‘I don’t spend frivolously on the extras like a lot of my peers’: Am I living the rat race? How can I break free from this cycle of financial struggle?

Hey Money Minder,

I messed up big time. I’m in my mid-twenties, living in one of the priciest cities in the US. I got my own place, spent way too much on rent (like half of my income), and now I’m barely scraping by each month after paying bills and debts.

I’ve got a decent finance job, studying for the CFA, and a side hustle that’s starting to bloom. I’ve got around 18k invested in stocks and crypto, but I also have over 25k in debt from dumb decisions. I’m stuck just paying off the interest each month without making any real progress.

I thought about getting roommates when my lease is up to save money, but I really love where I live. It’s in a great spot and was a steal. But staying here might be holding me back financially.

I’m not the type to blow money on random stuff like my friends do. I get a thrill out of investing. I want to grow my portfolio and have financial freedom.

I’m beating myself up over my money mistakes, wondering if I’m stuck in the rat race. What would you do in my shoes, Money Minder?

Farewell from the author, seeking financial guidance and support.

Response from THE MONEY MINDER:

Hello There,

Hi there,

It sounds like you are in a challenging financial situation, but you have taken the first step in recognizing the issues and seeking advice. Moving out on your own can be empowering, but it seems like the financial burden is taking a toll on you. It’s essential to take a realistic and practical approach to address your concerns.

Considering your circumstances, it might be beneficial to explore the option of finding roommates when your lease is up. This could significantly reduce your monthly expenses and free up extra income to pay down your debt, contribute to your retirement accounts, and build your investment portfolio. While you may love where you currently live, making this sacrifice now could set you up for financial stability and future success.

Additionally, continue focusing on your career growth in finance, studying for the CFA, and nurturing your side hustle. These efforts will pay off in the long run and increase your earning potential. As you mentioned, you have a great deal of potential, and with dedication and strategic financial decisions, you can turn your current situation around.

Remember, it’s okay to make mistakes and learn from them. Use this experience as a valuable lesson to make informed choices moving forward. By taking proactive steps to address your debt and prioritize your financial goals, you will gradually see progress and achieve the financial freedom you desire.

Best of luck on your financial journey!

Farewell from THE MONEY MINDER