3 Inspiring Stories of People Overcoming Debt to Become Millionaires

With the cost of college climbing, housing going through the roof, and the cost of living rising each year, it’s little wonder that roughly 80% of Americans are in debt. What’s more, about 71% of Americans die with debt to their name. That’s a pretty depressing statistic, and can make it seem like debt is something that has to follow you around for the rest of your life.

But that’s not true. Every day, people make the choice to change their lives and get out of debt. And occasionally, those people find a way to turn their lives around completely. Here are 3 inspiring stories of people who not only got out of debt, but became millionaires.

FrugalTrader

In 2006, at the age of 27, a young man who goes by the moniker FrugalTrader decided that he and his wife were going to get out of debt—and then, they were going to become millionaires to boot. At the time he started blogging about his journey, he and his wife had about $186,000 in debt on their home and cars. But, they’d decided the debt had to go.

The car loan was quickly paid off, and by 2010, their house was too. And in 2014 they’d achieved a net worth of a million dollars. How did they manage to go from nearly two grand in debt to a million in assets in just 7 years? Here are the primary factors that FrugalTrader said led to the turnaround:

  1. Smart investing – While he experimented in the stock market, he didn’t go for a “get rich quick” scheme. FrugalTrader looked for companies with consistent, if gradual growth. He says, “I believe in the long-term growth of the market. I ran the numbers myself. If you bought just the S&P 500 index over the entire history of the stock market, you never lost money over any 20- or 30-year period.”
  2. Aggressive saving – Even if it was only $20 a month, he and his wife made a point of putting some money into savings every month. They also actively sought extra income where possible, by picking up extra hours at work or doing jobs on the side for extra cash.
  3. Strict budgeting – They kept spending in check by setting a strict budget and sticking to it. If someone got a raise at work, they didn’t increase their budget. The extra money went towards paying off debt, or into savings, not towards a fancier car or other luxuries.

There were no special tricks or dumb luck involved in this couple’s turnaround; just hard work, consistency, and determination.

Jen Smith

Jen Smith married a construction worker making $8 an hour while she bounced around between minimum-wage jobs. They were in debt, and she decided to make it her mission to turn it around. Jen put in the effort to learn all she could about personal finance, investing, and building wealth. She and her husband followed the financial plan she developed, cut back on expenses, and saved as much as they could.

At the age of 40, Jen sat down to calculate their net worth. She remembers the day clearly: “The morning I calculated our net worth to be north of one million dollars, we were living in a rented apartment, driving a six-year-old car, and wearing used consignment store clothes. At age 40, we were ‘closet’ millionaires.”

For Jen, personal education was a key component of overcoming her debt, and it led to a life of financial freedom for her and her husband. More importantly, she shows us it’s never too late to start.

Sam Ovens

Multi-millionaire Sam Ovens is a one of a growing trend of entrepreneurs under 30 who have made their own fortune. Sam started out on the traditional path of going to college and getting a corporate job. But, he says that path left him, “in debt, uneducated, and soulless.” He decided it was time to try something else. So, with $30,000 in debt, he quit his job, moved into his parents’ garage, and started his own consulting business.

He worked for a year without making a single dollar. But then, he found a formula that worked for his business, and his success was rapid and overwhelming. In a year, he made $100,000. The next year, he made $500,000, and the following year, he was raking in over a million dollars.

With ingenuity, consistency, and a bit of faith, Sam Ovens went from a corporate drudge struggling to pay off student loans, to one of the most successful young people in the world today.

These success stories just go to show that paying off your debt is not only possible—it’s completely within your reach.

 

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3 Inspiring Stories of People Overcoming Debt to Become Millionaires

With the cost of college climbing, housing going through the roof, and the cost of living rising each year, it’s little wonder that roughly 80% of Americans are in debt. What’s more, about 71% of Americans die with debt to their name. That’s a pretty depressing statistic, and can make it seem like debt is something that has to follow you around for the rest of your life.

But that’s not true. Every day, people make the choice to change their lives and get out of debt. And occasionally, those people find a way to turn their lives around completely. Here are 3 inspiring stories of people who not only got out of debt, but became millionaires.

FrugalTrader

In 2006, at the age of 27, a young man who goes by the moniker FrugalTrader decided that he and his wife were going to get out of debt—and then, they were going to become millionaires to boot. At the time he started blogging about his journey, he and his wife had about $186,000 in debt on their home and cars. But, they’d decided the debt had to go.

The car loan was quickly paid off, and by 2010, their house was too. And in 2014 they’d achieved a net worth of a million dollars. How did they manage to go from nearly two grand in debt to a million in assets in just 7 years? Here are the primary factors that FrugalTrader said led to the turnaround:

  1. Smart investing – While he experimented in the stock market, he didn’t go for a “get rich quick” scheme. FrugalTrader looked for companies with consistent, if gradual growth. He says, “I believe in the long-term growth of the market. I ran the numbers myself. If you bought just the S&P 500 index over the entire history of the stock market, you never lost money over any 20- or 30-year period.”
  2. Aggressive saving – Even if it was only $20 a month, he and his wife made a point of putting some money into savings every month. They also actively sought extra income where possible, by picking up extra hours at work or doing jobs on the side for extra cash.
  3. Strict budgeting – They kept spending in check by setting a strict budget and sticking to it. If someone got a raise at work, they didn’t increase their budget. The extra money went towards paying off debt, or into savings, not towards a fancier car or other luxuries.

There were no special tricks or dumb luck involved in this couple’s turnaround; just hard work, consistency, and determination.

Jen Smith

Jen Smith married a construction worker making $8 an hour while she bounced around between minimum-wage jobs. They were in debt, and she decided to make it her mission to turn it around. Jen put in the effort to learn all she could about personal finance, investing, and building wealth. She and her husband followed the financial plan she developed, cut back on expenses, and saved as much as they could.

At the age of 40, Jen sat down to calculate their net worth. She remembers the day clearly: “The morning I calculated our net worth to be north of one million dollars, we were living in a rented apartment, driving a six-year-old car, and wearing used consignment store clothes. At age 40, we were ‘closet’ millionaires.”

For Jen, personal education was a key component of overcoming her debt, and it led to a life of financial freedom for her and her husband. More importantly, she shows us it’s never too late to start.

Sam Ovens

Multi-millionaire Sam Ovens is a one of a growing trend of entrepreneurs under 30 who have made their own fortune. Sam started out on the traditional path of going to college and getting a corporate job. But, he says that path left him, “in debt, uneducated, and soulless.” He decided it was time to try something else. So, with $30,000 in debt, he quit his job, moved into his parents’ garage, and started his own consulting business.

He worked for a year without making a single dollar. But then, he found a formula that worked for his business, and his success was rapid and overwhelming. In a year, he made $100,000. The next year, he made $500,000, and the following year, he was raking in over a million dollars.

With ingenuity, consistency, and a bit of faith, Sam Ovens went from a corporate drudge struggling to pay off student loans, to one of the most successful young people in the world today.

These success stories just go to show that paying off your debt is not only possible—it’s completely within your reach.

 

Enjoy Plunged in Debt?

Pid

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