字幕表 動画を再生する 英語字幕をプリント - 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.