There are many things I have learned from paying off $100,000 of debt in less than 2 years. I have gained more clarity in money and life. My mental health has improved and so have my relationships. I am more open to talking about the “hard topics” with others. So much changes when you go on a much-needed journey in life.
I will share with you 10 things I learned from paying off my consumer debt.
1. My relationships matter more than “things”
When you are in debt, you are working so hard to pay that debt off and you are overwhelmed and exhausted. You could easily be working your full-time job plus a side job or second job to pay off your debt faster. When you aren’t at work, you are worried about your bills so you aren’t able to really “show up” for your relationships. By paying off debt, you are able to relax and enjoy spending time with others and they enjoy spending time with you. I can now enjoy going out to eat and splurging on certain experiences with friends and my family because we can afford it. There are still many things we can’t afford, but we are in a much better place financially.
2. There are always more things to buy- the list is never-ending
You are going to keep wanting to buy more and more “things”. Those feelings and desires don’t really go away. We are built to want more things whether that be new clothes, the latest and greatest sports equipment tv, laptop, car, etc. The list never ends. So, buying something and saying you won’t want anything else once you have this one item isn’t really what will happen. You are going to keep wanting things. When you buy something and have credit card debt you are paying way more for that item in the credit card interest than that item originally cost. You could have things for 6 months or a year and it still not be paid off. Is that pair of boots that were supposed to be $60, really worth $100?
There is always something to buy, the list is endless
3. Saving money to buy things you want and having to wait longer to save rather than using debt to purchase that thing sooner, puts things into perspective
You will enjoy the things you buy without using debt more. Using cash is a wonderful and refreshing way to pay for things. Once you pay with cash and leave the store that item is now 100% yours. You don’t have to worry or think about the purchase or cost any more. You can buy it and enjoy it. What you pay at the store is what you pay for that item. You don’t have to pay interest from having it be part of your credit card debt.
4. Waiting shows my true colors.
I have realized that I tend to be impatient. I really want the thing I want, say a new bike, NOW. I don’t like waiting. Let’s say it is going to take me a few months to save up the money to purchase the new bike, I will find out if it is something I am willing to wait for. What other “things” will I still buy while saving for the new bike, what other things do I realize I don’t need? I enjoy and appreciate the things I save up for and pay cash for more. Waiting isn’t easy but it is part of the journey.
5. It feels soooo good to pay things in cash.
The “feel good” feeling comes to me by using cash. Now in full transparency, I may use my credit card to get the points, but I pay off my credit card in full every single month. Actually multiple times a month, I am weird like that! So, I am not always paying at the cash register in CASH, but I am not keeping a balance on my credit card and paying interest. I do use actual cash for many of my purchases as well.
Using cash for purchases makes me feel good
6. I feel more in control of not just my money but myself.
It is priceless to feel in control of myself! Prior to coming up with a plan, getting on a budget, and paying down our debt, I felt lost. Often times I didn’t know which way was up or down. Now I feel in control of myself, my finances, and life in general, it is such a wonderful feeling. When I know I have a plan and savings in the bank, I feel safe and secure, which is NOT how I felt when I had all my debt.
7. Take time to learn + change through the journey
Investing in yourself is important and needed. Personal growth comes from the journey. The goal is to make sustainable changes for the long term, not just for the short term. Progress is progress and taking time to really learn the lessons of the financial journey sets you up for success in the future. I would hate for me to have gone through this debt payoff journey to only go back into debt in a year or two because I didn’t really learn the lessons.
8. Paying off debt a little slower and allowing yourself time to still enjoy life is best
I regret rushing through our debt payoff journey. I am happy we were able to pay off so much debt in such a short amount of time and it saved us a lot of money, but I would have liked to enjoy the journey a little more. Again, change comes from the journey, hard work, and self-discovery.
Enjoy life’s journey and those around you, even when paying off debt
9. Something always comes up, like things to buy, so being debt free, (besides our house), allows us to buy those things a little easier than when we had debt
The list is endless! I still have to say “no” often to my boys and husband and to myself for the things we want. Again, the desire to want more and more things doesn’t go away. We have learned to live with much less and I hope this continues. I get frustrated by everyone in my family wanting things all the time. But I guess that is human nature. There are still so many things we cannot afford, but we are in a much better place financially than we were when we had all our debt.
10. I was under so much stress and had so much anxiety when I was under the pressure of a mountain of debt
Paying off our debt helped my mental health and stress levels soooo much! This is priceless! Having my stress and anxiety decrease is the best part of this whole financial journey! I have more clarity in our money and my life. I have big dreams, desires, and visions and I am working hard every day to meet them. Having my mental health under control allows me to follow my dreams.
