Individual: Sarah, 32-year-old teacher
Challenge: $25,000 in debt (credit cards, student loans, car loan) and a scarcity mindset
Goal: Become debt-free within 3 years while building an emergency fund
Strategy
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Adopt the Debt Snowball – Listed debts in order: $1,500 credit card, $5,000 car loan, $18,500 student loan. Targeted the smallest balance first.
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Reframe Mindset – Replaced “I’ll never get out of debt” with “Each payment brings me closer to freedom.”
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Cut Expenses – Reduced dining out and subscriptions, freeing $300/month.
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Build Extra Income – Tutored online, adding $500/month to debt repayment.
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Track Progress – Used YNAB to manage payments and celebrated milestones.
Results
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Debt-Free Timeline: Credit card in 5 months, car loan in 12 months, student loan in 30 months
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Savings Growth: Built a $3,000 emergency fund while paying debts
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Mindset Shift: Gained confidence to start investing in ETFs (VTI)
Key Takeaway: Combining mindset shifts, expense cuts, and extra income with the debt snowball method accelerates financial freedom.
