Get out of debt brehs

[winb83]

Good work breh.

6 months income gonna be a bit tough for no lie. You got a family? I’m single hence why I’m targeting 6 months of expenses. I just want to ensure worst comes to worse I can go 6 months if I didnt have a job.

I pay pretty much everything cash now but I am looking to switch over to paying with cc and but having the cash on hand to pay off the balance in full so as to not incur charges and rack up the points.

Baby steps though.

I'm single. I took like a year and just lived off half my take home pay and saved the other half of it. I use credit cards because I have different cash back cards for different things. I get 2% to 6% cash back depending on where I shop and the card I can use. Thing is most credit card finance charges are 15% or so. Have to pay them in full to not erase my cash back.

My problem is after that savings account emergency fund was done I got really sloppy on my savings. I saved up about 15K last year though and that's what I put in the stock market this year. I probably should have been investing it last year. It sat in a checking account as I built it up all year. Was kinda stupid of me.

 

[DeuceZ]

I'm debt free!!

I was waiting on my next paycheck to come in but I came up on some old electronics (TVs, laptops) in our family house that I quickly flipped for $500.

This feeling is surreal. I got the monkey off my back

My tax returns haven't even checked in and my very likely promotion should be adding another 15k minimum to my salary.

I'll throw my returns into my emergency fund and the money I've been using to pay off debt I'll use towards a nice little holiday/24th birthday treat (South Africa probably).

Next step is getting serious on these 401ks, IRAs, stocks, getting a new car and my Nigeria investment fund.

Brehs/brehettes being financially at ease is the GOAT feeling. I looked at my debt excel spreadsheet and saw a $0 balance and just felt the shackles of debt dissipate.

And Sunday is tomorrow. Praises to the Lord

Congrats breh... if you don't mind ne asking how much debt did you have at this point last year

 

[phcitywarrior]

Congrats breh... if you don't mind ne asking how much debt did you have at this point last year

Wasn’t much. Probably like 9k when all said and done though it was never 9k in a single sum. I had knocked like 4k off, then “added” additional debt. The actuall balance fluctuated but all in all my debt burden was 9k.

I think the fact my debt was so “manageable” was what made it worse. It was never worrying but it was always nagging. I hear of my friends that have like 20k + in debt and I’m like ehhh, just a couple thousand for me.

I read a Dave Ramsey book and said enough is enough. I want some peace of mind. Lemme get this monkey off my back, no matter how small it is.

It’s very important that I went completely debt free. I’m talking $0 in debt obligations. Not less than 1k or less than $200. Completely zero. Finish the race entirely and know what it feels like to finish, rather than get close and imagine what the feeling would be like.

 

[DeuceZ]

Wasn’t much. Probably like 9k when all said and done though it was never 9k in a single sum. I had knocked like 4k off, then “added” additional debt. The actuall balance fluctuated but all in all my debt burden was 9k.

I think the fact my debt was so “manageable” was what made it worse. It was never worrying but it was always nagging. I hear of my friends that have like 20k + in debt and I’m like ehhh, just a couple thousand for me.

I read a Dave Ramsey book and said enough is enough. I want some peace of mind. Lemme get this monkey off my back, no matter how small it is.

It’s very important that I went completely debt free. I’m talking $0 in debt obligations. Not less than 1k or less than $200. Completely zero. Finish the race entirely and know what it feels like to finish, rather than get close and imagine what the feeling would be like.

Good shyt breh I'm in 20k + group but looking to make a significant dent this year.

 

[Ezekiel 25:17]

My credit card has about $4200 on it. I'm thinking about dumping my entire $1100 tax return on it. What y'all think?

I got $350 is savings that I add to little by little

 

[phcitywarrior]

My credit card has about $4200 on it. I'm thinking about dumping my entire $1100 tax return on it. What y'all think?

I got $350 is savings that I add to little by little

I'd say use $650 of your tax refund and get your savings to $1k. After that don't add anymore to it. Then toss the rest of the refund at your CC bill. Then use any money you would have saved to pay off more debt. If you can get save up like $400-$500 each month, then throw that to your credit card. If you stick at it you can be debt free by the end of the year. You gotta get aggressive with it though.

I had points where I would get like 75% of the way there, then take my foot off the gas. Keep going till your done. There's a very distinct feeling of being debt free. It's different than being 95% debt free.

Once you're debt free, go on ahead and fund out your savings for at least 3 months worth of expenses. Some people go as high as 1 year's worth of expenses or even income. All depends on your situation. But eventually, you want to cap that amount and then start putting money into areas to work for you.

 

[Paradise50]

Def gonna do this so I can get my debt down. Just wanna focus on my college loans. Still in that 6 month grace but I'll be back in school this summer anyway (outta pocket)

 

[Neo. The Only. The One.]

buuuuuuuuuuuuuuump for the culture

 

[phcitywarrior]

buuuuuuuuuuuuuuump for the culture

We working out here breh

 

[Ezekiel 25:17]

We working out here breh

So now I got $1k in savings. Hopefully don't have to touch it.

Gone try to put $300 per check on card

 

[phcitywarrior]

So now I got $1k in savings. Hopefully don't have to touch it.

Gone try to put $300 per check on card

Good way to look at it. Deff try not to touch the funds unless it’s an absolute emergency.

 

[Bane]

Kind of OT but how much are y'all putting into your 401k?

 

[phcitywarrior]

Kind of OT but how much are y'all putting into your 401k?

I've heard usually you only want to put up to the max you're company is willing to match.

So if they match you up to %5 of your contribution, then out of every $100 of your paycheck, only put in $5.

 

[Dat Migo]

About to throw this bonus all at my school loans. Can't wait to pay that shyt off.

 

[MJ Truth]

Curious, do you feel you spend more with all these CC's to justify the cash back or would you have spent the same without the CCs?

You have to be disciplined to do it.