Back in 2010, my husband and I took our vows under the shadow of a heavy debt weighing over $45k. With an average income and my spouse earning only slightly more than the minimum wage, the prospect of owning a home in one of the priciest real estate markets seemed like a fantasy. Fast forward less than six years, we are now the proud owners of a two-bedroom house that set us back more than half a million dollars, and the debt is a tale of the past. You might be curious about how we turned things around – Well, we did it one step at a time.
At various junctures, surrendering to the enormous debt we faced seemed like the only sensible path. However, rather than yield, we took this financial hill in strides. We first zeroed on the monthly payment of $434 for my car loan. Each month, we strived to pay as much we could towards it, finally achieving success after more than a year. This victory left us with extra funds that we then directed towards other debts.
Shifting our focus to my student loans, we started small and gradually tackled the bigger ones, celebrating each small victory on the way. Once we had broken free from the chains of debt, we began setting money aside for our dream home. By chipping away at our financial challenges a little at a time, our dream home became a conceivable goal.
Upon marriage, we were living large in a posh neighborhood, way beyond our actual means. To accumulate savings, we moved into a basic studio once our lease expired. Living in a frugal, modest manner for roughly a year and a half greatly hastened our debt repayment.
A townhome was next our destination when our income started looking up. Yet we continued to keep our living costs at a minimum, adhering to a strict budget. Holding steadfast to our financial focus, even in the face of numerous perceived deprivations was tough, but the vision of the bigger picture kept us resolute.
Throughout our journey, our dream house has remained our primary objective. As tempting as it was to spend our savings on extravagant vacations, the American dream of owning a home was a greater allure. When our savings seemed sufficient for a down payment, we began house hunting. The bank pre-approved us for a much larger loan than we were comfortable with. So we opted, not for a grand mansion, but a modest two-bedroom home in a family-friendly neighborhood. This move stretched our budget, but it has proven to be the right choice.
We are now proud homeowners and, importantly, our financial security remains intact. I can’t help but marvel at the huge strides we made in such a short span of time. When asked about our journey from indebtedness to homeownership, my answer is always: one step at a time.
Are you on a similar journey to homeownership, aiming to clear off debt first? How do you keep your motivation from flagging against long odds?
