I'd like to share my experience here in hopes that it inspires others.
I'm 37 years old, single, never married, no children. A programmer recently turned sales guy. Through my 20s, I experienced an ever escalating salary as I moved up through the programming ranks. By the age of 29, I had accumulated about 25k of credit card debt and still have 35k of student loan debt yet to be repaid. At that time I was making around 90k a year.
Through poor financial decisions and instant gratification coupled with no cash cushion for emergencies, I amassed the credit card debt.
The financial crisis of 2008 hit. I found myself vulnerable to unemployment without savings to fall back on. I was laid off during this time but quickly found another job. The experience scared me deeply. I watched the news as people lost their homes, their savings and their way of life.
I wanted to live a way of life that wasn't so financially precarious.
I started by creating a realistic budget of all expenses. I ruthlessly cut any expense that were "optional" (this is a matter of personal circumstances). The first goal I achieved was a 3k cash cushion for emergencies (unforeseen car repairs, illness resulting in a large bill, etc).
The next step was paying on my debt before any discretionary spending. I created a habit and pride in paying a fixed amount out of every paycheck no matter what the circumstances that month. The progress was slow at first. I paid off the smallest credit card balance first to achieve a sense of accomplishment early on. It was a small victory but it helped motivate me to continue.
The largest credit card balance was about 24k. It took a couple of years to pay that thing off. During that time I was still able to go on cheap vacations and enjoy a meal out occasionally. The key to success for me was tracking my progress each payday and remaining steadfast in my commitment to pay the debt down.
The final piece of the puzzle was the student loan debt. Using the new habits of frugality and commitment along with the additional monthly budget that wasn't being used to pay on credit card debt, I was able to pay down about 35k in student loan debt in about 2 years.
I remember making that last payment. That moment wasn't cathartic. No fireworks. No congratulations.
I was utterly shocked by the inevitability of the passage of time. If I had made no plan, taken no action, those four years would have passed and I would likely be in the same position today that I was in when I started the debt reduction journey. It was truly frightening to think I could have done nothing and achieved nothing for those four years.
Today, I've nearly doubled my income since that time by moving into sales with the same employer. The work-from-home lifestyle suits me well. No commute, no expenses related to commuting. Healthy lunches cooked in my own kitchen. The benefits are many. Without this debt reduction experience, I would likely be wasting all the income I'm making now. I've learned how to save, invest and take a more critical eye to spending.
A little about how I live day-to-day (the original impetus for writing this comment).
I live in an old apartment building in a trendy part of Dallas, TX. The studio unit I occupy is less than 400 square feet. I found an existing tiny house in the middle of a city! Over the years, I've gotten rid of many personal possession that I simply no longer need or use. That experience has been freeing and results in less stress. My rent is 500 dollars a month. The single family homes around me on the same block are 400k+ for an original 2 bedroom, 1 bath bungalow. The new, larger homes are 800k+ for 4 bedrooms, 5 baths. My neighbors pay more in property taxes than I pay yearly in rent. That doesn't include home owners insurance, lawn maintenance, home repairs, and all the other hidden expenses in owning a home.
IKEA has been instrumental in getting the most out of such a small space. Decorating and innovating around this has been a fun experience. I have pictures if you're interested in seeing how it all comes together.
I've not sacrificed the wonderful, walkable neighborhood in which I live to make this change. I did have to look hard to find a rental this small, cheap, clean and safe.
I drive a 2003 Honda with 160k miles on it. It's long since paid off. Luckily, I'm getting past the age where I have the urge to buy a stupid, expensive car to boost my ego and my status. Working from home has reduced the miles I'm putting on the car which will hopefully extend it's useful life and value.
Mr. Money Mustache was a huge influence on me during this time. I grew to believe it was possible for me to extract myself from the debt trap I'd built.
My cash cushion has been extended to 24 months of expenses. This doesn't include any unemployment benefits for which I might be eligible. I max out my 401k contribution at 18.5k a year. I max out my IRA contribution, too. The rest of the free cashflow either goes into my brokerage accounts or to replenish my cash cushion if it's utilized at all.
I sleep more soundly at night. The perception of risk moving from programming to sales was lowered because I no longer live paycheck-to-paycheck. I have a clear path to a nice retirement nest egg and adventures abroad in the future.
If you want help in making a plan or even someone to simply listen, I'm game.