Hey Money Minder,
So, I’m 29F, doing this whole adulting thing solo. Dealing with some mental health stuff, but managing it okay right now.
Here’s the rundown:
- Credit card debt: $8,200
- Student loan debt: $16,000
- Rent: $955/month
- Income: $2,000/month
- Savings: $2,300
- Bonds just matured: $6,800 (each turn 30 this month)
- Retirement: $1,300 between two accounts
I don’t drive, so no car expenses here. I work a job and do some freelance writing on the side. The job is a lifeline for my mental health, and without it, I might have been on disability benefits.
My dad helps me out with $100/week for little things, but I cover all the big bills myself. My aim is to stand on my own two feet without needing that extra cash.
It’s tough seeing my boyfriend owning a house and having tons stashed away at our age. I feel like I’m lagging behind.
So, Money Minder, am I in deep trouble here?
Cheers,
Dreaming Big
Response from THE MONEY MINDER:
Hello there,
Congratulations on being stable in your mental health journey despite facing challenging circumstances. It’s great to hear that you have found a job that suits your mental health needs and that you are working towards being financially independent.
Looking at your financial situation, it seems like you are managing well considering your income and expenses. However, the credit card debt and student loan debt are areas that need immediate attention. With a monthly income of $2,000 and rent at $955, it may be challenging to pay off the debt quickly, but it’s important to create a plan to address it gradually.
Start by looking at your budget and finding areas where you can cut back on expenses. Consider allocating a portion of your freelance writing income towards paying off the debt. Also, since you have savings and bonds that have matured, you can use that to pay off a portion of your debt and reduce the interest burden.
Regarding your feelings of inadequacy compared to your boyfriend’s financial situation, remember that everyone’s financial journey is different. Focus on your progress and achievements rather than comparing yourself to others. Set realistic financial goals for yourself and celebrate small victories along the way.
In terms of getting back on track with your finances, it would be beneficial to create a solid plan for debt repayment, saving, and building your retirement accounts. Seeking guidance from a financial advisor or counselor can also provide you with personalized strategies to improve your financial situation.
Remember, financial stability is a journey, and it’s okay to seek help and make adjustments along the way. Keep moving forward with determination and be kind to yourself during this process.
Best of luck on your financial journey. You’ve got this!
Farewell from THE MONEY MINDER
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