Why I love Nari’s six-figure debt payoff story:
She was completely normal for 6 years!! Nari did what we all try to do. We live “frugally” and make payments on our debts, but don’t actually get really intense about it. We make slow and steady progress.
We keep living on the slow and steady train just waiting for the day all the debt is finally gone. We don’t make major sacrifices or tell ourselves, “no,” to our wants. Instead, we give in because we want to enjoy life. We don’t want to sacrifice for years to make it happen. It doesn’t seem worth it.
Six years she lived like this. Six years!
In 2016, Nari was able to cashflow a wedding to the man of her dreams and a honeymoon. After the honeymoon, she and her husband took a little step backward when they financed a new car for $28,000. They also made the dumb mistake of purchasing a travel membership (similar to a Timeshare) for $15,000.
When everything changed for their debt payoff journey.
Nari found out she was pregnant with their first child which became the catalyst for a major outlook change when it came to their finances. While researching a whole life insurance policy for their unborn child, they ran across Dave Ramsey.
After learning more about Dave Ramsey and his baby steps to knock out debt and gain financial freedom, Nari was all-in.
In May 2018, they began their gazelle intense journey. At that time, they had a total of $118,000 of debt remaining ($100,000 student loans + $18,000 car loan).
The motivation to become debt free.
The deciding factor for wanting to be intentional about becoming debt free was expecting their first child. Nari also had a moment where she felt like Dave Ramsey was speaking directly to her.
He was saying to another guest on his show, “You are not a doctor. You are a broke doctor.”
Nari heard this as, “Nari, you are not a pharmacist. You are a broke pharmacist.”
That was her moment. It was then she realized having a high income was nothing if she had to live paycheck to paycheck because of her large debt load.
From that moment on, Nari was determined to pay off the debt as fast as humanly possible and was willing to sacrifice to make that happen.
Their income while paying off the last $118,000 of debt in one year.
Nari had a wonderful salary for a pharmacist of $150,000 and her husband (who is a pastor) ranged anywhere from $25,000 to $42,000. (These numbers are gross income).
The truth about income:
Income can be a huge factor in the rate of debt payoff. You may look at Nari’s income and think, “Well, of course, they could pay off the debt, she has a huge income!” But, I want you to pay attention to her husband’s income which was minimal compared to hers. This is not a couple bringing in $300,000/year.
Even if you and your husband aren’t even at $100,000 gross income for the year combined, you can still get out of debt. My husband and I were facing this a few years ago. We needed a bigger shovel to get us out of our debt. My husband left a very comfortable and secure job to pursue something a little less stable, but with major income growth potential.
I took a different job with better pay that was further from my home, I have taken on freelance work, and I took on a second job as a Starbuck’s barista just 6 weeks post-partum. My husband has also started a side hustle of pallet projects. Every little bit helps.
When you are facing six-figures of debt, you need to make your income as big as you can. You truly can only decrease your expenses so much. At some point, you have to start increasing your income.
How Nari’s husband worked to increase his income to achieve financial freedom.
Nari’s husband is a pastor, and they tend to have a low income. At his lowest, he brought home $25,000 gross/year. In May 2018, he got gazelle intense to pay off their debt and took on as many part-time jobs as he physically could.
He is so impressive!
- He worked part-time driving for Uber,
- became a part-time teacher at a local academy,
- became a part-time chef at a Sushi restaurant.
- He started selling anything they could possibly sell to raise extra money…..this included Nari’s wedding dress!!
Eventually, he made the ultimate career sacrifice and left his main job at the church to work full-time as a chef at the Sushi restaurant. Nari’s husband knew the sacrifice of leaving the church to work as a chef would be a temporary necessity to conquer their debt problem. After the debt was paid off, he could begin to focus on his career without the pressure of living paycheck to paycheck.
Where they lived during their six-figure debt payoff journey.
In May 2018, they moved in with Nari’s parents right before their son was born. This was a major money saver as they only paid $1,000/month rent vs. $1,700/month rent for a 1-bedroom apartment.
Having parents willing to provide this option and support was amazing and really set them up to save tons of money.
Her parents provided food for them so they didn’t have to buy groceries. Aside from their son’s needs with formula and diapers, they had no other food expenses which were a huge saver!
The downside for Nari was it was an 80-mile commute to her work, ONE-WAY. Ultimately, this commute was worth it for the amount of money they were saving.
The other really tough thing for Nari as a first time mom was moving into a single bedroom with her husband and soon to be newborn son. As a first time mom, it was extremely difficult for Nari to not have a baby room to decorate and prepare for her child.
The baby’s room is one of those sacred and special projects all moms look forward to. It is part of our natural “nesting” and preparing for our child. Because of their living circ*mstances, they were only able to put a baby crib in the corner of their bedroom.
The crib was a gift from a friend, and Nari was able to get everything else they needed for their son borrowed from family and friends or used. Instead of paying for professional photos, she was able to DIY them.
The struggle they had during their journey to pay off student loans.
Nari was so sure of their journey, she never felt like giving up. She was driving 160 miles every day, living in one bedroom of her parent’s home with her husband and newborn son. She was so motivated to get out of debt to not have to spend her life in a car instead of spending time with her son.
Nari’s husband struggled a bit with the process because he still viewed the pharmacy debt as Nari’s and not his. This became a stumbling block for him to fully on board and not be frustrated by the sacrifices that needed to be made.
In the beginning, Nari thought they were on the same page. She was hardcore for Dave Ramsey’s methods and she is the one who told her husband about them. He didn’t fully understand it all and wasn’t 100% on board.
Once they attended Dave Ramsey’s Financial Peace University together, they were on the same page with the plan and working as a team. From then on, they were attacking their debt with a supercharged intensity.
Finding the motivation to stay intense during debt payoff.
Nari listened to Dave Ramsey’s podcast during her daily commute. She also kept a visual countdown of their payments each month on their refrigerator. The Financial Peace University class was also a huge motivator for both of them to keep going.
