We all live with varying levels of stress. Most of it comes from financial hardship or being in debt.
Being in debt is not fun at all. You constantly worry about an emergency that can shatter the life you worked hard to build.
But, it is possible to get out of debt. I did it, and so can you. But, the journey will take work. You have to have a reason bigger than yourself to achieve stress freedom.
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My debt-free journey. We need to learn about making sound financial decisions. We believe that if we earn $10,000, that is the limit of what we can spend.
I lived under “debt stress” from 2008 to 2021—thirteen years. We had saved a good chunk of money until 2008.
We put $60,000 down toward our first house. We did not understand the trust costs of owning a home.
This was the start of our ascend into $77,000 in debt. One day, with most of my credit cards maxed, I said, “Enough is enough.”
Climbing out of debt is about a higher purpose. I wanted to escape debt so my family could move to Turkey and live on passive income.
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I knew debt would prevent us from living the life of our dreams overseas. So, we went full steam ahead into our debt-payoff journey.
You must have a higher purpose than yourself to free yourself from debt for good. You may want to ensure your kids can go to college.
Perhaps you want to buy a house so your kids can have a permanent place to call home. Whatever drives you will prevent you from spending.
You’re in debt by choices. Most of us are in consumer debt because of our spending choices. You may have student loans or medical bills, but much of our debt is from frivolous purchases.
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Before you consider getting into debt, work on curtailing your spending. It’s tough because Amazon is always calling our name.
A good method is not to use your credit card for a month. This technique will show you how much you love to shop.
I remember having to delete my credit card information from Amazon at one point. Today, I have zero urge to go onto Amazon and buy random things because I have more important investments to purchase.
It starts with a budget. That’s right; that crazy word pops up again. The harder you budget, the faster you get out of debt.
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If you make $10,000 per month, you should budget down to the penny. You should have budgets for food, bills, eating out, emergencies, and personal allowances.
You can break down each budget even further to gain more control. For example, say your monthly food budget is $800.
You can divide it to $200 per week. This way, if you have remaining money per week, you can treat the family to something special.
Say you have $40 left after week one; you may take the family to McDonald’s for soft-serve ice cream and McFlurries.
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What is it like to be stress-free? Getting out of debt will not make you completely stress-free, but it will be close.
You will still need to build an emergency fund, a home maintenance budget, and create passive income streams.
These things are possible once you lower consumer spending and pay off debt. The money you used to use for debt can go into your income investing portfolio.
Once everything starts hitting together, you’ll live a life like no other. Other people will still make much more money than you, but they will be beholden to their jobs and debts.
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Currently, my monthly passive income number looks like this: dividends ($1,500), rents ($2,650), and royalties ($200).
This cash flow is in addition to my real job (but I’m retiring soon). All this is to say, life is good. I have no stress because I understand how money works.
To live a life like no other, you must do things others will not consider. This may mean starting a business, writing books, getting roommates, or driving Uber.
Lack of financial education is not an excuse. I know they did not give us the financial tools to succeed, but we cannot continue to cry about it.
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The most challenging part of getting out of debt is learning to stop comparing ourselves to others. With the creation of social media, we are constantly looking at people’s best lives.
However, most people are broke and in debt. You will have to lower your standard of living for a season, but that’s okay.
Living below your means for 4-5 years to free yourself for 50 is a good deal. My wife and I cleared our debt in two years once we put our hearts and souls into the process.
Now, we can do pretty much anything within reason. As your financial education and success grow, you will begin to lose friends.
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Conclusion. Friends don’t let friends leave the debt circle. Spending money is much easier in groups.
However, you can stop visiting restaurants, football games, and malls for a few years. Trust me; seeing your bank account flush with cash is worth the pain.
We are supposed to live life with little stress; however, debt takes that from us. We must buy back our time by repaying our debt and living a healthy financial life.
If you can find a big enough reason to stay out of debt, you’re well on your way. Wouldn’t waking up with $10,000 in your high-yield savings account would be nice? Welcome to the club.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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