Chloe Elise’s Journey: From $40K Debt to Millionaire Status
Rather than living under strict limitations, Chloe Elise encourages individuals to prioritize their spending and enjoy life’s little pleasures.
In her mid-20s, Chloe Elise faced nearly $40,000 in debt. To tackle this, she sought advice from well-known financial experts but found their tough-love tactics ineffective. None of their methods resonated with her or her friends, prompting her to devise her own strategy for debt repayment. Fast forward to now, and she’s a millionaire at just 27. As the founder of a financial literacy initiative, “Deeper Than Money,” she guides women to move past restrictive spending and align their purchases with personal values. (Yes, those coveted Lululemon leggings can fit into your priorities alongside your financial aspirations!)
Chloe realized that the shame-based messages from financial gurus only served to blame individuals for their choices instead of empowering them. This approach can lead to feelings of failure, making it harder to make sound decisions for oneself and one’s family. It’s misleading to suggest that people are solely responsible for their financial challenges.
Like many, Chloe took on student loans without fully grasping the implications, resulting in the heavy debt burden. For those anxious about the resumption of student loan payments, she stresses the importance of acceptance: “Recognize where you are without letting it define where you’re going.” The next crucial step, she asserts, is adopting “radical responsibility,” allowing individuals to take control and create actionable plans instead of feeling overwhelmed.
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Women especially should know they don’t have to deprive themselves of what they desire when shopping or browsing social media, as this often leads to a cycle of restriction and overspending.
Next time you enter a store, try this mental exercise: Allow yourself to have anything you wish, and then assess your priorities: “Should I allocate my funds for these leggings or focus on paying down my debt? Either choice is valid. If you choose the leggings, just remember it may slow your debt repayment.”
Tune in for more valuable insights on balancing a fulfilling lifestyle while managing debt or saving for significant goals!
In the Mailbag segment, a listener requests clarification on one of Ramit Sethi’s money strategies: “save 10%, invest 20%.” We also discuss the implications of closing an unused credit card. Additionally, our financial tip of the week addresses the initial steps for formulating a plan to manage your student loans.