Who is J.D. Roth?

I was born and raised in Canby, Oregon. As was my father before me. As was his father before him. I attended Canby Union High School before spending four years at college in Salem, where I attended Willamette University. I earned a bachelor of arts in psychology with a minor in English (writing emphasis). I also took a lot of public speaking classes. Naturally, after I graduated I couldn’t find a job. I went to work for my Dad, selling custom boxes for the family business. I hated it.

You’ll notice that none of this has anything to do with money. I have no formal training in the world of finance. I’m not an accountant. I’m not a licensed stockbroker. I’m not a certified financial planner. I’m just a regular guy who has learned about money through the school of hard knocks.

You see, I graduated from college with a debt problem. I didn’t have student loans — thank goodness! — but I’d discovered the “joys” of credit cards. Over the next fifteen years, I got further and further into debt. By 2004, I’d acquired over $35,000 in consumer debt — credit cards, personal loans, a car payment — and was living paycheck t paycheck on a salary of $50,000 per year! I spent every penny I earned and had no savings.

One night in October 2004, after I’d bounced yet another check and missed yet another payment, I reached rock bottom. That night, I drafted a three-year plan to get out of debt. According to my calculations, I could pay off everything I owed by December 2007 — if I managed my money wisely. I decided to give it a shot.

Here’s a screencap of the actual debt-reduction plan I drew up that night:

After I drafted this plan, I decided to manage my personal finances as if I were managing a small business. I cut back on spending. I boosted my income. As my cash flow improved, I paid down debt. I tracked my spending and created monthly reports to document my progress.

The results were remarkable.

In less than a year, I had set aside a $5000 emergency fund and had increased my cash flow by $750 per month. I plowed that “profit” into debt-reduction. I continued to manage my life as a business, and in December 2007 — right on schedule! — I became debt-free for the first time in my adult life.

Today, a decade later, I’m still learning about smart money management. Because I’m human, I occasionally make mistakes — occasionally I make dumb mistakes — and some years are more profitable than others. In general, however, my net worth continues to grow and I’m able to pursue the things that make me happy.