Money Habits That Made Me Debt-free And On Track To Retire By 45

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In 2012, fresh out of graduate school, I spiraled from being optimistic about my future to feeling constantly anxious about money . I had recently moved to Washington, D.C., with a $40,000 starting salary, almost $45,000 of student debt and very little savings.

I used an interest calculator and learned that if I continued to make only the minimum payments on my student loans over the course of 10 years, I would pay $16,000 in interest on top of my original debt.

Within three years, I paid off my debt, and the next year I doubled my income. In 2017, I bought my first home before my 30th birthday. In 2019, inspired by my experience, I started a company called Beworth Finance to help others build wealth and gain confidence about their finances.

Discovering that interest calculator was a huge turning point for me because it jumpstarted my financial education. I became excited about investing and eventually buying a home , but wanted to tackle my debt and build up savings first.

At the time, I made about $2,492 per month after taxes and deductions, and before monthly debt payments. While I couldn't reach all my goals at once, a few small habits helped me slowly and consistently improve my finances.

Turns out, it wasn't just having debt that made me anxious — it was feeling like I had no control. So as I got more confident with money, I turned to technology to help with the goals I stressed over.

I automated my savings contributions, put my loans on autopay and began investing using a robo-advisor that selected and managed my investments for me.

Over time, these contributions became an afterthought. Technology helped me reach my goals more quickly thanks to added benefits like higher interest rates for savings and reductions using autopay. Once I was debt-free, I reallocated those funds toward saving for a home by simply updating the same automations I set years prior.

That simple system of automation ultimately helped me accomplish one of my biggest goals: homeownership. In July 2017, I bought my first home in Washington, D.C., a 514-square-foot one bedroom, one bathroom apartment, for $345,000, with 10 percent down.