Welcome to another one of my Debt Free Community series interviews. This week I am featuring Alice from Australia. I hope you are enjoying this series!
Q: Tell us a bit about yourself
I’m from South Australia, but also from Japan. I am single with an expensive fur baby (a tortie cat named Vala). I have family in Australia and Japan. I am currently working two jobs, studying, and building businesses while also doing some side hustles.
Q: What is your current financial situation?
I mostly follow The Barefoot Investor, but as far as ‘baby steps’ go (Dave Ramsey’s Baby Steps) I am on baby step #3, but I am aiming for 12 months expenses instead of 6 months. When it comes to ‘The Barefoot steps’ I am doing #4 (buy a home) and #6 (emergency to 3 months expenses) at the same time. I am planning to get to #5 (15% to super) when I have my own house.
Q: Where did you start with your debt free journey and where are you today?
I started on new years day 2018. Over a year later I have bought a car (I saved the full amount in about 8 months), gone back home to Japan to visit my family, cleared all my debt and am now saving for my own house (which I never thought I could ever afford). Right now I am learning about investing so that I can build some wealth.
Q: What was your ‘reason’ or turning point for paying off debt?
I had just had a nasty break up, had to move back in with my parents and my father gave me the ‘The Barefoot Investor’ book.
Q: What have you done to help pay your debt?
I read The Barefoot Investor and I just picked up every shift I could. I made a tight budget and bought essentials in bulk to save money. I made spreadsheets to track all my spending and savings, and set up all the automatic transfers. I also changed banks.
Q: Have you had any particular setbacks during this journey? If so, What did you do to overcome these?
I have a bad habit of overworking myself and making myself sick. I have done this a few times in the last two years, but I don’t always learn my lesson. I also have a cat with many medical problems, so that has set me back a bit. I have an emergency fund just for her that is a bit like pet insurance (she doesn’t qualify for most pet insurance anyway) and that has been a godsend because of the lack of interest and the fact that we go to the vet almost monthly.
Q: Where do you see your financial situation in 5 years time?
In a house with my best friend. Getting the mortgage paid off as quickly as we possibly can. Drinking tea and decorating the living room with a jungle theme. Hopefully, the businesses I am currently building will be ticking away and running as smoothly as a business can. I like to imagine myself on the couch with a cup of tea cuddling the cats and reading books while watching the rain outside.
Q: What advice would you give a beginner on their debt free journey?
Remember that comfort and conviction don’t live on the same block and if you come up against a tough choice, make the decision you will regret the least when you are on your deathbed.
Q: Where can we find you online?
Q: Any last words?
There is a way to live a champagne life on a beer budget. You just have to be creative.
If you’d like to be featured in the next post let me know! Comment below or send me a message on my contact page.