I changed my career path and with that I raised my income. Now that I earn more money I want to be smart with this extra income. I do not have a background in finances and I did not learn a lot about how to manage my money.
So first, I did some research (love researching). Reading books about finances from authors like Robert Kiyosaki, Dave Ramsey and T. Harv Eker. And I started looking at vloggers on Youtube like E.Michelle and ShayBudgets.
My first step was to write down my income, expenses and debt in my bullet journal.
Dave Ramsey’s first baby step is having an emergency fund of $1000,-. So I put €1000 in my savings account.
The second Baby Step is paying off all debt except your mortgage. The only debt I have is my student loan. In 2017 it was about €15.000,-. For 2 years I paid just the minimum amount. About €70,- per month. With this payment plan I would finish paying it by year 2027. I was in no hurry to pay off my debt. But following the Baby Steps I want to make a plan to pay it off within a timely fashion. A big reason is I want to buy a house.
In May 2019 I started paying about €130,- extra following the snowball method. With my new plan I should be debt free by June 2021. Every month I make my monthly budget and update my debt tracker. Right now I am under €10.000,-.
Do/did you have debt? What did/do you do to pay it off?