Living With Debt

February 2, 2022

This is a Flashback Post from 2010.

I found three of these old draft posts that were half-written from over a decade ago. Most of the information is just as relevant today as when I first wrote it, so I decided to finish writing them, with some modern perspective.

2010 – How to Negotiate a Raise
2010 – Living with Debt
2009 – Paying Your Bills

My Debt Problem

(2010) I consider being in debt to be a lot like being overweight:

They are both something you have control over
They are both bad for your self-esteem
They both seem to sneak up on you
They both seem to increase around the holidays
They both diminish your future prospects

I was overweight and out of shape for much of my adult life. I was very ashamed of this, because I used to be an athlete as a teenager. One day, I got sick and tired of being fat and I decided to change it. So, I started exercising and I changed my diet. My weight went up and down a couple of times, but I finally succeeded in losing the fat and getting into shape. I now feel very good about myself and I wonder why I waited so long to change my life.

My New Commitment

(2010) This year, I decided that I am sick and tired of carrying debt. I have decided to have a whole new life with none of my income going to credit card companies. Instead of making a resolution, I have made a commitment to being consumer debt free. I have stopped using the card, planned out the payment schedule and dedicated the financial resources. In less than two years, my card will be paid off.

How it Worked Out

(2022) I laugh so hard when I read my New Commitment from 12 years ago. It was so ambitious and I had the right intentions, but I didn’t quite get the results I expected. Here is what happened instead. Not only did I Not pay off my debt, I let myself get fat again. Talk about a massive double fail. I was even fatter and more in debt than ever before. Thankfully, I hit rock bottom around 2015 and finally started to turn things around. I lost 30 pounds and started working out again. I also started systematically paying off my debts, while continuing to save aggressively. It took quite a while, but I slowly gained traction. Then, I got a huge break in 2019, when my stock options cashed in. This allowed me to pay off my mortgage. With this millstone off my neck, I paid off the second on my house in only two years and own it free and clear. Now, I’m investing this money every month, instead of paying mortgages.

Right now, I’m about 7 pounds overweight and have a credit card balance from my four awesome vacations last year. At the rate I’m paying it off, it will take about six months. I could pay it off in half that time, but I’m investing 50% of my net income. I’m so close to reaching my Freedom Number, I don’t want to let up on the savings. I have found I need to focus on one or two goals at a time to be effective. I have also found I need to push very hard to complete a goal as I get near the end. This year, I will very likely accomplish my two remaining lifetime goals. After 30 years of pushing, planning and sacrificing, I am really looking forward to having no major goals next year.

The Bottom Line

Debt has been a relentless negative force in my life. I tried and failed to get out of debt many times. Even after becoming debt-free last year, it quickly reappeared as soon as I took my eye off it. I have spent way too much time both suffering from and plotting against debt. I will never again allow it to dominate my life.