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Frustrated with your credit card, car payments, and student loans? Learn how you two can come together to dump your debt faster and retire early!
Imagine you’re recently married, have two condos, a brand new car and a whole life together that’s about to take off.
On the surface everything looks great but what happens when you run the numbers and see the real picture?
What if you two discover that you’re $52,000 in debt?
Getting Rid of $52,000 of Debt
For Deacon and Kim, seeing this amount of debt was a turning point.
We’re getting into how he and his wife Kim made this transition from being in debt to working their way towards financial independence.
In this episode, we talk about:
- how they managed to pay off $52,000 in debt in 18 months
- the system they used to keep one another in the loop with money
- planning and following through financial independence
Hope you enjoy!
Resources to Dump Debt and Retire Early
If you’re looking to get ahead with your finances as a family, here are more resources to check out!
- You Can Retire Early
- Retire Early By Rethinking Your Priorities
- Jumpstart Your Marriage and Your Money
- Financial Independence Through Big Wins
- Setting Up Your Retirement with the Right Tools
- The Shockingly Simple Math Behind Early Retirement
The Journey from Dumping Debt to Financial Independence
Of course, the process didn’t happen overnight. Deacon and Kim worked hard to create an aggressive, but still doable plan.
Deacon discovered Dave Ramsey and his baby steps. With Kim on board, they got gazelle intense on their expenses.
Running some scenarios, Deacon saw he needed to make a big sacrifice if he was serious about paying off their debt – he had to sell his beloved car.
The hardest was selling my brand new car because you know it had a push button start… and this is back in 2008, 2009 when that was like a new thing.
But I realized that that was something that needed to go because it was about $400 dollars of our debt payments.
…we sold it which was an upside down car and we got $5,000 for my wife’s car, which was paid for.
And then we both drove kind of these old 115-year-old cars. So that was the hardest change.
Eating out and going to the movies were abandoned as they were growing their debt snowball as fast as possible.
I think another key to their success was that they were both on board and had a system for keeping one another in the loop.
It was an intense year and a half, but they were finally out of consumer debt. Now, though, they were trying to figure out their next move.
So I think originally what was kind of like, ‘OK we paid off that. Now we need to get an emergency fund.
Like we had like a small emergency fund but we need to get like a six month emergency fund. We kind of went from that debt to savings and then we’re like oh we’ve got to start investing.
….. And so it’s kind of this progression of like OK I started with a debt but then it was like OK well you’d have savings that we need to invest in what are we investing for?
What’s the purpose?
Finding their why took some time, but Deacon believes it has guided them well.
As parents with two little ones in tow, they’re even more intentional with their finances.
The good news is that the skills they used to get out of debt were transferable.
Instead of sending in those extra payments to their credit cards and student loans, they directed them to savings and investments.
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Build Wealth Together
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