Hello More Income, Bye Bye Debt

This article is by Adam from Money Relationship. He recently had to dip into his emergency fund.

When getting out of debt, there are two things that you can do: increase your income or decrease your expenses. Well, I will be doing both come April.

If you remember back a few posts, I mentioned that my wife and I live in different states during the week. In that post, I also mentioned that I had applied for two positions, one in Baltimore and the other in Washington DC. Well, I got the call yesterday that they want to hire me in Washington. This is big news for us both emotionally and financially.

In terms of our finances, this new job will increase our income by approximately $4,000. I will be doing the same job but since I will now work in Washington, I get a cost-of-living pay increase. Another great thing about the new job is that we will no longer have to pay rent in Pennsylvania. The new job will help us cut our expenses by $4,800!

Since we have been living on less than we make, ALL of these new earnings and savings will be put towards debt. That is an $8,800 new shovel! It will feel great knowing that we will be able to pay things off almost twice as fast.

Oh, remember when I told you why I wasn’t going to sell my car? I’ve been thinking and I may be willing to sell my car when I start this new job. I will be taking the train to work everyday because we live right next to the station. I was thinking that it may be beneficial to buy a cheaper car (with cash) and just drive that the mile to the train station. It will free up an additional $200 a month for debt repayment and eliminate the car debt all together. Not to mention the savings on insurance!

Well, I know there wasn’t any tips in this article, but I thought it would be nice to share with you our financial outlook for the coming months. I think it will make things a lot less stressful in our house and hopefully you will see some larger payoffs at the end of the month!

Have a great weekend!


  1. Why not ditch the car and walk a mile to/from the train station every day! You’ll save even MORE money, be more active, more physically fit, and you’ll probably even lose a few pounds (assuming that’s something you want to do!) It’s environmentally- and wallet- friendly!

  2. Congrats and welcome to the DC metro area. Worked in DC for 8 years…..

    Small business owner in Baltimore now!

  3. Excellent news Adam….. Emotionally things will be so much easier, you will probably save way more than $8,800 as you will be happier and probably spend less.

  4. Like Christine said: Congrats – that’s great!

    It’s good to hear positive money stories during such a dark time in our economy!

    You should be able to make a huge impact to your debt this year!!!

    Good luck 🙂

  5. Now THIS sounds like a guy who’s serious about getting out of debt. This is much more focused, aggressive and goal-oriented than what we were hearing a couple of weeks ago. Now I can believe you will make meaningful progress. Keep it up!

  6. Fabulous news! Congratulations to you! And I second Greg’s comment about the 1 mile walk to the station. 😀

  7. Congrats on the new job! It looks like things are really beginning to fall into place for you! More importantly, your relationship will prosper and that is better than any amount of money, isn’t it!?

  8. Wonderful! I agree with Greg & Kimberlee, but I know that winters in D.C. can be rough. Maybe you can walk when it’s sunny and warm. Save a little during the spring and fall. 🙂 Congrats again!

  9. Congratulations! I understood how hard it would be to live apart from your wife during the week. I’m really happy for you! Yay!

    Walking is fine, but I’d drive to the train station and find your exercise elsewhere. I’d worry about the weather changing on me during the day. Of course, I live in Houston where the weather really is bipolar. Is is better up there?

  10. I think walking to the station would be pushing it. It’s actually about 2 miles and can be a little cold in the winter time. I think I will stick to a cheap ($1,000?) car and pray that it continues to work.

    Thanks for the support everyone. I am one happy camper!

  11. Congrats!! I’m so happy for you & your wife…your diligence & effort to live a provident life has “paid” off!! Will continue to watch your journey..

  12. @Steven – I agree with what Forest said above. I think that since we will be living together now, we will be held more accountable for purchases and save more money that way. All in all, there will be A LOT of money saved!

  13. Oh, I forgot to mention in the article that the job doesn’t start until April 12th. So, there will be a few more months of the same old but at least I am happier now!

  14. Why not carpool to the train station? Or have someone drop you off?

    It’s better than getting the car. And you won’t have to walk!

  15. We have a 1997 Ford Ranger Supercab (small back seats) we’re thinking of selling for $1000-$1500 (haven’t yet researched the exact Kelley BB value). We just don’t have a need for it anymore.

    It’s a great truck – we purchased it from my father-in-law back in 2004. He had the engine replaced (rebuilt?) at 40,000 miles while still under warranty and we have never – knock on wood – had one problem.

    This is one type of trusty vehicle you might want to look into (Ford Rangers have an excellent reputation for being trouble-free and long-lasting, despite my father-in-law’s original ‘lemon’). Also, older and so cheap to iinsure ($25.00/month)!

  16. Congratulations! But do you really need a car for ONE mile? Walking for 20 minutes two times a day is good for your health and your budget, nad the environment, too.

  17. 2 miles is a great bike distance…might want to look into that, too. Definitely cheaper than a car. And there’s plenty of gear that you can get for wet or cold weather.

    2 miles is a very short bike ride.


  18. Congratulations on the new job and the jump towards debt freedom sooner than anticipated. Your blog has helped me stay motivated in my journey towards debt freedom. Thank you.

  19. This is great news for you and your wife. Congratulations!

    I’m looking forward to hearing later this Spring the difference it’s made in your life (financially and personally).

  20. Hooray!

    I was one of the ones who was a little tough on you in your last post… but I’m proud of ya.

  21. Congratulations on the new job. It is a real blessing to have quality mass transit near by. We don’t have anything like that around here best I could do is catch the bus which would take twice as long as just driving myself. It is awesome to be both cutting expenses and increasing your income, makes debt reduction roll that muh faster.

  22. On a side note- totally dislike the new B of A add. My computer slows to a crawl. Not everyone lives in the big city and gets wonderful internet superspeed connections.:<(

  23. Great new shovel sir! You deserve it! I’m all about getting rid of debt as fast as possible.

    How many of you have a shovel that big? I mean, seriously. This can obviously be done . . . even though it would take years to get to that point.

  24. I second the walk/bike ride to the train station. I walk a mile and a half to and from the train by our house no matter the weather. It’s my one reliable source of exercise, keeps me in tune with my neighborhood, and saves us $ every week.

  25. Wow! Congratulations! This is great news.

    Can you maybe do a little research and see if there is a shuttle service for your neighborhood to take you to the train station? We moved a few months ago, and found out that in this part of town, there is a bus that shuttles commuters to the train station every weekday starting around 5:30am. Now, we are able to get rid of our “cheap” car and use that insurance money, gas money, and car repair money towards debt. Every penny counts!

  26. that’s good to hear!. keep it up. there’s no better feeling than being debt-free. 🙂 hopefully, me as well could earn more than i do now so, i could start pay my debts faster and at the same time save more for my dream wedding.

  27. I think selling the car is a good idea. If you can live with a beater for a while – and only driving a mile, you won’t be putting it to much hard use – you could really free up some cashflow.