I paid off my car, and now I'm steering toward financial freedom

No more payments, just more possibilities.

Photo by Christina Telep on Unsplash

The second I saw my debt was paid, I picked up the phone.

I called The Bank of Grandma Berta.

I needed confirmation that I was in the clear, and only the president and CEO of this bank could verify. Luckily, I have a direct line.

My bank account showed a processed final payment on the $7,000 loan I borrowed from my mother, Alberta Mayberry, in May. But I had to hear from her — that she saw the same reflected on her end, and that she was in agreement with my accounting.

Before I could cancel my automatic monthly transfer, before I could breathe a sigh of relief, The Bank of Grandma Berta had to give me the green light.

Thankfully, I received it last Thursday night.

I’ve officially paid off my car.

It’s a milestone achievement that puts a $300 monthly payment behind me and a few bucks back into my pocket.

When I purchased my used Toyota Camry last fall, I did so reluctantly. I grew accustomed to living without a car note for much of the previous decade. I did everything I could to avoid new debt. I couldn’t stand the thought of being saddled by my money going out each month for a vehicle.

I still can’t.

That’s why I knocked out my debt to my mother 18 months ahead of my original plan. My car was my only recurring debt. With every automatic transfer, I thought about imagined assets I couldn’t buy more than the real, reliable vehicle that my money was paying for.

Debt can be funny in that way. I love my Camry. Still, my monthly obligation — almost down to the dollar — didn’t feel different from the divorce debt I dutifully repaid my mother for three years.

The only difference is this time I could afford to pay my mother sooner.

Had I followed my initial plan, I would have been saddled with a $300 monthly payment through June 2026. Instead, I tapped into some cash I keep parked on the sidelines for investments.

Rather than simply watching the funds grow while waiting for the next good opportunity, I decided it was better to wipe out a chunk of my debt.

In August, I transferred an additional $5,200 to my mom, which reduced my balance to $1,200. I resumed the $300 installments over the past four months.

Then, on Saturday afternoon, I canceled my automatic monthly transfer. As soon as I pressed the “cancel” button, relief washed over me.

So what will I do with the extra money?

Well, a few life expenses have already emerged that require some of my new cash flow. But the rest? I’m investing that extra money back into my future.

Whether it’s boosting my retirement contributions, taking a calculated risk in real estate, or growing my savings, I now have the opportunity to put that money toward long-term wealth-building.

My mother saved me approximately $3,000 in interest by wiping out my bank loan and allowing me to pay her back interest-free. Thank you again, Mom!

But I had to honor my commitment. That meant making a plan and sticking to it. My mother was kind enough to loan me a lump sum. The least I could do was repay her on time each month, without worry.

It required me to overcome an already tight budget, mandatory business expenses, legal fees, nagging car trouble and more.

Repaying my mother wasn’t easy. Saying no to small luxuries like dining out or more spontaneous weekend getaways was hard. But the payoff — both financial and emotional — was worth every sacrifice.

I can breathe easier knowing I have the space to plan, save and invest without the burden of monthly debt weighing me down.

I’ve proven that a measure of financial freedom is attainable with discipline. Keeping my word to my mother and myself was the first step.

Now, I’m looking ahead to bigger possibilities — and buying a home is the next step on our wealth-building journey.