Steven Donovan graduated from high school and went to college—because that’s what you do. He graduated from college but got cold feet when it came time to get a “real job.” So, he bounced around random jobs with no plan and no focus.
Despite his degree in finance and about $60,000 in student loan and credit card debt, he returned to the golf course that he’d been working at throughout high school and college. He also regularly played poker at a local casino, all while deferring and avoiding making any payments on his debt.
Eventually he got his first “big boy job” at a bank; however, he still wasn’t making much headway on his debt. In fact, he just kept adding to it. He ended up buying a Mercedes, quitting his job, and moving to Florida to be near his long-distance girlfriend.
But Florida didn’t work out, so he moved back home. He went back to the golf course until he found another job at a bank, moved into the city, and sold the Mercedes—at a loss, of course.
Once he got married, he began to tackle his debt. Slowly at first, bringing lunch one day a week, then two, and eliminating takeout coffee. He started “frugaling” his way out of debt, adopting a rock bottom budget in order to finally rid himself of the burden.
Steven paid off his debt in five years, in fact, while house hacking a Chicago triplex and renting his wife’s house in Florida.
They’re now debt-free, and they achieved it in a completely repeatable way, which is what makes this episode so great!
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In This Episode We Cover:
- Steven’s money journey
- How he managed his personal money and student loan
- What his college lifestyle was like
- The evolution of his financial position between graduation and employment
- His experience purchasing things from Nike outlets and selling them on eBay
- The moment he figured out his goals
- How he purchased his Mercedes Benz and what happened after he purchased it
- His financial and job situation going into marriage
- The reason he and his wife have separate bank accounts and paid their own debts separately
- The importance of having a frugal mindset and a plan for everything
- How he got into house hacking
- Exactly how he paid off his debts
- How he started investing and building assets
- Biggest reasons people worked with him
- How important an unbiased third party is
- And SO much more!
Links from the Show
- BiggerPockets Money
- Mr. Money Mustache
- Early Retirement Extreme
- Mad Fientist
- Waffles On Wednesday
- Make Your Own Free Mobile Expense Tracking App in 30 Minutes – Waffles On Wednesday
Books Mentioned in this Show
- Set For Life by Scott Trench
- Millionaire Next Door by Thomas J. Stanley
- The Richest Man in Babylon by George Samuel Clason