To answer one of your questions, with what I know now, I do intend to have a frugal lifestyle no matter what. If God willing I am able to get back to zero, or sell one of my businesses, my extra income will be invested or invested into causes I would like to support in the non-profit world. As long as I can eat, have a bed, and catch a movie once in a while, I will be set.

You are right about me being able to earn more if I took a traditional job. It’s likely that is a decision I will be making this year: to keep trying for a big payoff, and pay down my debt within a year, or get a higher paying job, and work my businesses on the side. We will see.

You are doing great, and I and the rest of your blog world is rooting for you. I won’t go into details, but I’ve gone from less to $100 to my name to significant savings. I did this primarily by living below my means. The basic spend less than you earn.

From your blogging it sounds like you are getting into the habits that support spending less. To me it is about mindset and values, as well as what you become accustomed to. I drive a 10 year old inexpensive domestic car. When I was younger, I might eat out once a quarter, then once a month, then weekly. Now I do so whenever I want, but that is almost my only financial “vice.” I don’t shop much, and don’t buy too many gadgets. When I do buy something, I make a project out of it, researching for the best deal and the best reviews. The stuff I buy lasts. These are all VERY long term habits. I don’t have any thoughts of my life being on hold, or denying myself. It is just the way I live. Part of this is finding friends who share similar values, including those about money.

I will admit to focusing often on my net worth, so I can identify with your focus on your debt. However, it does not need to define you.

The question is are you frugal only because you have the debt, or, with what you know now about money, would you have a frugal lifestyle no matter what? If it is the latter, then the only thing that should change if you suddenly come into some money is the debt, not your lifestyle and not your decisions about how you spend money.

I am guessing you are saying to yourself I don’t mind being frugal, just not as frugal as I am forced to be. Possibly. But it is also possible you just need some more getting used to the frugal lifestyle. I don’t know all the details about your budget, but if you are expending most of a $35k annual income, your net available after taxes and after $4800/year to your mom is probably fairly close to what I end up actually living off of.

What I am trying to say is you need to get to a comfortable level with your spending, and let that level of spending become your lifestyle regardless of your income.

Then the second part of this is your income. I am guessing that if you went out and got a W2 job somewhere, you could earn FAR more than $35k/year. Probably almost double – lets say you could earn $60k starting. Thus your opportunity costs are $25k/year of paydown of debt (remember under my theory spending does not increase with income)

Owning and operating a business is a great idea, and there are tons of potential advantages and opportunities. How long you are willing to bear the opportunity costs of $25k year to keep operating your business? Only you can answer this based on your knowledge of the business.

Keep up the progress ( and yes you have made a TON of progress in the last year) and I’ll be interested in learning your thoughts on the above.