Living Below My Means: My Journey to Paying Off Student Loans & Becoming Debt-Free with Dave Ramsey

When I graduated from college eight years ago, I walked across that stage with a degree in one hand and $68,000 in student loan debt hanging over my head. After college, I was slow to start paying off my debt. I habitually kept a credit card balance and just barely made my minimum payments in time. I wasn’t good at managing my finances and always avoided looking at my bank account, never really knowing how much money I had in my account before getting gas, going out with friends or buying something I surely didn’t need. That feeling when your card was declined is so embarrassing…

The Wake-Up Call

I was making good money after college, I could afford everything I wanted. I traveled, went out to restaurants and bars, bought way too much clothes but yet I was always looking forward to the next paycheck. Meanwhile my debt level always seemed to remain the same—don’t forget those monthly interest charges on my credit card balance. It was clear that I wasn’t lowering my debt fast enough.

It took about 1.5 years after I finished college to realize that I needed to make a change. At that point, I had just gotten married, faced many large expenses, and maxed out my credit card.

Determined to get my finances in order, I found my parents’ copy of Dave Ramsey’s The Total Money Makeover tucked on their bookshelf. I devoured the book in no time, taking notes along the way to make sure I prioritize each step. Ramsey’s straightforward (and sometimes harsh) advice hit me hard: Debt is a thief. If I wanted financial freedom, I had to stop treating debt like a pet and start treating it like the enemy.

Living Below My Means: My Journey to Crushing Student Loan Debt with Dave Ramsey’s Approach

The Baby Steps: My Debt-Free Game Plan

Dave Ramsey’s plan is built on seven “Baby Steps,” but for me, the first two were the most life-changing. They gave me a clear, actionable path to follow.

1. Save $1,000 for a Starter Emergency Fund

I was slow to saving for the emergency fund, I was never much of a saver in my life so this was tough. I had been living paycheck to paycheck (thanks to all my unnecessary spending), so saving even $100 in a dedicated account felt like a win. It took several paychecks to get to this point just because of the mindset change that I needed to go through. But after a few months, I was able to put $1,000 aside.

2. Attack Debt with the Debt Snowball

The debt snowball method was a game-changer for me. Ramsey’s approach says to list all your debts from smallest to largest, regardless of interest rates, and attack the smallest one with everything you’ve got while making minimum payments on the rest. Once the smallest debt is paid off, you roll that payment into the next debt, and so on.

I made a small modification to this approach by prioritizing my credit card debt first—I just couldn’t bear the 20% interest rate.

I started the debt snowball process with about a $5000 credit card balance, which took months to pay off considering my student loan payments and other expenses. But seeing the debt dwindle down was addictive and gave me the motivation to keep going. I tackled each of my student loans, one by one. Below is the table I created each month to track the balance of each debt. I was so excited to see how much the total debt decreased over time.

Thankfully my husband supported me throughout, covering most of our other expenses so I could contribute sometimes as much as $3,500 a month to pay down my loans.

Living Below My Means: The Real Secret Weapon

Let me tell you, living below your means isn’t glamorous. We lived in a tiny, dated one bedroom apartment, drove my in-law’s old Ford Focus for years, cooked dinner at home, brought meals to work, skipped fancy vacations, shopped secondhand, and found joy in free activities like hiking. I even picked up new low-cost hobbies at home like sewing and creating wall art.

At first, simplifying so much was difficult. But over time, I realized I was building something bigger—freedom. Every dollar I didn’t spend was another dollar I could throw at my debt. I reminded myself: This is temporary. Debt freedom is forever. I became addicted to saving money and was proud of myself each day that I came home without having spent a dollar.

Lessons Learned Along the Way

1. Contentment > Comparison

Saying no to a lot of “wants” meant learning how to be content with what I had. I stopped comparing myself to friends or acquaintances who seemed to have it all and focused on my own progress. It was hard, but it was absolutely worth it.

2. Celebrate Small Wins

Paying off each debt felt like a victory. I celebrated small milestones with simple treats—a homemade latte, a trip to the park, or a movie night with friends. These moments kept me motivated.

3. Have a Vision

I created a list of goals which I could look forward to and work toward in my debt-free life. Whenever I felt discouraged about how much debt I still had to pay off, I looked at my goal list and reminded myself why I was doing this—for a future of freedom.

Freedom Feels Amazing

Only two years after reading Dave Ramsey’s book and starting my debt snowball, I reduced my debt to zero! I can’t put into words the feeling of logging into my account and seeing that $0 balance. For the first time in my adult life, my paycheck is mine. Since then, I moved on to Baby Step 3—building a fully funded emergency fund—and dreaming about the future with excitement instead of dread. As much as I think the price for college in the U.S. is outrageous, I am grateful for the wonderful education I received. I am also grateful for the experience of prioritizing and paying off my debt, which taught me the importance of personal finance. To this day, I am still debt-free!

You Can Do It, Too

If you’re drowning in student loans (or any debt), I want you to know it’s possible to dig your way out. It takes discipline, sacrifice, and patience, but the freedom on the other side is worth every struggle. Start small, take one step at a time, and don’t give up.

As Dave Ramsey says, “Live like no one else, so later you can live like no one else.” I promise—it’s worth it.

I hope that you found this post encouraging and helpful. Let me know your story and if you are on or have been down this path!