This guest post from Claudia Pennington is part of the “money stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all stages of financial maturity. Today, Claudia shares the steps she and her husband have taken in their pursuit of financial freedom.
Garrett and I were your typical, college-educated millennials (thanks to student loans) who purchased new cars (courtesy of auto loans) and an overpriced, pre-recession home with a 30-year mortgage. We were good consumers, the kind of consumers that lenders love: We spent on credit and we paid our bills on time.
Fast forward to 2014 ?? We managed to acquire even more debt. We had a car loan, two car leases, a mortgage, student loans, and credit card debt. Living paycheck to paycheck was exhausting!
It took years for us to realize just how tired we were.
- Tired of not having any time.
- Tired of not having any money.
- Tired of not being able to travel.
After listening to people on the radio talk about similar money problems, we decided it was about time that we get our own finances in order. In 2015, we took a hard look at our spending from 2014. We didn't like what we saw. We created a plan to get out of debt and change our lives.
Fast forward to today ?? We managed to eliminate all of our debt. We’re a one-car family (no auto loan). We paid off our student loans (paid Sallie Mae Navient back). We paid off our mortgage in just over a year.
Let me tell you how we did it. [Read more…]