45 min
The Relentless Pursuit of Debt Freedom with Derek from Life and My Finances FI after 40 Podcast
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- Investing
Facing a mountain of debt may seem overwhelming, but with the right plan of attack, that debt can be cleared more quickly than you think. Derek Sall from Life and My Finances was able to become debt-free (multiple times) through tremendous focus and hard work. His journey is one of highs and lows, but he has stayed determined over the years and is now well on his way to being financially independent.
Derek's story:
Started his debt journey with student loans
Realized he and his wife were sinking further into debt and decided to tackle the debt of face bankruptcy
Looked for side-hustles to make extra money and became very focused on paying down debt
Was able to pay off $18,000 in debt in 14 months and became debt-free
Relationship challenges:
Moved from Florida to Michigan and marriage problems escalated
Bought a house for $75k and paid it down and had some equity
They had very different spending habits (she was a spender, he was a saver)
Divorce pushed him back into debt and he was emotionally focused on clearing that and cutting ties with his ex
Found a way to pay her $21k in six months to clear his commitment to her
One unusual way he made money was flipping cars
Getting back out of debt:
Shifted his debt reduction focus to the house that was now in his name
Paid off the remaining $55k of his house debt in under a year
Along the way had trimmed many of his expenses (phone, food, etc.)
Article: Living on Only $460 a Month? Really? https://lifeandmyfinances.com/2014/09/less-500-expenses-month/
Felt that paying off house was worthwhile, rather than putting more into investing and saving
The main reason was the emotional lift that comes with becoming debt free
On the path to FI:
Has since remarried and is on the same page with her when it comes to finances
Pooled their money to buy a rental property for $90k
Property has appreciated in value and has monthly cash-flow from rental income
Bought another property and flipped it for a $27k profit
Sold his original home and used the profits from that along with the flipped house to buy a new primary residence
Relationship with current wife has been very open and healthy when it comes to money
Currently working towards saving for kids to go to private school
Would like to cover half the cost of college for kids
Want to reach financial independence to allow options, may or may not retire early
Would like to purchase additional rental properties in the future
Benefits of hosting a blog:
Has maintained his blog over the last 10 years
It has been a way for him to write about his life and get his thoughts on paper
Has been a source of income as well, anywhere from $7k-$30k per year
Has connected with other finance bloggers and has benefited through that network
Advice for late starters:
Keep it simple and don’t overwhelm yourself with finding the perfect method
He’s a fan of Dave Ramsey’s approach
Prefers the debt snowball method to provide emotional motivation
Start with $1,000 in savings for emergencies
Where to follow Derek:
Website: https://lifeandmyfinances.com/
Twitter: https://twitter.com/lamfinances
Facebook: https://www.facebook.com/LifeAndMyFinances/
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Support this podcast: https://podcasters.spotify.com/pod/show/fiafter40/support
Facing a mountain of debt may seem overwhelming, but with the right plan of attack, that debt can be cleared more quickly than you think. Derek Sall from Life and My Finances was able to become debt-free (multiple times) through tremendous focus and hard work. His journey is one of highs and lows, but he has stayed determined over the years and is now well on his way to being financially independent.
Derek's story:
Started his debt journey with student loans
Realized he and his wife were sinking further into debt and decided to tackle the debt of face bankruptcy
Looked for side-hustles to make extra money and became very focused on paying down debt
Was able to pay off $18,000 in debt in 14 months and became debt-free
Relationship challenges:
Moved from Florida to Michigan and marriage problems escalated
Bought a house for $75k and paid it down and had some equity
They had very different spending habits (she was a spender, he was a saver)
Divorce pushed him back into debt and he was emotionally focused on clearing that and cutting ties with his ex
Found a way to pay her $21k in six months to clear his commitment to her
One unusual way he made money was flipping cars
Getting back out of debt:
Shifted his debt reduction focus to the house that was now in his name
Paid off the remaining $55k of his house debt in under a year
Along the way had trimmed many of his expenses (phone, food, etc.)
Article: Living on Only $460 a Month? Really? https://lifeandmyfinances.com/2014/09/less-500-expenses-month/
Felt that paying off house was worthwhile, rather than putting more into investing and saving
The main reason was the emotional lift that comes with becoming debt free
On the path to FI:
Has since remarried and is on the same page with her when it comes to finances
Pooled their money to buy a rental property for $90k
Property has appreciated in value and has monthly cash-flow from rental income
Bought another property and flipped it for a $27k profit
Sold his original home and used the profits from that along with the flipped house to buy a new primary residence
Relationship with current wife has been very open and healthy when it comes to money
Currently working towards saving for kids to go to private school
Would like to cover half the cost of college for kids
Want to reach financial independence to allow options, may or may not retire early
Would like to purchase additional rental properties in the future
Benefits of hosting a blog:
Has maintained his blog over the last 10 years
It has been a way for him to write about his life and get his thoughts on paper
Has been a source of income as well, anywhere from $7k-$30k per year
Has connected with other finance bloggers and has benefited through that network
Advice for late starters:
Keep it simple and don’t overwhelm yourself with finding the perfect method
He’s a fan of Dave Ramsey’s approach
Prefers the debt snowball method to provide emotional motivation
Start with $1,000 in savings for emergencies
Where to follow Derek:
Website: https://lifeandmyfinances.com/
Twitter: https://twitter.com/lamfinances
Facebook: https://www.facebook.com/LifeAndMyFinances/
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Support this podcast: https://podcasters.spotify.com/pod/show/fiafter40/support
45 min