My Financial Situation: A Journey Toward Financial Freedom

When I first embarked on the journey of higher education, I had little understanding of the financial implications it would have on my future. Like many young people, I assumed that taking out loans was simply part of the process—an unavoidable step toward success. But as I sit here now, reflecting on my past decisions, I realize just how deeply my financial situation has affected me. This blog marks the beginning of a new chapter in my life, where I will share my experiences, challenges, and insights on finance, with a particular focus on my quest to clear my debt.

The Start of My Financial Journey

In 2016, as a 19-year-old, I left my home in the Netherlands and moved to the UK to pursue higher education. I had the option to stay in the Netherlands, where university fees were around €2,300 per year, and I could have lived with my parents, saving a significant amount of money. However, I chose the more expensive route, partly because it seemed like the norm—everyone else was doing it, so why not? (obviously, that was wrong of me).

The decision to study in the UK came with a hefty price tag: £9,000 per year in tuition fees alone. By the time I graduated, I had accumulated around £30,000 in debt from the UK, and an additional €31,000 from the Netherlands, amounting to approximately €70,000 in total. While my time in England brought many valuable experiences and helped me grow both personally and spiritually, I couldn’t ignore the massive financial burden that now hung over my head.

The Weight of Debt and Spiritual Reflection

As I grew in my faith during and after my university years, I began to reflect deeply on the decisions I had made, particularly the decision to take out interest-bearing loans. According to Islamic teachings, as stated in Surah Al-Baqarah (2:275) and reinforced by the Hadith from Sahih Muslim (1958), where it states that Jabir said that Allah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said "They are all equal". This realization weighed heavily on my conscience, and I repented for my decision to take on such loans. However, the debt remained, and I knew I had to take action to rectify the situation.

Despite my repentance, I wasn’t initially proactive about clearing my debt. After graduating, I worked for two years in Oxford at a pharmaceutical company, but my focus wasn’t on reducing my financial obligations. Then, COVID-19 hit, and like many others, I found myself reassessing my priorities. I decided to move back home to the Netherlands at the end of 2020, and my financial journey took on a new direction.

The Struggle to Make Progress

Upon returning to the Netherlands, I began working for free in my family’s business for the first two months, as a way to help out during tough times. Shortly after, I secured a job in a pharmaceutical company in Haarlem. Around the same time, I had an opportunity to open my own clothing shop—a dream I had always nurtured. Balancing a full-time job while managing a new business was incredibly challenging, but I was determined to succeed.

Unfortunately, my clothing shop didn’t take off as I had hoped. By the end of 2021, I had not only failed to make significant progress on my debts, but I had also lost most of the money I earned from my job. I was back to square one, feeling defeated and unsure of how to move forward.

It was during this time that I decided to take a step back and reflect on my situation. I went on Umrah, a pilgrimage to Mecca, seeking clarity and guidance. This journey allowed me to reconnect with my faith and reassess my priorities. Upon returning, I closed my shop and decided to focus solely on my career. I secured a new job in Hoofddorp and got married in March 2022, Alhamdulilah.

A Turning Point: The Road to Financial Freedom

My marriage marked a significant turning point in my life, not just personally, but financially as well. My wife, may Allah reward her, became a source of strength and motivation. She urged me to take my debt more seriously and encouraged me to be more proactive in clearing it. This was the push I needed to truly commit to getting out of debt and turning my financial situation around.

I realized that the first step in “how to get out of debt” is acknowledging the problem and committing to a solution. I began to educate myself on financial management, exploring halal ways to pay off my debts without incurring more interest. I started budgeting more carefully, cutting down on unnecessary expenses, and putting every extra penny toward my debt. But it was not enough. Therefore, I decided to ask my wife for help. (Which i will talk about in the next blog)

Lessons Learned and Moving Forward

One of the biggest lessons I’ve learned through this journey is the importance of making informed financial decisions. If I could go back in time, I would have explored alternatives to taking out interest-bearing loans. I would have considered the long-term impact of my decisions more carefully and sought advice from those who had walked this path before me.

But the past cannot be changed, and dwelling on regret only hinders progress. Instead, I choose to focus on the future and the steps I can take now to improve my financial situation. My goal is not just to pay off my debts, but to do so in a way that aligns with my values and beliefs. I want to share my experiences with others who may be in a similar situation, and together, we can find solutions to our financial challenges.

Conclusion: Join Me on This Journey

As I continue on this journey toward financial freedom, I invite you to join me. Whether you’re struggling with debt yourself, or simply interested in learning more about financial management from a personal perspective, I hope that my experiences can offer some insight and encouragement. “How to get out of debt” is a question that many of us grapple with, and while the path may be difficult, it is not impossible.

I will be sharing more about the strategies I’m using, the obstacles I’m facing, and the successes I’m achieving along the way. Let’s support each other on this journey and work together to achieve financial freedom in a way that is both practical and aligned with our values.