- Adeola Omole, a wealth coach and lawyer, built a seven-figure net worth after paying off $70,000 worth of consumer debt and a $320,000 mortgage.
- Omole said she was able to start paying down debt after she cut her spending in half on things like groceries, clothes, and toiletries.
- The strategy is part of Omole’s money mantra: “Spend passion, cut junk.”
Adeola Omole has learned a lot about managing money since climbing her way out of $70,000 worth of debt.
After losing her job at a law firm in Canada during a tough economy, Omole was faced with the debt she accumulated over the years from student loans, car loans, a line of credit, and credit cards, she said on an episode of Farnoosh Torabi’s “So Money” podcast.
As Omole, who was raised by immigrants as one of six children, watched her parents struggle financially, she came to think debt was a normal part of life, she said.
“When I embarked on my debt-free journey, I learned very quickly that I had to unlearn everything I had been taught about money (both from society and through my upbringing), so I began to live my life for half the price by buying virtually everything for 50% off or more,” Omole told Business Insider.
Read more: A woman who paid off $70,000 of debt in 3 years used a simple question to stay on track
She began cutting her spending on things like groceries, toiletries, and clothes.
For example, buying clothes at the end of the season when they're deeply discounted and appliances during September, October, and November. And stocking up on nonperishable groceries and toiletries when they're on sale, buying for two to three months at a time.
Over the next 12 years, she paid off the consumer debt - and her $320,000 mortgage - all while building a seven-figure net worth. She now works as a wealth coach and recently published a book, "7 Steps to Get Out of Debt and Build Wealth."
The strategy is part of Omole's money mantra: "Spend passion, cut junk."
"In a nutshell, it means that you need to start spending your money on things that bring you joy and that you are passionate about," Omole said. For example, she spends her money on books and investing; others may put their money toward travel.
"You need to do everything in your power to stop spending your money on things that don't bring you joy, things that you're not passionate about, and things that don't add value to your life," Omole said.
For Omole, this "money philosophy," as she calls it, has done more than help her crush debt and build a wealth - it's changed her outlook on money.
"Once I stopped associating money with consumption and started associating money with options, my relationship with money changed from being based out of fear to now being a source of empowerment," Omole said.