Jeff Mitch on Blasting Away Student Debt
Jeff Mitch was a man on a mission — to blast away ALL of his student loan debt in record time. Jeff paid off a significant amount — nearly $50,000 — worth of student loan debt from Duquesne University in just under two years!
Jeff used Google Sheets in the Google Drive app to create a monthly expense tracking mechanism. Through this, Jeff and his wife used this method to track how much they’ve spent, AND to keep their spending at a certain level.
“Why is the guy who runs 10 miles a day skinny? Because he runs every day.” Same is true for someone that tracks what they’re spending and is conscious about blasting away debt. Jeff shares his methods for blasting away his debt around the 9:00 mark.
The numbers Jeff shares on this podcast are phenomenal. He and his wife put nearly $30,000 a year towards student debt, and are now focused on the future of what an extra $30k can do for them. The first step, according to Jeff is maxing out all of the tax advantaged accounts, then turn their attention to a rental real estate business. (12:00)
Around the 14:00 mark, Jeff begins to ask the questions that many millennials are asking themselves: Is this is? Is this what I have to look forward to until I’m 65? What do I really want my life to be about?
Jeff’s advice to recent graduates (and not so recent graduates) about paying off debt (20:00):
- If it’s truly something you want to do, ask yourself when you’re about to go out to eat, buy the new toy or piece of clothing, or seeing a movie: Do I really need it? Will it help me tomorrow?
- And, are you willing to delay gratification in order to do exactly what you want to do in the somewhat near future?
What sold Jeff’s wife on his debt elimination plan was that his plan was that money would never be an issue in their life/marriage. (22:00)
Build A Bigger Life Ratio — at what point can my passive income cover my annual expenses?
Books recommended by Jeff:
The Millionaire Next Door by Stanley and Danko
Rich Dad Poor Dad by Robert Kiyosaki
Winning The Money Game by Adam Carroll and Chad Carden
Mentioned on the show:
Smart Couples Finish Rich by David Bach