Debt Free at 27

emmylewfit
Jan 23, 2022
8 min read

Before I start this blog, I am not a financial advisor and am not suggesting that you invest your money in any way shape or form. If you take any of this information into consideration, please discuss this with a licensed professional. I am simply providing you information of how I got out of debt from 2019 – 2022.

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I just paid off the remaining payment of my student loans. I have no car payment, no credit card payment, or any other loan or debt payments.

I have had people reach out and ask, “How did you do this” “I wish I could do that”, and I’m here to tell you. YOU CAN.

Let me answer a few FAQs before we start:

No, I was not just handed money as child without holding up my part in some way, my parents did not help me with paying the remaining of my college student loan debt, the car that I own, my rent or any other bills that I pay.

Don’t get me wrong, my parents did buy me my first car, paid for some of my rent when I was in college, and were very good to me in general. I paid for all of my “fun stuff”, dinners with friends, etc. when I was in high school.

I also obtained a job of some sort since I was 13 years old, held three jobs every year I was in college and made the Dean’s List every semester, I had to pay for my gas of that car they bought, and took over the insurance when I graduated school.

Yes, I do have the “regular” American bills and investments like health insurance, car insurance, rent, CPA (accountant), business expenses, groceries, gas, etc. About $3,000 or so in bills per month.

“You must make a crap load of money” - My income was around the average college graduate, around $32,000 per year until I started working for myself in May of 2020.

Yes, I did have inconveniences come up that put me behind my payments a few times such as ER over night stay, medical procedures. Fortunately, I was eager enough to save that money back in no time.

I also invested thousands of dollars in three different mindset and health and wellness coaching services. These are to be seen as investments, not prices. They are services that are NEEDED and will help you thrive, mentally, physically, and emotionally.

Now, that we have that out of the way….

Here are just a few ways I got out of debt so quickly, never got myself into another “debtful” situation, and I have some fun resources for you at the end of this blog!

SCREW THE JONESES:

When I was younger, I used to do this thing that people refer to as, “keeping up with the Joneses”.

I wanted to wear what everyone else wore, have the name brand shirts (LOL at Aeropostale and Abercrombie & Fitch). If you had a Michael Kors purse, Ugg’s, or anything else that comes to mind that brings back memories; you were considered “cool”, “wealthy”.

I quickly realized once I got to my sophomore year of high school that I simply did not give a shit what name brand I wore as long as I felt confident, comfortable and like myself in them.

I started shopping at Goodwill… Trust me, if you go to the right location, you will find some QUALITY clothes & material. High key – I still love my thrift stores.

As long as you’re happy and your clothes fit well, toss the tag and live your life. Stop letting your ego get ahead of you.

Now that I’m older, I’m seeing people my age wanting to get the newest car model, the BMW… ya know, something shiny. I hear them talking about getting the name brand workout clothes, they immediately want to get the newest iPhone or Apple Watch that comes out.

My car was totaled in 2020, I could have went out to buy a brand new car with the money from my insurance. Instead, I bought a 2012 Ford Focus with 40,000 miles on it. I paid for it all up front in cash. I took the remaining money from my total loss and put it on my student loans. That was $2,000 less of debt. Don’t let your ego win at this, I know cars are pretty and all but I promise you will feel so much less stress and won’t be in such a shit hole if you just get the shitty car that will end up loving.

Here’s the thing, the second you pull out a loan for something, the second you are in hundreds to thousands of dollars more in debt. Do not take out a loan on something that draws interest, unless it is a house, your health, or something that has a bigger return to you than the investment. Something bigger than “Keeping up with the Joneses”, AKA making yourself look good or better.

I don’t just buy new phones or laptops or watches just because there is a new model out; I wait for the end of my contract or until I need a new one. I usually wait for Cyber Monday or if needed right then and there, I get the version that is one year older or so. They aren’t that different; trust me, salesmen know how to sell but if that feature doesn’t determine your future or income, don’t pay that extra money for one small feature.

Ask yourself what you NEED versus what you WANT. If you are writing this off for business, get the one that will help optimize your business, this is an INVESTMENT at that point.

Now that I’m out of debt, I do plan on investing in a new car within a year or two (when I can pay for it in full) and treating myself a little more to clothes I really like and want here and there (but I won’t be getting crazy with it).

Ultimately, stop trying to be like everyone else and live for yourself. I don’t give a damn if someone criticizes my Aux Cord in my car…. I am debt free with a full lifetime of investments in front of me.

Stop letting your ego win and prioritize what you know is important to you. This leads me into our next lesson!

BUDGET& LIVE WITHIN MY MEANS:

Here’s the part where you THINK it gets tricky, but it’s super simple. I’ll give some direct resources at the end of this blog for you to do your digging and learning for yourself. You will want to do this to hold yourself accountable.

First simple step, stop mindlessly spending. I know it’s hard to set this boundary with the pretty jacket that’s on the manikin and the Uber Eats app on your phone, but your future self will thank you for setting this boundary.

These are the steps I took!

1)Set a monetary limit you want to spend when you go shopping (for anything). 2) Ask yourself if you REALLY need it. 3) Get real with yourself, if you can survive without it and it’s not on your list or will put you out of your budget, LEAVE IT! 4) Take a photo of it, hang it up on your wall. 5)Save up every month, and if you still want it when your budget allows, then go get the damn thing! If you don’t, pat yourself on the back for that self-control and put that money on your debt.

Before we go all crazy with the really expensive dinners every weekend, spending $150 or more in drinks on Saturday nights, ordering Uber Eats, booking the extravagant vacation, getting your nails done every two weeks. Sit down and look at how much you spend on drinks, ordering take out, your nails, subscriptions, etc.

Then write down your bills/gas/insurance/groceries, and how much you make each month. If you’re asking yourself “Where did all of my money go?”, you probably need to take a second look at where you can survive to cut back here and there.

I don’t mean never treat yourself, always treat yourself when the opportunity presents or if there’s a special occasion. “Treating yourself” doesn’t always have to mean spending a crap ton of money – I’ll give suggestions in the next section!

Saying “no” to your friends here and there won’t break up a friendship; if it does, you dodged a bullet. Instead, offer a night in with wine and a movie or go out and just order something within your budget! Be careful with drinks, they add up and QUICKLY!

I think I used the Uber Eats & Door Dash three times in my life. Spending $25-$45 adding up with delivery fees and tips EVERY TIME YOU ORDER OR make something at home for $12-$15?

If it’s possible, skip the Uber Eats and make something at home - & trust me it’s possible. Especially if you set yourself up for success like meal prepping or having quick meal sources on hand so you can whip something up quick.

Make your own coffee, or instead of Starbucks go through McDonalds for $1 coffee versus $5-$20 from Starbs.

Instead of getting your nails done, do them yourself or have a weekly girls night where you do each other’s nails! Once again, treat yourself on occasion or when you just need a self-care day!

CHEAPLY TREAT MYSELF

Groupon is a great app that offers discounts for massages, spas, dinners, etc. Look through that app and treat-yo-self! You can always have a party at home versus going out and paying $10 for one shot.

Go on a weekend getaway a few hours away versus the extravagant vacation! If you want to go to an exotic location, find a friend that is in an exotic place or stay in a hostile and buy your flight at its cheapest price! Hire a travel agent, they are great!

Make a fun dinner with your friends and buy a bottle of wine versus going out. If you want a piece of clothing, wait for the price to drop depending on the time of year!

If you truly want to go all out, just do it. But don’t do this ALL the time, that’s where we dig ourselves a hole.

AGGRESSIVELY ATTACKED MY DEBT:

If you are passionate enough about it, you will make it happen. I worked as a virtual editor, virtual social media assistant and other side gigs for a couple $100 each month to put toward my student loans. Here’s some suggestions, search for fun virtual assistant jobs, start your own Virtual Assistance business, pick up a shift at a local restaurant once a week!

Focus on attacking your debt month by month. Overpay your debt when the opportunity presents, I would overpay every month sometimes thousands over depending on how social my month was (not spending money going out with friends/dinners), my income once I started working for myself, and still went on exotic vacations, went out with friends here and there and treated myself to fun nails on occasion.

Here’s the thing, you can do all of these things, but it should be within your budget. Any extra money you make could be going toward your loan instead of a temporary materialistic item.

This is about consistently showing up for yourself and keeping a promise to yourself.

NEXT SERIES:

The next series of this blog will be all about the mindset to obtain around money (scarcity versus abundance), manifestation, visualization, and law of attraction!

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