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Well, it depends on many things, your rent, your food, your entertainment budget, your work social requirements, etc, but generally, I'd say "YES" but it would require a lot of sacrifice. Some could put up with that for a year, most in the US not.
If you can put up with the sacrifice, I'd recommend a second job as well, even if the second job doesn't pay much more than minimum wage.
I have no problem sacrificing for a year. I would probably get a roommate to cut down costs and maybe pick up a 2nd evening job. I dont really know what counts as entertainment? And I dont really socialize because I work all the time. I grew up what most people would call lower middle class or even poor. So getting out of debt is my 1st priority.
I have no problem sacrificing for a year. I would probably get a roommate to cut down costs and maybe pick up a 2nd evening job. I dont really know what counts as entertainment? And I dont really socialize because I work all the time. I grew up what most people would call lower middle class or even poor. So getting out of debt is my 1st priority.
It's definitely doable! You'll need to make some big cutbacks but it sounds like from your background you are more than prepared to do so. I'd recommend some investigation into hyperfrugality.
First of all, (using rough numbers here) your income is $45K. After taxes you'll probably have ~$35K left. You need to save $25K, so that means you'll need to live off of $10K/year (~800/month).
You'll need to make a strict budget and follow it very closely.
Rent: get a roommate or perhaps even better rent a room from someone's house (what I'm looking into myself right now). Try to keep this expense including utilities under $500 month ($300-$400 is much better).
Food: absolutely no eating out. You need to cook or prepare all of your meals yourself. I'm currently at ~$150/month doing this, and I'm eating quite healthy. You could probably bring this down to $100/month. Do not buy name-brand or organic stuff, but you can definitely eat your veggies while doing this.
Transportation: your best bet is to not own a car at all. I actually bike everywhere myself (occasionally using mass transit) and don't own a car. You will save a LOT doing this. Bike to work, bike to get groceries (get a bike rack and panniers), bike to visit friends.
Cut the cable and use streaming services, cut the excessive entertainment expenses, etc.
With this kind of budget you should easily be able to crack $10K/year spending. I'm am at $20K a year right now and that includes a $1000/month studio and a once a year international vacation, plus entertainment expenses. Even in my ridiculously expensive area (you cannot rent a room under $600/moth here) if I cut all of that I could get to $11K/year.
It's definitely doable! You'll need to make some big cutbacks but it sounds like from your background you are more than prepared to do so. I'd recommend some investigation into hyperfrugality.
First of all, (using rough numbers here) your income is $45K. After taxes you'll probably have ~$35K left. You need to save $25K, so that means you'll need to live off of $10K/year (~800/month).
You'll need to make a strict budget and follow it very closely.
Rent: get a roommate or perhaps even better rent a room from someone's house (what I'm looking into myself right now). Try to keep this expense including utilities under $500 month ($300-$400 is much better).
Food: absolutely no eating out. You need to cook or prepare all of your meals yourself. I'm currently at ~$150/month doing this, and I'm eating quite healthy. You could probably bring this down to $100/month. Do not buy name-brand or organic stuff, but you can definitely eat your veggies while doing this.
Transportation: your best bet is to not own a car at all. I actually bike everywhere myself (occasionally using mass transit) and don't own a car. You will save a LOT doing this. Bike to work, bike to get groceries (get a bike rack and panniers), bike to visit friends.
Cut the cable and use streaming services, cut the excessive entertainment expenses, etc.
With this kind of budget you should easily be able to crack $10K/year spending. I'm am at $20K a year right now and that includes a $1000/month studio and a once a year international vacation, plus entertainment expenses. Even in my ridiculously expensive area (you cannot rent a room under $600/moth here) if I cut all of that I could get to $11K/year.
Thanks for the guide. What about cell phone? The only thing I really like is having a smartphone lol I can get a plan at $30/mo so thats like $360 for the year but I would probably pay for that with the 2nd job.
Thanks for the guide. What about cell phone? The only thing I really like is having a smartphone lol I can get a plan at $30/mo so thats like $360 for the year but I would probably pay for that with the 2nd job.
Republic Wireless and Ting are also very popular for saving money - you should check out those and compare them to your current plan.
If you're comfortable with less spending compared to the normal population you are very fortunate. I would highly recommend looking at saving towards financial independence after you pay off your debt. Happiness isn't achieved simply by spending more, but it may be aided by saving towards your financial freedom, allowing you do do what you like (whether it's continuing to work, or something else entirely).
I have no problem sacrificing for a year. I would probably get a roommate to cut down costs and maybe pick up a 2nd evening job. I dont really know what counts as entertainment? And I dont really socialize because I work all the time. I grew up what most people would call lower middle class or even poor. So getting out of debt is my 1st priority.
Also, find a place where you can walk to work and don't own a car. This makes a HUGE difference, and is an integral part of the sacrifice.
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