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My Journey to Financial Freedom | Part 2: The Climb

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 explained 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).

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1. Change the way you think about spending money. For most of my life, I believed that money was made to be spent. I believed that I deserved to spend every dollar that I earned on some material thing that would “make me happy.” I coveted material possessions—clothes, jewelry, electronics, cars. What I realize now is that money is not meant to be spent. You only need to earn enough money to survive. You should have enough money to buy only what you need. There is no need for excess.

“You’re not your job. You’re not how much money you have in the bank. You’re not the car you drive. You’re not the contents of your wallet. You’re not your fuc*ing khakis.” (Fight Club)

This shift in mindset is hard to adjust to at first. You may not like the reactions that you receive from people. Believe me, I’ve been called cheap a few times, but I pay no mind to it. I would choose cheap over poor any day.

2. Keep a budget. I highly recommend using Mint.com. I started using it in September and it has been one of the most transformational and useful tools throughout my journey to financial freedom. It allows you to sync up all of your accounts (loans, checking, savings, etc.) in one place. Then it keeps track of every transaction that you make and sorts/organizes all of the data for you. It allows you to track your spending over time and by category. It gives you incredible perspective and insight about where your money goes each month/year. It has been a truly eye-opening experience for me.

If you’re unwilling to try Mint, you can keep a budget on a spread sheet or even by hand. However, the important thing is to be completely conscious about where every dollar you spend is going.

3. Use a debit card. To reap the full Mint.com experience you should use a debit card for every purchase you make. Using the debit card will automatically flag each transaction you make into the appropriate category. So if you go to Shoprite, it will get marked as groceries. If you go to Home Depot it will get marked as home. If you stop at the gas station it will get marked as automobile, and so on.

I use my debit card (linked to my checking account) for almost every single transaction that I make. I also have all of my monthly bills (like my auto insurance, utilities, and gym membership) automatically debited from the same checking account each month. It makes keeping track of my spending that much easier. Plus, I do not like dealing with cash. The debit card is quick, easy, and is accepted almost everywhere now.

Whether or not you use Mint.com it is a good idea to use a debit card simply because you can review all of your purchases and purchase amounts on your monthly statement. Trying to keep track of receipts is a hassle that I don’t have time for.

4. Pay off credit cards and cut them up. Paying off my credit cards was my first priority. For awhile I tried “credit card surfing.” Let me just tell you from experience, it’s overrated and it really doesn’t work. The idea is that you surf from credit card to credit card by transferring balances. A lot of companies will give you 0% APR for 6 months if you transfer your balances over to them. After the 6 months, you “surf” to a new card with another promotional rate.

The problem with this tactic is that it gets messy quickly, it becomes difficult to keep up with, and if you lose track you will end up getting burned by high APRs, finance fees, cancellation fees, etc. Also, it probably doesn’t look great on your credit report if you’re opening up a new card every 6 months or so.

It is much safer and wiser to just stop using credit cards! My theory is simple and has taken me very far: If you can not afford to buy it, then you can not afford it. Period. It is simple logic.

5. Eat in. This is one of the easiest changes to make, but it also comes with an enormous, positive impact. When I started closely tracking my spending habits, I was shocked to see how much I was spending on eating out. A meal at a decent restaurant goes for about $25 per person. If you eat out twice a week, that is $3,120 a year. If you grab lunch out during the work week, it’s about $8 a day. That’s $2,080 a year. Put those together and you could be spending $5,200 a year or more on dining out! That is outrageous and completely unnecessary.

Since I started eating in and packing lunches, I’ve taken my monthly food spending from $500 down to $200 or less! Over time, that means enormous savings. Check out 5dollardinners.com for some awesome, inexpensive recipes. I love it! Also, investing in a crock pot was one of the wisest decisions I ever made—chili, sausage & peppers, and goulash will be your new (delicious, cheap) best friends. (Here are some more tips for eating healthy & mindfully.)

6. Direct deposit money into savings every month. This is my final—and perhaps most important—tip. When I began my journey to financial freedom, I opened a savings account with ING Direct. It is an easy-to-use online savings account and it gives you interest on the money that you save. It also allows you to set up easy direct deposits.

I started out small, depositing $50 a month into my savings. As I learned to keep my budget tighter and tighter, I increased the amount that I put into my savings each month. Currently, I am putting away $500+ per month and hope to get closer to $1,000 per month in the very near future.

When you direct deposit the funds, it comes out automatically. It is painless because you don’t have to do a thing. Because it’s automatic, after awhile you don’t even notice that it’s missing. (I remember reading that on another blog several months ago and thinking, “Are you out of your mind?! I’m not going to miss it? Yea right!”) But I can honestly say that after a few months, you adjust to the missing money. You truly do not miss it once it becomes normal for that amount to be deposited into savings automatically each month.

It has been one of the best decisions that I’ve made and because I’ve worked so hard to get to this place—I don’t touch that money! I am keeping it there for a rainy day or to pay off my student loans someday in one fell swoop.

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As I stated at the start of this post, three years ago I was almost $60,000 in debt; I was twenty-three years old; and I was scared to death. Today, I have my finances under control! I am on the road to financial freedom and you can get here, too. Truly, it is not as hard as it seems. With common sense and a bit of dedication, it will happen. Paying off my last credit card balance was like taking chains off of my wrists for the first time in seven years. The feeling was completely priceless. If I can do it, anybody can.

So, what are your financial goals? Have you ever been in financial prison? How did you free yourself? If you’re still there, what are you going to do to break free?

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  • · · ·

    3 Super Simple Ways to Reduce Stress, Improve Health, & Live Happy

    Want to know how you can cut your stress in half?

    How about if there were two things you could change that would drastically alter your stress levels for the rest of your life?

    Now I bet you really want to know, right?

    What if I told you that doing these simple things will not only decrease your stress levels, but will also make you happier and decrease your risk of heart attack, ulcers, & high blood pressure?

    Ready for this? Four words: Stop Rushing, Take Vacation.

    Yes, that’s it. It’s really quite simple, but the results that you will see if you make these changes will amaze you.

    The Problems
    So why is rushing & a lack of vacation such a huge problem? Well, rushing every now and then wouldn’t really be such a problem. But in today’s society, the reality is that we don’t just rush every now and then. We rush all of the time.

    We are constantly hurrying from one thing to the next, multitasking, with our minds in five different places at once. We browse the Web in multiple Windows. We watch television while surfing the Web. We talk on our house phones while texting on our cell phones/iPhones/Blackberrys. While we’re driving to work, we’re planning our days, who we’ll see at each meeting, and what we’re having for dinner. While we’re eating dinner, we’re checking our email, responding to emails, and thinking about what’s on TV that night. While we’re watching TV that night, we’re thinking about everything we’ve got to do tomorrow. You get the picture…

    The Facts
    The United States is one of (if not the) most stressful, fast-paced, uptight societies in existence. The “American way” of rush, rush, rush has huge negative implications. And sadly, the rest of the world is beginning to follow suit. It’s not a good path to be on.

    Here are some statistics about minimum vacation days around the world:

    Austria — 35 days
    Brazil — 30 days
    Finland — 35 days
    Sweden — 32 days
    Ukraine — 24 days
    United States — 7 days
    (Source: http://nationmaster.com)

    7 days? Really? WTF United States!?!?!?

    Every year Expedia.com launches an intense Vacation Deprivation survey to gather the facts & the effects of American Vacation Deprivation.

    Check out these stats:

    Notice that despite earning the least amount of annual vacation days, Americans will still leave an average of 3 days unused! This goes to show that so many Americans don’t even use the little vacation time that they get! Not good.

    Why is Vacation So Important?
    Let’s talk about mental health.

    • 34% of Americans say they come back from vacation feeling better about their jobs and are even more productive.
    • 53% of employed U.S. adults say they come back feeling rested and rejuvenated after vacation.
    • 53% of employed U.S. adults say they come back feeling reconnected with family after vacation.

    It’s no big secret that work can be stressful. Even if you absolutely adore your career, you still have the occasional (or frequent) challenging day. If you refuse to take a breather every now & then, you are putting your mental health and your relationships at risk.

    Obesity, heart disease, high blood pressure, ulcers, anxiety, depression, and so on are all symptoms of stress. Stress causes cortisol to build up in your body, the cortisol is then stored as dangerous fat. In addition to all of the physical symptoms of stress, there is the issue of rushing around. When you are rushing nonstop from place to place, it’s easy to stop for fast-food because you don’t make the time to cook nutritious meals for yourself and your family.

    If you look at the rates of obesity around the globe, you probably won’t be shocked to see where the United States fits in.

    That’s right, numero uno. Not a good place to be in this case. Americans are the most obese individuals in the world. A sad fact to note considering that we are also some of the richest people, with some of the most vast & diverse availability to nutritious & wholesome food. (Please watch Food, Inc. for more information on this topic.)

    Turning the Tide
    The facts are straightforward. Constant rushing & vacation deprivation will cause you harm. Here are 3 super simple ways that you can combat these harmful habits.

    1. Practice efficient time management. Keep a calendar and don’t overbook yourself, no exceptions. We all have a ton of stuff that we want to get done, but we have to prioritize. Choose the tasks that mean the most to you and will provide you with the best ROI (return on investment). Don’t commit to anything that doesn’t benefit you, your career, your family, or your friends in a big way. Your time is precious and you should treat it as such.

    2. Use your vacation time, all of it. No matter how many days that your company allots for vacation, make sure and use it. If your company tends to be on the real stingy side with vacation, don’t be afraid to set a confidential meeting with your HR director to point out the importance of sufficient vacation time. Sufficient vacation time is mutually beneficial — you will feel better and thereby, your performance will improve. Win – Win!

    Likewise, if you work for yourself, make sure to pencil in enough time for R & R.

    3. Breathe. When you are rushing, you are most likely breathing shallow. Shallow breathing causes rapid heart rate & conversely, deep breathing causes a slower heart rate. Take time to observe your breathing throughout the day. If you find yourself shallow breathing, take a deep breath in through your nostrils. Let the air flow through your chest & deep into the pit of your stomach. Allow your stomach to expand, like a balloon, as it fills with air. Then slowly exhale through your nose and expel all of the air from your body. Breathe in deeply again, allowing the air to fill your stomach as before. Each time you inhale, take in the positive energy & light around you. Let it fill & calm your soul. Each time you exhale, push out your negative energy & fear. Continue to do this until you feel calm.

    * — * — * — * — *

    Slow down, be in the now.

  • · · · · · ·

    The Journey

    by Mary Oliver

    One day you finally knew
    what you had to do, and began,
    though the voices around you
    kept shouting
    their bad advice–
    though the whole house
    began to tremble
    and you felt the old tug
    at your ankles.
    “Mend my life!”
    each voice cried.
    But you didn’t stop.
    You knew what you had to do,
    though the wind pried
    with its stiff fingers
    at the very foundations,
    though their melancholy
    was terrible.
    It was already late
    enough, and a wild night,
    and the road full of fallen
    branches and stones.
    But little by little,
    as you left their voices behind,
    the stars began to burn
    through the sheets of clouds,
    and there was a new voice
    which you slowly
    recognized as your own,
    that kept you company
    as you strode deeper and deeper
    into the world,
    determined to do
    the only thing you could do–
    determined to save
    the only life you could save.

    sunset, flower

    Dear Friends,

    Tonight I simply want to remind you that every journey starts with a single step.

    Love,
    Dena

  • · · · ·

    How to Overcome Fear & Stop Resisting

    “To offer no resistance to life is to be in a state of grace, ease, and lightness.” —Eckhart Tolle

    Stop resisting the will of the Universe. I’ve said this to myself thousands of times. It is perhaps one of the most powerful tools that has led me to peace of mind.

    In the past four years, I overcame depression, anxiety, and I lost sixty pounds. When you overcome a lifetime of anxiety & depression, a lot of things change. For one thing, you begin to enjoy life. Simple things that you hadn’t noticed before fill your heart with joy—Spring, a cold glass of water on a hot day, a good workout, a kind word, a smile. When you are overcome by the effects of anxiety & depression, you do not have time to notice these simple pleasures. (They are often overshadowed by the negative, irrational thoughts swarming inside of your head.)

    Happiness begets happiness, as I like to say. However, even in my increased state of happiness, I knew that something still wasn’t right. It took me awhile to realize what it was. Only after months of careful self-observation did I realize what was happening.

    A hard day at work = I was disgusted, angry, plagued by head aches.
    A frustrating experience at a car dealership = I was furious.
    An upcoming flight and travel arrangements = I was anxious, worried, sick to my stomach.

    I was continually allowing my mind to make me angry, sick, sad, frustrated, etc. Yet, after each of these experiences I learned some valuable lesson or something really important & meaningful happened as a result.

    Hard days at work always lead me to clarity about how myself and my team could be more efficient.
    The frustrating experience at the car dealership actually prevented me from making a terrible mistake and purchasing the wrong car.
    Recent travel and trips have brought me incredible successes in my personal & professional life.

    Upon observing all of this, it hit me. Even when things seemed terrible, even when I was really upset, eventually the pain of the situation would subside. Moreover, I would come out on the other side wiser, stronger, and grateful. Every thing that happened (happens) to me is a direct result of the will of the Universe (you can call that God, fate, destiny, or any other name you’d like to give it, no matter). Yes, every thing that happens is a direct result of the will of the Universe and an opportunity to learn and grow. In order to live true happiness, I had to stop resisting the will of the Universe. Once I did this, my life changed in incredible (and previously unimaginable) ways. When I stop resisting and simply “go with the flow” I find that I am constantly filled with a deep calmness in my soul. I do not worry or suffer. I simply exist and let all scenarios play themselves out. I understand that even pain is necessary and that ultimately it will carry me to a place of light & peace.

    Fear is Unnecessary

    At the root of every single feeling of discomfort, lies one emotion: fear. Fear is the emotion responsible for all forms of suffering. Sadness, anxiety, worry, rage, hatred, envy, and all other forms of suffering are rooted in fear. However, once you stop resisting the will of the Universe, you will understand that fear and suffering are actually not necessary at all.

    The vast majority of fear and suffering is a result of living in an unreal world and/or allowing negative, irrational thoughts to control our minds. The unreal world is the world of sky rise buildings, electricity, paper money, McDonald’s, television, marketing, vanity surgery, reality TV, etc. The real world is the world of trees, dirt, sun, stars, wind, rain, whole foods, self-love, generosity, family, love, etc. Can you see the difference? Once you remove yourself from the suffocating chains of the unreal world, and begin living in the real world, you will find that most of the fears that you experience are completely unnecessary. The vast majority of anxieties that we suffer from are made-up.

    – fear of judgment
    – fear of failure
    – fear of humiliation
    – fear of public speaking
    – fear of making a mistake
    – fear of travel
    – fear of forgetting something
    – fear of being alone and so on

    Once you realize that these fears are made-up in the unreal world, they can hold no power over you. All of the above are irrational anxieties. None of those things would actually put your life in danger or expose you to any harm. The only place that they can affect you is in your head. But you must remember that you have control over what goes on in your head! You can use cognitive behavioral therapy (CBT) to end the suffering.

    Eventually, you will realize that true fear might have a place in your life, but that is only when you are truly in danger. Perhaps while being chased by a bear or masked murderer, while falling from a cliff, etc. Yes, in those instances, your fear is justified and it can help you by creating adrenaline, increased strength, quicker reflexes and cognitive ability. But other than those “real” true fear situations, there is really no need for fear and certainly no need for emotional suffering.

    Live Without Resistance or Fear

    Once you learn to stop resisting the will of the Universe and to live without fear, you will experience an entirely new & improved sort of living. You will find that all of the things that you once desired, but were afraid to seek, are actually within your reach. For example, I was emotionally crippled by irrational anxiety for the first half of my life. This made it impossible for me to speak in front of people. I could not ask a question in a class of twenty, let alone get up in front of a group of people to speak. My anxiety over public speaking was so great, that it crippled me. I once experienced a debilitating panic attack at a dinner party of five family friends! But… that is ancient history.

    Now, my former self is hardly recognizable. I have spoken in front of groups of sixty people or more with grace and confidence. I know that my fear is irrational & unnecessary, so I overcome it. Sure, my heart rate may increase, I might sweat a bit—but I do not let it stop me! I remind myself that that the fear is not real and I move forward to success.

    You are entirely capable of achieving the same same sort of success in your own life—personal & professional. Whatever your fear is, you can overcome it.

    “You’ll seldom experience regret for anything that you’ve done. It is what you haven’t done that will torment you.” —Wayne Dyer

    To allow fear to rule your life, is not to live at all. So stop resisting the will of the Universe and stop allowing fear to rule your life. Begin living, truly living, right now. There is nothing in your way. What is your greatest fear? Can you believe that it is unnecessary? What would you do if you had no fear in your heart at all? How different could your life be?

    The only time you run out of chances is when you stop taking them!

    I am now offering personalized coaching sessions to individuals suffering from anxiety &/or depression. If you are interested in scheduling a session or would like to learn more, please contact me at denabotbyl[@]gmail[.]com for details and rates. Include CBT Session in the subject line.

11 Comments

  3. Love this, D. It’s all about being aware and conscious of the choices you’re making. People still ask me every day how and why I’m working a full-time job and only going to school part-time. To me, it seems like a no-brainer, but most other people are dumbfounded. Loans aren’t free money!

    I’m proud of you, lady.

    Reply

    1. Exactly, Jenna! I am so inspired by what you are doing. It is NOT EASY to go to school part-time and work full-time the way you are. But, you are doing it. You are living proof of what it means to follow your dreams & be responsible along the way. Thank you so much for the comment, love.

      Reply

  4. Using a debit card is not very safe, so I wouldn’t recommend that for the majority of purchases. I stick with using 1 credit card and pay it off in full each month. You’re also more protected by making purchased this way when it comes to fraudulent buyers or if your cc is stolen. A debit card unfortunately is very risky.

    Reply

    1. Thank you for the comment, NS. You make a great point. I don’t know if debit cards are right for everyone for the reasons that you’ve mentioned. Fortunately I have been extremely lucky with mine and I have a great bank that protects me against fraud. However, I would definitely advise anyone using debit to inquire with their banks about their policies in the the event of fraud.

      Also, it is best to always practice “safe spending” and only do business with reputable businesses.

      Thanks again for your thoughts & the tip.

      Reply

  6. Oops, didn’t realize you replied so quick. Good, glad if it can work out for you. It does keep things much simpler having only 1 card.

    Reply

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