Debt Free Journey

My husband and I started our debt free journey in 2018 with almost $200,000 of debt. While most of it was student loans from a couple private colleges and universities, there was quite a bit of credit card and personal loan debt, due to our past stupidity in not handling money well. Since 2018, we have been seeking financial freedom, which we know we will achieve through budgeting, side hustles, saving and more. As of August 2020, we have paid off just over half of our debt. While we still have a long ways to go, we can see the path at the end of the tunnel. We have been following Dave Ramsey’s baby steps, and are on our way to financial freedom.

Through tackling our debt via the debt snowball, we have been paying the minimum payment amounts on all of our debt. We then take all extra money and throw it at our lowest debt. This makes up the debt snowball. Our anticipated debt free date is December 2021, give or take a few months.

In addition to tackling our debt, we have utilized sinking funds to help us stay on track for those expenses that only show up a couple times a year, or for the ones that show up unexpectedly. This way something like needing new tires becomes an inconvenience and not an emergency. Having sinking funds throughout our financial freedom journey, we have saved ourselves a lot of heartache by having the ability to click a button and transfer money that we had saved in our sinking funds.