Chapter 3

STARTING-LINE STRATEGIES

The miracle isn’t that I finished. The miracle is that I had the courage to start.

JOHN BINGHAM, THE COURAGE TO START: A GUIDE TO RUNNING FOR YOUR LIFE

I NEVER THOUGHT I’d be a runner. In college I had friends who ran, and I’ll be honest, I thought they were a little crazy. Biking? Sure, that sounded like fun. The occasional aerobics class or kickboxing? I’m in. Joining a pickup game of basketball, hitting the weights, or lobbing a tennis ball (even though I’m horrible with a racquet) all appealed to me. But running? I’ll pass. In fact, until a few short years ago, my proudest mantra was “Run only when chased.”

Even now, I don’t fancy myself as Jesse Owens. I am not an ultramarathoner by any stretch of the imagination. But I can honestly say that I do enjoy running, although it still feels a little wrong to say it out loud. My running shoes tied just so, my favorite playlist locked and loaded, and the worries and responsibilities of my day behind me —there’s nothing so freeing as running down my driveway and then crossing the street to the long stretch of sidewalk on my regular route. Even better is the mind-clearing, postrun high when my lungs and soul stretch out, prepared to take on anything the world throws my way.

The more miles I put under my feet while we were slaying the debt dragon, the more I began to see similarities between the daily practice of running and the daily practice of paying off debt. Each time I struggled to motivate myself to run, I was reminded that the starting line for both pursuits is the most difficult to cross. Once my legs get into motion, there’s no stopping my run. However, the most difficult step for me, as I’m guessing it is for most people, is actually digging out my running shoes. Remaining on the couch? It’s so much more comfortable. It’s easier. It’s softer. It’s warmer. It’s effortless. For most of us, staying in one place always seems more natural than putting our bodies in motion.

The same is true of our finances. It is always easier to keep spending mindlessly and giving in to our own (or our kids’) whims, no matter the cost. It’s always easier to stay on the couch, physically or metaphorically. It’s always easier to stay well behind the starting line. If we actually find the motivation to put our body or our debt-reducing plan into motion, we’re also bound to feel pain. That’s because strengthening ourselves physically or financially requires first tearing and then rebuilding muscle.

Strengthening ourselves physically or financially requires first tearing and then rebuilding muscle.

{Callout 3.1}

I promise I’m not trying to be Debbie Downer. The last thing I would ever want to do is discourage you. In fact, I’m probably not even telling you something you don’t already know. I just want to gently remind you that reducing your debt —like anything with long-term health benefits —needs to be done purposefully, not haphazardly. Every successful venture begins with a strategy. In this chapter, I’d like to present you with some ideas on how to start attacking your own debt dragon. I’d also like to offer some encouragement to move beyond those strategies and put your plan into motion.

Name It . . . Then Kill It

Once the two of you are unified and excited to begin the battle together, your next action step might seem a wee bit —how shall I say it? —unconventional. Yet, I believe this essential step has the power to draw you even closer together: you need to give your debt a name. Here’s why.

Names have power. When someone mispronounces our name (it happens to me often), our whole attitude can shift. We are insulted when someone has forgotten our name. We wrap our ears around soothing voices who call our names. Speaking the name of someone we love can make our heart skip a beat.

I’ve named teddy bears. I’ve named cars. (Long live Cami the Camaro!) I’ve named imaginary friends. I’ve named children. I’ve named ministries. Each time, I have taken great care in bestowing a name because it can speak volumes about the bearer and even more about the namer.

While I can’t nail down the exact date when Brian and I began referring to our debt as “the dragon,” personifying our financial obligations became one of the most powerful strategies for getting our finances under control.

Student Loan’s Eviction Notice

Adapted from a January 2012 blog post

Dear Evil Sorceress Student Loan,

You’ve lived with us for a very long time.

You were there when we got engaged. You were there when we graduated from college. You stood up with us at the wedding (even though no one invited you to do that).

You came along on the honeymoon over twelve years ago (that was totally awkward). You dwelled in our first two apartments, keeping us from truly ever having any time alone as newlyweds.

You were there for the birth of the Princess Eldest and kept us from loving her in the ways we wanted to love her (and from paying her hospital bills as quickly as we would have liked, too).

You kept us from doing things that we longed to do —saving for retirement, starting college funds, giving when we saw a need, having regular date nights, going on vacation, and even buying things we needed. (Have you seen our towels lately? Holy holey, Batman.)

Nearly four years ago, right after the Princess Youngest was born, your vacant ugly stare came at us in the form of a very large number —over $80K. We wanted you gone. But you were so huge that we had no idea where to begin. Your younger and much thinner student loan sister was one of the first to receive her eviction notice in July 2008. Your cousins —medical debt, car loan debt, furniture loan debt, small loan debt, and credit card debt —all followed suit thereafter. Since February 2010 we have watched you —and you alone —slowly but surely dwindle. Now, you number only four digits instead of six, and by our best estimates, in about four months you’ll need to leave our house —FOREVER.

You are certainly not welcome back. Ever. Consider yourself forewarned. You have more than overstayed your welcome.

And you will never plant your evil claws into our two sweet little girls. Their college educations will be financed by your arch nemesis —the heroic and oh-so-brave CA$H.

Your days are numbered.

Pack your bags. We’re coming for you.

The King and Queen of Free

{Insert Sidebar 3.1 here}

Nameless, a force in your life remains neutral. You approach it with a disinterested spirit. Give your debt a name, and it becomes much, much more personal. If you want victory over debt, you must make the battle personal.

If you want victory over debt, you must make the battle personal.

{Callout 3.2}

Society wants to make you think that debt is neutral —even natural.

This was certainly the case for my friend Luke. He was told during college that without using credit, he wouldn’t be able to get a job after graduation. Ten years later, Luke is happily married and has two sweet little boys, but his family is still paying for the items purchased on credit when he was in college. My friend Nickole was a college freshman when she was convinced it was a good idea for her to sign up for a credit card. In fact, if she did, she would receive a free T-shirt. That T-shirt resulted in over $1,000 in debt by her junior year. Perhaps it wasn’t free after all. Then there’s Stacey, who was told that going to college required debt. Students either took out student loans or they didn’t go. She wishes someone had told her what $40,000 per year would look like as a monthly payment after she graduated. Society tells us that jobs, free T-shirts, and a college education are available only to those with debt.

All of the above are lies.

When we wake up from the lies of the status quo and the enemy of our souls, we realize many truths about debt. Debt is a disease. Debt is your enemy. Debt wants to destroy you. Debt wants to kill your marriage. Debt wants to wreck your children. Debt wants to control your day-to-day purchases. Debt wants to steal your joy. Debt wants to damage your health. Above all else, debt wants to keep you from being generous.

Doesn’t that make you mad? Not really? Okay, let me try again. Let’s replace the word debt with Fred Johnson.

Fred Johnson is a disease. Fred Johnson is your enemy. Fred Johnson wants to destroy you. Fred Johnson wants to kill your marriage. Fred Johnson wants to wreck your children. Fred Johnson wants to control your day-to-day purchases. Fred Johnson wants to steal your joy. Fred Johnson wants to damage your health. Above all else, Fred Johnson wants to keep you from being generous.

Who’s ready to take to the streets and run Fred Johnson’s underwear up a flagpole while screaming “FRREEDDOMM!” Braveheart style?[9] Fred Johnson has got one coming. Someone needs to knock out that guy’s teeth. No one messes with your family. How dare the interloper Fred Johnson meddle in your marriage? And who is Fred Johnson to tell you how much you can give or how you should live your life?[10]

The small act of personifying your debt makes your soul cry out, That’s not right! This bully must be stopped!

lightbulb

QUICK WAYS TO START BUILDING AN EMERGENCY FUND

Getting out of debt is difficult if you keep adding to it. Yet life is full of costly surprises —like overflowing washing machines, emergency room visits, and smoking car engines. That’s why building an emergency fund is so critical. While setting aside enough cash to cover several months of living expenses may seem daunting, Brian and I discovered some simple ways to start building the fund fast.

  • Roll your change and exchange it for cash at your bank —or let a self-service coin machine do the sorting for you. (Keep in mind, though, that machines require a processing fee.)
  • Get several estimates on your broken or unused jewelry from retailers who buy gold; sell to the highest reputable bidder.
  • Sell items from your home on Facebook; search for local Facebook groups that specialize in selling home goods and cross-promote your items there.
  • Pick up an extra job —like babysitting, delivering pizza, mowing lawns, or pet sitting —that requires no financial investment and leads to a quick paycheck.
  • At the grocery store, use cash only.
  • Commit to packing and taking your lunch to work daily.
  • Go without eating at restaurants for thirty days.
  • Take a six-month break from attending —or at least purchasing from —home party sales.
  • Talk with family members and close friends about giving up gift-giving between adults during the holidays and on birthdays.

Until you realize that debt is your enemy, you won’t truly be angry enough at your situation to make significant change. When Brian and I zeroed in on debt really being our enemy? That’s when we began to gain traction. Monthly balances don’t seem like evil villains threatening to kill, steal, and destroy you. But that’s precisely what they are. Once we’d identified the debt dragon that was threatening our family, Brian and I embarked on a quest to slay that beast, to dislodge its talons from our finances, to remove its presence from our marriage, and to keep it from stealing the treasures of our children, our checkbook, and our souls.

Identifying debt as our enemy was most useful in the area of our marriage. Never in nine years of marriage had we had a knock-down, drag-out fight (what a horrible expression!) about money. But as I mentioned in chapter 1, we had begun to passively-aggressively pick apart many of each other’s purchases.

You see, getting into debt . . . that can tear a marriage apart. Make you fight. Make you resentful. Make you stop communicating. Make you annoyed at every single penny spent by your spouse. Debt leads to tension. It can overwhelm you both, causing you to be angry at each other for reasons you can’t vocalize, or maybe even for no reason at all.

Money (or the lack thereof) makes couples crazy. More divorces begin from problems with money than any other issue.[11] In his work as an attorney, Brian has seen how debt often leads couples to abandon their vows and convinces them to see divorce as the only option.

Personifying debt was one way Brian and I were able to come together to begin fighting a battle against our common foe —not against each other. That strategy allowed us to drop the passive-aggressive accusations and focus on what truly mattered. Getting out of debt together? We now had a common enemy. One we would fight together. That it would take both of us to conquer. Our shared adversary pitted the two of us against the world, binding our hearts together.

Paying off $127K+ in debt with the King of Free made me feel like we were spies, going into hostile territory where our enemy the debt dragon wanted to plunder every single thing we held dear. But we battled that dragon together. We fought back-to-back with our weapons drawn. Granted, our weapons were not guns or even swords, but a strong budget, coupons, extra jobs, intentionality, patience, contentment, focus, faith, intensity, and a whole lot of prayer. We found safety and serenity in each other’s arms every day after fierce battle, knowing that, with God’s help, together we could defeat the dragon.

We all need someone to have our back when we’re slaying debt. If you’re single, that might be your parents or close friend. It might be a trusted roommate or mentor. Certainly, none of us was meant to live this life in isolation, to travel or fight on our own. The debt dragon longs for you to be and feel alone in your pursuit. He knows that when you’re alone, you’re more vulnerable and likely to give up.

To avoid those sneaky and despicable tactics of your enemy, you’re going to have to ask for help. Who knows your heart, friend? Who longs to see you win (with money and in life)? Who can you count on to walk with you through a difficult journey?

Choose wisely. Don’t settle for just anyone. Instead, find a co-battler who understands the “why” of your decision to pay off your debt and is willing to stand by you in the most difficult of days. Don’t hesitate. Invite that individual into your story now. Be humble. Acknowledge your inability to go it alone. If no one comes to mind immediately, I encourage you to ask God to bring someone across your path. You just might be surprised who becomes your greatest ally in slaying this enemy. Am I saying that you must have a debt dragon of your own? Well, yes and no. Your debt doesn’t have to be a dragon. You can name it Larry. You can name it Moe. You can name it Fred Johnson. But give it a name, and then go all Rocky Balboa on that beast. Naming your debt can annihilate that unspoken and unidentifiable fear that it brings into your life. You can focus on why you must remove it and discover the drive you need to pay it off, improving your financial fiefdom.

Naming your debt can annihilate that unspoken and unidentifiable fear that it brings into your life.

{Callout 3.3}

Wait, What’s Your Name Again?

Giving your debt a name can be empowering. But you can also draw strength from the names God gives you.

Did you know that God is in the naming and renaming business? Throughout the Bible, God took the time to give new names to those He called. Abram became Abraham. Sarai became Sarah. Jacob’s name change was more drastic. He had to change the wording on his “Hello, My Name Is” tag to Israel. Simon received his new name, Peter, from Jesus Himself. Perhaps most confusing of all, Saul dropped the S and added a P to become Paul. (Obviously, God never changed anyone’s name to Fred Johnson.)

With each name change, God began writing a new story with His children’s lives. God began calling Abram his new name, Abraham —which means “Father of Many Nations” —when he was nearly a century old and before he had a single child. The name Peter means “rock.” Only Christ would select such a stalwart moniker for a man who would both cut off someone’s ear in an attempt to protect Jesus and then deny ever even knowing Him due to his fear of the unknown.

God wants you to learn your true name —discovering who you truly are made to be —during your quest to pay off debt. However, there are a few things I know about how God has already “named” you in the midst of your debt-slaying journey.

He has named you intelligent enough to pay off debt.

God knows that you have what it takes to fight and win this battle. You have the smarts. It doesn’t take an academic genius to pay off debt. Honestly, it really isn’t that complex. Spend less than you make so you can whack away incrementally at the debt dragon with all you’ve got. It’s not exactly an algebraic formula reserved only for financial whizzes. Indeed, paying off debt isn’t complex; it’s just not easy. You don’t need a graduate degree, a fancy calculator, or a smarty-pants cap and gown. You are smart enough already. God has given you all you need.

Paying off debt isn’t complex; it’s just not easy.

{Callout 3.4}

He has named you capable enough to pay off debt.

We often confuse the ability to pay off debt with our financial know-how or how “good” we are with money. Most likely, that’s an easy out —an excuse to keep doing the things we’re doing in the way we’re doing them without guilt or repercussions (ouch).

But I’d like to claim a truth that you may not yet know in this debt-slaying journey. Everything you need to pay off all of your debt is already in your possession. Don’t go running through your house looking for a boatload of cash that would settle all of your accounts today. That comes only with time. What is in your possession are the discipline and tools it takes to be intentional with your finances.

Honestly. If you have ever

Maybe you’re thinking, But those accomplishments have nothing to do with money. Wrong. Each of them takes a specific skill set, but more than that, each requires discipline. And if you’ve done any of them? I know you can pay off all of your debt.

You see, the tools required to succeed in any of the above categories are transferable. The gifts and stick-to-it-iveness necessary to defeat debt may feel dormant in your soul, but they remain a part of who you are. You already have all you need to pay off all of your debt.

God has named you brave enough to pay off your debt.

Fear. At some point it paralyzes us all. I used to rush into bed after switching off the lights, sure that somehow my magic comforter would protect me from the evils that lurked in the dark. Or at least make me invisible. (Okay, so I still practice that running start when the King of Free isn’t home. What’s up with that reasoning? While he’s certainly my knight in shining armor, he’s not a ninja.)

We all have fears and we all struggle with them. The dark, heights, spiders, public speaking, flying, snakes, or clowns. But probably the most universal of all fears is failure.

I’ve found that many money-saving lords and ladies seeking to slay debt and gain freedom struggle with this fear more than any other. And if they speak into existence their intention to dig their way out of deep debt, then the possibility of failure looms in the dark and indiscriminate distance. What if everyone finds out? What if they can’t finish the task? What if they fail?

So they never even try.

It’s not that they are sissies. It’s just that becoming debt-free requires change, and that change often brings fear. Doing something different is scary. Getting out of debt is different. Getting out of debt is scary.

In the beginning of our family’s journey, the balance sheet dripped a scary red. The path seemed impossible and the challenges insurmountable. Failure was imminent. The debt dragon had very large teeth and snarled with every step we took toward it.

But God gave us the courage to take on what we thought was absolutely absurd. “Be strong and courageous. Do not be afraid; do not be discouraged, for the LORD your God will be with you wherever you go.”[12] God’s words to Joshua became our battle cry. On the other side of freedom, I now question why that dragon ever looked so scary compared to our God. Surely, nothing is impossible for Him.

At some point you have to ask yourself if fear has more value than freedom in your life. Is it better to bow at the feet of fear or to seek true freedom?

You have to ask yourself if fear has more value than freedom in your life.

{Callout 3.5}

Still scared? Believe it or not, that’s good news. In the Bible, often the first thing out of God’s mouth or the mouths of His messengers was “Do not be afraid.” When individuals were faced with His presence or had to respond to His calling for their lives, God consistently quelled their fears with a “fear not.” Want to call my bluff? Here are a few passages that illustrate this fact.[13]

God spoke to Israel in a vision at night and said, “Jacob! Jacob!”

“Here I am,” he replied.

“I am God, the God of your father,” he said. “Do not be afraid to go down to Egypt, for I will make you into a great nation there. I will go down to Egypt with you, and I will surely bring you back again. And Joseph’s own hand will close your eyes.”

GENESIS 46:2-4, NIV

The LORD said to me, “Do not say, ‘I am a youth,’ because everywhere I send you, you shall go, and all that I command you, you shall speak. Do not be afraid of them, for I am with you to deliver you,” declares the LORD.

JEREMIAH 1:7-8, NASB

Mary was greatly troubled at his words and wondered what kind of greeting this might be. But the angel said to her, “Do not be afraid, Mary; you have found favor with God. You will conceive and give birth to a son, and you are to call him Jesus.”

LUKE 1:29-31, NIV

An angel of the Lord suddenly stood before them, and the glory of the Lord shone around them; and they were terribly frightened. But the angel said to them, “Do not be afraid; for behold, I bring you good news of great joy which will be for all the people; for today in the city of David there has been born for you a Savior, who is Christ the Lord.”

LUKE 2:9-11, NASB

The angel said to the women, “Do not be afraid, for I know that you are looking for Jesus, who was crucified. He is not here; he has risen, just as he said. Come and see the place where he lay.”

MATTHEW 28:5-6, NIV

If you’re scared to begin a debt-slaying journey, it means that God is very near. His calling is very real, and He wants to make His presence known to you.

Receive your true name. Realize that God is bigger than your fears and that He is near. Then, name your debt and kill it.

Your Very Personal Battle Plan

Oh, how I wish that merely naming your debt was enough to eliminate it. Oh, how I wish that you could call it what it is, realize what God can do through you, and then be debt-free. But alas, a name alone won’t pay it off. Naming it is not enough to move you from “I owe” to true freedom. To slay your debt dragon, you must have a battle plan. You must calculate your attack. While realizing you have a true enemy will motivate your gut and soul in new ways, there has to be a “next step” in order to move from fantasy to reality.

Early on, I would literally dream about miraculously receiving a check for the exact amount we owed. What fun it would be to tell the story of how God provided for us to the exact penny. It remained a dream that never came true. But God did provide. He provided additional income through long hours and extra jobs. He provided through bonuses, each penny designated toward paying off debt. (At one point midway through our journey, the King of Free calculated how many flat screens we could have purchased using the money we put toward paying off debt. Short answer? An entire football field of TVs.) God tailored His provision for us, spaced out over time so that we could learn the lessons He knew we needed to learn.

DEBT-SLAYING HERO

CHRISTOPHER, 37

PAID OFF $90,000

For years after earning both college and graduate degrees, Christopher made only the minimum payments on his student loans, putting any extra cash he made into investments. As a result, the interest continued to accrue on those loans. In 2008, when the stock market dropped, he realized that most of his hard-earned dollars had vanished while his massive student loan debt had continued to grow. He immediately began to redirect his efforts.

Why slay the debt dragon?

After catching Dave Ramsey’s show on the radio during his daily commute, Christopher’s interest was piqued. With his investments down the tubes and his debt increasing daily, was there actually a way out for him? Hearing of others’ success provided all the motivation he needed to launch his journey.

What surprised him the most?

Christopher was surprised to learn just how devastatingly debt can sabotage the creation of wealth. “Every year I paid out thousands of dollars in interest alone. Since paying off my debt, I have again started investing in the market (albeit a bit more conservatively this time).” After carefully tracking his net worth each year since slaying his debt dragon, Christopher has been shocked at how quickly his net worth has grown now that he’s not paying out so much to interest each year.

Where did he find joy in the journey?

Christopher’s grand total was comprised of student loans and a car. After paying off the car, he started in on the student loans, tackling the smallest first and moving up toward the biggest debt. “I gained a great sense of satisfaction by paying off each balance, and then increasing the amount I paid toward the next biggest balance. Since my loans were split between a few different lenders, I felt like I was making a lot of progress with each new balance being fully paid.”

How did he celebrate?

After a well-deserved steak dinner at a local high-end restaurant, Christopher celebrated by directing what would have been his next student loan payment of $1,300 into his retirement account.

What was most challenging?

Even though the starting balance was $90,000, Christopher dove into the challenge with great gusto. It was a journey that took four years. Ironically, after paying off about two-thirds of his debt, fatigue set in. “Once my balance was down to around $30,000, I had the most difficulty staying focused on repayment.”

His encouragement and advice for you

Having like-minded travelers on your debt-slaying journey is essential. Christopher encourages you to surround yourself with people who have a similar attitude toward debt. “Many of my friends joined me and decided to become debt-free also. Hearing their stories motivated me to continue on my own path. Also, there is less temptation when all of your friends are more concerned with paying off debt than spending money.” Just as vital in Christopher’s journey was setting bite-size goals. After achieving these smaller monthly goals within his greater debt-slaying journey, Christopher would reward himself with a minor splurge —like a lunch or dinner out with friends.

[Insert Debt-Slaying Story 3.1]

For over twenty years, Dave Ramsey has been counseling people on how to get out (or even better, how to stay out) of debt. So it’s little wonder that whenever the word “debt-free” rolls out of my mouth, someone asks whether we followed Dave Ramsey’s plan. (Side note: How ridiculously awesome would it be for your name to be so synonymous with financial freedom that people would immediately see your face whenever someone said “debt-free” in any context?) The short answer is yes, we did follow Dave’s “Baby Step” plan in our approach to paying off debt.[14] As I mentioned before, The Total Money Makeover was the book that launched our journey.

The longer answer is that we were intentional about owning the process and applying our own unique spin to paying off debt. Hence the whole debt dragon thing. If you’re to be successful at slaying the debt dragon, you can’t simply adopt someone else’s plan (even mine) for your finances. You need to sit down and think about what most motivates you. You need to set goals that are uniquely designed for your family. You need to be a leader, not a follower, when it comes to your money. You should definitely read great books filled with wisdom about money. You should definitely listen to people who have been successful in their pursuits to pay off debt. You should definitely spend every single second of free time you have researching ways to reduce your spending and increase your income. What you definitely shouldn’t do is let a good plan remain lifeless. Bring your own gifts, imagination, and grit to it.

Oddly enough, we never took Financial Peace University (FPU), the multiweek course in which Dave breaks down his philosophy and moves participants through a number of set exercises to understand the process. That’s not to knock it —many people have found that it offers the step-by-step guidelines they need. It’s just that once Brian and I began paying off debt, we were too cheap to pay for the course. Instead, we listened to Dave on the radio and podcasts. I used to refer to his radio show as my own personal debtor version of AA. Daily, Dave and I would have “meetings” from 12 to 3 p.m., when our local radio station broadcast the show. In fact, I tuned in so often that my daughters could answer the questions asked by callers because they had heard Dave’s responses to similar questions so many times before. There is nothing funnier than hearing a seven-year-old girl yelling, “No, that would be stupid!” to someone calling to ask whether he should pull a five-figure loan to buy equipment for his business.

As much as we are incredibly grateful for the ways that Dave Ramsey’s words changed the course and quality of our lives, we often joke, “We love Dave Ramsey, but we worship Jesus.” Before you push back immediately (especially if you are Dave Ramsey —please say, yes, you are Dave Ramsey and are reading these words because that would be epic), understand that I am not demeaning someone else’s work at all. There is an age-old temptation to create idols out of those we admire, crediting them with the work that only God can do. God certainly works through humanity, but let’s not focus energy on heaping praise upon people rather than the God who works through people.

Unfortunately, I know some people who have become “Ramsey-heads” and enjoy Dave’s content as mere entertainment, but who refuse to change their financial practices. These people have not been successful in paying off debt. But the people I know who have gone beyond being hearers of the word and have become doers, applying their own gifts and passion to the process, have paid off astronomical amounts. I urge you, like them, to incorporate sound financial principles with your God-given gifts and dreams for your finances. Dave Ramsey did not write a check to pay off all of our debt. He’s not going to write a check like that for you, either. You must move beyond strategies and theories to make your debt-slaying journey your own.

Back in April 2008, Brian and I focused first on the initial baby steps in Ramsey’s plan, beginning with saving $1,000 for an emergency fund —which we were able to do, thanks to a tax refund. We then adjusted our withholdings so we wouldn’t receive tax refunds in the future. It meant a wee bit of sadness the next spring when we didn’t get a refund, but it also meant an extra $100 per month that we could use to take the second baby step and begin paying off our debt.

Now, at first glance, this second baby step doesn’t seem logical because it advises you to pay off your debts from smallest to largest, regardless of interest rate. Almost every time I share the debt snowball philosophy at speaking engagements, someone argues with me about the amount of interest you will end up paying if you eliminate debt in this sequence.

Can I be straight with you? We weren’t so great at math. If we were, we would never have racked up $127K of debt in the first place. You see, personal finance has less to do with numbers than it does with personal behavior and discipline. The reason the debt snowball was so effective for us was that we quickly began to see the results of our efforts. In the past, when we had tried to pay off the highest-interest debt first, we would make minor progress but then become discouraged because we never seemed to make enough headway. It was very easy to give up because we weren’t making any progress, or at least it didn’t “feel” like we were.

Eliminating a small debt quickly allowed us to put that regular payment amount toward the next biggest debt. We had “found” extra money that we didn’t need for the purposes of living to heap upon the next debt in line, giving us more traction, which yielded more success. The momentum and emotions that accompany success are absolutely addictive. We became driven to find more ways to scale back our lifestyle, save money, and bring in extra income because we now knew that dragons could be beaten. We rolled the debt snowball along fairly quickly during the first fifteen months.

Life is full of surprises, which meant that sometimes we had to pause our debt repayment efforts so we could rebuild our emergency fund. I can’t count the number of times that this account was emptied as we were paying off our debt. Whenever we had to pay for some unexpected large expense —a root canal, braces, a new water heater, or car repairs —we dipped into the emergency fund. Our priority then became rebuilding that emergency account, even though it was quite frustrating to have to put less toward paying off debt. We became creative in finding ways to replenish the fund: we dug change out of every corner of our house and car, pawned jewelry, sold books, and put every monetary gift we received (aka birthday money from our parents) toward it.

An Open Letter to My Nemesis

Adapted from two blog posts written by the King of Free in 2008

Early in our debt-slaying journey, the King of Free put the Debt Dragon on notice. He often doesn’t capitalize words (he thinks he is e. e. cummings), and he uses slang, along with odd and obscure pop culture references. You might have to use Google or ask your spouse if they know what he’s talking about. But I think you’ll be amused by his take —and might even get some ideas on how to take on debt yourself.

Dear Debt Dragon:

I no longer just march to the beat of a different drummer. I am the different drummer.

There is a crowd. A movement of people marching to this new beat who are sick of your shenanigans. This beat is a prelude to your demise. A symphony of destruction. I ain’t alone, you slimy lizard. We’re coming for you. One small change at a time. We’re coming for you.

yours truly,

King of Free

Before we knew it, we had only two debts remaining. Granted, they made up about $105K of the $127K and would take years longer than the smaller debts to pay off, but we had gained momentum by paying off the smaller debts, leaving us with a larger sword with which to jab at the dragon.

Start Small: Crazy Comes in Phases

Certainly you have to be a little crazy to successfully pay off debt, but your wackiness must come in phases. Drastic crazy is unsustainable. The intense actions we took in year four, during the final stages of our battle with the debt dragon, would never have flown in year one. In fact, I would more than likely have told you those were changes only bizarre people would make. For instance, during the last six to nine months of our journey, we gave up eating meat to save more money to fuel the final battle. In year one, this certainly would have smacked of wacky to me. I must have gotten much better at wearing my crazy on my sleeve as our journey progressed. Either that or the more we whacked away at the debt dragon, the more I was willing to sacrifice for a greater goal, no matter how off the wall it appeared to the outside world.

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In The 2 Degree Difference, John Trent explains why big solutions rarely solve big problems.[15] Instead, small changes over a long period of time tend to yield a greater result. Whether pursuing a more active lifestyle, a new method of discipline for our children, changes in our finances, or changes in nutrition, we usually fail when we bite off more than we can chew. A 180-degree change will almost always ensure failure, while two-degree changes bring with them success.

For instance, say you are a die-hard Diet Coke drinker, downing four or five giant servings per day. You wake up one morning and declare to the universe, “For as long as I live, nevermore shall I partake in such revelry again. Sayonora, my aspartame-y, bubbly friend. You are no longer welcome here.” My guess is that by the end of the week, you would be sitting in the middle of your living room. At your feet would be a shredded twenty-four-pack that appeared to have been ripped apart by a feral animal. All around you would be dozens of cans, each drained of every drop. You’d have a wild look in your eyes as you rocked back and forth, hair in a matted mess, humming the newest Taylor Swift jingle.

You, sweet Diet Coke–drinking friend, would have made too drastic a change, one that was unsustainable.

In chapters 5 through 8, I share many of the money-saving tips that Brian and I used when we were slaying our debt dragon —and which we continue to follow today even though we’re debt-free. I think you’ll find some helpful ideas to try right away, but I don’t expect you to look at those as your marching orders for tomorrow, or even next week. Our family certainly didn’t make all of these changes overnight. Many of our lifestyle modifications were small in nature and were made gradually, one at a time.

Keep in mind, it took four years of our lives to pay off such an enormous sum. Think about all that can happen in four years. You can earn a high school diploma or gain a medical degree. The small modifications we put into place seemed inconsequential at first glance, but over those days, weeks, months, and years, they truly added up.

Begin thinking of simple, manageable steps to take when it comes to your finances. Keep a small change in place for thirty days —the time estimated to create a habit —and then look for another small change that you can implement. A little bit over a long period of time yields a great reward. A landslide of change usually results in an enormous mess.

Just Do It!

Theories and debt-elimination strategies are certainly required for those who want to be successful in paying off all of their debt. No one gets anywhere without a plan or a road map. However, beware of enveloping yourself in good intentions, looking for the perfect system or the absolute best method of approach. Spoiler: there are more ways than one to pay off all your liabilities. I don’t keep a financial top secret in a vault buried beneath the floorboards of our home. I can attest to the fact that the method we used was successful. If it had remained a strategy in name but not in action, we would still be stretched beyond our limits and a complete wreck —financially, emotionally, and spiritually.

Financial freedom and transformation doesn’t come simply because you long for it. Here’s the thing: Let’s say you have all you need to train to run a marathon —the shoes, a great playlist, a training schedule, even a fancy heart-rate monitor. Yet if you remain on the couch at home eating Ding Dongs, you’re never going to make it out the front door, let alone 26.2 miles down the road.

At some point you have to lace up your shoes and put your feet to the pavement. It’s the same with your debt: you must take action. It will require sacrifice on your part. It will require hard work. The days will feel long. Just as if you were running a race, you might sweat or even cry. Some days, you will feel like giving up. Persist anyway.

If you can get over the little bumps in the road, victory looms in the distance. It may feel unreachable at times, I know, but you can get there. Can I leave you with some inspiration from the Bible?

Do you see what this means —all these pioneers who blazed the way, all these veterans cheering us on? It means we’d better get on with it. Strip down, start running —and never quit! No extra spiritual fat, no parasitic sins. Keep your eyes on Jesus, who both began and finished this race we’re in. Study how he did it. Because he never lost sight of where he was headed —that exhilarating finish in and with God —he could put up with anything along the way: Cross, shame, whatever. And now he’s there, in the place of honor, right alongside God. When you find yourselves flagging in your faith, go over that story again, item by item, that long litany of hostility he plowed through. That will shoot adrenaline into your souls!

HEBREWS 12:1-3 (ITALICS IN THE ORIGINAL)

Can you see why I love the analogy between running and debt slaying so much? Of course, I’m far from the first person to make the comparison. I’m not a professional runner. My times are mediocre, and I’ve never run a marathon before. My training schedules can be on-again, off-again in nature. Yet even when I’ve been the most consistent about running, those first two miles are always the hardest. My lungs burn, my legs feel creaky, and I’m kind of cranky. When you first start your debt-slaying journey, it probably won’t feel good. You might be a little winded and cranky too. But don’t give up, even if you’re sore and convinced you’ll never make it to the finish line.

Looking back over the marathon Brian and I ran to pay off our debt, I can honestly say that every moment of self-doubt, every stinking sacrifice, every time I had to turn down something fun because “we couldn’t afford it” pales in comparison to the sense of freedom I feel today. So never forget: the pain of the first few miles on your race to financial freedom will be worth enduring for the joy you feel on your final sprint to the finish.

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