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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