On our Mortgage Freedom series today we’re going to introduce someone who paid off their mortgage through house hacking. What is house hacking you might ask? Well, we’re going to learn more about that today.
Steven Donovan is our guest today. Steven is a money coach and his financial advice and his inspirational story have been featured in GO Banking Rates, Bigger Pockets, and Rockstar Finance.
According to Bankrate, 29% of Americans have more credit card debt than they have in an emergency fund. That is some scary, scary stuff.
Today, I have a guest that accumulated quite a bit of credit card debt right around the time he got married. We’re going to talk about how he got out of that mess.
Chris Browning is the creator and the host of the award-winning short-form podcast, Popcorn Finance. His topics range from understanding the basics of investing all the way to his love of tiny homes. Chris’s advice has been featured in major publications like NerdWallet, Yahoo Finance, and CNBC.
Our first question of the month comes in from Daniel from Texas who wrote to me on my Facebook Page:
My wife and I have been married for 3 years. We are currently trying to pay down approximately $103,000 of debt. We initially started with $190,000 of debt when we got married. So we are progressing.
What’s the best approach to talking about debt and tackling it together?
We’ve taken the Dave Ramsey course and are currently doing the Debt Snowball, but at times we get into little arguments on our approach on how to tackle this debt. Any advice on how to handle that?
And what did you guys do to stay gazelle intense while on your debt-free journey? We are starting to get pressure from family about having kids and she feels like we are stagnant in our lives due to this debt.
For the young couples and parents that are reading this, I think it’s safe to say that a whole bunch of you are looking for a little more freedom and fun in your lives. And I truly believe that when you become debt free, you will experience that freedom. You’ll also experience a reduction of stress like you never have before.
I know that me just spouting off words and phrases like “debt freedom” or “stress reduction” may not motivate you to jump out of you seat and start crushing debt. But perhaps if we get a little more specific together, it may just do the trick.
Here are 7 dreams that can come true when you’re debt free:
For some people, their pile of debt can feel so huge that paying it off just feels like fiction. It feels impossible. It feels overwhelming.
Well today, I’ve invited someone on the show who felt the same exact way, but then she took action and won the battle against her debt.
Allison Baggerly and her husband partnered together to pay off $111,000 of debt in 4 ½ years. They completed this difficult feat on two teacher’s salaries with two little kids at home. In our interview, she’s going to share with us how she did it.
One fall night in 2010, my wife Nicole and I were watching the Suze Orman Show. (Yes, I used to DVR it). There was this fun segment where someone would call in and Suze would analyze that person’s financial health and give them a grade. It was called How Am I Doing?
One term that we kept seeing over and over again on this segment was “Net Worth”. Since we were personal finance newbies, we had no idea what this meant. Nicole and I were making a combined six-figure income together so we figured our net worth must be HUGE.
After the show was over, we decided to see how rich we really were. There was no doubt in our mind that we’d be better off than most of the jokers that call in to the show and get an “F” grade from Suze!
We walked upstairs and started to write down all of our numbers on a big white board. By separating our “assets” (what we owned) and our liabilities (what we owed) into two big columns, we started to discover that we weren’t rich.
It is time to take some massive action to improve our financial situations before the year is up. That way we’ll kick things off in January with confidence and more money in our pockets.
If you made a list of goals or new years resolutions earlier this year, now is the time to look at that list and assess how you’re doing. Think about what action you can take to accomplish those big goals you set for yourself earlier this year.
Now if you didn’t make any goals or can’t find that list, that’s okay! I have 5 goals for you to consider to help you improve your financial situation before the new year.
Our question of the month comes from Joe from South Dakota:
Like you, I have a young family (wife + 2 young kids), a house, and a blessed life. However, I do have a mountain of student debt (~200,000) that I have accumulated through a doctorate in Chiropractic that creates considerable stress in our little world.