While this is compelling, I almost want to call BS.... There's just some things that don't add up to me...

• He's got an MBA, yet forgot about interest? Even if he didn't forget, he didn't realize it was front loaded and that once you get over the hump, its mostly principle until the loan is paid off?
• He stopped contributing to his 401K? Again, he's an MBA - and would probably know that the compounded interest over the next, oh, say 35-40 years will be more significant than any interest still on the loan. Plus, since that contribution is pre-tax, his AGI will increase, hence more taxes.
• He didn't say he worked for a landscaper - he started a landscaping business. What's the cost to get into that? Even minimally, I'm guessing a truck or two, a pile of tools, materials and some labor depending on how big you decide to start. The S doesn't do well carrying around patio bricks, does it? I wonder if he's got a business loan and whether he counts that?
• I'm making the assumption that the two roommates are effectively paying the mortgage. I can't imaging its profitable to a significant extent towards the loan.
• We don't know if someone paid for his cars as a gift and he's making a 20K profit, or if he has a 20K loan, and broke even on his car.
• Really - going 8 months instead of 7 was worth missing two friend's weddings?

There are many details in the story that while plausible don't confirm or deny anything.


However, the story is interesting. As mentioned, its about choices and priorities. Do I think the story he told went drastically overboard - YES. Does he care what I think - probably not. The change in lifestyle can happen to anyone. I know many people who need the next big thing, the new car every 3 years and the bigger than necessary house. I also know people who live below their means, can enjoy themselves whenever, can travel and enjoy themselves without worrying about missing a payment for something they don't have or need.


For me personally, I'll be debt free within the year. My 30 year house loan done in 15. I keep my cars around 10 years and only have month to month expenses on my CCs. I know the feeling of being free from the burden and having the opportunity to enjoy whatever it is I want to enjoy, when and where I want to. It is a very good feeling. However, I didn't sacrifice everything to get there, it was a balance. And for everyone, the balance is there's against their priorities. Maybe this guy really did this AND the story is accurate. Only he knows...

 

I don't feel empathetic towards this guy one bit. He is earning almost 6 figures and didn't appear to implement a budget based on his expenditures. Who in the right mind buys a house, 2 cars and a motorcycle after graduation? Guys like him could be making 200K/year and they would still manage to place themselves in debt because they would buy that much more with their income.

The concept of savings has really diminished.

 

WAIT WAIT WAIT WAIT WAIT WAIT WAIT WAIT a fizzzucking second:

1. The MBA grad has an irrational assessment of his finances right after he graduates, and spends like a mad man.
2. Said MBA grad has a rational assessment of the debt he was carrying.
3. MBA grad then has extreme, probably irrational, mitigation elimination strategy

If one were just rational from the outset. . . oh wait, that's boring, and makes for shitty YouTubes.

 

i don't care about this video. but writing that very last payment check of anything you borrowed feels damn good. having that said i am planning on paying off my car loan 1.5 years ahead of schedule. but not selling anything to pay that off. i am just holding off on things i would like to purchase at the moment to pay it off.

 

Having an MBA doesn’t make you immune from consumerism.

The freedom of being debt free is 100% worth the potential investment losses.

I can’t tell you how I look forward to making the last student loan payment to Sallie Mae. I want that bitch out of my life!

 

 

I would have never sold my road bike! I bought mine before I bought my first car (went to college out of state in a major city so I never needed a car), and at $2k it was as expensive as a car. I applaud his efforts and have some extra junk of my own laying around I should sell; but I wouldn't recommend selling things of utility. Tools never go bad and are useful, musical instruments (that you still play), often used recreation equipment- these are worth more in your possession than not.

I guess I am also fortunate not to have any student loan debt. My only debts are my S2k and my mortgage, which is modest and almost halfway offset every month by my roomate. Living almost debt free is great peace of mind, and if worse came to worse I would sell my S and go back to driving my paid-in-cash Tacoma every day. More people should think like this guy- he was aggressive but certainly on the right track.