Isn’t it ironic that most college students go from limited income and taking on debt, to making a decent income, but then just adding on more debt? Jessica and Daniel saw their spending patterns change from frugal students to splurging here and there as Daniel took a position as a software engineer.
Once they noticed this lifestyle inflation they decided to become debt-free.
Within a year of taking Best Money Class Ever they paid off over $21,000 in student loans and a car loan.
How’d they become debt-free by age 25?
“Once we took the class, we buckled down and said, let’s do this,” said Jessica.
They were full time students at Texas State and worked part-time. Since they lived modestly they minimized how much they took out in student loans. When they married, they spent a whopping $2,500 on their wedding. Yep they are awesome, here’s how they pulled that off.
After graduating they both moved to Austin with Daniel’s job and started a family. “We actually had the wiggle room, it was too convenient to splurge,” said Daniel.
They purchased a car after an unexpected car accident.
Then they enrolled in Best Money Class Ever with $6,103 in student loans and a $15,000 car loan.
“We were more motivated than ever to become debt-free. Taking the class helped us prioritize,” said Jessica.
They both didn’t want money and debt to be a huge stress in their lives. Being debt-free meant they could live comfortably as a family, save for a house, and their kids future. Immediately after taking the class they paid all of their debt minimum payments and an extra Spartan amount towards debt each month.
To clue ya in on what an extra Spartan amount is… in class I teach that most people don’t get in debt overnight, so you won’t get out of debt without a good fight. The 300 Spartans were known for their endurance, strength, discipline, and structure. I challenged them to pay $300 or more each month towards their debt.
“There are so many things that people think are mandatory for the monthly budget, but so much of that isn’t mandatory,” said Daniel.
They switched cell phone plans, don’t have cable, and started using their apartment gym to workout for free. It had gotten easy for Daniel to eat out for lunch with coworkers or grab fast food on the way home from a stressful day, but after the class they saw big savings on how much they spent on food.
Jessica is a stay at home mom and started bringing in an income by tutoring and babysitting other children. She saved by doing little things like using cloth diapers, trading baby clothes among cousins, and not buying a gazillion baby bouncers and baby gadgets.
They paid their extra Spartan amount each month and some months paid even more towards debt when pay raises, bonuses, or tax refunds came around.
Just a year after taking the class, Jessica called the bank to get the exact amount left on her car loan.
She wrote the last check and became 100% debt-free.
“My hand were shaking, I had so much adrenaline,” said Jessica.
After becoming debt-free, even though they kissed monthly debt payments goodbye they continued with that intensity. They set aside what they were paying towards their debt each month plus their extra Spartan amount to go towards their future.
“We’ll still talk about our Spartan amount. My sister is borrowing the workbook from the class,” said Jessica.
Currently they have baby number two, three months of expenses saved for a rainy day, and a hefty down payment for a home. I’d say they’ve got this money thing down for 25-year olds.