part time job, anywhere. grind away til you reach your goal then quit it
Get out of debt brehs
- Thread starter newarkhiphop
- Start date
part time job, anywhere. grind away til you reach your goal then quit it
I'm sure I mentioned this before, but I was out of work for a bit and filed Chapter 13 Bankruptcy so I could save my house. Initially I was worried, but I'm things are looking decent. Here is my current scenario:
Savings/Emergency 28.1%
Bankruptcy Payments 19.3%
Food/Gas/Misc 26.5%
Housing 14.1%
Cost of Living Total 12.0%
The bankruptcy payments, include payments towards mortgage arrears and my car are garnished through my wages, so I don't even see them
Cost of living combines Gas/electric, Cable/Internet, Water, Car Insurance, home warranty and Cell. Housing is just my mortgage payment which include home owners insurance and property taxes. I put a portion of the savings amount to the side...so like savings w/i savings and I borrowed money from 3 different family members, so the rest been going toward paying them back. I should be squared my September, but school will be starting so money will most likely be going to that.
I'm a shyt saver so the goal is to develop some consistent savings habits for the duration of this year, fine tune my budget based on reasonable spending and ultimately be able to invest more of that savings to maximize the return. I know I'm late to the game, but I'm happy to have this much wiggle room in my budget. Not a bad place to be over the next two years.
Savings/Emergency 28.1%
Bankruptcy Payments 19.3%
Food/Gas/Misc 26.5%
Housing 14.1%
Cost of Living Total 12.0%
The bankruptcy payments, include payments towards mortgage arrears and my car are garnished through my wages, so I don't even see them
Cost of living combines Gas/electric, Cable/Internet, Water, Car Insurance, home warranty and Cell. Housing is just my mortgage payment which include home owners insurance and property taxes. I put a portion of the savings amount to the side...so like savings w/i savings and I borrowed money from 3 different family members, so the rest been going toward paying them back. I should be squared my September, but school will be starting so money will most likely be going to that. I'm a shyt saver so the goal is to develop some consistent savings habits for the duration of this year, fine tune my budget based on reasonable spending and ultimately be able to invest more of that savings to maximize the return. I know I'm late to the game, but I'm happy to have this much wiggle room in my budget. Not a bad place to be over the next two years.
OfTheCross
Veteran
I got about 12K in CC debt that I'm hoping to get out from under in the next 4 months.paid off my citi card, capital one u up next
After that I'm maxing out my Roth
StretfordRed
Afro-European
One of the key things. You don't know how much that spirals out of control
I paid off about 18k of student debt (since 2008 to 2015), around 10k of personal debt on CC and OD, and 6k on an MSc
I had to sell a lot as said in the OP. Sold xbox, this that and the other,. Moved home to my mum, BUT one of the key things was getting a better job. I was in debt due to studying for the MSc, but I knew in the end it would increase my salary.
Even if you aren't into education, then taking on a 2nd job may help. Nothing will beat having an additional stream of money coming in. No matter how small
I now have around 40k in savings, which was all from clearing those damn debt payments each money and increasing my salary
I got a TON of stuff I want to sell (lotta designer sneakers and such), y'all just toss all your old ish on eBay?
Try offer up and letgo too. I've sold sneakers on there and they've moved quickly, within a week. No holds and I keep accepting offers until I have cash in hand. Meet in public and all that.
This is a great post. I'm sure I posted this here before but getting out of debt was the best thing I ever did. At one point I was 25K CC in debt, car repossessed and getting eviction notices. The biggest challenge is for people to be able to admit they are in trouble and do whatever it takes to fix it. Similar to you, I moved home at one point for about a year. Everything about it sucked, but when you are treading water one wrong thing can turn everything upside. You can't just get out of debt, you need to get above ground.
Once I was out of debt, I over-funded my emergency/savings. Yes, you'll earn more in the market, but there is no better feeling than not having concerns about being fired, quitting your job if you hate it, taking an extended leave, etc. It's truly FU money to have the ability to not work 1-2 years if you absolutely had to. It also allows you to jump at opportunities and by low in case the market shyts the bed.
Was reading that a lot of the growth in the US' economy is being driven by leisure spending (eating out, travel, entertainment etc). stack up now if you can.
late arrival to the thread but I hope to contribute a great story at the end of the year
jwonder
Superstar
Not sure if I mentioned it but fund rise and acorns are awesome investment tools
Create standards for yourself with all expenses.
Only use credit for large/consistent purchases that are planned (groceries, gas, monthly services)
My standards
Personal Houses - If you can't afford to pay for it in 5 years, you can't afford it.
Personal Cars - pay for it in cash, if you must have a payments (Half down - if you can't afford to put half down you can't afford it, only finance for 1 years; max 2 years)
Everything else pay in cash, or credit - pay it off by the end of every week with everything you buy.
You need to be in the endless cycle of being ahead of your money.
Stop playing monopoly with folks that can afford it. Do not bet on credit unless it's real estate investment. We were suppose to be the generation with paid-off homes at 35 but our group is following our parents lifestyles.
Only use credit for large/consistent purchases that are planned (groceries, gas, monthly services)
My standards
Personal Houses - If you can't afford to pay for it in 5 years, you can't afford it.
Personal Cars - pay for it in cash, if you must have a payments (Half down - if you can't afford to put half down you can't afford it, only finance for 1 years; max 2 years)
Everything else pay in cash, or credit - pay it off by the end of every week with everything you buy.
You need to be in the endless cycle of being ahead of your money.
Stop playing monopoly with folks that can afford it. Do not bet on credit unless it's real estate investment. We were suppose to be the generation with paid-off homes at 35 but our group is following our parents lifestyles.
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jwonder
Superstar
Most Americans don't think like this that's why they stay in debt. This is great advice. I make 80k but I still have my car for 15 years. I pretend to have a car payment of $300 a month. I take that and put it to the principal of my 30 year mortgage. I'll be done paying off my house in 5 years.
I AM WE ARE
Banned
what about secure credit cards,should i get one to help with my credit or pay off little loans as i can?
Pay off your loans. It doesn’t make sense to add more credit to repair your credit when it’s probably low because you haven’t properly managed the credit you already have.