My husband and I are celebrating five years DEBT FREE. What did we learn this year? Where did our money go? Will we ever go back into debt? Over $50,000 and five years later how did this past year treat us?
Five years ago, our journey to debt freedom began.
And up until that point, all I knew was how to take out loans for the things I couldn’t afford. I had student loans, a car loan, and Mike and I even borrowed money to pay for our wedding.
But on May 5th, 2018, everything we owed was gone.
It took my husband and me 20 months to pay off over $50,000 worth of consumer debt. And on that day, we owed nothing to no one.
It is still one of my favorite days and a day we love celebrating.
So what is our financial life like five years later?
How did year five treat us? Was it our best financial year yet?
Let’s find out because I believe the day you become debt free is your ground zero.
All the years after; is where the journey begins.
For me, our fifth year- had me searching for routine.
Covid turned our personal and professional lives upside down. This shift had a massive impact on our money.
This year was our chance to settle in🧘🏻♀️.
And not often on a journey to financial freedom is it recommended to slow down.
Maybe this is my word of wisdom to you- at some point, it is OK to stop and smell the roses.
Because up until now we have not stopped.
We spent nearly two years saving and paying off everything we owed. Our first-year debt free was probably our most aggressive, saving $40,000 and purchasing our first home in the spring of 2019. In 2020 we lost our jobs for nearly a year- we didn’t know where we would end up. And 2021 brought us both new careers and a financial future that was a little more unknown.
Year five (May 2022-May 2023) wasn’t entirely what I had envisioned, but it had some compelling lessons.
Right now, investing for retirement is our primary goal. And last spring, we maxed out our Roth IRAs for this year.
2022-2023 was our second year maxing out this account.
Outside of our investing achievement, it was a spendy 🤑year.
Mike and I traveled to Aruba while he took a solo trip to Texas, and I went to Myrtle Beach with my mom and sister. We did some house projects, like replacing our furnace and repairing our driveway(which were quite expensive may I add). Mike invested back into his DJ business. Mike’s brother got married, and we found out we were going to be a new aunt and uncle.
There was also a lot of the not-fun stuff.
I paid out of pocket to get my wisdom teeth out, and we ended the year with my husband breaking his ankle and our dog having a $12,000 medical emergency.
There were a ton of financial blessings and a ton of hardships.
But that is usually how the story goes.
Something I have gained more this year than any year prior- is tapping into what it is I really want.
Mike and I have fully experienced what it’s like to work less and live more.
I don’t believe complete balance is possible, but my work-life balance is the best it’s ever been.
We are making less than what we’re used to, but also working less.
This year I have really appreciated dialing back on the hard work part.
I still struggle with feeling like we’re behind, but I know that’s a standard only I have set for myself.
We have also been very optimistic about our future. Our long-term goal is to one day- live by the beach either part-time or permanently. And this part of our future has never felt more achievable than it does now.
This year we tapped into our emergency fund for the first time but also kept ourselves afloat with less income.
Psychologically I have impressed myself this year.
When Mike broke his ankle and was out of work, I knew everything would be fine. When Max needed surgery, just when we thought things couldn’t get worse, I knew we could afford it. Every time we experienced a loss of income, I was confident good things were coming.
I’m trying desperately to live without worry becuase no matter how much money I have, financial uncertainty will always exist.
My favorite purchases of this fiscal year have to be my new Louis Vuitton card holder and our ATV excursion in Aruba.
The most unbelievable part is how, for five years, we have committed to remaining non-mortgage debt free.
We love not owing anyone anything.
So much so that we never want to go back. And even though it’s not on our immediate radar, we hope to be mortgage free someday.
The best part is hitting our investing goal, and saying “So what do you want to do next?”
That is debt freedom.
We are seven years into this journey, but five years ago, we knew that debt wasn’t for us.
Our financial life is a little more untraditional, but that’s how we like it.
Year five shot us a few humble reminders but also gave us a taste of what life is; without debt.
I wonder what year six will have in store?