One thing I did was always try to bank any raise or debt payoff. So I remember when I first started in 2006 I had no savings. I did have 2 car payments, $200/150, an engagement ring payment, and a free college loans (some huge, some small). What I committed to was banking the payoffs. Come hell or high water, I would not increase my living as I paid off or got raises (we’re both teachers). Paid off the car loans within 2 years, the engagement ring, and the smallest college loan. Netted me $535 a month. Straight to a savings account. From there, we paid off two other loans, one for 24k and one for 35k. We likely should have rolled the $535 into them if we’re being smart math wise, and I knew that. But there was SOMETHING about seeing that savings account increase that kept me on my path. Guided me, gave me hope. A lot more of this is behavioral than we care to admit in my opinion. So I’m doing this, plus banking tax returns and and side hustles (I coached 2 sports every year), one day in 2012 I log in and I’ve saved roughly 70k in cash in a brick and mortar account. Now I’m 31, it’s 2012 newborn baby, and I need a new car. Old one is ok but it’s seen some days and I want something more modern in safety. I take that money and pay cash for a new Focus (16k after trade in). I pay off one of the remaining loans that is still at about 22k. I open two Roths for 3k each. I refinance and close with cash rather than roll in to the loan, another 7k but lowered my rate 2%. I bought some speculative things (gold and silver, pretty much at the top lol). All this and I still had like 13k left. All because I started with a tiny, paltry, few loans, and decided that I can find happiness with that income when I had them. All future debt payoff and raises are paid to myself. From that 535 it’s grown to about 3k a month. It funds 2 Roths, about 300 on my oldest’s college, plus about 1700 daycare for my two youngest. Plus I still have the original 535 I put in the bank, and we’ve since bought a 2nd vehicle for 22k, cash. I guess I posted this in hopes that others can derive something. I’ve been on a separate podcast to discuss my journey, but I don’t know if we can link that here. If so, be happy to do so. Good luck in the new year LMM community!
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