How I Paid Off My Bad Debts and Achieved Financial Freedom in 15 Years
Hi, I’m Rajesh, a 35-year-old software engineer from Varanasi, India. I want to share with you my story of how I managed to pay off my debt and achieve financial freedom in 15 years.
I started my career in 2020 with a decent salary, but I also had a lot of debt. I had taken a student loan to fund my education, a personal loan to buy a car, and a credit card to cover my expenses. I was living beyond my means, spending more than I earned, and not saving anything for the future.
I realized I had a problem when I missed a payment on my credit card and got hit with a high interest rate and a late fee. I checked my credit report and saw that I had a low credit score and a negative payment history. I felt ashamed and stressed. I knew I had to do something to get out of this mess.
I decided to follow these steps to pay off my debt and achieve financial freedom:
I made a budget. I listed all my income and expenses, and tracked every rupee I spent. I used a budgeting app to help me with this. I cut down on unnecessary expenses, such as eating out, shopping, and entertainment. I also negotiated with my service providers to lower my bills, such as phone, internet, and cable.
I created a debt repayment plan. I used the debt avalanche method, which means I focused on paying off the debt with the highest interest rate first, while making minimum payments on the rest. I also consolidated my debt into one account, using a personal loan with a lower interest rate. This helped me save money on interest and simplify my payments.
I increased my income. I asked for a raise at my job, and took on some freelance projects on the side. I also sold some of the things I didn’t need, such as my car, my old laptop, and some clothes. I used all the extra money I earned to pay off my debt faster.
I built an emergency fund. I saved up at least six months of living expenses in a high-yield savings account. This gave me a cushion in case of any unexpected events, such as a medical emergency, a job loss, or a family crisis. Having an emergency fund also prevented me from using my credit card or taking out another loan in a pinch.
I invested for the future. Once I paid off all my debt, I started investing in various options, such as mutual funds, stocks, bonds, and real estate. I followed some of the best investment plans in India 2023 and diversified my portfolio to reduce risk and maximize returns. I also took advantage of tax-saving schemes, such as PPF, NPS, and ELSS. I set a goal for retirement and worked towards it.
It took me 15 years to pay off my debt and achieve financial freedom, but it was worth it. I learned a lot of valuable lessons along the way, such as how to manage my money, how to live within my means, and how to invest wisely. I also improved my credit score and my financial health.
Now, I’m happy and proud of myself. I have no debt, a healthy savings account, a growing investment portfolio, and a secure retirement plan. I can enjoy life without worrying about money. I can also help my family and friends with their financial needs. I can also pursue my passions and hobbies, such as traveling, photography, and writing.
Here is a picture of me smiling and holding a sign that says ‘Debt Free’. I hope this inspires you to take charge of your finances and achieve your goals. Remember, it’s never too late to start. You can do it!
Disclaimer– The use of the name “Rajesh” Was for just portray the name of an ordinary person and his condition used like a story. Any resemblance with the living or dead person’s story is just coincidence.
Contact me oppatel@costless.blog
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