Guest Post: I Will Survive

I’m currently away getting hitched and honeymooning on a secluded beach somewhere.  In the meantime, I hope you enjoy these guests posts that I have lined up for you!  I’ll be back online and back to reality on Wednesday, June 22, 2011.  — Amber

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This is a guest post from Sarah Minton, the blogger behind The $60K Project.

I started my blog back in October to chronicle my attempt to pay off $60,000 in debt in one year, while at the same time creating some sort of accountability to myself and others by throwing this information out to the blog universe readers.

My focus was purely to improve my financial situation. I had lived with debt most of my life, been through those months where I felt I had to use a credit card to afford food and essentials, and felt the stomach knot every time I had to pay my bills.  I had watched my parents struggle with debt and was afraid I would end up with the same fate.

I was feeling the fear and uncertainty about whether or not I could actually achieve my goal of becoming debt free.  In the (mostly) words of a very wise disco era musician:

At first I was afraid, I was petrified. Kept thinkin’ I could never live without debt by my side

But to my surprise this exercise in financial willpower (futility, suckiness … insert your own word here) also forced me to reflect on my personal priorities and what I value in life beyond the financial realm. I’ve had quite a few “a ha” moments that will hopefully inspire you to stay on track and realize this is about much more than getting that debt balance down to zero.

But I spent so many nights thinking how you did me wrong, I grew strong, l learned how to carry on….

Paying off debt will allow me to buy the stuff I couldn’t buy before – if that’s what I want.  While this is definitely an overarching truth to minimizing debt, I find my perspective on buying “stuff” is beginning to change.  At first, I wanted to be able to buy nicer clothes and upgrade my Subaru to a Forester Turbo (stop chuckling), buy a bigger TV and shop exclusively at Kate Spade.  But as time passes while I live frugally and pay off debt, I find that the desire for more stuff is weakening.  In fact, I would be more than happy if a lot of the stuff in my house mysteriously disappeared.  I’m curious to see whether this feeling/spending habit pans out or goes away as my cash flow increases.

There is security in knowing exactly how much you owe, how much you have paid and how much longer until it is all paid off.  As an accountant, I have been trained to look at the numbers and how they affect the bottom line.  My very first blog post broke down the debt payment to the day that would need to be paid over the next year in order to successfully pay off my debt.  Knowing exactly how much money I need to set aside for debt each month makes the possibility of paying off my debt much more tangible and attainable.  I know exactly how long it will take to become debt free and my progress is easily measurable. I can even tell you to the penny how much debt I have paid off since I started getting serious in April of 2009 ($69,476.32, in case you are curious).  Many people have no idea how much they owe.  I was one of those people previously living in ignorant bliss – which I have to tell you is not so blissful.

Paying off debt and organizing your finances benefits you not only financially, but also psychologically.  As I pay off debt each month, I feel a shift in my thought patterns.  I feel more in control of my finances and also my life rather than vice versa.  For starters, I actually ENJOY paying bills and budgeting – there is very little, if any, stress or anxiety associated with this exercise. Plus with every dollar I pay off I feel a greater sense of freedom – maybe I don’t have to be chained to a cubicle and work for a big corporation to maintain a decent lifestyle.  Maybe I can eventually accept a job where I actually work only 40 hours a week (or less!), or be comfortable with finding a job I love even if it pays less.  Maybe I could even write a book or start my own business someday.  These statements alone make the sacrifice and hard work completely worth it.

I will survive.  In order to be able to pay off debt so quickly, Mike and I have been living off of one paycheck and paying debt with the other, effectively cutting our income in half.  While not always the most fun option – like, say, Saturday night when we are eating Sloppy Joes at home while watching Netflix rather than out at a nice dinner and bar-hopping with friends – it has given us confidence to know that we will be able to survive if one of us loses an income stream.  Our prior lifestyle would not have allowed this comfort.

And to debt I say:

Go on now go, walk out the door. Just turn around now ’cause you aren’t welcome anymore.

Thank you, Gloria Gaynor.

Have you had any surprising personal realizations as a result of getting your finances in order?

This is a guest post from Sarah Minton, the blogger and Chief Debt Removal Officer at The $60K Project– a chronicle of 365 days of her life devoted to paying off $60K in debt in hopes of inspiring a better way to live.