Personal Finance Coach Jessie Fearon Leads Readers to Debt-Free Living

By Cyndi Braun

Personal finance coach Jessi Fearon is the founder of a popular finance blog, JessiFearon.com. Like most Americans, Jessi has struggled with debt. In fact, she and her husband Pat recently paid off $55,000 in consumer debt. Jessi now motivates other families by sharing her own story and offering advice on how to live on a budget, debt free.

Five years ago, Jessi and Pat Fearon lived the kind of life many Americans do. Married with one child and another on the way, they were actively accumulating debt credit cards, student loans, a car payment and a mortgage.

Each month, they paid the minimum balances, and the debt never seemed to go away. Balancing the budget on one income was becoming increasingly difficult. Pat worked as a contractor while Jessi stayed home with the kids.

By the end of 2012, I realized we werent going to be able to afford for me to stay at home with our current debt load, said Jessi. As I looked at the numbers, I started thinking about how much we would save if we didnt have this debt. When I added up the minimum payments we had every single month, I realized we could save roughly $1,600.

Becoming Debt Free

Jessi sat down with her husband and convinced him to try something unconventional pay off debt and live debt free.

With a background in accounting, Jessi was able to create a zero-balance budget that set a course for them to pay off each debt in turn. She started with their smallest debts (credit cards) then worked up to the highest debt (student loans). This is called the snowball debt payoff method.
Being committed to this lifestyle meant no credit cards and eliminating entertainment expenses. They also traded in Jessis Tahoe for an older vehicle that they could pay for outright. Once the credit cards and car loan were paid off, they could concentrate on the biggest debt student loans. Their goal was to pay off the student loans before their third child was born.
With this goal in mind, Jessi picked up any extra work she could find, and Pat did the same.

For two and a half years, I walked dogs, even when I was pregnant. My husband took on side jobs like building cabinets and doing tile work. Anything extra we made went immediately into paying off all the loans. That was the only way we were able to aggressively attack them as fast as we were, said Jessi. When we paid off all that debt, it felt like we had crossed the finish line.

Why a Budget is Critical

A budget helps to determine how you spend money. If you subtract expenses from your income and the balance comes out negative, you need to cut expenses. Its as simple as that. Entertainment and miscellaneous should be the first you eliminate.

If your goal is to pay off debt or save money, youll also need to cut expenses. A budget helps guide you, so you stay on target and committed to your goal.

The biggest thing for us is we had to know why we were living on a budget, why we were denying ourselves luxuries, why we were being intentional about putting extra money towards paying off debt. For us, the reasons were so I could continue staying home, and we could put our children into Catholic school, said Jessi.

JessiFearon.Com

Through JessiFearon.com, Jessi provides helpful information on financial planning, including details on her familys own budget. Sharing personal stories gives readers a chance to see how a real family follows a budget and saves money.

How to Pay Off Debt

-Set a specific financial goal.
-Commit to it.
-Be willing to resort to tough measures (cutting expenses, taking a second job).
-Create a zero-balance budget.
-Celebrate when you reach your goal, then set another goal.

How to Cut Expenses

-Never shop without a shopping list.
-Leave the cards at home; use cash instead.
-Limit social engagements to those that dont cost money.
-Avoid cable or satellite costs by streaming TV programs and movies.
-Change your cell phone plan to a wi-fi-based, no-contract phone.
-Shop for clothes through consignment, clothing swaps or hand-me-downs.
-Purchase back-to-school supplies a year ahead, so you can buy them on sale.

Check the website for the following:

-Access to articles about managing money, paying off debt and building an emergency fund
-A free workbook to get you started on a budget
-An e-course entitled Real Life Money Plan

Jessis work has been featured on Buzzfeed, Rockstar Finance, TIME/Motto Magazine, POPSUGAR, The Penny Hoarder, and DaveRamsey.com. Jessi graduated from Kennesaw State University with an accounting degree. She and her husband Pat have three children Conner (5), Collin (4) and Charlotte (2).

JesseFearon.com