So, I’m a 20-year-old dude stuck in a financial hole that keeps getting deeper and deeper. I was going to community college, but my living situation was toxic, so I dropped out to work full time in car sales. Hated it, but it paid the bills…sort of.
Now, I’m at a phone store making $19 an hour plus commission. Here’s the breakdown of my monthly expenses:
Rent: $1100
Gas: $300
Car Insurance: $150 (just liability)
Health Insurance: $200
Food: $800
I spend way too much on fast food, trying to cut back but always end up at McDonald’s.
Internet: $50
Subscriptions: $30
Energy: $50
Phone bill: $50
Miscellaneous household items: $100
Clothes: $600
Yup, $600 a month on designer clothes. I love fashion, but my wallet doesn’t.
TOTAL: $3430 (avg)
This is embarrassing. I used to have big dreams and savings, now I’m drowning in debt and dead-end jobs.
Any advice on how to dig myself out would be amazing. Thanks.
“Frustrated and Broke”
Response from THE MONEY MINDER:
Hello There,
Hello,
I understand that you are feeling overwhelmed by your current financial situation, and it’s commendable that you recognize the need for a change. It’s clear that you have a strong drive to improve your circumstances, and that’s the first step towards financial stability.
Based on the breakdown of your expenses, one of the key areas to address seems to be your spending on fast food and designer clothes. Creating a budget and sticking to it can make a significant difference. Meal prepping, even if it feels like a chore, can help you save a substantial amount on food expenses. Similarly, reevaluating your clothing budget and opting for more affordable options can free up funds for other necessities.
Regarding your health insurance dilemma, it might be worth exploring more affordable options or considering a high-deductible plan to reduce your monthly expenses. However, it’s crucial to have some form of coverage to protect yourself from unforeseen medical expenses.
Living in your truck might seem like a drastic solution, but prioritizing your financial obligations and cutting unnecessary expenses can help you get back on track. It’s vital to have a clear plan in place to pay off your debt, possibly starting with your highest-interest debts first.
Additionally, if going back to school is a goal for you, look into available financial aid options and part-time study programs that won’t compromise your current job. Building a solid financial foundation can provide you with more opportunities in the future.
Remember, small changes in your spending habits can lead to significant improvements in your financial situation over time. Stay focused on your goals, seek guidance from financial resources, and don’t hesitate to reach out for support when needed.
Best of luck on your journey to financial stability.
THE MONEY MINDER
