|I love this car.|
I jumped without a safety net.
I didn't have much in the way of additional savings before quitting my job. I just knew that if I didn't do it right then I may never have the courage to try again.
The first step to financial independence is to reduce your debt. While we lived in our large suburban home I knew this was not going to be possible. My income and my monthly expenses were not compatible. We put our house on the market and with a combination of a great realtor and the right buyer we were able to sell it quickly.
I think it is important to note that during this time I did not have a car payment or student loans. My debt was lower than that of many Americans, and yet it weighed heavily on me. I felt that I needed to keep working to pay them off but the more money I earned the more money I would feel compelled to spend. It was a vicious cycle.
We moved into a modest apartment that was less than half the monthly cost of our mortgage. (This also helped us in our downsizing process.)
|Our apartment decorated for the Holidays.|
Moving in to the tiny house, especially without utility bills, gave me an opportunity to lower my expenses. I do not have rent. I do not pay for electricity, gas, or water. I do not have a car payment. (In fact, when my 10 year old car decides to give up the ghost we don't plan on replacing it and will only have one car.) My only expenses are my phone and Internet, groceries, health insurance and prescriptions, my quarterly taxes, and whatever fun plans we have each week. We don't hermit in our tiny house; we love being out in the community enjoying the beer and restaurant scene.
The steps were simple.
1. Pay off debt.
2. Reduce Expenses
3. Create a budget.
|One day my book will be finished, I promise!|
What do you want to accomplish? How can you reduce your expenses to change your life?