Hi everyone. My name is Kelly and today I’m going to be sharing with you my journey to debt-free living!
My husband and I are thankful to be debt free. Financial freedom is a blessing! Further, I believe that anyone can achieve this with a simple budget, dedication, prayer and a passion for the goal.
My debt-free living journey began when I was in high school. I have a wonderful family that always paid their bills; however, they did not have a vision to avoid debt at all costs. When I was about 16, I met a family that lived debt free and they even (Gasp!) paid cash for their vehicles. REALLY?! I had never heard of such a thing.
This family’s attention to detail in the area of finances intrigued me. Also, I began to study what the Bible has to say about money and debt. Proverbs 22:7 is pretty clear and states, “The rich rule over the poor, and the borrower is servant to the lender.” As I began to look around me, I saw that debt was restrictive and could potentially dictate my life in an unpleasant way.
When I was 20 years old, I bought my first car with cash, and I became hooked on my cash only plan. My debt free car purchase was so exciting and only spurred me onward. Also, I had to pay for my college education because my parents weren’t really able to help. I refused to take out any loans and paid for my 4 year degree debt free. This was not easy, but I applied for scholarships, worked as a waitress, lived frugally and made it happen without taking out any loans.
Sarah paid cash for this car on an income of $18,000/year…check out her story on Money Saving Mom.
My story is not one where I ran up credit card balances and got in over my head financially; however, I have worked hard, deferred instant gratification, saved money, budgeted and then married someone who was on board with the plan to live debt free, as well.
Now, I’ve made some silly financial choices over the years too. I learned from these decisions (perhaps mistakes?!) and continued to study scripture, books and blogs to learn how to live debt free and in a way that I believe pleases the Lord and blesses our household.
My husband and I coupon, deal shop, watch the grocery store sales cycles and are able to get by on less. We do this so that we can continue to avoid debt. Further, our financial freedom allows us to be able to give to others and share more freely.
Tips and Ideas to help you live debt free…
Start an Emergency Fund
Start a fund where you keep an amount of at least $1000 in savings to help when an unexpected expense comes up. You don’t want to have to break out a credit card or borrow any money. This emergency fund may not cover everything but will be a huge help as you try and pay for any “surprises” that come your way.
Set a Budget
To succeed financially, you need a plan. Budgets help you to strategically decide how each dollar is spent. We keep track of all our receipts and enter them into a spreadsheet to track our expenses. I know that it sounds like a lot of work, but we found an easy system and began to save money each month. A budget helps you to avoid debt and make better financial decisions.
Related: How to Create a Budget That Works for You
Live below Your Means
You don’t have to spend everything you make! Try to think of creative ways to save money and attempt to live on less than your full paycheck. You’ll find this extremely helpful when the unexpected “life stuff” happens. While we have 2 incomes, my husband and I made sure that our budget to run our household operates on 1 income. (The lessor income of the two!)
Recently, I read Sarah Titus’ book How To Become Financially Free and felt so encouraged by her story. What an inspirational journey and breath of fresh air she offers in this book and on her website! Sarah’s book gives easy to understand and manageable chapters of information in a way that leaves the reader feeling empowered. Readers will feel equipped to tackle debt and begin their journey to financial freedom.
Kelly is a Christ follower, blessed wife and a lover of all things home. She blogs over at KellyCoxAtHome about her journey at home and passion for debt-free living. She hopes to encourage others in that goal, while sharing tips on how to manage and enjoy all things that make up HOME!
Kelly is a Christ follower, blessed wife and a lover of all things home. She blogs over at KellyCoxAtHome about her journey at home and passion for debt-free living. She hopes to encourage others in that goal, while sharing tips on how to manage and enjoy all things that make up HOME!
