37 am
I enjoy the success stories. They are quite the booster.
August 10th, 2009 at 8:44 am
It’s nice to hear (or read) your voice again, JD. I also love these success stories–a dedicated page would be interesting, but I like being surprised with them periodically, too.
Lastly, I think Jay should call into Dave Ramsey and give him a big “We’re Debt Free!!!!!” cry.
August 10th, 2009 at 8:50 am
I believe Jay to be an EXCELLENT example about what our quest to become “debt-free” and pursue a frugal lifestyle is all about! Much of it is about the psychology — the way you go about deciding the value of your money and your time. I also echo afforementioned commentaries that it IS refreshing to hear from a lower-income individual overcoming financial obstacles. It shows that once again, it doesn’t always matter HOW MUCH you make, but HOW YOU GO ABOUT IT. CONGRATS JAY!
PS. I do have to ponder one thing about #22: An important key to good finances is PRE-PLANNING, now, if it took you one year to afford to even pay for the DELIVERY of your child (after-birth I take it) not to mention what it costs to raise one…I think you may want to really read more of these articles and really THINK about the PRIORITIZING aspect of the psychology Jay mentioned…no offense… :S
August 10th, 2009 at 8:52 am
Tumblr recently started providing support for reader contribution and I think Posterous has the same feature. I’m pretty sure Posterous has a WP plugin as well.
One of those might make it easy for you to allow reader submitted stories.
August 10th, 2009 at 8:54 am
Pretty nice!! Me and my husband currently rent and save up for a house. Our monthly bills including a car payment amounts to $2500-3000. We save upto half ofour monthly income. Paid off husband’s debt ($5000) in 3 months and going to pay off the remaining $5000 in another 2-3 months. We are surviving on one salary only since the last 4-5 months. All this, by merely cutting corners and my greatest asset being the fact that I love to cook and pack our lunches everyday.
August 10th, 2009 at 10:03 am
Congratulations, Jay! Very inspirational story. I became debt free last year via Dave Ramsey’s program as well. Did you enjoy screaming “I’m Debt Freeeeeee!” after making the last payment? I sure did.
August 10th, 2009 at 10:04 am
I second the first comment… I miss JD!
August 10th, 2009 at 10:39 am
I am inspired by this guy’s story.. I would like to begin my journey of getting out of debt. Where is the article/tips that the OP referred to? Is there a specific article?
Thanks for any help!
August 10th, 2009 at 10:59 am
Awesome. I love success stories & I love hearing JD’s voice again! Nothing against the guest posts but we miss you!
I can really relate to this success. I remember the surge of joy I felt when I made the VERY LAST payment on a medical debt that had been dragging on for years. There were some months I only paid $25 on that debt, and once or twice I skipped a month, but in the end the lady in the billing office thanked me and acknowledged my integrity & dedication. (The $900 she took off near the end helped a lot too!! :D) I also remember doing a budget way back when and seeing how well I could do on $2000/mo - except that I wasn’t making that much! I did manage to get my income up eventually, and since then I’ve kept my living expenses at that level, with any take-home pay over that going straight into my savings and retirement accounts. I’ve also been working on living as well on even less. It’s a great feeling.
August 10th, 2009 at 11:01 am
Hey Josh D.
The thing that really started things off for me was reading Dave Ramsy’s “Total Money Makeover”. He does a great job of working on the psychology of money and debt and gave me that AHA! moment that made me hate my bad debt with enough intensity that I just did whatever needed to be done to get rid of it.
Also, create a written budget and a written plan for getting out of debt / saving / investing / whatever you’re trying to accomplish, and revisit it often to see if you’re on track or if adjustments can be made to help you achieve you goals faster!
There are many great books out there but I suggest starting with “Total Money Makeover” and just keep reading Get Rich Slowly! JD does a great job of writing relevant posts for getting out of debt, saving, setting goals and staying on track!
August 10th, 2009 at 11:18 am
JD–Maybe you can open up a reader feedback section where people can submit their stories, then you can decide to post them (or not).
Just reading some of the comments on various posts reveals some interesting stories out there in the readership.
August 10th, 2009 at 11:23 am
Why not create a dashboard or tally of debt paid off by GRS readers? Helping to contribute to the total might be another motivation for others.
A forum where readers could also post their goals would be great, to allow others to help keep them on track. Making yourself accountable to others is one of the best ways I know to achieve a goal. I’m using it to stick to my low fat lifestyle but involving my friends and family.
August 10th, 2009 at 1:11 pm
No offense, but some things don’t quite add up here. Especially if 2000/month is before taxes. This person would have to be living rent free at their parents house for one thing. Also, I have no idea how some people make 24k a year and don’t do anything to change it. There are countless ways to add a little more money every week. Be a server 1 or 2 nights a week. Start a residential or small business cleaning company. I mean come one, 24k/year? I don’t even see how you could survive on that let alone pay down any debt.
August 10th, 2009 at 1:38 pm
Uh, Ian, you could try looking at the Get Rich Slowly forums - see the link at the top right corner of the page? You sound specifically interested in the Fiscal Fitness Journals sub-forum and the Success Stories sub-forum
August 10th, 2009 at 2:55 pm
I’d actually like to hear more details about this story. I’m guessing that Jay is probably traveling light in life to be able to put 50% of his income toward debt payoff.
Knowing the mechanics of how it was done is really the key in these stories…
August 10th, 2009 at 4:02 pm
August 10th, 2009 at 4:54 pm
I would love to see a success stories page! Not just for debt reduction but for hitting savings and investment goals. Hearing how people have achieved their goals keeps me motivated and makes me strive for more!
August 10th, 2009 at 6:41 pm
I agree with Caroline (#58). That would be incredibly motivating for me to try harder when it comes to reaching financial goals.
-DC
August 10th, 2009 at 8:58 pm
I like to hear about the success stories. Success stories provide a great benefit in encouragment and knowledge to help others acheive the same.
August 10th, 2009 at 11:07 pm
Hi!Reply to Ben post # 54 ,my husband makes $23,441.60 per year & we make it on that. I’ve looked for a job , but haven’t found anything yet. Jobs are hard to come by now here in Ohio. Sometimes it’s tough but we make it. If you have any other questions about our budget , be glad to share , e-mail me at stargazer43008@yahoo.com . Lisa
August 11th, 2009 at 7:18 am
Ben - You’d be surprised at how many families are living on $2,000/month. I volunteer to prepare tax returns every year for low income families and individuals and I get a reality check each time I help one of these families. I recommend you do something that puts you in touch with how people are living who aren’t in your economic peer group. LG
August 11th, 2009 at 7:34 am
At #54
I personally don’t do much better than 24k a year myself.
Granted I do better than that because I do try to take on other opportunities. I am constantly looking for ways to switch jobs and make more money too. But it just doesn’t fall out of the sky.
I’d wager Jay probably lives in a low cost of living area like I do, shares lodging with others to make it cost very little like I do, and lives hand to mouth like I do. Would you believe I’ve spent less than $1000 a month before? I have.
Remember that there’s only 1 job for every 3 college graduates and that figure is 2 years old, before the big crash so no telling how terrible it is now.
August 11th, 2009 at 8:15 am
Linear Girl (62)–That’s a valid observation! While so many are “struggling” to “get by” on $75,000 or $100,000 a year, millions are doing it on substantially less.
We’re all prisoners of our paradigms!
It could really be a benefit to find make some friends in lower income groups, and especially among immigrants. We can all learn so much from them and from the ways they live on so much less money, and often live surprisingly well.
We might find that a few of the expensive props we think of as necessities aren’t anything of the kind.
August 11th, 2009 at 9:20 am
Hey JD, what about making a Success Story survey that folks could come fill in? Then you could ask specific questions and respondents would have a framework for telling their stories … ?
I love the idea of featuring success stories more often and more prominently on GRS. “The Complete Tightwad Gazette” has an epilogue made up entirely of success letters Amy D. received over the years, and it’s by far my favorite part of an already awesome book …
August 11th, 2009 at 9:39 am
Some people here have said that anyone living on $24K annually should get a second job. I just thought I’d point out that even at the new, higher federal minimum wage of $7.25/hour, $24K represents 1.6 full-time jobs. When you’re earning a lot more than that it’s easy to forget that not everyone else does, too, and that income could easily be the result of mulitiple jobs already.
August 12th, 2009 at 12:30 pm
Um - the author explains how he is managing his budget in comment #32. If you would take the time to read a little you would see that (Ben @54)….
Very well done!!!
I have a budget running on $2,000 take home as well. However that is after I contribute 16% of income to 401k etc. which is unusual for my age. I have some school loans and a mortgage (but on a LOW interest rate). My wife will be working soon after she finishes grad school.
August 12th, 2009 at 4:45 pm
People can adjust to their level of income with enough discipline. A high salary is not necessary to be financially ok.
August 12th, 2009 at 5:14 pm
Congrats to Jay! We are working the “Total Money Makeover” right now and are two months away from being debt free. My husband and I take home around $4000 a month and are paying off close to $2000 a month in debt.
August 13th, 2009 at 12:37 pm
Success Stories page would be great, inspirational.
I make a lot of money these days but I don’t take it for granted. I don’t let my lifestyle inflate to match my recent pay inflation. Instead I picked a goal, made a budget on Googles Docs Spreadsheet and then went methodically through my expenses to trim out the fat. Every few months I look again to cut expenses; sometimes opportunities for saving come up due to a fresh look at things. What I did so far is…
- cut out the premium channels on cable. Down to basic.
- cut my cell phone minutes and text message limits
- eliminated the gym membership
- donated and sold stuff to reduce my stuff to the point that I could close a rented storage
- my credit score went up so I went shopping for insurance and was able to reduce my premiums
- weatherized windows/doors for Summer/Fall which not only saved me money but I was more comfortable during the winter since moisture was retained.
- I asked a neighbor if I can pay him $10 a month to use his wireless Internet which he agreed to. So I eliminated Cable Internet. If I can learn to live on streaming TV on the Internet i may be able to eliminate my basic cable too.
I once read that a young woman who was deeply in credit card debt so she moved out of her apartment and lived in her car for nearly a year. She signed up for a one year gym membership so that in the morning after waking up in her car she could go in get a workout and then shower for the day. It was genius since she got out of debt in one year instead of ten years which would have cost her three times as much due to compounding interest against her.
The point is, if there is a will there is a way. My expenses are $2000 per month but if i really had to I could cut that more than half. If you think you have cut as much as you can than watch the movie “The Pursuit of Happyness” and tell me that you are sacrificing and persevering enough.
August 19th, 2009 at 6:53 pm
I successfully got out of $26,000 of debt. It has changed my life and I have learned so much about myself in the process. I enjoy reading your blog.
August 23rd, 2009 at 8:03 pm
This post is wonderful! I’m inspired by Jay’s dedication. I have around $10,000 to pay off, which includes $7K car loan balance & $3,000 in credit card debt. The pay off schedule for car is Aug 2011 or 24 months, I’m sacrificing to pay off in 12 months. Blogs about getting rid of debt are well worth the read - keep it up. Quote I came across the other day on a blog, ‘Life happens and money will be needed’
Congrats Janie #71, I know that feels great!
November 17th, 2009 at 3:02 pm
If $2k is after taxes, you can do rent & utilities for $500/mo - I know that in the DC area you can rent a room in a house for $500, so elsewhere it should be cheaper. If it is before taxes, tax rate on $24k is 15%. If it was a student loan or other item, he probably got the tax money back as a refund & threw it at his debt; or maybe earned income tax credit? Either way, this is possible.
November 18th, 2009 at 9:36 am
I am on a graduate internship and I make $2010/mo after deductions, taxes, etc. But I own a home in DC and my mortgage is $1374/mo. How does someone makes any real strides in paying debt? And selling my house right now is not an option.
January 2nd, 2010 at 5:16 pm
Wow. Found this page randomly on a Google search … count me in as your newest regular reader! Congrats, Jay - as a person in your (pre-success-story) position, your story is extremely inspiring.