Placeholder Image

字幕表 動画を再生する

  • - From 2010 when I graduated college until 2014,

  • I managed to pay off all of my debt, all $117,000 worth.

  • And so for the first time in a long time,

  • I could consider myself worthless.

  • I mean, at least as it related to my personal finances.

  • And so in this video,

  • I wanna share the three steps that I took to get there

  • and break down some of the important details

  • like my income during those years.

  • This video is brought to you by my friends at Squarespace,

  • I'll talk more about them later.

  • So at 22 years old and just fresh out of college,

  • I had over $97,000 in student loans.

  • And then I made the brilliant decision

  • to buy a brand new car.

  • So let's add another $18,165 onto the total,

  • not including change.

  • So at my lowest point, I had $117,000 worth of debt.

  • And while student loans are increasing every year,

  • most people don't graduate with the kind of debt that I do

  • unless you get into a medical field.

  • Now, I don't know why a filmmaker

  • would need $117,000 in debt to start their career,

  • but mistakes were made, blame it on the system,

  • blame it on myself and my stupidity at 18 years old,

  • the problem was now mine to deal with.

  • And at first I wasn't going to deal with it at all.

  • I was resigned to just paying

  • the minimum payments every month for 30 years

  • until I finally paid it all off.

  • But then I started to get interested in self-development.

  • I started to read stories of people

  • who had paid off their debts in two years,

  • five years or 10 years.

  • It started to inspire me to chase that kind of freedom

  • and that kind of financial independence,

  • and so that's when I got started.

  • And for me, there were really three core steps

  • that helped me get through it as quickly as I did.

  • Step one, intentionally cut back on your spending.

  • Now it really doesn't matter how much money you make,

  • if you continue to spend every last cent of your paycheck.

  • And so you need to get really intentional with

  • where you're spending your money and how you're spending it.

  • I know lots of people who make 150, 200K,

  • who still have tens of thousands of dollars

  • worth of student debt.

  • A lot of times we convince ourselves

  • that we deserve these nice things

  • because we work so freaking hard.

  • But what you really deserve after all that hard work

  • is to be debt-free.

  • And so if we can begin to reframe our spending habits,

  • if we don't increase our lifestyle

  • with each increase in pay,

  • then we can begin to make a dent on our debt.

  • One of the most difficult decisions that I made early on,

  • which ended up being the best one that I could have made,

  • was to move back home to live with my parents.

  • Hi, my name is Matt D'Avella,

  • and you are inside of the Black Box.

  • The Black Box!

  • Dinner time!

  • That's embarrassing.

  • Noodles with soup.

  • Yeah, I'll have some noodles with soup.

  • (soft music)

  • It was a difficult decision

  • because all of my friends were going off

  • and they were living on their own.

  • They were partying in the city

  • and dating and doing all the things I wanted to do.

  • And I was at home watching late night television reruns

  • in my parents' basement.

  • And it was really, truly difficult.

  • Like I wanted to do all those things,

  • but I also knew that this wasn't the time.

  • That right now I had to save, I had to be patient.

  • I had to look towards the long-term vision of my life

  • and take this short-term sacrifice now.

  • I ended up saving thousands of dollars every month

  • on rent and utilities,

  • and everything else that is associated

  • with living on your own.

  • It was around this time that I discovered minimalism.

  • And that really was a practice

  • that helped me understand my values

  • and change the way that I spent money.

  • Even though I had decided to move home with my parents,

  • I was still spending pretty recklessly.

  • I was spending thousands of dollars on clothes,

  • a flat screen TV,

  • I already mentioned,

  • I put $18,000 of loans into a brand new car.

  • And so when I discovered minimalism,

  • it helped me to redefine my idea of success.

  • I questioned what are the things

  • that are really gonna make me happy

  • at the end of the day?

  • Why am I making these purchases in the first place?

  • And when I started to ask these questions,

  • I realized that I didn't need to prove to anybody else

  • that I was successful.

  • Minimalism really helped me

  • to gain a better alignment with my spending

  • and the kind of future that I wanted to build for myself.

  • And that was a radical shift

  • that didn't just change the immediate future,

  • but it changed every decision I made from that point on

  • when it came to my spending.

  • One common misconception about minimalism

  • is that it means you have to live a frugal lifestyle.

  • And I don't think that that's true.

  • I don't think that

  • just because you're intentional with your purchases means,

  • that you will never buy nice things,

  • and you won't let yourself enjoy things

  • while you're also paying off your debt.

  • I love what Ramit Sethi teaches,

  • he's a personal finance expert.

  • He talks about not sacrificing the daily lattes.

  • And lattes as is metaphor

  • for anything that you might spend regularly,

  • that gives you a little bit of joy each day.

  • So if you cut out a $5 latte every day,

  • you're gonna save about $1,800 over the course of the year.

  • Now one, most people can't do that or won't do that,

  • or they will try and then give up and fail

  • and say, ah, you know what?

  • This frugal lifestyle thing,

  • this counting every last dollar,

  • it's just not gonna work for me.

  • Because it doesn't work for most people.

  • Instead what you can do is focus on the big items.

  • So the areas where you're spending

  • thousands of dollars every year,

  • whether it's clothes or eating out.

  • What are those areas

  • that are the biggest problem sources for you

  • when it comes to money disappearing out of bank account?

  • And how can you get more intentional with those purchases?

  • Again, I'm not saying that you can't buy nice things.

  • I don't think you need to deprive yourself

  • of things that will bring value and joy to your life.

  • But I do think we need to get really thoughtful about

  • which ones are essential right now,

  • when we're paying off our debt.

  • If you're making really big sacrifices,

  • like moving into your parents' house,

  • to live for a couple of years as you pay off your loans,

  • I think it also means that you need to get intentional

  • with those other decisions,

  • and you can make sacrifices for the first couple of years

  • as you begin to build momentum.

  • But no, you do not need to sacrifice your daily latte.

  • Step number two, focus on making more money.

  • So this is really personal finance 101.

  • If you wanna save more money and pay off your debts,

  • you need to spend less money and make more money.

  • I don't think that you need to over-complicate it

  • any more than that, it really is that simple.

  • But of course there are some nuances in here,

  • especially when it comes to making more money.

  • And so that's what I wanna talk about right now

  • and share some of the experience that I had

  • in increasing my income over just a four year period.

  • So I've never actually held a traditional job

  • apart from the grocery store that I worked at in high school

  • and was promptly fired from and sued for $7 million

  • for making a parody rap video.

  • But that's a story for another day.

  • The fresh beats baby you know what I mean. ♪

  • I have run my own video production business

  • ever since college.

  • In around 2009 was the first year

  • that I started to make an income as a freelance filmmaker

  • and a videographer, whatever you wanna call it.

  • I made videos for clients and they paid me money for it.

  • Now running your own business is definitely

  • one of the quickest ways

  • to increase your income rapidly over time.

  • Over a short period of time I should say.

  • Now it's not guaranteed.

  • There are definitely a lot of risks involved,

  • and there are a lot of people

  • that start their own businesses

  • that never get it off the ground.

  • But if you're good enough,

  • if you invest in your skills

  • and if you invest in providing real value

  • to clients and customers,

  • a hundred percent, that's the fastest way

  • that you're gonna be able to increase your income.

  • So in 2009 was the very first year

  • that I made money running my own business.

  • And I made about $10,000 in profit.

  • In 2010, I nearly tripled my revenue,

  • my profit that year was about $28,000.

  • So in 2011, my revenue increased to around $53,000,

  • but my profit was actually pretty low

  • and pretty similar to the year before at $33,000.

  • Now 2011 was really a turning point for me and my business

  • while I did make around the same bit of profit.

  • Those first couple of years helped me to build momentum

  • and increase my overall revenue

  • and the amount of clients that I had,

  • which would eventually bring in more money down the road.

  • And so this was really that turning point that I needed

  • to give me the confidence to keep going with my business.

  • To make over $50,000, even if it wasn't profit in one year

  • was a huge win for me, and it showed me the potential

  • of where I could go with this.

  • 2012 was a massive year for me

  • and was one that definitely helped me

  • to get the ball rolling on my debt

  • in a way that no other year did.

  • So my net profit was $94,000.

  • In 2013 again I had another big year,

  • more expenses this year as I hired more people

  • and invested more in my gear.

  • My profit was $65,000 for the year.

  • And in 2014, my profit, $84,000 for the year.

  • And so if you average it out over these four years

  • from the moment I started paying off my loans in 2011,

  • I made around $69,000 per year,

  • that's net profit after all my expenses.

  • Keep in mind that this does not include

  • my personal expenses,

  • like my rent, utilities and all that fun stuff.

  • Although I was able to write some of that off

  • because some of that was used for my business,

  • like the internet,

  • as well a very small part of my at home office.

  • So how was I able to steadily increase my income

  • over these six years?

  • Now the first thing which I already mentioned is,

  • I had to get really freaking good at what I did.

  • I had to make sure that I deliver

  • for every single client that I worked with.

  • Because every client that I delivered for

  • and I made an amazing video for,

  • they shared that work with other people.

  • They said, oh, if you need a video person,

  • you gotta go hire Matt, he's amazing.

  • That helped to build out my network

  • and the kind of people that came to me for more work.

  • Now, if you burn a bridge, if you screw up a project,

  • then that's where that relationship ends.

  • They don't recommend you,

  • they don't come back for more work.

  • And so that's why every project is vital.

  • It doesn't matter what you're working on,

  • you have to deliver the best possible product that you can

  • at the end of the day.