post says it all. 34 and broke. Alrhough I wish I could blame it on something other than my blatant carelessness or lack of understanding that we actually do need to save…My 401k has basically nothing in it, I make 60k a year, medical debt, college debt, car debt approximately 60k. I’m well aware this is all my fault, no one to blame but myself. My question is, how the hell can I move forward and try to develop 20k in emergency fund, pay this debt, and just try my best to accumulate some sense of relief. I need a plan, but it feels daunting. Can anyone offer personal experience of how they got out of this all the while feeling like a complete loser of your own making, but also knowing to you’re not? lol. Thanks guys!
34 and broke and I need assistance
byu/Kindly-Purchase717 inpersonalfinance
Posted by Kindly-Purchase717
7 Comments
20k in emergency fund is a lot. Start small. 1k, 2k.
Pay off high interest debt. Make arrangements about the medical debt. many hospitals will negotiate down to smaller amounts. Lots will do zero interest payments.
Pay off the car or sell it if not underwater and buy a cheaper car.
It’s only hopeless when you try to take care of it all at once. Little bites and being consistent are your path to victory.
I was living in CC debt, paycheck to paycheck.
Swallowed my pride and moved back with my parents. Cut out most of entertainment expense. Cut out fast food altogether. Eat out maybe once a month. Noore hanging out. Take all the OT I can get. Just go to work, go back home, sleep, then back to work. I was working 60hrs a week 6 days a week. Still am.
Now I have 25k emergency fund, no debt whatsoever, and a federal job with pension.
It’s all about what you’re willing to sacrifice for what you want.
Start with a budget. If possible, sell the car and ride a bike/bus until you clear your debt.
You’re young still but you need to start saving retirement like today. Compound interest is entirely time dependent and time is limited. Make deposits automatic. S&P 500 Index. Beginning of every month before it hits your bank account.
how long have you been making 60k for?
> Can anyone offer personal experience of how they got out of this all the while feeling like a complete loser of your own making, but also knowing to you’re not?
Sorry for this very direct question from a stranger: Have you ever seen a mental health professional? I recognize you taking accountability for your situation. Have you processed your decision-making that has led you to this point?
Creating a budget and following the “Prime Directive” guide on this sub are good starting points. Audit your spending and “audit” your personal behaviors and mindset about money, if you can.
Work overtime. Where else can you get a part time job that pays time and a half what you make now. If none available, clean houses on your days off. Or make dump runs.