My Personal Finance Tipping Point

by The Happy Rock on June 11, 2008

mexican-hat-rock-tippingThis post is in response to Free From Broke’s tipping point contest.

For those that don’t know a The Tipping Point is a book and term coined by Malcom Gladwell in 2002. It refers to “the level at which the momentum for change becomes unstoppable.[1] The term was an attempt to quantify and understand what makes certain phenomenon and ideas take off. Why does an unknown book vault into the best seller list or a website like I Can Has CheezBurger go viral.

Click Here for the link to the book on Amazon and here for the book preview from Google.

It is a little bit of a stretch to apply this term to your own financial journey, but I think it really creates some thoughtful discussion. I like breaking your financial journey into two tipping point as FFB mentioned in the original article. One for when you reversed you financial direction and one when all the changes from tipping point one changed into unstoppable success.

The tipping point that changed my life around was when I began to realize that having debt was slavery. It wasn’t one moment that caused a switch, but a the convergence of multiple thoughts and personal development areas. As I pictured my life and where I wanted to go, I realized that having debt was a $70,000 weight. I couldn’t quit my job, because I had bills to pay. I couldn’t begin to entertain becoming an entrepreneur or or creating the family life I wanted. Debt was a hindrance to almost every dream/goal that I wanted to pursue. It had to go. I started listening to free Dave Ramsey shows on the internet, reading personal finance books, and I my life has not been the same. 5 years later, our debt except for a mortgage is gone, we have 6 months expenses in an emergency fund, adopted two children without needing debt, bought two cars with cash, and feel liberated and empowered to pursue our dreams.

I will discuss my success tipping point tomorrow.