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Any advice on financial wellness for a 28 year old. Some background.
I'm 28, just bought a home by myself this year. $1700 a month
Have 19k in student debt with the government $300 a month
96k student debt on my parents house- they took out a second mortgage and I pay it $500 a month
13k in credit card debt- half for school, half for my new house buying stuff, maxed out my one card
I make about 50k a year salary job, on average $3400 a month
Car loan and insurance $300 a month
Gas and food is about $150 a month
I want to get my debt down. I live paycheck to paycheck, sometimes beyond my means. I want to get rid of the credit card debt soon.
I want to have a safety backup fund for my house
I have no retirement, I can't afford it. I need good financial advice.
Yes, you do! You made a mistake buying a house on that income with that debt....if this is even real.
Any advice on financial wellness for a 28 year old. Some background.
I'm 28, just bought a home by myself this year. $1700 a month
Have 19k in student debt with the government $300 a month
96k student debt on my parents house- they took out a second mortgage and I pay it $500 a month
13k in credit card debt- half for school, half for my new house buying stuff, maxed out my one card
I make about 50k a year salary job, on average $3400 a month
Car loan and insurance $300 a month
Gas and food is about $150 a month
I want to get my debt down. I live paycheck to paycheck, sometimes beyond my means. I want to get rid of the credit card debt soon.
I want to have a safety backup fund for my house
I have no retirement, I can't afford it. I need good financial advice.
You’re in a crap ton of debt. About $130,000 worth not counting the house. I would first start house hacking. Get a roomate or two (if it’s a 3 bed house rent two bedrooms. . Get a second part time job
And
Refinance your school and parent and cc debt into your house if you can. This will consolidate your debt over 30 years and most likely lower your overall total monthly debt payment/expenses. I doubt you have enough equity for that but if you can do it.
Truthfully you need to do the snowball type payment.
Write down all your loans and monthly expenses/debts.
Cut out ANYTHING that’s pleasure or bs spending.
Satellite tv
Going out date
Take out food
Unneeded driving
Maui vacations
Any extravagant spending like clothes shoes etc.
Flowers presents for SO. Tell SO at this time getti out of debt is your goal) SO will either hang or leave. If they leave they leave.
Take all that money that you were able to cut out.. take 5-10% or a set amount and put that away every check/monthly. DO NOT TOUCH IT. Now ..Start making minimum payments on all the loans except one. Go kill the smallest debt with the highest interest by paying all the additional money you can on that loan. Then move to loan 2.
I don’t see how you qualified for the loan as your monthly debt out is 2950 including the house.and you net 3400. How much savings do you have? D9 you have at least 6 months of money to take care of all your monthly nut? I hope that nothing big happens like a roof or wrestler, busted sewer.
Car loan? Do you work from home? Dump the car. Rent or uber when you need a car ride (depending on the length of use). I would keep this car fir a minimum of 10 years.
Everything we say sucks. You’re not gonna like it and most likely won’t want to do it. If you were smart you will button down and gett of debt and work on growing your wealth.
My biggest advice is
STOP buying into the bs that society tells you that you need a certain house car job clothes etc to be successful. Most of the people saying that don’t have a pot to pee in. Unhook yourself from the society said train.
You’re in a crap ton of debt. About $130,000 worth not counting the house. I would first start house hacking. Get a roomate or two (if it’s a 3 bed house rent two bedrooms. . Get a second part time job
And
Refinance your school and parent and cc debt into your house if you can. This will consolidate your debt over 30 years and most likely lower your overall total monthly debt payment/expenses. I doubt you have enough equity for that but if you can do it.
Truthfully you need to do the snowball type payment.
Write down all your loans and monthly expenses/debts.
Cut out ANYTHING that’s pleasure or bs spending.
Satellite tv
Going out date
Take out food
Unneeded driving
Maui vacations
Any extravagant spending like clothes shoes etc.
Flowers presents for SO. Tell SO at this time getti out of debt is your goal) SO will either hang or leave. If they leave they leave.
Take all that money that you were able to cut out.. take 5-10% or a set amount and put that away every check/monthly. DO NOT TOUCH IT. Now ..Start making minimum payments on all the loans except one. Go kill the smallest debt with the highest interest by paying all the additional money you can on that loan. Then move to loan 2.
I don’t see how you qualified for the loan as your monthly debt out is 2950 including the house.and you net 3400. How much savings do you have? D9 you have at least 6 months of money to take care of all your monthly nut? I hope that nothing big happens like a roof or wrestler, busted sewer.
Car loan? Do you work from home? Dump the car. Rent or uber when you need a car ride (depending on the length of use). I would keep this car fir a minimum of 10 years.
Everything we say sucks. You’re not gonna like it and most likely won’t want to do it. If you were smart you will button down and gett of debt and work on growing your wealth.
My biggest advice is
STOP buying into the bs that society tells you that you need a certain house car job clothes etc to be successful. Most of the people saying that don’t have a pot to pee in. Unhook yourself from the society said train.
To the OP do not do the first bolded suggestion. It’s bad financial advice for a multitude or reasons. To the second bolded point you’d be better off paying down highest interest rate loans first and moving on, but this method mentioned can show progress sooner and provide a physiological boost which may or may not help you stick to the plan
Step 1 - rent home to 2-3 roomates and collect rent
Step 2 - adios parents debt they pull their own weight on their house payment
Step 3 - use rent and parent's house payment to pay off credit cards
Step 4 - build a 120 - 180 rainy day fund in case you ever get laid off
Step 5 - pay down student loans / car loan
Step 6 - start 401k (max out company match usually 5-8%) then invest remainder into a individual Roth ira up to 15% of your base income (combined with 401k)
If you get this far we can go from there but work on building income, reducing debt, and manage your cost structure going forward.
Step 1 - rent home to 2-3 roomates and collect rent
Step 2 - adios parents debt they pull their own weight on their house payment
Step 3 - use rent and parent's house payment to pay off credit cards
Step 4 - build a 120 - 180 rainy day fund in case you ever get laid off
Step 5 - pay down student loans / car loan
Step 6 - start 401k (max out company match usually 5-8%) then invest remainder into a individual Roth ira up to 15% of your base income (combined with 401k)
If you get this far we can go from there but work on building income, reducing debt, and manage your cost structure going forward.
Number two would be fine, *but* the O.P.'s parents seem to have taken out the second mortgage in order to give their child more cash for college. It's only fair that she continues to repay them as (I'm assuming) she promised. Perhaps modifying the payment a bit if it's not too much of a burden on them, but she needs to own the consequences of her past decisions.
As with the others who suggested that the O.P. moving back home, I don't think that it's right that a grown woman with a money management problem should transfer the burden of her mistakes onto her parents. Taking out that second mortgage was enough for them to have done.
I think that with heavily modified spending habits plus the addition of at least one roommate and a side hustle of some kind, the O.P. will be able to get her financial house in order. It's going to take a lot of self-discipline combined with a serious lifestyle change to do this, but it can be done.
Step 1 - rent home to 2-3 roomates and collect rent
Step 2 - adios parents debt they pull their own weight on their house payment
Step 3 - use rent and parent's house payment to pay off credit cards
Step 4 - build a 120 - 180 rainy day fund in case you ever get laid off
Step 5 - pay down student loans / car loan
Step 6 - start 401k (max out company match usually 5-8%) then invest remainder into a individual Roth ira up to 15% of your base income (combined with 401k)
If you get this far we can go from there but work on building income, reducing debt, and manage your cost structure going forward.
Huh? The parents took out a 2nd to pay for his school. He’s not paying their mortgage. He’s simply paying them back.
To the OP do not do the first bolded suggestion. It’s bad financial advice for a multitude or reasons. To the second bolded point you’d be better off paying down highest interest rate loans first and moving on, but this method mentioned can show progress sooner and provide a physiological boost which may or may not help you stick to the plan
Either option works.
The main reason to do the equity loan and pay off the current debt is because the 130k borrowed for 30 years is gonna be at a lower rate than the current loans and cc dent he has.
Also as the house gains equity as time goes on....it will technically pay off his debt faster if he chooses to sell in 5/7/10 years. And yea no matter what the political'r health crisis we are currently have houses will drop and then keep going up in price in time. It’s just the way it is.
The lower monthly payment vs his current debt payments will allow him to save money (given he doesn’t get in debt again). It’s just one way to consolidate debt. While it may not be optimal it’s better than the current way he is paying his debts.
The second option requires op to be a lot more steadfast with his money. A lot of people get sidetracked. For all we know op is a spending fool and no matter what advice they will go out and go I debt over and over.
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