I have what I would consider a great job and get around 3k a month. I had so many debts to my name but finally only have 1.5k to pay.
How can I reliably turn everything around once I get clear of this debt? I don’t ever want to be in a situation like this again
I am 26 and have 1k to my name
byu/Soldier7355 inpersonalfinance
Posted by Soldier7355
6 Comments
Pay everything using your debit. Remove your credit cards and change your lifestyle!
make absolutely zero lifestyle upgrades when you zero out your debt and instead just start saving and investing the amount you were paying down debt each month.
Spend less than you bring in, create a savings plan.
Making $3k per month is not considered a great job by most people. You need a skill so that you can make more income. Otherwise you will overwhelmed by the cost of living.
Frugality…
There are people making $200k with more debt than assets, there are people making $60k with more assets than debt.
Society is out to fuck you over; it will treat you like an anomaly if you don’t spend like the rest spend. Which is not to accumulate wealth, but to live with the facade of wealth; the nice car that is on borrowed money, the clothes that are the same, the spending on trinkets, daily coffee, and things that signal you can “afford” to spend money. The reality is that a lot of this consumption comes from pawning your future earnings so you can pretend today.
Learn to swim against the current, and build a frugal life you enjoy to the fullest. When I have two things I love to do I simply pick the less expensive love.
https://moneyguy.com/episode/the-best-financial-strategies-by-income-from-financial-advisors/
Money guys talk about 40k income in the video above. You will likely have to be very intentional with your income, spending, and saving. Their Financial Order of Operations (FOO) is a pretty good system to understand prioritization of the financial steps you should take.