Thursday, 22 October 2020

Total Debt Freedom Day (Third Anniversary)

So, today is the third anniversary of the day that I paid the last and largest of my debts off: the Wanda Loan.

I always pause on this day to look back and reflect on that day and the journey that brought me here.

The other two days of reflection are December 5th (the day that I started the whole Urban Nomad Journey) and July 12th (the day that I moved into Wanda full-time).

This day is about looking back on that day of finally becoming Totally Debt Free, and reflecting on that achievement. 

Not so as to brag or be arrogant but to remind myself of that feeling on that day and to show to others that you can not only get Totally Debt Free, but also stay that way . . . and build wealth besides.

I still remember the stresses of wondering if my paycheque was going to be large enough to pay all of my bills.

I still remember the added stress of knowing that I had no savings and my credit cards were all maxed out. 

The kicker was that when I started this journey, I was in the bottom of my overdraft as in the real overdraft, the one the bank issues you.

All that changed but it did not change overnight it took a few years, just under 4 years of hard work and sacrifice to pull it off.

But I did it, and so can you.

The secret is to seriously downgrade your lifestyle so as to seriously upgrade your cash flow. 

How do you do that?

Simple. You imagine that your income has just been cut in half. 

Now, balance your budget, think for a moment what you would do if you had to live on half of what you live on now.

If you can answer that question, if you can come up with some crazy (yet legal, ethical and moral) scheme to live on a fraction of what you can live on now . . . 

Just do that and use the now freed up cash in your monthly budget to pay off your debts. I don’t say pay down, because that means you still intend to have them.

Keep credit, just not debt. Keep the credit card, just don’t keep the outstanding balance on it. (Pay it off and keep it paid off).

I could go on, but there are a few thoughts on how to do what I have done, (become Totally Debt Free) without necessarily living in an RV/Van while parking on the streets.

As always: Keep your head up, your attitude positive, and keep moving forward!

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