Debt Free Me – Pursuit of Excellence

Month End: November Snapshot

Being free of my credit card debt is a huge relief and I have never gone into exact detail about my debt free journey up to this point. Out of shame, I haven’t told the whole truth. I’ve always been in debt–in some shape or form– since college. Back in 2007, I declared Chapter 13 bankruptcy because I had too much consumer debt, I had lost my job and I felt like I did not have a choice. I didn’t want to lose my car and any other assets I had so I thought Chapter 13 was the safest way to go.

The truth is you are doomed to make the same mistakes if you don’t learn from them. After a life-changing event in late 2017, I realized that I needed to be open with my finances with my spouse. You would think that I would’ve learned that when two become one in marriage, it also means finances too. Even though I portrayed an image of having it all together, I was selfish and immature. There was a lot I needed to learn about myself and unfortunately, I desperately craved unhealthy attention. My spending reflected my own insecurities. Since I came from the financial services industry, I desperately sought the next opportunity or shuffled credit card debt in attempts to convince others and myself that I knew exactly what I was doing.

At the end of 1/31/2018, I laid my finances bare not just to my sweet wife, but also one of my trusted mentors/older brothers. He looked at my finances and was amazed that my debt had grown back to the level it was. On one of my most recent opportunities, I had decided to take out a pay day loan to buy a crypto mining machine. He understood that I was choosing to use debt to fund an asset to generate positive cash flow, but he said to me if he had known my financial condition, he wouldn’t have advised it. To correct my mistake, we worked out a deal where he would buy my miner from me to add to his existing miners and pay off the pay day loan.

We wrote up a contract, and I made sure my wife agreed before signing any paperwork. I realized going forward that my wife had to see and understand every financial decision that affected us. Below as of 1/31/2018 was our debt:

As you can see, my journey to be debt free required an amazing amount of hard work and sacrifice. None of it could have been done without my wife. Even though I am debt free of my credit cards, our journey isn’t over. My finances are not mine anymore. When I became married, it became our finances. As you can see above, I adjusted the finances to include our debts. This month, we decided to go looking for houses. I didn’t feel comfortable with looking for a house because I did not like yardwork and I didn’t know if we were financially ready; however, with our baby coming in June, I know that we need more space that our current apartment supplied. With our current living situation in mind, we started looking at houses. I learned many new things about my wife in this process. I never knew she loved cul-de-sacs! The first house we saw we put an offer on and quickly learned how being approved for financing and the timing of your request was important. After viewing a few houses and our most recent open house visit, I told my wife not to settle on what she wants in a house. I suggested that we build instead. After living in our apartment for nearly 3 years, I had a good grasp of our combined income due to having a budget. Being free of credit card debt, I believed we were able to be able to make this next step.

If you want to learn more about the self-lending principle or if you need a financial check-up then contact me

This month’s video is WHY MOTIVATION ISN’T WORKING FOR YOU *watch to the end* from the Mulligan Brothers YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”

Deuteronomy 28:12 NLT

http://bible.com/116/deu.28.12.nlt

I believe in your journey to….

A Debt Free Me

Month End: October Snapshot

Finally, at the end of October, and before my planned goal of December 31, 2019, I am debt free! Early this month through discussion with my wife, we agreed that I could transfer some money from my savings to accelerate the payoff of the installment loan. I transferred $2,200.00 from savings and set an interest rate of 12% with a term of 12 months for monthly payments of $195.00. I’m going to begin payments for this transfer in 2020. If you’re going to make financial decisions that impact your family, make sure you discuss it with your spouse no matter the dollar amount, because this type of communication builds trust. I’ve often talked about lending to your self in previous blogs, and I believe this scenario is one of the few where it’s ok for the borrower to be slave to the lender. This concept is from the Book of Proverbs of the Holy Bible. This translation is powerful: “The rich rule over the poor, the borrower is a slave to the lender.” Proverbs 22:7 TLV. If you borrow from yourself then the only person you will owe is you. It feels so good to no longer have to make payments to credit cards. Next month, I will re-cap how far I’ve come.

If you want to learn more about the self-lending principle or if you need a financial check-up then contact me

This month’s video is David Goggins – STAY HARD – The BEST OF Motivation – Motivational Video from the Mulligan Brothers YouTube channel.

Deuteronomy‬
‭28:12‬
‭NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Month End: September Snapshot

At the end of September, I am one step closer to being credit card debt free. It feels amazing to be so much closer to being credit card debt free. Every payment I have made toward my credit card debt has been liberating. It’s hard to imagine the amount of debt that I have climbed out of this second time. I am thinking about providing a total once I reach this goal. Currently any debt I’ve charged to my credit card I’ve paid to zero at the end of the month, so no interest can accrue on my card. When you are paying down any form of debt, it’s important to continue to be focused on the finish line. What’s really helped me be able to focus on paying down my debt is being able to use the bulk of my income toward debt, and my wife has been able to take care of the living expenses.

If you want to learn more about the self-lending principle or if you need a financial check-up then contact me

This month’s video is David Goggins on the War Against Political Correctness – Robert Kiyosaki [The Rich Dad Radio Show] from The Rich Dad YouTube channel.

Deuteronomy‬
‭28:12‬
‭NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Month End: August Snapshot

At the end of August, I am even closer to paying off the WF installment loan. Having paid off all my other debts, I am able to focus even more of my income toward paying the loan off. Regardless of what your debt repayment strategy is, I stress the importance of changing your financial behavior and attacking your debt. Every penny that you pay toward interest, you are robbing from your own future.

It’s important to stay dedicated to your plan and diligently work it one step at a time. Are these steps easy no? But one step at a time will take you down the road of progress. You must strengthen your mind and heart to win and be debt free.

If you want to learn more about the self-lending principle or if you need a financial check-up then contact me

This month’s video is The Quick Part is a Lie, But This Guy Will Teach You How to Get Rich | Ramit Sethi on Impact Theory from the Tom Bilyeu YouTube channel.

I believe in your journey to….

A Debt Free Me

Month End: July Snapshot

At the end of July, now that I’ve paid off the WF line of credit, I’m able to focus more payments toward my final installment loan. Except for my student loan, I’m on a path to being debt free. Whether you use the debt snowball, debt avalanche, or any other debt reduction strategy, once you are down to your final debt payment, I believe you should aggressively tackle it. Ultimately when you start paying off debt, you must keep your focus, be consistent, and change your patterned behavior. No matter what debt repayment strategy you use, make sure you focus and attack your debt. The interest that you pay daily (interest does accrue daily) is robbing you. Dave Ramsey has said that your greatest wealth building tool is income, and that’s to an extent correct. I’ll examine this thought in a later blog post.

If you want to learn more about the self-lending principle or if you need a financial check-up then contact me

This month’s video is How To Get Motivated | David Goggins Navy SEAL – MOST Motivational Speech from the Mulligan Brothers YouTube channel.

Deuteronomy‬
‭28:12‬
‭NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Month End: June Snapshot

At the end of June, I was able to pay off the WF Line of Credit as planned. Even though this moment is worth celebrating, I had a lot of personal challenges which remind me that being debt free is a goal, but it’s not what’s important in life. Keep in mind that wealth and health are interconnected. What do you gain if you have all the money in the world, but failing health? What do you gain if you have great health, but you can’t seem to get ahead in life financially? It’s finding a balance in your life and having a vision and mission for your life. What is driving you? What is worth celebrating? Is your life driven by the spirit or the world?

Are you willing to take some time to ask yourself hard questions, or even better let someone close to you ask the hard questions and you answer with honesty to yourself? Life is going to give you both good and evil, but do you have the grit to continue down your path to be debt free?

If you want to learn more about the self-lending principle or if you need a financial check-up then contact me

This month’s video is Why It’s Time to Redefine the Comeback Story | Jay Williams on Impact Theory from the Tom Bilyeu YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬Deuteronomy‬
‭28:12‬
‭NLT‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Month End: May Snapshot

At the end of May, I’m closer to paying off the WF Line of Credit. This month I was able to get away and travel to Florida. My wife had a continuing education opportunity related to work. We stayed at a nice hotel located in Gulf Breeze that connected directly to the beach. It was during this time that we were able to eat at the local restaurants, and my wife enjoyed the saltwater. It’s moments like these that we need to take time away from work and our debt repayment plans to relax and enjoy life. Personally, it’s hard for me to decompress from work and I must force myself to relax. Despite how hard it is for me, your body needs to relax, and I encourage you to find moments, and schedule time to relax for your health. You can have all the wealth in the world, but if you don’t have your health then you can’t truly enjoy life.

Next month, I should be able to pay off the line of credit in full, and I’ve adjusted my budget to forecast what my income should be by the end of the year. It’s important to stay dedicated to your plan and diligently work it one step at a time.

If you want to learn more about how I’m increasing my income while reducing debt, or if you need a financial check-up, contact me.

If you want to learn more about the self-lending principle by contacting me

This month’s video is WHY MOTIVATION ISN’T WORKING FOR YOU *watch to the end* from the Mulligan Brothers YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬Deuteronomy‬
‭28:12‬
‭NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Month End: April Snapshot

At the end of April, I’m truly amazed at what can happen in just a month. While having dinner at a Mexican restaurant one night, my sweet wife and I came into agreement about taking a bold and risky move. I made a withdrawal from savings to pay to zero the SVF line of credit. Although this line is my debt, it was on my wife’s credit, and I didn’t want it to impact her credit anymore. The plan is to not just replenish the line of credit to what it was, but to charge myself a high enough interest that will not only put the self lending principle to practical use, but recover the interest that would be in the savings account even if it hadn’t been removed from the account. The way you can achieve this goal is by charging yourself an interest at least 5 times or more high than the current interest rate of your savings account. For example, the current interest rate in one of my savings accounts is 2.25% annual percentage yield, so I’m charging myself 15% (6.67 times) and calculated payments based off a 12 month term so I have a minimum payment that is manageable, and if necessary I can stretch the term by 24 months for more cash flow. Your maximum term when using the self-lending principle is 24 months. Anything longer than two years lowers your commitment to finishing what you start.

Paying off this line of credit was also necessary, because we needed to get a new car. Our cars were over ten years old, and we had maximized the usage out of each car. We know how to take care of our cars, and I noticed that more and more money was being poured into her car. It’s in a situation like this one, that I think it’s a good time to look for a new car. We decided to get an SUV, because this type of car would be good for the day we begin to have a family for the sake of transporting children, groceries, and other necessities. Thankfully my, father-in-law was able to find a fantastic deal on a 2018 Ford Escape. Personally, I didn’t want that kind of vehicle, but the car had less than 1000 miles on it because it was used by the dealer only. It was a mid-level SUV, but it had extra amenities on it that added to its overall value. I liked that the vehicle had Bluetooth capability for hands free driving, it had the necessary storage space for groceries, and it had overall better gas mileage than my car and her car. However the most important point is that we were able to get the car at half its MSRP (Manufacturer’s Suggested Retail Price), and have purchased on a 5 year loan at an interest rate less than 5% for a monthly payment of less than $300.00 This flexible term and payment will give us the ability to consider home ownership and at the same time not hurt our budget. Our overall net income or disposable income is still high enough that we can still stay on track on paying off our existing debt. Once my debit is paid off, I can easily switch gears to go after this car loan.

When you are considering a major purchase such as a vehicle or home ownership, you need to look at it from as many different levels as possible. Not just the personal intangible features, but just as important, the financial impact it has on your budget. For me a major purchase is anything that I can’t pay cash for and or it’s $5,000+. In my opinion, some don’t have $5,000 in liquidity easily available to make a purchase. When making a major purchase that may involve getting a loan, ask yourself: Can you truly afford it? Keep in mind that having a good credit score will help you get a loan at an interest rate that will be more in line with your budget. If you have poor credit history, then you could end up paying more in interest over time. Knowing your bottom line is critical and having a peace about your decision will prevent buyer’s remorse.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need me to check your financial pulse then, contact me.

Also, learn more about how I use the self-lending principle through contacting me

This month’s video is Kevin Hart FIGURING IT ALL OUT (This will change the way you think!) from the Mulligan Brothers YouTube channel.

I believe in your journey to….

A Debt Free Me

Month End: March Snapshot

At the end of March, I’ve come one step closer to being consumer debt free. More importantly, I had a discussion with someone I care about. This person had been a pillar in my life growing up, and a life event changed how I saw him. Unfortunately, even after intervening with him, I found that he hadn’t changed, and I’m wrestling with what do next. It’s in moments like these that I put my trust in God, my wife, my parents, and my close friends. I’m very thankful for what this year has brought despite the challenges.

If you notice, the current balance on my WF line of credit increased by $20 from $4,650 to $4,670 from the remaining balance of last month versus the current balance of March. This increase is due to the annual fee. Most of your personal lines of credit that you may have with a bank or credit union will charge you an annual fee. Honestly, it’s the price you pay for having a line of credit that charges less interest than your credit cards.

This month, I saw my credit score with Transunion increase. This increase is due to the installment loan, the increasing availability of my revolving line of credit debt, my on-time payment history, and the age of my credit. There are three different type of debt that are recorded by the three credit bureaus, and those are revolving, installment, and mortgage. There are different factors that can affect your credit score. An installment and mortgage loan can increase your credit score, especially if the loans are paid with principal and interest payments. If you have a mortgage loan, then make sure you pay it, because having 30+ late payment can adversely affect your credit score. I’m very thankful to what I’ve been able to build up in my personal savings. I believe you should aim to have three months’ worth of income saved up.

Also, learn more about how I use the self-lending principle through contacting me

This month’s video is Secrets From a LIFEHACKER | This Is What They Don’t Want Us To Learn (very illuminating!) from the Video Advice YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬Deuteronomy‬
‭28:12‬
‭NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Month End: February Snapshot

At the end of February, all my credit cards have been paid to zero. After discussion with my wife, and explaining the benefits of the installment loan, I got a $9,000 installment loan, and used $1,840 which is a combination of my normal debt reduction payments plus an extra amount to pay all my credit cards to zero. This moment is the 1^st since my early 20’s that I’ve been able to pay my credit card debt to zero. I thank God for this moment, and even shared the zero balances with my wife in celebration.

In previous blog posts, I’ve talked about the benefits of using an installment loan to consolidate debt. My wife understandably had her reservations with me getting into more debt, so let me clarify the specific conditions in which using an installment loan for debt consolidation is ideal in my opinion.

Your interest rate is going to be lower than the rate you are paying on your credit cards
You can have control of the term of the loan (36 months, 48 months, or 60 months)
1. This control is important, because the longer the term the lower your payment will be.
There is no origination fee, or it is financed into the loan.
1. If there is an origination fee, it will affect your monthly payment amount
Make sure your payment amount will be the same or lower than what you’re currently paying and when it will be to fit in your budget

In my situation there was no origination fee, the payment would be less than what I normally pay on my debt around the 15^th of month, and I had enough credit card debt paid down that this would fit with my debt free plan and even accelerate it. I would recommend that you not take out multiple installment consolidate credit card debt if you don’t have the discipline to not use your credit cards and know how the installment loan payment will affect your monthly cash flow. Remember that with installment loans the payments are fixed, however installment loans may improve your credit score, because they have a different weight on to the credit bureaus vs. (credit card) open/revolving credit. Based on this re-structure, I should be able to pay off the lines of credit by the end of this year, and hopefully pay off the installment loan by next year.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through contacting me

This month’s video is The Greatest Motivational Video for Success & Gym – VALOR – 35 Minute Motivation Speeches from the Mulligan Brothers YouTube channel.

Deuteronomy‬
‭28:12‬
‭NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me