I've been thinking about it a bit lately. I haven't always had money. In fact about 5 years ago i was completely stressed out by my financial situation. I had a good job & a house, but i also had credit card debt, debt with the ird and a student loan that i was keen to say goodbye to after 12 years. I actually contemplated selling my house so i could attempt to pay off the debt & start again. The other thing is that while i had a good job, it was sucking the life out of me and i felt completely trapped. I needed to sort out my finances so i could find something that fed my soul rather than stealing it.
First thing i did, asked for help. I prayed. It honestly felt beyond what i could deal with! I also talked to a budgeting advice service. They helped me get some clarity around where i could cut costs. They also encouraged increasing my income somehow. Selling unnecessary things. Simplifying life.
I talked to my bank. Unfortunately they wouldn't help me so i ended up changing banks to one that would. They had a 0% credit card transfer which allowed me to get out of the massive interest payments and gave me the target of paying it off within a year. They also extended my mortgage which allowed me to pay off the ird debt. I upped my student loan payments. This was when they offered an early repayment bonus so for every additional $100 i paid, $110 was taken of the balance.
When i had paid off one debt i took the money i had been paying for that and added it to what i was paying for the next one. Any extra money that came in went straight to paying off debt. My work bonus, a tax return. Its amazing how a lump sum quickly changes the balance due.
Within a year all my debt (other than my mortgage) had been paid off, and i was making more than the minimum payments on that. I was then able to start saving and working out what i was going to do once i left my job. 🌱
It wasn't easy but i kept my eyes on the prize. It meant not updating my iPhone, stretching our hair appointments, and catching up with friends for a walk or having them over for coffee rather than going out. I'm so proud of what i was able to achieve when i set my mind to it!