A Layoff That Shifted Everything

In August 2024, I was part of a layoff and was now exploring new opportunities. While the news was difficult at first, it ultimately became a turning point. The unexpected time off gave me space to take a deeper look at our finances, reorganize our strategy, and move more aggressively toward becoming debt-free.

We had originally planned to be debt-free by January 2025, but after reassessing everything and taking advantage of the time I had, we decided to pay everything off early. By November 2024, we had officially paid off all of our debt.

My partner and I accomplished something we once only dreamed of: becoming completely debt-free. It didn’t happen because of a sudden windfall or overnight success. It was the result of careful planning, consistent budgeting, honest conversations, and yes, some privilege. Most of all, it was the product of teamwork.

This is how we did it.

Starting With Intention: Living Within Our Means

Back in 2019, when my partner and I were making plans to move out of our parents’ homes and live on our own, we made a promise to live within our means. That commitment was the foundation of our financial journey. We weren’t just looking for independence; we wanted stability.

I created a simple spreadsheet using Google Sheets to track our income, savings, and expenses. We still use that same spreadsheet today. It includes formulas for gross and net income, a section for savings and 401(k) contributions (because paying yourself first is key), and projections for monthly expenses like rent, utilities, and groceries. We also added a section to calculate our debt-to-income ratio, which helped us get a realistic view of our ability to manage and eventually eliminate our debt.

Budgeting with the 50/30/20 Rule

From the beginning, I followed the 50/30/20 rule to guide our budget. This guideline recommends allocating:

• 50% of after-tax income to needs
• 30% to wants
• 20% to savings and debt repayment

This structure gave us a balanced approach to managing our money without feeling deprived. We were disciplined, but we still allowed room for things that brought us joy. And we always made sure to prioritize saving by contributing to our 401(k) and emergency fund consistently.

Our Debt Reality

Even with solid budgeting habits, we still accumulated over $70,000 in debt during our twenties. That included:

• Student loans
• Hospital bills
• Car loans
• Over $20,000 in credit card debt

Like many people in their twenties, we occasionally leaned on credit cards when things got tight or when unexpected expenses came up. It wasn’t ideal, but it was our reality, and we committed to changing it.

How We Paid It Off: The Snowball Method

To tackle our credit card debt, we used the snowball method. This strategy focuses on paying off your smallest debts first while continuing to make minimum payments on larger ones. Each time we eliminated a smaller balance, it gave us the momentum and motivation to keep going. As we paid off more, we freed up more money to put toward the next balance. It wasn’t necessarily the most efficient method in terms of interest, but it worked because it kept us motivated and focused.

Recognizing Privilege

It’s important for us to acknowledge the privileges that helped us along the way. Our parents were able to support us in ways that many families cannot. Thanks to the GI Bill, most of our college education was paid for, which meant we didn’t start our adult lives burdened with massive student loan debt.

I also want to give a standing ovation to my husband.

I have an incredible partner with a stable job who is equally committed to our financial goals. We regularly have honest conversations about money and hold monthly (sometimes weekly) check-ins to go over our budget and future financial goals. There’s no judgment, just shared accountability and support.

Teamwork truly made this dream work.

Where We Are Today

Today, we are proud to say we’re practically debt-free. The only balances we carry are on our credit cards, which we pay off in full every month.

Over time, we’ve tailored our credit card usage to be more strategic. We use a select few cards for everyday expenses and travel, choosing each one based on the types of purchases we’re making so we can maximize the points and rewards we earn. For example, we might use one card for groceries and gas, and another for flights or hotel stays, depending on which offers the best return for each category.

This approach allows us to benefit from credit card perks, like cashback, travel rewards, and points for future purchases, rather than just using them as a tool for borrowing. It’s our way of getting more value from our spending while staying in control of our finances.

The goal isn’t just to avoid debt; it’s to use the system wisely so we’re working smarter, not harder.

Final Thoughts: Progress Takes Patience

Getting out of debt didn’t happen overnight. It took years of discipline, transparency, and sacrifice. There were hard moments, but we kept reminding ourselves that we were building something bigger than just a zero balance. We were building freedom, stability, and peace of mind.

If you’re working toward becoming debt-free, remember that progress doesn’t have to be perfect. Stay consistent, stay honest, and don’t be afraid to adjust your plan as life happens. The path might not be linear, but every step forward counts.

You don’t need to have it all figured out. You just need to keep going.

I know how overwhelming it can feel, but I also know how powerful it is to have someone to talk to, bounce ideas off of, or just remind you that you’re not alone. Whether you have questions about budgeting, paying off credit cards, or staying motivated, feel free to reach out. I’m always happy to share more about what worked for us and offer insight or encouragement along the way.

📩 Message me on Instagram: @tangelinab

Let’s build a community where financial freedom feels possible!