There’s nothing more uplifting that a personal journey that ends it triumph. We’ve all had times of uncertainty; the feeling that the world was coming down on us. As a Soldier of Finance, you have to lift your head up and press on. Debt Kid did just that. Here’s his story of how after day-trading away a quarter million dollars began digging his way out of debt in 2007. Introducing Debt Kid…..
In 2007 I was broke.
And I mean, really, really broke. I had day-traded away over a quarter million dollars, was living in my office and showering at a local gym after I had lost my home.
Not exactly living the dream.
Fast forward to today, and I’ve paid down most of my debt (under six figures now), recently got married, and have a nice place to live and a shower that I don’t have to share with the creepy old guy at the gym every morning. Life is good.
But I can’t help but reflect, daily, on the lessons I learned that year.
While living in my office I slept on a camping pad on the floor. The first week was like summer camp, “I can do this forever!” I thought naively. Pretty soon it started to wear on me.
Once I got an apartment I got a cheap mattress off Craigslist. It was incredible. After weeks on the floor, $35 got me sanity. Really, that $35 mattress, that today you probably couldn’t pay me to sleep on, was a saving grace for my mental health.
Lesson 1: Never underestimate the power of a good nights sleep.
One of the biggest struggles I had when I was flat broke was buying food. Every trip to the grocery store was like a trip to the dentist. I knew that the more groceries I bought, the less I would spend eating crappy fast food, and the better I off I would be.
Yet every little decision about major brand vs. store brand took me at least 5 minutes. I would think,
“I don’t really need real food, I know I have some more boxed mac & cheese at home, I’ll just eat that again”.
To this day, I still struggle with spending money on quality food. My wife thankfully has taken over the grocery shopping, and I’ve never been healthier.
Lesson 2: Don’t buy unhealthy food just to save money, it’s just not worth it in the long run.
I’ve been self-employed in the software industry for almost 5 years now, but business wasn’t so great a few years ago. After filing for bankruptcy, I had alleviated some of my debt stress, but my income still wasn’t that great.
And then I got a part-time job. It was only 20-hours a week, but I started helping Lending Club with various tasks. It was hard work, but it was the first payroll check with a comma in it (4 figures!) that I had ever received on a steady basis. And it was a reliable force in my life when most everything else was any but steady.
Lesson 3: A steady income source can sooth anxiety
After living in my office I was able to save up enough (with a two-week $1,000 loan from my brother) to get a small apartment.
I felt like frickin’ Bill Gates.
I had a stove (no more cooking in the hotpot!), a bathroom (peace out creepy old naked man at the gym!), and a refrigerator (no more buying soy-milk!).
I remember laying down on the carpet, no furniture around anywhere and just looking at the ceiling and feeling the biggest sense of peace I had felt in months.
Lesson 4: Even small things can make you feel rich. It’s all relative.
The last thing I wanted to do when I was dirt poor was get too down on myself. Sure, I didn’t have a real place to live. But at least I wasn’t sleeping outdoors. A heated office floor was much better than chilly Seattle nights.
So I decided to volunteer at a homeless outreach program downtown.
It helped me keep my own problems in perspective. I volunteered for over a year there, and every week no matter how crappy my day was going, I was reminded that I had a roof over my head, and people that loved me.
Lesson 5: When you’re dirt poor…always count your other blessings
Being broke sucks. And there are times I wish I hadn’t screwed up so royally to put myself where I did. But I learned a lot during that dark time in my life. A lot about myself, about what’s really important to me, and I instilled some frugal habits that will stay with me the rest of my life.
Did you learn any lessons during a broke time in your life? How did it change your outlook on your life today?
You can learn more about Debt Kid and his journey of getting out of debt at his site www.debtkid.com
photo credit: Adrian Miles ©
My name is Jeff Rose and in my life I've trained with the U.S. Army to be an Infantry soldier. In my professional career I've trained to be a financial planner. The recent financial catastrophe brings to light how so many people have become victims of their poor
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Wow Debt Kid, you really did hit financial rock bottom. I’ve been in a similar situation (not with a quarter of a mil) so I understand how good having that mattress helped. Congrats on your journey to debt freedom and sanity – I believe it’s the hardest struggle to climb out of – digging yourself out of debt.
And Jeff, wonderful job with this site. I look forward to reading more great stuff like this!
Awesome story. Your honesty here is an inspiring story.
I’m in a similar situation right now.
I’m living in a office about the size of a two car garage that is split into a front and back room. My fiance and out 3 children live with her grandmother in her apartment.
I’ve lived in Michigan for the last 5 years where no job has lasted more than a year. The option of unemployment is about to evaporate in a few weeks while I try to generate income as a graphic designer and learn more about front end web development.
I spend most of the day with my better half and the kids but come back here after the kids are in bed so I can study/work. It’s not the best situation ever, but I know it’s temporary…somehow. I’ve been reintroduced to design and development again after spending 3 years staring at InDesign working in page layout for a local newspaper that went under a few months ago.
I’m relearning things all over again, developing something worthy of a portfolio, and expanding my knowledge as I go. It may not be as good as formal study at a university, but I feel like I’m starting fresh. Somehow it feels like I’m doing the right thing, just not in the ideal atmosphere.
I’m hoping it can only get better. I’m hoping that I can some day but a business name above the front door. Here’s to doing it the hard way!