Today we have Josh from Money Life Wax- a personal finance blog designed for millennials. In 2015 he realized that his financial were in a mess and decided to do something about it, so in February 2016, he put a ring on his girlfriend’s finger and then they decided to get serious about their future.
Together they had over $300k worth of student loan debt so it really took some serious planning for them to start tackling their debt.
[3:2] So, how much debt have you guys paid off to date?
· $40k in student loans before he met his wife
· His wife had $155k from grad school, $20 from Navient account and $97k
· Interest is crazy high so even more than that!
[5:22] What is has been your strategy to tackle the debt? Are you trying to pay off the highest interest rate loans first or tackling loans by value?
· Read the Dave Ramsey with the Debt Snowball
· Uses home equity line of credit to make massive payments
· Ultimately big cash flow strategy focusing on largest amount with the largest interest rate some at 8%
· Has not refinanced due to federal perks
· This is not recommended for everybody as it’s a specific strategy.
[10:20] What are some areas you had to cut back on?
· Deciding to live a different lifestyle- which a lot of people might not want to hear J
· Focus on what’s important, get rid of cable and gym membership
· Stop eating out so much and not take expensive vacations
[14:10] Do you have any strategies for planning a wedding on a budget?
· Decided to put wedding off a bit to try save some money
· Realization that inviting 200 people to get into massive debt isn’t worth it so invited fewer people and identified their true friends.
· Used wedding mix instead of a videographer
· All in all was about a $15k wedding
[17:23] What advice do you have for people who also have a ton of debt or are taking out massive loans for school?
· If you’re going to assume the debt you should pay the debt
· You need to claim responsibility
· Be smart with Colleges and decide if the return on investment is worth it
Value Link Round
[19:58] Why do people struggle to achieve their dreams?
· Distractions that we see every day like so many ads
· There are good and bad distractions
· We live in a world of instant gratification and it’s easy to get distracted
[21:33] Do you have any other books or podcasts you can recommend?
· Greg Cardone – The 10X Rule
· Jeff Olson- The Slight Edge
· Dixie Gillaspie- Just Blow it Up
· Malcolm Grodwell’s Podcast
· The Power of Zero
· Marriage Kids and Money – Andy Hill
[23:54] Do you have a favorite quote?
· Observe the masses and do the obvious
· If nothing changes, nothing changes