I am a 22-year-old young professional who is proud to be a public school English teacher. I’m passionate about personal finance, minimalism, education, food, and travel. I’m obsessed with self-improvement and lifelong learning, and my greatest hope is to instill some of this motivation into my students and readers. I blog at Wrachel Writes
If you’re looking for a guest post, ghostwriter, or freelance content, email me at [emailprotected].
If you have not downloaded our free budgeting E-Book do so now to get started on your debt-free life.
What do you do for a living?
I’m a high school English teacher in Maryland. This summer, while I’m off from my normal job, I’ll be working as a Teaching Assistant for an English 101 course at the University of Maryland, College Park.
Do you have a degree and are you currently using your degree?
I have a Bachelor’s degree from the University of Maryland, College Park in English Language & Literature and Secondary Education.
This degree directly relates to my career field, and I’m hoping to start working towards my Master’s in Education starting this fall.
How long have you worked in your field and what is your current salary range? Only if you want to, however, it is better to give our readers some perspective. If they are low-income earner vs high-income earner, the strategies might differ.
This is my first year teaching (and working full time at all) and I make $49,000 per year gross income. If I work during the summer, my income totals $52,000.
I am certainly not a high-income earner by most measures, but I’m blessed to earn a relatively high starting salary for a teacher.
One of my purpose in blogging from a teacher’s perspective is to show that educators, and even other low-income earners, can still pay off debt and build wealth. That being said, I’m always trying to make more money.
This next year, I’m trying to take on some stipend roles around the building in order to give myself a raise.
I’m also aiming to get my Master’s degree in the next 2-3 years to increase my pay.
What major debt have you paid off that you feel is a hurrah moment for you?
Every step of the way on my debt free journey has felt like a “hurrah” moment.
All of my loans were student loans, totaling $11,500. I shared my story with my students along the way, updating those who asked on how paying off my debt was going.
They loved hearing about it and thought that it was pretty amazing since some of them have parents who are still getting out of their student loan debt.
We have an awesome article on how student loan is bondage and how to set yoursef free.
One special moment I remember is when a student asked how my debt progress was coming during class, and so I announced to everyone that I had paid off my final student loan a few days before.
The whole class erupted in applause– something that shocked me and made me feel incredibly blessed.
It made me realize that my acting as their cheerleader and encouraging them every day is not a one-way street; they were just as proud of me as I am of them when they succeed.
Describe to us in detail, the strategies you used to pay off that/those debt(s)
Budgeting was the most important piece of paying off my debt. Period. That being said, you can’t budget without first setting out your true values and priorities, which I think is really the core of finding your stride financially.
For me, I valued dining experiences, having time off work (i.e. not working a demanding side hustle), and still saving for mid-term expenses.
I wrote about these values and more in my post “3 Things I Sacrifice to Pay Off Debt (And 3 Things I Don’t).”
In terms of strategies, I also did the basic thing of following the snowball method, per Dave Ramsey. And let me tell you, it’s cliche for a reason.
I didn’t use it at first and I made OK progress, but relenting to the recommendation over interest rates really did motivate me, even as an already highly motivated person.
Relevant budget related posts
5 Budgeting tips for young adults to arrest their debt
Frugal doctor’s wife perspective on family budgeting – this is from Mrs Breathe Easy Finance and you don’t want to miss it.
How to budget your money to live the life you want – This is the ultimate comprehensive post on budgeting, lots of hardwork went into this one
How to up your game!! and use budgeting with cash flow technique. This is how my guest retired at 42.
Try the envelope cash system at least once in your lifetime. It is soo much difficult to spend cash, trust me.
If you are still debating whether budgeting is for you and if budgeting is for amateur and just a training wheel, we also have a post for you.
Do you have any other debt left? What kind of debt? What are your goals to pay off this debt?
I have no more debt and am not planning on having any ever again, except for a mortgage someday.
I do use a credit card to keep a score, but I pay it off every month without exception.
Which method do you use for budgeting?
I use the EveryDollar App, but I’ve recently started copying everything down onto a one-page spreadsheet in order to be able to compare month-to-month more easily, without having to go to a new page.
I’m trying to think in terms of yearly budgets rather than just monthly ones.
For now, I do both, though I may switch over to my spreadsheet entirely once I get it to be perfectly functional for my personal needs.
What percentage of your monthly income do you save?
Before getting out of debt, I was only able to save 11% of my income. I was throwing every penny at my loans.
It’s difficult to say what my “normal” savings rate will be, but for April (my first full month out of debt), the rate is 34%, probably due to a trip I’m cash flowing this month.
My May savings rate will be exactly 50%.
Do you have any passive income sources?
I don’t have any entirely passive income sources. I sold a few things on eBay while getting out of debt (a few tech items and a pair of Chanel shoes I came into from a friend), but I haven’t built up any passive income streams yet. It’s something I’d love to explore more as I move forward.
Do you rent or own your own home/condo/apartment?
I rent my apartment with two roommates. Living outside the city and with roommates has helped me tremendously in paying off debt, though it has felt like one of the greatest lifestyle sacrifices I’ve made in the name of financial independence.
At the end of the summer, after building my Emergency Fund, I’m going to move to Washington D.C. and rent with my partner.
I hope to take out a mortgage and eventually own a home, but I am willing to pay for the freedom to move until I know where I want to live permanently. I envision myself buying a home in 3-5 years.
Our top ranking epic post on financial pyramid, talks about the importance of emergency fund as an important component of your pyramid base.
Which side of the argument are you in terms of paying off mortgage vs investing?
It’s difficult for me to say if I favor paying off a mortgage or investing since I don’t currently have a mortgage. I believe I would pay off my mortgage faster
Another awesome one. Thanks a lot, Rachel.
If you have not downloaded our free budget template do so now to get started on your debt-free life.
Here is the link to binge on all theget out of debt series
Other posts in the series include
Dog walk your way out of $150,000 debt by frugal wallet
Financial independence African style – How to pay off $35,000 debt in one year!!
Xrayvsncrawled out of$600,000debt and the worst divorce in history and still managed to reach financial freedom.
From one Geek To Another became debt free at a tender age of 27.
Money Saved Is Money Earned is the master in stretching that dollar.Low income did not stop him from getting out of debt.
How We Paid Off $340,000 Mortgage In 3 YearsBy Saving 86.5% Of Our Income (By HisHerMoneyGuide)
Wealthy Doc becamefinancially independent in 17 years after starting his real job.
Marc from Vital Dollar paid off his30 years mortgage in just 4 years.
Millionaire Mob, a guru investor showed ushow to get out of debt.
The frugal fellowlived with his parents to pay off debtand he is not ashamed of it
Check out some of the tricks we used topay off over $200,000 student loan debt by 6 months out of training.
5 strategies to pay off $55,000 debt In 4.5 Years by Spills Spot
Adebayo
Website
I am a pulmonary and critical care doctor by day and personal finance blogger/debt slaying ninja by night.
After paying off close to $300,000 in student loan debt in less than 6 months into my real job, I started on a mission to help others achieve the same. There is no magic to this than to strap up and get it done. Some of the ways we achieved this include side hustle, budgeting, great negotiation skills, and geographical arbitrage.
When I was growing up, common knowledge in Nigeria is that there is one thing you cannot trust anyone else with, and you guessed it – your money.
Being frugal came easily to me based on my background. However, the concept of building wealth did not solidify in my mind until when I finished medical school. I wish I knew what I know now when I was 14. Still, I don’t know enough and I am constantly learning to improve my knowledge.
My goal is to reduce financial illiteracy among young professionals. I am catering to the beginners – babies and toddlers in financial literacy.
