Now Reading
Friday inspiration: Living the no-credit needed, debt-free lifestyle

Friday inspiration: Living the no-credit needed, debt-free lifestyle

This is part of a series of interviews with people who are either working to improve their financial situation or who have already reached their goals. This week’s interview is with NCN, who writes one of my favorite blogs, No Credit Needed. He & his family having been living the no-credit, debt-free lifestyle for quite some time now.

Could you tell us something about yourself?
I’m NCN, which stands for No Credit Needed. I’m married and my wife and I have three kids. I’m in my early 30’s and I’ve been blogging about debt and debt reduction for more than 3 years. I’ve been debt free since February of 2006.

In what way have you turned your financial life around? (Or what are you working on changing?)
Since April 2005, I’ve paid off $11,500 in debt, fully-funded a 12-month emergency fund, and purchased a new-to-us minivan (with cash). For the past two years, my wife and I have managed to fully-fund four retirement accounts and two education savings accounts. Currently, I’m working to continue funding those retirement accounts, and additional education savings accounts, and save enough to pay cash for a new home.

Can you give a little bit of background on your story? What were things like for you pre-change?
I started working when I was 14 years old. I woke up, at 30, and realized that I’d always lived paycheck-to-paycheck. I never worried about setting a little aside or getting out of debt. If I wanted something, I bought it, without regard for the future. I got my first credit card at 16. I financed my first car purchase at 17. I lived just like everyone else that I knew. If I wanted to take a vacation, I took one. If I wanted a new car, I bought one. Soon, I found myself in debt, broke, with two kids.

How do you feel about your financial situation right now? (Or how did you feel after reaching your goal?)
You can read about the day that I paid off my last debt here.

As for how I feel now? It’s like a dream. I still can’t believe that we are debt free. I don’t worry about the future, I look forward to it. I’m working every day to better my financial situation. Instead of blindly going through the motions, my eyes are opened to a whole world of possibilities. I’m free!!!

What was the catalyst that caused you to take action?
I suppose it was the birth of our second child and the realization that I would one day have to pay for college – and retire – and deal with health care – etc. Plus, it was painful to realize that I was 30 years old and did not have $500 in savings, after having worked hard for 15 years.

Did you have any setbacks? If so, how did you deal with them?
Yes, my daughter was hospitalized for a brief period of time, and this delayed our debt reduction. This wasn’t a major setback, but it did cement my belief that an emergency fund is an absolute necessity.

What has been the hardest part of the process?
Waiting. I have a plan in place, but I have to wait for paychecks to arrive. Once I determined to get out of debt, there was no turning back. But, I couldn’t will the calendar to change. All I could do was be responsible, every day, with the resources at my disposal, and wait for the next paycheck. But, the waiting actually motivated me to find other sources of income.

The easiest?
Putting the plan into place. I used Dave Ramsey’s Baby Steps – paying debts from smallest balance to largest balance – and it worked for us.

How long has it taken?
We paid off $11,500 in about 10 months. Over the next year, we saved up a 12-month emergency fund.

What’s the best financial advice you’ve received?
Give. Save. Spend. (Note the order.)

What inspiration could you give to someone in a similar situation?
It can be done. Three years ago, I didn’t know the first thing about mutual funds, debt-to-income ratios, debt reduction strategies, 403(b) accounts, etc. I learned to set aside some time, every day, to work on my finances. I learned to treat every dollar with respect. Don’t just work hard to earn your money, work even harder when its time to manage your money.

Oh, yeah, keep a good sense of humor. Be the first to laugh at yourself. You’ll feel better.

Would you like to share your story? If you would like to be interviewed via email for a future article, please email me at c o m m e n t s @bluntmoney.com (without the spaces) to let me know you’re interested.

View Comment (1)

Leave a Reply

Your email address will not be published.

© 2023 BLUNTMONEY. All Rights Reserved | Disclaimer

Scroll To Top
Skip to content