Debt is something many of us have faced, and for some, it can feel like an endless struggle. I spent years making poor financial decisions, unaware of the long-term consequences. In my younger days, I didn’t think much about debt or saving for the future. I believed I’d make big money eventually, but the reality was much different.
I made some foolish choices—like financing a $25,000 car when I was making just $8.50 an hour—and didn’t understand how those decisions would affect me later. Fast forward to my marriage, and we still carried student loans, car loans, and home improvement debt. That’s when we realized we had to change.
Here are the lessons I learned while digging my way out of debt:
1. Tracking Your Spending Is Essential
Before we turned things around, I had no idea where our money was going. We were making decent money, yet we weren’t saving anything. I was shocked when we started tracking our spending. Once I saw exactly how we were using our money, it became clear that we were overspending in several areas, like food and entertainment. Tracking our spending was eye-opening and the first step in regaining control over our finances.
2. Stop Digging When You’re in Debt
One of the hardest realizations is that the longer you let debt grow, the harder it is to get out of it. Debt has a way of numbing you to the reality of your situation. When I was carrying around $20,000 in student loans, I didn’t see the harm in continuing to rack up debt. But, the longer you ignore the problem, the longer it will take to pay it off. The best thing you can do when you’re in debt is to stop adding to it. This was the most important step we took in our journey to get debt-free.
3. Small Changes Make a Big Difference
When you’re struggling with debt, it’s easy to think that small savings don’t matter. But, as we found out, every little change adds up. Cutting back on small expenses like subscriptions and shopping smarter made a noticeable difference in our budget. We also started side hustles to bring in extra income, which helped us pay off our debt faster. Even though each change seemed insignificant at the time, together they made a huge impact on our financial situation.
4. Don’t Care What Others Think
In my younger years, I was easily influenced by what others thought about me and my lifestyle. This mindset often extended to my financial decisions, where I would spend on things I didn’t really need, just to keep up with the expectations of others. Eventually, I realized that the only person who needs to be happy with my financial choices is me. Once we stopped worrying about keeping up with others and focused on our own financial goals, we were able to make decisions that truly benefited us.
The Most Important Lesson
The most valuable lesson I learned is that being in debt is a huge barrier to living the life you want. Debt can limit your options and hold you back from pursuing dreams like travel, a career change, or going back to school. It took time, effort, and a shift in mindset, but getting out of debt is possible. You need to commit to making changes, whether that means cutting back on expenses or finding ways to bring in extra money.
Getting out of debt is an ongoing process, but the most important part is to stop relying on others and take action yourself. It all starts with changing your mindset and making the decision to take control of your financial future.
发表回复