Why I’m Doing It This Way

Day 8 | $0 paid | $90,717 till freedom

Why I’m not consulting on the side to make extra money
Yawn! If I wanted to do consulting, I would’ve interviewed with McKinsey, BCG, or Bain for a full-time position. I work a desk job fifty hours a week–I don’t want to work a desk-job on the weekend and during the nights, too. I want a change of pace. I want to get out of my comfort zone. I want to do something different. I want to get away from the stuffy white-collar business for a moment and take a deep breath of life. I want to pull drunk people around downtown with my bike and a trailer.

Why I won’t sell off my cars to pay down the debt
The idea behind this challenge is to cut costs and increase revenue to pay off my loans. If I can do that and keep the cars, then I get to keep some useful/critical assets on my balance sheet and maintain positive net worth.

The idea behind this is challenge is not to be completely asset-poor by the time I pay off my loans–I want to have positive net worth, not zero net worth. I already cashed out some of my assets–my IRA and stocks–to pay down some of my debt. If I sell off the cars to pay down the debt, then yes, I get closer to claiming victory over my challenge. However, I absolutely have to have a car, so I’ll have to go straight to the credit union after I make my last student loan payment to take out an auto loan, which sounds a bit self-defeating.

Why I will never monetize this blog
You’ll never see ads on this blog (while I still have loans to pay) because I don’t want to make money “unnaturally.” I want to pay off these student loans by cutting costs and increasing revenue through hard work, not through sensationalism. A Harvard MBA who make a modest tech salary has vowed to pay down his 10-to-15-year $90k in student loans in 10 months. That sounds somewhat sensational, and yes, the stats for this blog do have a slight hint of the viral in them (considering I have done zero promotion for this blog, other than posting a link on my FB wall).

I could probably promote this more and make a few bucks by hosting ads and putting those funds towards my student loans, but I don’t want to. I want to prove that crazy ideas and brand names don’t pay off debt–good old-fashioned belt-tightening and some elbow grease do.

(At least that’s what I hope.)


Filed under Three-Post Explanation

3 responses to “Why I’m Doing It This Way

  1. Zeona

    Hey, I’ve read your entire blog thus far and plan to follow your progress because I find it inspiring. I have about $70k in loan debt and another 10k on credit cards due to a bad relationship and being out of work due to a car accident (2010 was rough on me). It’s so nice to know I’m not the only one out there, even though I don’t make your not-so-modest tech salary.
    Although I agree with you on keeping your vehicles (at least one, which you could fall back on in an emergency), I disagree with the idea of pedi-cabing instead of consulting because it’s “fun”. Since when is this process about fun? As you’ve mentioned in previous posts, it’s about sacrifice and if you can shorten your sentence to 8 months by making more money, you should go for it! Of course, that’s just my opinion. Keep the blogs coming, it’s highly enjoyable and again, thank you for putting yourself out there.

  2. mark

    Of course his point of this blog is he didn’t want to start at a consulting firm making more money but less of a life … late reply on my part

  3. Randy

    I can understand the need to have a car. Transportation is a necessity in any persons life. Having a car can make transportation easier. That, in its greatest capacity, makes it a great tool. However, to claim it as an asset is reaching. An asset is characterized by the cashflow it generates. And while you may argue that you have to be able to get to work. That arguement turns a blinds eye to alternative ways to travel. In truth a car like a home or student loans is a liability because it takes funds to service and maintain them. Your new bike for your pedi-taxi venture on the other hand is an asset because you will be generating cashflow from its use.

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