Personal Finance

1 year debt-free

Hello everyone!

Welcome back to another blog post. Today is my debt-free anniversary. I can’t believe that it has been a whole year already. Let’s talk about it. How does it feel to be debt-free for an entire year?

Let’s go back to March 23rd, 2021, the day I became debt-free. To be honest, I expected a more exciting reaction when I made my last payment. But it was more like “ok, I’m done now”. I wanted to have that emotional reaction that those YouTubers have on their videos, but that didn’t happen. The exciting part for me was when I announced it to my family and friends. And of course on my Instagram and on my blog. It was nice to celebrate with people who were genuinely happy for me. It was nice that everyone was so proud of me. In the news, they were talking a lot about student loan debt and it felt so nice to not relate anymore.

The realization of me being debt-free really came when my next paycheck came and I didn’t have to make a payment towards my debt. The months after that were exciting because I got to see how much of my money I got to keep. I saw the number in my bank account go up and my networth as well, which was really nice. 

After I completed baby step 2 it was time to focus on baby step 3 and that’s where I am still at right now. Unfortunately, I didn’t enjoy baby step 3 as much as I enjoyed baby step 2. For those who don’t know, baby step 3 is saving for a 4-6 month emergency fund. 

Like I said, saving for an emergency fund wasn’t that exciting for me. I didn’t feel like I was building wealth. I was just saving to save myself in case of an emergency. I wanted to do bigger more exciting things. At this point, a big portion of my money was and still is going towards my emergency fund. I just couldn’t wait until that portion could go to something else.

So after a few months of being debt-free, I kind of had a dip during my financial journey. By the way, I never stopped putting money towards my emergency fund. I just did the minimum and I wasn’t excited about it. And it was taking way too long.

But there was still something that made my financial journey exciting. Dave Ramsey probably wouldn’t like it, but I also started to work on baby step 4, which is investing. When I say I love investing, it’s an understatement. I really love investing because I am working towards my future. I’m letting my money work for me and I receive dividends on almost a weekly basis.  I can’t wait until I can invest more money. 

Recently I started feeling more excited about saving for my emergency fund because I realized that I am almost there. In June my emergency fund will be fully funded. I also realized that if my emergency fund is fully funded in June, I can start saving for my first house in the last quarter of this year. I don’t know when I want to buy my first house yet, but I am not going to wait until I know it. Those who are keeping up with my blog know that I already started saving money to move out, in case I find a nice apartment that I want to rent.

Sometimes I am so focussed on the future that I forget how amazing it is to be debt-free. It is nice to not see your hard-earned money go towards debt. It is nice to see your savings grow. It is nice to keep your money. It just feels so good to not have to worry about debt anymore.

Recently, I had a conversation with a friend about buying a house. And she went like “I can’t afford a house anyways with the amount of debt I have right now”. I totally forgot about debt. That how amazing it is to be debt-free. Being debt-free is a blessing.

I am happy and grateful that I had the chance and the money to pay off my student loan debt.

Today there is also another special thing. Today I received my new salary for the very first time! In a few days, I will share with you how I am going to budget my new salary.

This is all I have for today. Thank you for your precious time and until next time!

Love,

Color and Coins

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