My student loan pay off journey during Covid-19

I graduated in 2016 with an MBA from a top tier business school, and USD72,000 in debt. My undergraduate degree is in Accounting. Part of my thinking was that as a qualified Accountant I was great with money, but in reality I was counting every dollar each day, creating fictitious credits in my mind which I could somehow offset to cover off an expense the next time I made a purchase. In 2019, I went through a challenging 7 month career and life transition, I found myself using my credit card to pay off my loans, and asking family to cover the minimum payment because I had no emergency fund. That experience made me feel vulnerable, I felt I lost my confidence, and I became highly aware that I had a poor financial muscle. The career transition came through 7 months later, and I repaid family who were gracious to still love me regardless of my negative net worth, but I have since vowed to educate, inform and inspire others to create a path to wealth, regardless of background. Covid-19 has been a turning point in executing this thought, and I share some key lessons I am learning as I pay off my loan #gazelleintensity.

Lesson 1 — Acceptance

I remember feeling scared to confront myself in the mirror. Being a certified Accountant and an MBA, I felt ashamed to admit that I was in poor financial state. Had I accepted this reality sooner, I might have taken action to resolve my financial state. Reflecting on this now, I realise that there is no shame in acknowledging that I am weak in areas I feel I ought to master. I now try to challenge my own perspectives and be as brutally honest with myself as I should. I often ask myself in silent musings, what is the other way to look at this scenario besides what I currently think.

Lesson 2 — Radical action

I started binge watching all personal finance vlogs on YouTube (the Dave Ramsey show, Suze Orman, etc), and one of the many quotes that really stuck with me was to not keep my student loans like a pet. Dave Ramsey is infamous for the beans and rice, rice and beans diet, which I’ve done for the past 6 months. I’ve now become so determined to pay off my loans with no excuses, such as ‘I don’t have the time’, or, ‘we’re in a global pandemic so this can wait’. Having gone through a challenging transition and reality check pre Covid-19, this has been a much needed lesson to be better, put in the work and share with others to make better decisions.

Lesson 3 — Gratitude

The journey to pay off debt is extremely humbling and revealing of oneself . Ultimately, I am grateful that I went through the challenging transition which has made me appreciate loved ones, my role, and life even more. Remembering to give thanks daily for new opportunities to be better is priceless. My hope is that we come out of Covid-19 in a better space financially, and holistically.

Currently reading:

Total Money Makeover — Dave Ramsey