An Epic Day
Today is an awesome day. I finally knocked out Sallie Mae! I knocked her out and dragged her out of my house with permanent eviction! In other words… I paid off my student loan. :-) Goodbye student loan payment, goodbye student loan interest “leeching” off of my income and a big goodbye to another payment I have to make each month. Paying off a debt is a definite accomplishment and also helps with anyone’s financial peace of mind.
Another debt that was paid off today was $980.89 to Virginia Department of Taxation. This debt was due to my stupidity of not taking care of business. Next in line is $5491.39 owed to the IRS for back taxes from 2008-2010. I have hired a very professional CPA in my area to take care of my future tax returns. She ensures me that we will actually receive a tax refund for 2011. This is very good news and I hope it will take a nice chunk out of the $5k of taxes owed.
Learn your lesson
I learned many important financial lessons over the course of the last 6 months. Many people ask me how I got motivated in turning around my financial future. To be honest with you, you have to get ANGRY…get damn ANGRY at yourself and the poor financial choices you have been making. I look back at all of the income I have worked hard in earning over the past 38 years and I have come to once conclusion. I should have been a Millionaire by now. Now you know how I came up with the name The Angry Millionaire. I started this blog to hold myself accountable for the financial decisions I make. I also started this blog to inform you and entertain you as I “go from debt to dollars.” I want to teach you how not to be like my old self. How to take control of your financial life, get out of debt and build wealth. There is no such thing as get rich quick. Well, unless you rob a bank…then it is get in jail quick… …but Martilyo…”what if” if win the lottery? Well…how lucky have you been so far? Take a look at the odds. You have a better chance of getting hit by lightening twice in the same spot than to win the lottery. Honestly. Think about everyone you know that plays the lottery. Has anyone of those people that you know ever “hit it big?” Use your money more efficiently. Pay off your debt and become debt free. Start building wealth and live below your means and some of the biggest advice I can give young people is STOP ACTING RICH. You are not rich, so trying to keep up with the Trumps is going to be a disaster for you later. Learn your lesson, get damn ANGRY and make a change for the better.
Weigh your debt
If you are overweight like I am, how do you know how much overweight you are? That’s right, you step on the scale. The weight scale is the scariest piece of equipment in the bathroom! The same principle applies to debt. You have to sit down with all your bills and put them down on paper or on the computer, listed on a spreadsheet. I have 2 spreadsheets, one for my total debt and one for my monthly budget. List everything you owe and total it up. This is the weight of your debt. I know it is scary, but the truth is the truth. You can only hide from your debt so long until that scary debt monster explodes out of the closet!
Set your financial goals
This is where you prioritize your debt payoff. You need to figure out your debt worth. You HAVE to establish an emergency savings fund. You HAVE to establish a written budget to tell your money where to go, instead of it going where it wants to. A written budget can be changed and modified on the fly depending on your financial situation. Check out the following articles I have written that talk about budgets, debt snowballs and ideas for becoming wealthy.
- My Great Recovery…It Starts with Me
- Debt Worth, Laying the Cards on the Table
- My Great Recovery…The $1000.00 emergency fund
- The debt snowball…debt’s fiercest enemy
A setback is a setup for a come back
Sometimes no matter how hard we try, we slip up. We are human and we make mistakes. However, even if you make a mistake and buy something you shouldn’t, eat out when it is not budgeted or get sold on the idea of a “cheap” cruise for two. It is okay. It does not mean you give up and go back putting yourself in further debt. You just pick up where you left off. You know what you need to do. Just try harder not to “swerve” off of your path to financial success. Get back on track and make a “come back.” I am human and I have made some mistakes too. Sometimes I eat out more often than I should. Those are little mistakes. I catch myself looking at new cars and formulate an idea why I “need” a new car or how a new care will “save me money.” Fortunately, I know better. I can day dream all I want, I know what reality is now. So, if you do make a financial mistake, fix it or learn from it. You have to keep the mentality that “a setback is a setup for a comeback.” It is very true. If you make a financial mistake or have a temporary setback, like I did with my back taxes, it should be motivation for you to make a come back. I hope my “quest from debt to dollars” will inspire you to change your financial bad habits and start living within your means. Make the changes you need to become wealthy. The only person keeping you from being wealthy is you. Let me know if you have any questions or need ideas for your particular situation.
To your financial health — Martilyo