Hi there! It’s Wednesday and time for another installment of Your Three Year Experiment, featuring people who are sharing their own three year experiments–their plans, goals, and dreams for the next three years.
Today’s post is from Claudia from Two Cup House. Claudia is a personal finance blogger, SEO consultant, and trainer who moved into a tiny house with her husband Garrett in order to get closer to financial independence.
Claudia and her husband paid off six figures in debt in just a few years by downsizing to a tiny house and starting their own business. Now, they’re pursuing FI, but not RE (that’s financial independence, but not retiring early). Read on to find out:
how they were able to pay off $200,000 in a short time
how they’ll balance building their business with travel
the one place in their budget they’re not frugal
If you’d like to be featured in the series, send me a note! My contact info is on the Start Here page.
What’s your background? Early years, education, married, kids, jobs?
We grew up in different parts of Pennsylvania and have spent most of our lives here. Unsurprisingly, we’re Penn State grads.
My husband, Garrett, and I live in a 500 sq ft house in Lancaster County, PA. We don’t have kids (and don’t plan to have kids).
Today, we’re self-employed. We run our own marketing consulting and training business.
What would your life look like with no more payments? No more car payments. No more credit card payments. No more student loan payments. How much extra money would that give you? Imagine the freedom to travel, to build your dream house, to finally retire. It’s a new year. And a chance to finally, once and for all, get out of debt. But what if you’ve tried before, and nothing’s worked? Or you’ve gotten out of debt only to get back into debt?
If you’re reading this, you may have an overwhelming amount of debt to tackle. Or you may be a personal finance guru, and need this advice like you need an extra helping of pasta with dinner.
Never fear! This guide is designed to help you get out of debt, but much of this advice will also work for other large, looming goals you’ve set for the year.
But why, you may be asking yourself, should I listen to this random voice on the internet? What does she know about how to get out of debt or how to accomplish my goals?
I have written every detail of how Mr. ThreeYear and I managed to get out of debt in this post and this follow up post, but in case you’re new, here’s a recap.
When Mr. ThreeYear and I got married, we were both debt free. This is something of a miracle when most college graduates finish college with debt. According to Tica, The Insitute for College Access and Success, 76% of graduates from New Hampshire, where we live, have college debt upon graduating as undergraduates, and the average debt burden is $33,410. That’s for undergraduate education!
I was fortunate to have scholarships to college and parents who paid the rest. Mr. ThreeYear was fortunate to live in a country where undergraduate education is more reasonably priced: Chile. When we met (in said country), neither of us had any debt. We spent a few years living like the DINKS we were, but Mr. ThreeYear’s way: we bought everything in cash. If we couldn’t afford to buy it with cash, we couldn’t afford it. I scoffed at Mr. ThreeYear as he saved up to buy a car, in cash. “Why don’t you just take out a car loan?” He looked at me like I was crazy. “I don’t want to take out a car loan! I’ll just wait and buy it when I have enough money.”
Two years later, we moved to the States. We moved to the fast and furious city of Atlanta, where Mr. ThreeYear, and then I, found jobs, and slowly, every-so-slowly, we began to adopt the Atlanta way of life. First, we bought a house. We had been renting a very nice, 1100-square-foot apartment that was 15 minutes away from Mr. ThreeYear’s job (it was literally two miles away from us, but you know, Atlanta traffic). It had tennis courts and a pool, and a low rent (we paid around $850 a month for a two-bedroom in the heart of the city), but we decided we should buy a house, instead. Continue reading “The Average Joe’s Ultimate Guide to Getting Out of Debt”