My Story

I went from making $140K a year to $30K in 6 months. Add 6 more months and COVID-19 kicked in and by the end of 2021 I was $82,139.58 in credit card debt.

How Did This Happen?

I had a successful career in the grocery store industry in both the corporate office and retail side of the business.  In 2017, I was on a multi-year winning streak managing a Whole Foods Market location in Virginia Beach, VA.  I was recruited by the southwest region to operate a struggling location in Uptown Houston, TX with the goal of turning around the store to profitability along with improvement in store morale.  Shortly, after I moved to Houston, I was assigned a new regional manager.  We butted heads and like most head butts the superior (in my case the regional manager) wins.  I was let go in January of 2019. 

Whole Foods had a lucrative bonus program for store management and between my salary, bonuses, and stock options I was making between $130-150K a year.  I had a decent amount of vacation time that was cashed out when I was fired that gave me about a 3-month lifeline.  I accepted an Assistant Manager’s position at Sprout’s Farmer’s Market.  I hated every minute working at Sprout’s.  For the first time in my life I walked out without giving notice after working at Sprout’s for six-months. 

I made the decision to return back to school to get a second master’s in computer science (I already earned an MBA). The press was clamoring that businesses "need more coders – learn to code" and are paying high wages. 

I accepted a job at a nearby Amazon warehouse with an entry level position making $15/hr.  My thought was I would work at Amazon for 3-6 months to have some income rolling in, along with health benefits for myself and my family.  After a semester or two in the IT program at the University of Houston I should be able to land a job with a firm while completing my degree.  My wife and I knew we might have some credit card debt, but would pay it off shortly after landing another career job.

Code Ninjas

Thanksgiving Day 2019 I was on my laptop doing some schoolwork and I saw an ad on my lock screen to operate a Code Ninjas early learning center geared towards computer programming for kids.  I had conversations with the company that led to the possibility of purchasing two existing franchise locations.  We placed earnest money down and began to discuss with a lender to use our 401K and IRA money to finance the purchase of the two franchises.  In reviewing the financials of the two locations I could not run any scenarios that would have these two locations make a profit and pay me the salary I needed to cover my families’ expenses.  We walked away from the transaction losing several thousand dollars in earnest money and lawyer fees in reviewing the franchise agreement.

Then Along came COVID-19

Like everyone else, everyday seemed like a new adventure of how we need to navigate life around COVID-19.  Here are some of the quick highlights for me.

·         Classes moved from in person to online classes at the University of Houston.

·         I was considered an essential employee at Amazon.  Just a refresher, early in the COVID-19 drama, some employees were considered essential.  I had to have a letter in my glove compartment of my car to show to law enforcement in the event localities restricted travel.

·         Because Amazon’s sales shot up like a rocket ship I was working 20 hours a week in overtime.

·         I saw how lucky I was to walk away from Code Ninjas.  The purchase would have probably been completed before COVID-19 lockdowns happened.  The locations were prevented by local laws to have in person operations.  I would have lost everything financially.

·         Through most of 2020 I was still at Amazon and towards the end of 2020 landed a higher paying job at the City of Houston as an analyst.  The job at the city helped slow the burning of our savings and at this point we were starting to withdrawal, with a stiff tax penalty, money from our retirement account to make ends meet.  At this same point in time Biden won the election and the vaccine was announced.  I was hopeful like all people that we were about to resume normal life.

·         I was so wrong.  I loved working at Whole Foods Market because I am extremely regimented about my diet and physical activity to maintain my health to a high level.  I saw how many companies in my opinion violated civil liberties and HIPPA laws in requiring proof of vaccination or lose your job.  This placed a bitter taste in my mouth that has never left and killed a lot of desire to work for a corporation in the IT field.

·         I saw how the government could haphazardly pump money into the economy that led to the worst inflation in my adult lifetime.  At this point in my family finances, we were using a combination of my salary at the city, cashing in retirement funds early, a side hustle with eBay, and using credit cards to make ends meet.  By October 2021 I raked up $82,139.58 in credit card debt with a whopping $1,860.42 left in my $84,000 credit line. 

·         My minimum payment amount for the month of October was $1,749.67 with the total interest amount being $927.77.  At this point I’m making $60,000 a year and I still have the mortgage when I was making $140,000, and now I have a second mortgage going to the credit card companies and inflation is out of control!

The Ramsey Baby Steps

·         My wife and I tried working on The 7 Ramsey Baby Steps.  The hard part was Step 2 – Paying off all debt except a home mortgage with the debt snowball.

·         We bit the bullet and paid off the lowest credit card balance between 3 cards by making an early withdrawal from our IRA.  This card also happened to charge the highest interest rate.  This provided us with a little cash-flow margin to work on paying off the other two cards and the student loan.

Thank you, mom & dad!

·         My dad passed away in 2024, and my mom passed away years earlier.  While we were working and making slow progress on Baby Step 2, we took what inheritance we had from my parents and paid off all of our credit card and student loan debt immediately. 

·         We could have used that inheritance to purchase new vehicles.  I drive a 2005 Scion and my wife a 2014 Prius, but both vehicles are paid for.  We could have tried to rationalize the new vehicles purchases as the money is sort of like found money. But where would we be?  Money tied up in depreciating vehicles and still with credit card and student loan debt.

·         We have completed our 3^rd Baby Step by having 3+ months of expenses saved.

·         My wife and I are now on Baby Step 4-6.  While these steps are a bit of a challenge at times we are committed to the process, because Steps 4-6 happen simultaneously.  After kicking debt out the door you never want to let it back in.  No car loan or impulse purchase is worth it—EVER!

Hi, Nice to meet you!

·         You made it to the end of my story.  Now let’s create a story together where you are the hero and I’m helping narrate.  Your story will be different than mine, but the goals will be similar.  Say goodbye to debt, become financially independent and self-confident.  Yes, I did have help financially when my dad passed away, but I was still moving in the right direction; and continuing to move forward in this direction.  I just got there a little sooner than what would happen without that help.  But, for you, you have me as a coach to help you on this journey.  So, pack some snacks and water and lets start this journey together.