Not Your Standard Millennial

Millennials are not usually good with money.  Read about this thriving millennial!

Today I have a special guest post from Johnzelle.  Johnzelle stumbled upon my blog as I was just starting up and has been extremely supportive ever since.  He is a great motivator and currently writes about mental health and lifestyle on his blog Perfectly Imperfect.  I appreciate him taking the time to add his perspective to this financial journey we are all on!

Hi everyone. I’m Johnzelle and I write a blog called Perfectly Imperfect, which focuses on mental health and lifestyle. Given that my lifestyle is characterized by minimalism, planning, and logic, I quickly became a fan of Ryan’s Arrest Your Debt blog. Thanks, Ryan for inviting me to write this guest post!

From interacting with my peers, I have gathered that many millennials don’t give much thought to how they spend their money or how that will impact their future. Perhaps a recent tweet will show you what I mean:

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How I’ve gotten my finances on track

Three months ago, I checked out Dave Ramsey’s website; more specifically, a concept called “the debt snowball.” Cliffnotes explanation: You list out your debt from smallest to largest and tackle the smallest stuff first while making minimum payments on the rest. I was excited to try this concept and I developed my own version to become debt-free.

Here are some things that I’ve accomplished over the past three months:

  • Paid off my invisible braces, which I owed over $1,300 on.
  • Paid over $5,800 on my car loan! I only owe about $4,000 more and hope to pay it off by New Year’s or soon thereafter.
  • I’ve also been saving $100/week to start my own business in the spring (Dave Ramsey’s plan doesn’t advise saving up for anything until you’re debt free).

How did I do all of this?

I work about 20 hours a week driving for Lyft and Uber, which is in addition to my full-time job. When I get paid from my side hustles on Wednesdays, I put $100 aside for my future business and the rest goes onto the principal of my car loan. Principal-only payments can really cut down how much you end up paying for your car. When possible, I also take a few hundred out of my main paycheck to pay towards the debt.

Once the car is paid off, I plan to tackle the beast that is my $140,000+ of student loan debt. It has grown about $7,000 in the two years since I got my Master’s degree and consolidated the loans. The plan is to pay down that loan just like I have been doing with my car: with side hustles and with tight budgeting. I also pray that my new business will be a success so that I can phase out the ride-share driving. But that’s neither here-nor-there.

How has taking control of my finances impacted my stress?

I’ve been diagnosed with both generalized anxiety and panic disorder, so I know about stress. Being anxious by nature has made me a person who thrives in controllable environments. Debt often feels like something that is out of our control. In the case of my student loan, the debt is literally growing faster than my minimum payments are paying them down. That’s stressful!

This is where I differ from my coworkers and many other millennials that I’ve interacted with. They all have student loan debt. Many of them even boast about how they don’t make the payments and how they dodge the calls from the collections agencies. I decided that I can’t live my life like that.

When I first consolidated my loans, I resolved to make the minimum payments until the loan ages out after 30 years, which is when they would allegedly “forgive” the remaining balance. NEWS FLASH: The loan servicers don’t tell you that you’re obligated to pay tax on the “forgiven” balance as if it were actual income… So that’s a huge balloon payment. In theory, that’s a pretty good deal when you owe the cost of a small house in student loans like I do, right? WRONG! The balance would continue to grow over the years and by the time the loans were “forgiven,” you’d owe so much tax that it would have cost less to have paid off the loans years sooner. And that’s assuming that the “forgiveness” is still available in 30 years… I don’t trust the government so I definitely don’t trust a loose promise that my debt will vanish after 30 years.

How has managing my finances impacted the direction of my financial life?

With that being said, I’m taking control! I will continue to work hard, to live minimally, and to slay this debt. Through discussing the situation with Ryan, I came up with a new goal to pay the student loans off within 8 years of paying off my car. I’m estimated to be debt free by January of 2027 or sooner.

In the spring, I will earn my counseling license and I will start my own business for outpatient counseling. I’m even considering offering financial life coaching services once I’m established. As my income grows over time, I will pay even more towards the debt. Once I’m debt free, around age 35, I will begin to invest my money and save for retirement. I’m still scared and confused about the stock market, but I’ve got about 8 years to figure it out.

Oh, and did I mention that I plan to make it through this journey without acquiring additional debt? Once my car is paid off, I will put aside $100 weekly to save for my next car. That’ll be a fun day when I’m in need of a new car and I can walk up to the dealership and say, “I want this one, do you accept Apple Pay?”

 Conclusion

Becoming debt free is possible, but it requires hard work, minimalism, patience, determination, and lots of discipline… Traits that many of my peers don’t seem to care much about. I don’t want to work forever and I damn sure don’t want to pay on student loans for 28 more years. Ryan always says, “You work too hard to be this broke” and I agree. So I’ll use my youth to work hard and to make smart decisions so that I can retire someday… with a couple million in my investment accounts that my wife and I can travel the world with and I can sip Long Island iced teas at my leisure.

Sounds a lot better than being consumed by debt my entire life, what do you think?

Thanks again, Ryan for inviting me to do this guest post. Be sure to check out Ryan’s guest post on my blog at Perfectly Imperfect.

Thanks for reading!

Photo by Pixabay on Pexels.com

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Author: Ryan

Hi!  My name is Ryan and I have a passion for personal finance and education.  I am married and have three children, a girl and two boys all under the age of ten.  My wife stays home with the kids so it can be challenging to live off one income.  Much of what I write is based off my personal experiences and what I have learned in the course of my life. My financial journey began when my wife and I saved up a sum of money and I didn't know who I could trust to invest it.  After several interviews with financial advisers, I still didn't feel like I could trust anyone.  That began my journey to educate myself by reading every finance book I could get my hand on and by attending financial seminars.  After getting a good handle on debt, finance, and investments, I decided to start this blog as a resource for others who find it difficult to trust people with their money. I recently started writing this blog about how to get out of debt and start investing to create the future you deserve. I have been in law enforcement for 14 years and I have seen the devastation left behind by people who mismanage their finances.  I started this blog because I want to help as many people I can by educating them on common sense money management. As far as my formal education, I obtained a Bachelor of Science in Education and a Master of Administration Degree from Northern Arizona University.  I am an adjunct professor at a local community college and I have been a student of finance for many years. This blog is dedicated to those looking to eliminate their debt and to mold a new way of thinking, living, and spending. Education, focused on financial stability and wealth, is the main purpose of this blog. This website is a new journey for me and I know there are areas that I could improve.  Please feel free to reach out to me with any critiques - I would love the feedback so I can be as effective as I possibly can and provide the most relevant information.  I look forward to writing for you and learning with you! If you have any questions or comments, I would love to hear from you! -Ryan

7 thoughts on “Not Your Standard Millennial”

  1. Great post! You’re right, about millennials not taking their finances seriously. I graduated with folks who did not have a plan in place for their loans or joked about taking a class for life to keep their loans in deferment and never pay back them back 🙄. I started making payments on my loans while I was in school.
    I also took just the amount for tuition and refused to have a “surplus” which some use for new laptops, phones, or even a car. I am very controlling about my financial and I find comfort in checking my budget every day. Now if i could get my S.O. on the same page lol.

    Liked by 1 person

    1. I’m glad I’m not the only one checking the budget everyday 😀 And I feel ya on getting the S.O. to be on the same page haha! I ran some loan repayment calculators today and was amazed at how much the lenders are getting over on students who take the 20-30 years to pay their loans off. Thanks for reading!

      Liked by 1 person

  2. A really good read! You both inspire me so much. I’ve been watching Dave Ramsey videos here and there and I’ve gotten a few tips already.

    I come from a family that doesn’t handle money well at all, never have. So much debt accumalted, a mixture of multiple disabilties, poor money decisions and a massive one… Lack of communication!

    I wasn’t taught healthy money decisions etc. Even studying Business didn’t necessarily teach me good habits. It’s such an important topic that really needs to be taken seriously starting from young.

    Anyways, from now on i’m going to be binge reading money advice blogs/vlogs to take control of my own successes.

    Keep Saving & Keep Inspiring

    Laura 😊

    Liked by 2 people

    1. Laura you are awesome!! What’s truly amazing is you recognized a weakness and you are going to create a strength out of it! As Dave Ramsey would say, you are changing your family tree all by yourself! I’m proud of you and if you ever need any encouragement, feel free to reach out. You got this!

      Liked by 3 people

    2. Glad you’re back in the blogosphere, Laura! I too come from a family that doesn’t handle money well. I try to do everything the opposite of them but I’m still learning along the way. Once you get going on tackling the finances, it becomes like a game and everyone wins! Except the lenders, they lose when people like us are involved 😀

      Liked by 3 people

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