· · · ·

My Journey to Financial Freedom | Part 1: The Fall

fleurs // livelovesimple.com

Three years ago, I was nearly $60,000 in debt. I had a Bachelor’s degree that didn’t appear to be worth its weight in salt and a job that couldn’t cover a fraction of my monthly bills. I was terrified.

Today, I am closer to complete financial freedom than I ever dreamed possible. Last week, I paid off my last remaining credit card balance. This two-part post is a celebration of this incredible milestone in my journey.

In part one, I will explain how I got to that terrible place. In part two, I will explain how I’m getting out of it (and how you can do it, too).

————————————————————————

A financial prison is the worst sort of prison to be stuck in. A financial prison does not have steel bars or a prison warden. You will not get sent to financial prison for committing a crime. There is only one person that can sentence you to financial prison. That person is you.

There are two primary types of financial prisoners:

1. There are those in financial prison who got there because they truly did not know any better. This type eventually realizes the error of their ways and breaks free.

2. There are those who knowingly commit themselves to financial prison. This type is well aware of the consequences of living beyond her means; but she does it anyway.

Of course there are also those who fall somewhere in the middle, like me… (Cue dream sequence.) It all started when I was 18. The guidance counseling systems in my high school and college were either completely inadequate or I simply refused to pay attention. I can’t honestly remember which it was, though I think it was the former. Either way, I was screwed.

Before me, no one in my family had ever been to college so I didn’t receive much advice. I was thrilled to be out of high school and ready for the next step. I took my SATs one time and applied to one school. My parents, being average folks, made just enough money to prevent me from receiving financial aid; but not enough money to be able to pay my full tuition. For me, this meant loans: “lovely” student loans from “lovely” Sallie Mae.

My mother co-signed and it was a cinch from there. Each semester I filled out a relatively simple form and like magic, Sallie Mae sent me a check. In fact, Sallie Mae was so generous that they allowed me to take out as much “extra” money as I needed every semester. It was fantastic! Yes, I had money to pay for books, meals, and extra curricula. I also had money to go out and binge drink, buy clothes I didn’t need, designer purses, and more. Sallie Mae was wonderful to me. And the best part of it was that there was no need for discussion. No one guided me, no one advised me, and no one asked me any questions. I showed up at the financial aid office a couple of times each year and it was always smooth sailing.

On top of that, another great thing happened when I was 18! The credit card companies started to send me applications. And that was just as easy. I got one and then another and then another. Whatever I couldn’t cover with those pretty little checks from Sallie Mae, I could simply charge on my credit cards. College was good to me. I joined a sorority, I partied hard, I shopped until I dropped. What more could a girl ask for?

It wasn’t all fun & games though. I worked through college. I worked at a children’s camp each summer; I was a Spanish teacher for two years; and toward the end of my college career I was a bookseller at Borders bookstore. All of the money I made working was spending money for me. I had Sallie Mae and the credit cards to pay all of my “real” bills.

When I finally graduated, I was making a cool $8.25 an hour at Borders. I loved it. I was happy… until one day, out of no where, a letter came in the mail. I had a six month grace period and then I would have to start paying back those loans. My paychecks barely covered my minimum credit card payments. How was I going to make loan payments on top of that?

So I sat down and did something that I’d never done before. I wrote up a budget. It was horrifying when I realized that even if I’d had no other bills, my monthly wages from Borders wouldn’t even cover half of my monthly student loan payments. The jig was up.

All told, I came out of college with about $45,000 in student loan debt and almost $15,000 in credit card debt. I hadn’t even lived on campus; I commuted from home; my parents paid for some of my tuition; and I only went to a mediocre school. How the hell was this possible?

All of a sudden Sallie Mae and the credit card companies didn’t seem so lovely anymore. There was one thought that kept repeating over & over in my head: Why didn’t anyone warn me? I felt cheated, betrayed, angry, afraid, and helpless. I wondered what the people in the financial aid office had been doing all that time. I wondered why my high school guidance counselor didn’t press me harder about applying for scholarships or grants. I wondered a lot of things, but mostly I wondered how the hell I was going to get out of the mess.

I started sending out resumes for jobs with starting salaries that would at least cover my monthly student loan payments. I sent out resume after resume but before long, I realized another harsh reality. That Bachelor’s Degree in English with a Creative Writing Focus wasn’t so great either. Nobody was calling me back. I couldn’t even get an interview.

The clock was ticking. I was halfway through my grace period. Then one day, one of my best friends mentioned an opening in her office. I looked over the job description and realized that it had nothing to do with what I’d gone to school for. I didn’t even know what it actually was, but the starting salary was more than what I needed. The rest was history.

I’ve been at my current company for almost three years now. And yesterday I paid off my last remaining credit card balance! Additionally over these few years, I’ve cut my student loan debt almost in half and by next Winter, I will have it down to a quarter of what I started with.

Stay tuned for tomorrow’s post, where I will share how I am doing it and how you can do it, too.

you may also like

  • · · · · · ·

    Review: Tribes by Seth Godin

    On a recent flight, I began reading Seth Godin’s Tribes. On the return flight, I finished it. It was my introduction to Seth Godin—no idea why I hadn’t found him sooner!—and what an introduction it was. The book blew me away. It is the best book on leadership and change management that I’ve ever read. While the content is sure to inspire change of the greatest sort within any organization—from business to church, non-profit to learning institution—it is also of incredible value to individuals.

    In this post I want to share some of my favourite pieces from Tribes as well as some of my own insights.

    Whether you want to create positive change in the world, in the workplace, or simply in your own, I recommend that you read the book for yourself. It is a relatively easy read, spliced up into short, digestible chapters. I got through it in a few hours. But it is absolutely packed with revolutionary ideas, suggestions, and real-life examples of people making a difference and leading tribes in today’s world.

    Many people are starting to realize that they work a lot and that working on stuff they believe in (and making things happen) is much more satisfying then just getting a paycheck and waiting to get fired (or die).

    I’ve begun to think of my generation as the Fight Club generation. Tyler Durden said it best, “We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars. But we won’t. And we’re slowly learning that fact. And we’re very, very pissed off.” I think Tyler and Seth’s sentiments are one and the same. Our parents (or maybe you) were raised to believe that you needed to grow up, go to school, get a job, and stay there. Work hard, save money, vacation once a year, and retire as soon as possible.

    Well, the Fight Club generation doesn’t want to hear that nonsense. We want gratification now. We don’t want to spend 40 hours a week miserable just so that we can collect a paycheck twice a month. We don’t want to spend half a lifetime at a job that we hate just so we can get fired or die one day! We believe that we can be happy now. We can pursue our passions, make a difference in the world, live out our dreams, and be successful all at once. And… we are right. We can do it. There are people doing it every single day. I love Tribes because it tells the stories of those people and more importantly, how they got there and how we can do it, too.

    Somewhere along the way, perhaps when twenty thousand Ford workers lost their jobs in one day, or when it became clear that soft drink companies were losing all their growth to upstarts, the factory advantage began to fade.

    The reason why the “school-job-suffer-retire” model worked for so long was because it was safe, it was comfortable. Human beings like to feel safe. It feels good to know that you will get a check once every couple weeks. It feels safe to know that you can walk into the office every morning and the lights will turn on and the computer will turn on. The peace of mind in trading your hours for dollars seems worth it when you have to put food on a table and a roof over someone’s head. But, guess what, that model isn’t really proving to be so safe after all.

    The recent tanking of the economy has really shaken things up. People are losing their jobs at rapid rates, unemployment is way up. Ethics have been violated, corruption runs rampant, and people don’t feel safe anymore. We want to take matters into our own hands. We want to create the lives of our dreams and be completely independent. We are doing it every day.

    In unstable times, growth comes from leaders who create change and engage their organizations, instead of from mangers who push their employees to do more for less.

    Now, more than ever, each of us has an opportunity obligation to become a leader, to create change, and to make a positive difference. The ever-evolving world of social media and the Web—Facebook, Twitter, LinkedIn, Wikipedia, Google—give us instant access to an unthinkable quantity of information and resources. When we learn how to leverage those resources we can become unstoppable. When we teach others to leverage those resources our tribes can become unstoppable. It is a great time to be a leader, and it is also the right time.

    Leadership is scarce because few people are willing to go through the discomfort required to lead. This scarcity makes leadership valuable. It’s uncomfortable to propose an idea that might fail. If you’re not uncomfortable in your work as a leader, it’s almost certain you’re not reaching your potential as a leader.

    Change = pain. If there is anything that I have learned over the past three years, it is this. Human beings are creatures of habit. When asked why things are done a certain way, most people will always respond the same way: “Because that’s the way we’ve always done it.” It is safe, it is comfortable. Our profits may be plummeting, our staff may be miserable, our customers may be disgusted—but this is the way we’ve always done it! Don’t try to mess with our traditions! Right? Wrong!

    Success takes dedication, hard work, persistence, and change. Dedication, hard work, and persistence can be painful. Some people are cut out for it and some people aren’t. The people that are, are the leaders. Being a leader is not comfortable and it’s not supposed to be. Being a leader takes character.

    Believe it or not, anyone can do it. “No one is born charismatic. It’s a choice, not a gift” (Tribes).

    Change almost never fails because it’s too early. It almost always fails because it’s too late.

    The time for change is now, my friends. If not now, when? There has never been a time where the need for positive change was more urgent. If you do not realize that this moment is all you have, then you do not have anything. This is it. After this moment, nothing is promised—not tomorrow, not next week, not your 81st birthday. You have this moment and you alone get to decide what you do with it. Yes, you can surf Facebook for a few more hours and stalk out your ex-boyfriend’s life for awhile more. You can also sit on the couch with a six-pack and watch The Jersey Shore marathon on MTV. …But if you asked me, I’d tell you that you’ve got more important things to do. Whether you’ve been waiting to pitch a great idea to your boss, waiting to take a proactive approach to your health, or waiting to embark on that 6 month “vagablogging” journey; stop waiting!

    There is really nothing in your way. There are no problems and no obstacles. Any anxiety that you might have stems from your past or your future; but your past and your future are not real! The only thing that is real is this moment, right now. The past and the future are in your head. No matter what you think is standing in your way, you can find a way around it. If you can’t get on the next flight to Melbourne (to start your career as a kangaroo-catcher) then sit down and figure out how you are going to make it happen. Right now.

    I’m frequently asked about getting credit. People want to know how to be sure they get credit for an idea, especially when they have a boss who wants to steal it. Or they want to know how to be sure to give me credit for an idea in a book or a blog post of their own.

    Real leaders don’t care.

    If it’s about your mission, about spreading faith, about seeing something happen, not only do you not care about credit, you actually want other people to take credit.

    There’s no record of Martin Luther King, Jr., or Gandhi whining about credit. Credit isn’t the point. Change is.

    Stop worrying about the obstacles and start taking action. Stop worrying about who is going to get credit and start making a difference.

    ————————————————————————

    What I loved most about Tribes is that it left me feeling like anything and everything is possible. The book is full of stories about ordinary people who did (and do) extraordinary things every single day. These people don’t let fear stop them. They become leaders and they create & inspire change. Every person is capable of this. You are capable of this! What do you want to do? Are you ready to become a leader? I say yes. Yes you are!

12 Comments

  1. An exciting tale I look forward to reading tomorrow…

    David Damron
    LifeExcursion & The Minimalist Path

    1. Thanks a lot, Dave. I am really glad that you enjoyed the post. Tomorrow’s post should be an exciting (enlightening!) conclusion.

    1. Hey Baker, thank you so much! It is a privilege to have you stop by. I’m a big fan. I appreciate the positive feedback.

  2. Wow Dena, that is some story. It sounds similar to so many other students out there, and that’s the scary part. This is the kind of post I absolutely love!

    I for one, am extremely proud of you for coming as far as you have. That is so awesome! I cannot wait to hear the rest of the story on tomorrow’s post.

    I have said it before. You are an inspiration to so many that have experienced the same reality. Unfortunately, it is very easy to find yourself where you ended up, but getting out, is a different story all together. That’s where you have shown strength, determination, and resolve! Those are some amazing characteristics for someone to have!!

    Most people refuse to accept their circumstances, and sit around blaming others for how they ended up where they are. You took responsibility for your actions and came up with a plan. Your plan is working and I know you are so glad to have accomplished what you have. No CREDIT CARDS! (Awesome job Dena!)

    I have to say that I would love to post this as a guest post on EOD. If you ever want to let me post this two part series as a guest post on EOD I would be honored. It is so inspirational!

    I stopped studying just so I could respond to this wonderful news!

    Keep up the great work and please keep moving forward. 🙂 You have done a great job!

    1. Brad, I can not tell you how much your kind words mean to me. You are so generous & thoughtful. I am truly grateful that my story can be used to inspire others.

      Despite how difficulty the journey has been (can be) I am glad that it happened. I have learned invaluable lessons that will carry me through the rest of my lifetime, wiser. Also, it is a blessing that I am able to share my story with others so that they may avoid my mistakes or if they are in the same position, I can give hope that there is a way out!

      Being able to share this post with your readers would be a great honor. The more people that read these words, the better. Knowledge is power!

      Thank you so much, my friend.

  3. Pingback: Christian Top Home Based Business Idea | Christian Home Business
  4. Wow Dena, This was great to read. Who would of thought this was you. You seem so perfect! I wish you could talk to Krystal. Cant wait for part two!!!!

    1. I am so glad that you liked it. It has been a long road, but I am on the upswing now! I would love for you to share this with Krystal and hopefully we will have a chance to talk soon, too. I miss & love you guys always. Thank you so much for your support. XO

  5. Pingback: Carousel — 04.02.10 : evolution you
  6. Pingback: Dena Botbyl
  7. Pingback: Trading Cash for Experience: New Jersey State Fair

Leave a Reply

Your email address will not be published. Required fields are marked *