I write to you, debt-free 😃

Yesterday was a big day.

After over four years without missing one, I made my final payment to my debt management company.

And when that payment hits my last-remaining-balance Bank of America account next week, I will effectively be… those two magic words…

Debt-free.

For now. 🙃 

Let me clarify that I’m aware not all debt is explicitly bad.

These particular form of debt though — credit cards and unsecured lines of credit — were, for me, an unimaginable nightmare.

Instead of giving hindsight advice or sharing a sob story of how my life was affected by my choices, I’m going to try something different.

I want to share with you all the ways that going into debt changed my life for the better.

Before I do, a quick backstory…

The Bewildering Journey Into Entrepreneurship (and $41k in Debt)

In 2015 I left a steady job, where I was career counseling on a college campus here in NC, in order to live out my lifelong dream: to travel the US by car.

Knowing I wasn’t willing to simply take a “summer vacation” to trek across the country in a RV over 2-3 weeks like some families might do, I committed to saving up and giving myself enough freedom and flexibility to explore our beautiful country on my terms.

I didn’t know how long I’d be traveling, but I was hoping for 6-12 months to really see as much of the lower 48 as I could while taking my time to really digest the experience.

I finished out the fall semester, and then moved back to NJ for a few months to continue to save up so that I could maximize my time on the road.

So I got online, started researching ways to earn money remotely, and stumbled into Virtual Assistant (VA) work.

I picked up a few clients and took off on April 23rd, 2016. Between what I saved and the remote work I picked up, I sustained the epic cross-country trip (dubbed: State of Inspiration) for exactly 8 months.

Then I moved to Charlotte, where I still am now, without a shred of a plan.

It. Was. Scary.

Would I go back to a 8-5? Would I start driving for Uber again while continuing to freelance?

Would I turn my VA work into a full-fledged business?

I was coming off of a ethereal high of living life by the seat of my pants, planning a day or two at a time.

Now, I’m supposed to come back down to earth and actually have, you know, like, a life plan? 🤦‍♂️ 

Not only was I transitioning from life on the road to living in one place, I also started dating my now fiancée, at which time we committed to testing out living together. Luckily we had known each other a long time, but it was still no less than a major adjustment.

I officially launched my business, fyt, in May 2017, with the intention of maintaining a flexible work schedule and building a business that worked for me, instead of the opposite.

But, despite my skills and experience, I had no freakin clue what I was doing in running a business.

Fast forward to early 2019, after nearly two years (three if you count the travel year) of trying to “make it work”, I found myself feeling desperate, balling my eyes out on the floor of my office (aka our second bedroom)…

I knew I did this to myself, but didn’t really know how it got to this point.

I felt embarrassed, ashamed, and quite frankly, hopeless.

Luckily, in accordance with my belief in planned happenstance, I found a way out.

On February 2, 2019, I applied for a job to be a business counselor through the UNC system, with a focus on helping startups.

It was a perfect calling for my blend of skills and interests — counseling budding entrepreneurs to help them launch a business of their own.

Despite accruing this massive debt, I had learned a ton about running a business in those 2-3 years, and I was excited to help others create real, sustainable businesses to help them make an impact and live their values.

Once I picked up a stable gig and stabilized my income, I was able to tap into a Debt Management Program and, with their help, put together a reasonable and sustainable plan to pay off my debt.

It’s been exactly 50 months since that day, and today, I’m proud to say, I made my final payment 😀 

Going Into Debt Was Ultimately Helpful

Looking back on these last 4+ years, there are several outcomes from going into debt that have actually improved my life significantly.

Here are five ways that incurring debt positively impacted my work and life.

1) It pushed me to find a steady, stable, and fulfilling job

…which has been one of the best decisions of my life.

I found a role that allowed for creativity and flexibility, leveraging my skills and training as a Counselor, and kept me in the world of entrepreneurship.

I’ve also had the unique pleasure of working with and helping build an incredible team, people that I would absolutely take a bullet for.

2) It allowed me to truly relate to entrepreneurs

Starting a business is incredibly difficult on its own. Not to mention the complete lack of financial support most encounter at the early stages.

Knowing how difficult it is not just to launch but to sustain a profitable business model in those first five years allows me to have authentic, sometimes tough conversations with my clients.

Sometimes it’s a reality check. Other times, it’s solving a math problem together.

3) I became more honest and less ashamed talking about finances

I’ve always been more on the scale of private when it comes to my personal life. That’s especially been the case with money.

But when you can’t even afford to get a cheap dinner and a drink when you’re hanging out with a friend, you sort of have no choice but to talk about it.

Being forced to share, in those early days of being in massive debt, allowed me to take that weight off of my own shoulders.

A lot of friends, if not all of them, were incredibly receptive and supportive. Some even offering to buy me meals and drinks, not expecting anything in return.

Did I still spend some money I shouldn’t have? Probably.

But was I feeling less alone in it? Absolutely.

4) It forced direct conversations about money with my partner

Although excruciatingly at times, we’re much more settled into our systems and how we each contribute to our shared expenses at home and in life.

Don’t get me wrong, there were many, many painful arguments. It wasn’t pretty.

But these were all necessary steps towards progress.

Not to mention having a loving and supporting partner to help me through these difficult and turbulent times was something I tried not to take for granted.

5) It taught me how to plan for the unexpected

I’ve always had a handle on managing my day-to-day and month-to-month finances.

But the big lesson learned from going into and then paying off $40k+ in debt is that I now better understand the value of budgeting in a way that works for me.

Unplanned expenses can really take a toll on your bank account, but one of the biggest lessons I’ve learned is that, yes, you can planned for the unexpected!

I’ll be transparent and say, I’m not necessarily doing this super well (yet), but the strategies are in place.

It’s a lot easier to pay for a seemingly-random car repair when you’ve set aside $25-50 a month in a budget, rather than scrambling to figure out what subscriptions you have to cancel this month just to keep your car running.

It’s Your Turn

Have you experienced spiraling or uncontrolled debt in your life?

Perhaps another challenging life circumstance that snowballed and really impacted your life in a significant way?

What can you take away from those experiences?

Are you better for it?

Hit reply and let me know…

Off next week for… The Bachelor Party

See ya in a few weeks!

🥯 Bagel 🥯