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Brittany Xavier and husband Anthony claim they were able to pay off $150,000 in debt in just two-and-a-half years.
In a viral "get-ready-with-me" TikTok video, the millennial fashion influencer does her makeup while the couple break down radio host and finance personality Dave Ramsey's "baby steps" to financial success. The clip has now garnered over 2 million views.
The pair shared that when they got married, they collectively owed about $120,000 in student loans and $30,000 in credit card debt. With finances being one of the top reasons for divorce, they decided it was important to take Ramsey's finance course while they were engaged.
"We knew our spending was a little out of control," Brittany admitted, to which Anthony added: "We were living paycheck-to-paycheck."
With millennials racking up debt at a record pace, the Xaviers clearly aren't the only ones struggling with managing their money. Here's how they got themselves on track - and how you can too.
The Xaviers started off with building their emergency fund. It's important to have some cash tucked away in case of an unexpected expense, like car repairs or a big medical bill, and Ramsey recommends beginning with $1,000.
You could stash funds aside in a regular savings account, or consider a high-yield savings vehicle with a higher interest rate.
Read more: Here's how much money the average middle-class American household makes - how do you stack up?
The debt snowball method is a repayment strategy where you pay off your smallest debt first and work your way up.
The Xaviers listed all their debts in order of smallest to largest - excluding their mortgage - and paid off their account with the lowest balance first, making minimum payments on their other bills.
To help with their debt repayment plan, the couple also made a budget - and most importantly, they followed it.
"We were really strict," says Anthony. "We didn't go out to eat, we were on a clothing budget, we were on a gas budget."
This also motivated them to find other streams of income, like doing SEO work on the side and selling paper flowers on Etsy.
Although the Xaviers don't detail Ramsey's other baby steps for building wealth in their video, here are the remaining five:
Save 3 to 6 months of expenses in your emergency fund. Once you've paid off your debts, you can beef up your emergency savings. Ramsey says a one-income household should aim for six months worth of expenses while double-income households can save for three.
Invest 15% of your household income for retirement. Delve deeper into planning for the long term. If you have a 401(k) matching plan, Ramsey suggests maxing out your employer's contributions and then make the maximum contribution to a Roth IRA. After that, if you still haven't hit the 15% mark of your household's income, put the rest into your 401(k).
Save for your kids' college fund. Of course this doesn't apply if you're childless, or your kids are fully grown and out of the house - so many will get to skip this step. If not, consider opening up an Educational Savings Account (ESA) or 529 college savings fund to help your kids graduate debt-free in the future.
Pay off your home early. Now you can finally get to that remaining debt and decide whether you want to pay your home loan off early. You could refinance if you find a better rate, or make an additional payment each quarter to help you speed up your repayment time and save yourself some interest too.
Build wealth and give. Finally, you're now free to grow your wealth. Continue contributing to your investment accounts and giving back by making a donation to your favorite charity.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.