Mr. Marek's Debt-Free Plan
By Maria Chettoor
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Known for being an awkward yet traditional introduction, icebreakers have been used for strangers to get to know each other. At the start of each semester, Mr. Marek’s go-to icebreaker consists of his love for video games, enjoyment of science fiction, and that he’ll be a millionaire in his 40’s. Among the basic answers ranging from favorite colors to least favorite books, Mr. Marek’s millionaire fact definitely has heads turning. Currently at age 38, his ability to become a millionaire in the next decade stems from the way he manages his money: by being debt free.
According to First Republic Bank, the average person has approximately $96,000 of debt. Mr. Marek had credit cards and debt of about $60,000 to $70,000 before he started actively eliminating his debt. As time went on, Mr. Marek “[got] sick of always making money but never feeling like [he] had any.” He and his wife decided to pay off their debts as quickly as possible to attain money to spend on other needs. Along with guidance from Dave Ramsey, a famous financial counselor, Mr. Marek and his wife turned to a life of not owing any money. They currently have no debt, other than paying off their mortgage. The start of their journey towards a debt-free lifestyle centered around Ramsey's book, 7 Budgeting Baby Steps. Mr. Marek has completed the first three steps — the first being to start an emergency fund of $1,000. The next step involves eliminating debt from smallest to largest. The third step involves creating a six month emergency fund consisting of monthly expenses for car insurance, rent, utilities, cell phone bills, groceries, etc.
Mr. Marek’s debt free plan allows him to save money and not owe money to anyone or anything. Photo by Maria Chettoor.
The next three steps — saving for his kids’ college tuition, saving for his retirement, and paying mortgage — can all be done simultaneously. The last and final step, according to Mr. Marek boils down to being able to to “do whatever you want with your money… give money and just be generous.”
Students who would like to be one step ahead of the curve when it comes to debt can take steps to prepare themselves for the burden. Investing at a young age can help as it can build interest over time. Teens may also consider getting a job or managing a side hustle to earn money to put towards reducing future debt. Looking into spending habits and eliminating unnecessary spending will help save money as well.
For students who may be interested in pursuing a different path through Mr. Marek’s financial lifestyle, he has simple advice - “Don’t pay attention to what other people are doing.” He goes on to explain that the internet provides many resources and students should research options that don’t align with the traditional track of money spending.
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