At the age of 30, Derek Sall had paid over $ 100,000 debt value.
Sall, who recounts his financial journey on his blog Life and my finances, first realized he had to take his debt seriously when he and his wife at the time realized they were starting their post-graduate life underwater. They decided to get out of debt as quickly as possible and paid off $ 20,000 in 14 months.
When the couple divorced a few years later, Sall got into debt again. Because he wanted to keep the house, he owed his ex $ 21,000, plus the remaining $ 60,000 on the mortgage. Once again, Sall got attached and paid for it all in a few years. He became debt free just before his 30th birthday.
His ability to repay his debt was not made possible by a high-level job or a windfall. Rather, he focused on earning so much, and spend as little, to the extent possible.
In addition to working full time as a financial analyst, Sall also honed his personal finance knowledge with the help of a few helpful books. Here are his two best.
“Richest man in Babylon“by George Samuel Clason
Originally published in 1926, this volume has become a personal finance classic. In it, Clason discloses financial wisdom through a series of parables set in ancient Babylon.
It was one of the first books Sall chose, and it had a significant impact on him. “It makes you realize that if you live on only 80% or 90% of your income and save 10-20% and invest it, what a difference it can make,” says Sall.
It also serves as an easy-to-follow roadmap for the home investor. “It walks you through saving, investing in what you know, and those more guaranteed returns,” says Sall.
“The Total Money Makeover: A Proven Plan For Financial Health“by Dave Ramsey
In this book, Ramsey teaches readers the basics of personal finance, from paying down debt to building an emergency fund, providing “the simplest, most straightforward game plan to completely changing your financial habits. “, as Amazon describes it.
“[This] it’s good to take you step by step, ”says Sall. “Some people really dwell on the details of ‘What should I do first and what should I do next, and what about this circumstance that I’ I’m in. ‘ And he does a great job of guiding people through what he calls ‘baby steps’. “
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