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Success Story: Went from $20,000 Debt to $63,000 in Assets

Give me back my five bucks recently posted a story about how they saved for the down payment on their home.

From when I graduated in 2006, up until the present (5 years), I grew my net worth from -$20,000 to +$63,000 (a difference of $83,000). It wasn’t easy. Especially on a modest salary. Since graduating, I’ve made an average of $44,000/year at my full-time job over 5 years and 6 jobs. Not a lot of money, right? So I knew that in order to make my dream of home ownership a reality in Vancouver, I’d have to make some serious cuts to my budget and increase my income significantly.

I ended up putting $25,000 down on my townhouse, $17,000 towards paying off my car loan, and an additional $10,000 saved for closing costs, renovations, and furnishings.

Lesson Learned:
I love the method of thinking that Krystal employs in her story (also love that we share the same name :)). When I purchased my home in 2008, I used a similar method of paying myself first before I bought the home so I could get used to the payments and it worked out very well. Her methods of “building a budget backwards” are an ideal solution to saving money and getting out of debt.

Read the Full Story

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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