A $13,000 Turn-Around in 16 Months

Kristen, hailing from Medford Massachusetts, basically went into “enough is enough” mode, going from just over $6,000 in credit card debt to being completely debt free. Nine months after that and she’s managed to shovel nearly $7,000 into her savings account. That, my friends, is a $13,000 turnaround in 16 months. What follows is her story of then…and now.

How long have you been using YNAB?

16 months.

Describe your financial situation prior to YNAB.

I had nearly $7,000 in debt, of which more than half was credit card debt. The rest of it was lingering student loans for my degree which I had earned nearly 10 years prior.

I didn’t feel good about my financial situation, but wasn’t sure how to change it. I had been plugging along for so long that I didn’t even know where to begin. I didn’t know anything about money, except that I made it and spent it.

Was there one particular moment where you decided to do something differently?

I had driven down to Providence, RI (55 miles away) Labor Day weekend for dinner and shopping with a friend. On the way down, my car began to act funny. We pulled over, checked the fluids, and noticed the transmission fluid was bone-dry. We added some and continued on.

Walking back to the car after dinner, we found a puddle of transmission fluid. I ended up paying $17 for a train ticket, $30 for overnight parking, $250 for towing, and $300 for the repair work.

My little jaunt to Providence–not including dinner–cost me nearly $600 (and dinner wasn’t that good). I came up with the money, but it was a serious struggle and I knew it would leave me juggling bills for the foreseeable future.

There were a lot of tears, lots of frustration and venting, as if it were someone’s fault other than mine, and cursing at my “bad luck” (as if cars don’t break down all the time). I came to the realization that I could indeed control my situation, but to do that, changes would have to happen.

Why did you decide YNAB could help you make the changes happen?

The methodology was the biggest sell. So much of it was common sense, and yet, it never would have occurred to me to look at my money that way. The approach was, in a word, brilliant.

Describe your financial situation one or two months into using YNAB.

In the first couple of months, I was very positive about making the change. I cut back on all the unnecessary crap in my life so that I could make as many debt payments as possible. I was on a mission and I wanted it gone.

I began to truly come to terms with the difference between things that I wanted and things that I needed. I had always used the term, “I need…” interchangeably with the reality of “I want…” I went all the way to September of 2007 without making a single impulse buy. When I did, it was a $15 lamp…a ridiculous lamp, with sandaled feet and a blue cobra skin lampshade!

Describe your financial situation 16 months into using YNAB.

16 months after starting YNAB, I am DEBT FREE (have been since the 7 month mark). I have no credit cards and I currently have just shy of $7,000 in the bank. I have NEVER in my life saved that kind of money. My views on money have changed dramatically. I now have an emergency fund, but my definition of “emergency” has also changed dramatically. I plan for life’s little mishaps, knowing that they will hit eventually.

I do sometimes still stress about money. But then I look back and realize how far I’ve come, and recognize that the situation, even when tight, is in my control now. Overall, I couldn’t be happier. I feel like such a weight has been lifted off of me. To not have to worry about timing bills and juggling day-to-day finances just to get through the month is an amazing feeling.

Have these financial positives had an impact in other areas of your life?

I think not living so close to that edge has made a huge difference on my life. Not having to worry about money allows me to spend that time worrying about other things! No, seriously, I have made so many changes in my life in recent history, I’ve started eating healthier and exercising, I’m giving more to charity, and I’ve learned to “roll with the punches” in most other areas of my life…making one positive change snowballed into others.

Is there anything else you’d like to share?

YNAB is something I believe could change so many people’s lives if they would embrace the change, but so many aren’t ready, and until they are, I could talk about it until I’m blue in the face, and it won’t mean a thing.