I’ve never been REALLY in trouble financially. I mean, there are months when my bank balance is lower than it should be, but all in all, I’ve always been pretty happy with my finances. I was just really worried when I got out of college because I had a small amount of credit card debt. Fortunately I never had to take out a student loan because my parents did a good job planning for my education.
About six months after graduating college, I realized that I was wasting a lot of my pay on credit card interest. I was in a minimum wage paying job at that point and had to come up with a good plan to eliminate whatever debt I had. It was then that I learned about the concept of the “debt snowball.”
You see, I used to just pay my credit card minimum payment, which fluctuated month-to-month. However, after reading several articles, I learned that if I just dedicate a set amount of money every month to paying off debt and never change that amount, eventually my debt will be paid off quicker than I could ever imagine.
It literally took me only 9 months to wipe out my credit card debt. I also learned how to live a more frugal lifestyle to prevent this from happening again. I don’t use any sort of budget and am very laid back with my finances. But I still am very aware of what I’m spending each month and adjust accordingly. I would say that I’m happier now than ever before.
Have you paid off your debt? Managed to save for your dream home? Had an awesome investment pan out? Share your personal finance success stories here.
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