A year ago this month, I paid off the last of my student loan.
Since then, my net worth has more than doubled, now at 85% of my income. More than the positive influence on my net worth, being debt free has provided a degree of flexibility and freedom that I didn’t have before.
For example, I flew back to North Carolina earlier this month. This is a trip that I’ve wanted to do for over a year, but I couldn’t justify slowing down my debt payoff to save for it. Now debt free, I can enjoy such trips without guilt.
Another benefit I see to being debt free is that interest is now my friend. As I was filing my taxes for 2015, I realized that this was the last year I plan on reporting paying more interest than I have received. (Well, at least until I get a mortgage. But I revel in being fully debt free for now.)
While I still practice a tight budget, I much prefer to see the balance of my saving accounts going up to the balance on my student loans going down. I can easily imagine each of those dollars playing their part in buying my dream urban homestead.
I’m anxious to take the next step in my financial plan: buying my house, but I know that I will best be served by preparing first. If I do, I should be able to be permanently debt free in less than a decade after I make that large purchase.