In the past year and a half I have experienced a major change in mindset when it comes to personal finance. I have lived with stagnant or growing debt in my life for years. In fact it was the sole reason my husband and I decided, four years ago, to move our little family across the country. We packed up our 12 month old daughter and two dogs and took off for the promise of higher salaries and abundant opportunities.
For years, debt has been a weight on my shoulders and I wasn't able to face it. As an accounting graduate, Director of Finance, and "girl with a good head on her shoulders" it was just too much to face up to my own personal finance situation.
Until I did.
The move out west helped in that we were making far more than we did back home. So you would expect that we were able to get straight out of debt and into the black, end of story. It didn't quite go that way.
A combination of bad luck (the guy renting our house from us back home was just awful), rushed planning (I shouldn't have rushed the tenant search!!!), and the absence of an effective budget and financial plan; meant we were back to living beyond our means once again and the debt grew a little more.
Minimum and interest-only payments along with carrying both our rent in the west and mortgage in the east (due to the epic fail in renting out our eastern home) had us feeling as though we had uprooted our family and moved away from our friends and family, just to be in the same position we thought we had escaped.
The realization was demoralizing and the light we had seen at the end of the tunnel became fuzzy and dark.
Flash forward about three years after the move, the house had been sold, we had purchased a new home in the west and things were feeling okay but our old pal, debt, danced around the same number.
I couldn't see a solution and I didn't want to talk about it long enough to find one. My husband finally convinced me to join him for a bank meeting to get everything consolidated (I am not recommending this method of debt repayment though it has worked great for us. In fact it can be a risky plan. It really depends on your type of debt, habits, personality, and circumstances).
Now, 16 months after that bank meeting we have paid down approximately 25% of our debt with this method alone. All it took was facing my fear of what others thought (the bank lady doesn't care about my debt and I'm sure she's seen worse, it just didn't feel that way at the time).
Then I found a YouTube channel by Australian Financial Consultant, Canna Campbell called SugarMamma.TV and among many other parts of her content that I enjoyed, the most inspiring has been "The $1,000 Project". She has many videos explaining this project and recently released her first book in the same name.
I'll talk more about the $1,000 Project in future posts and explain how I have modified the rules to fit my own goals.
This has been a long first post because I have so much to share, and to do so, I feel like I need to let you know how I got where I am and how I plan to get where I'm going.
I already had the financial education I needed to understand and fix my situation, but until I found the mindset, inspiration, and motivation, all that knowledge was as good as useless.
I'm writing this blog for you! I am so passionate about helping others to break through their own mind blocks when it comes to personal finance and help them create a plan to get what they want out of life.
I am also writing this blog for me so I can be accountable to you in my goal to be debt free by 33!