I literally cannot say it enough: the emergency fund is so important. My husband (an accountant) literally just lost his job. Without our emergency fund, we'd be under in three months. No job is completely stable, especially in this economy. Best of luck to this person, that vacay fund is goin to have to wait 😂
She should absolutely do the debt snowball. And aim for $10K starter emergency fund. Walking & bike riding while listening to a podcast are my contentment activities. It's exercise and it's free 😊
It's got to be the 17 year old nephew on her car insurance bringing the cost up so high. If he doesn't drive her car(s) or if he can not drive her cars, she could ask her insurance about making him an excluded driver. I did this when I lived with my younger sister but she never drove my car. My insurance needed me to sign something saying they weren't liable if she did drive it. Of course in this person's case she probably does want to let her nephew drive the car.
Yeah, it's extremely expensive to insure a teenage driver - especially since it's a good idea to keep the liability limits maxed out particularly with a more inexperienced driver.
If the 17-year-old is on her car insurance, that's actually fairly standard. It will decrease if the teen stays accident and ticket free at age 18, but it's still really expensive. I just had to insure my new driver who is 18 and was shocked at the price even with the good student discount and no tickets or accidents.
You can also do a mix of both methods. I paid off the lower balances first because it was easier. Then I decided to pay off the higher interest rates to save on interest payments. Now I am slow paying my student loans (only debt outside of the mortgage) and taking the valuable time in my 20s to invest in the market. Personal finance isn’t one which way. You can definitely play around with it if you’d like.
Excellent breakdown and plan, Justine. Great advice. However, I have a friend who's a degreed and certified paralegal and has 5 years of experience and has lost 2 jobs in the course of 3 years. They are not always that stable.
If it were me: all those credit cards need to be put into a tub of water & frozen in the freezer so they can't be used on a whim (but don't cancel the cards as that affects the credit rating). Remove the card nbrs from any online payments & use debit card instead. Create a sensible budget of needs & small amount for wants & stick to it. Meal planning to reduce grocery spend & cook healthy budget meals incl lunch for work, DIY coffee at home & work. Thrift stores for clothes for the family. Shop around for cheaper options for bills. 2k emergency fund to start then snowball those debts for the little wins. It honestly becomes fun if you treat it like a game! I had a very frugal 16 months but I did it & I'm out of debt now!
When I looked at the mouth if she saved that $700 a month 7 month he would take her more than 10 years of sacrificing to pay off that student loan... I totally understand her... That's the first time in 15 years that I sided with somebody having fun instead of paying off their student loan.. It is just so crazy overwhelming... My boyfriend and I saved select crazy and then 2 weeks after we bought a house before we moved in. I went to pick him up for breakfast and at 55 years old. I found him dead... Not worth avoiding all the fun we could have had.
Has anyone else used the template with a bi-weekly schedule? I've been shifting it to the two pay periods to see how that works for a few months, so instead of June, it might be May 30-June 27, then July is June 28-July 24...etc.
For an individual like her, she should get a balance transfer 0% interest APY for 18+ months because there’s NO WAY she got those high ass interest rates.
Car insurance is expensive when you have a teenager driving in your household, and for some reason, it is more expensive for boys. I am wondering if that is her case
VELOCITY BANKING IS THE ANSWER HERE. Oh my goodness gracious. She needs to change her spending habit first or the debt mentality. You can use velocity banking here. And can definitely easy clear out some debt. But, to be honest, i dont think she can change that spending habits. It might be for the meantime, but it looks like more of a personality issue.
Crazy how people can even think of using a 30% interest credit card. Her monthly payment on her debts is already a quarter of her gross pay. That’s nuts. I’d be in constant anxiety if these were my numbers. If you don’t have the money, don’t spend it. Is this how most people in America live? It’s very stressful.
8K from 86K still leaves 71K.... so how can you fault people with 10+ of loans to pay off when their payment takes almost 1 decade!!!! WTF a whole lot can change in just 5 years (Covid pricing for example!!!!)
Nice vid but she should follow the Dave Ramsey plan for at least the first 3 steps. 1. Quickly save $1000 for an "emergency fund" 2. Pay off the smallest credit card, cut it up, then move onto the next card. Pay that off, cut it up, and so on until she reaches her student loan. She can then toss more $$$ a that and get it wiped out then she'll be debt free. 3. Then she can save up for her 3-6 month emergency fund.
Yeah usually following Dave’s plan is a little risky because of the $1k emergency fund…. but if saving $6k is going to take over a year then she should probably start paying off some debts before that point just to get rid of minimum payments.
Honestly, if she can prioritize the EF and like cut back on the fun money and personal spending bc she's spending $712.84 on fun, she could build up $6k quickly. Any extra cutting she can do and extra income opportunities to really fuel the EF is going to be crucial bc those interest rates are charging her ridiculous rates on a daily basis, the quicker she can get the EF built up the less time the credit cards will charge her interest on her balances and the less she will pay in interest.
And that car insurance is outrageous, shop rates and see if you can cut that in at least half, that right there would give you an extra $200 to put towards the EF and debt payoff, each month.
Totally agree. Just over a decade ago, my wife and I decided we were sick to death of the debt load we were carrying. We made good money and we’re still living paycheck to paycheck. We spent 3 years going completely “scorched earth” until we got the debt paid off. We found our entertainment at the $5 movie theater, walks with our dogs at a nearby park, free summer concerts, and a variety of other very cheap entertainment. The weight we felt lifted off our shoulders once we cleared the debt was worth every minute of the struggle it took to get there.
It appears to me that the fun money spending may not be properly budgeted for. Restaurants, fast food, coffee shops, personal spending etc all got $0.00 in the planned section of the budget. If you really are spending that amount of money plan for it, and then track every single purchase, every time you go to Starbucks for example and spend $5.67 on a mocha latte record it in the actual column, every time you go to McDonald's and buy a cheeseburger for $2.07 record it in the actual column, and continue doing that for every purchase. don't know what personal spending is to you so I can't give specific 6:50 examples there. Just looking at those numbers they're very round numbers and I know it's unlikely that you spend $130 exactly on fast food, $95 exactly on restaurants, $5 exactly on coffee shops. It's usually like $128.61 or some odd number like that for actual. You could plan to spend $130 though and plan to spend $95 on restaurants, and plan to spend $5 on coffee shops, but that's just a little too exact on the actual spending, in my opinion.
Being a paralegal doesn't pay. People think it's a highly respected professional job, but its not. You're not a lawyer, you're an assistant. That doesn't mean sh*t.
I literally cannot say it enough: the emergency fund is so important. My husband (an accountant) literally just lost his job. Without our emergency fund, we'd be under in three months. No job is completely stable, especially in this economy. Best of luck to this person, that vacay fund is goin to have to wait 😂
That’s why you don’t trust social media lifestyles. Most of them are in debts especially nurses.
Agree. I used to have a vacay fund, but had to put it on pause. No money to put in it after funding everything else. Oh, well😢
A healthy emergency fund turns what could have been a financial crises into just a nuisance. This is a much different dynamic in terms of stress.
Blue collar jobs are stable, for the good hands we always stay busy. 40 hours minimum per week regardless of what happens. Lousey hands get laid off.
It's mandatory. Had to move, and get a full set of tires all in one month. Without the 1 month to the side I would have been screwed.
She should absolutely do the debt snowball. And aim for $10K starter emergency fund. Walking & bike riding while listening to a podcast are my contentment activities. It's exercise and it's free 😊
Gardening and crocheting is a plus.
Seeing how other people live, and what they spend, sometimes just blows my mind ..
This was a great video with even greater feedback. She can make it, she just has to believe in herself and stick with the plan she chooses.
It's got to be the 17 year old nephew on her car insurance bringing the cost up so high. If he doesn't drive her car(s) or if he can not drive her cars, she could ask her insurance about making him an excluded driver. I did this when I lived with my younger sister but she never drove my car. My insurance needed me to sign something saying they weren't liable if she did drive it. Of course in this person's case she probably does want to let her nephew drive the car.
Yeah, it's extremely expensive to insure a teenage driver - especially since it's a good idea to keep the liability limits maxed out particularly with a more inexperienced driver.
I love your post content and learned a lot from your expertise and knowledge 👍🙏👌💐
If the 17-year-old is on her car insurance, that's actually fairly standard. It will decrease if the teen stays accident and ticket free at age 18, but it's still really expensive. I just had to insure my new driver who is 18 and was shocked at the price even with the good student discount and no tickets or accidents.
You can also do a mix of both methods. I paid off the lower balances first because it was easier. Then I decided to pay off the higher interest rates to save on interest payments. Now I am slow paying my student loans (only debt outside of the mortgage) and taking the valuable time in my 20s to invest in the market.
Personal finance isn’t one which way. You can definitely play around with it if you’d like.
Excellent breakdown and plan, Justine. Great advice. However, I have a friend who's a degreed and certified paralegal and has 5 years of experience and has lost 2 jobs in the course of 3 years. They are not always that stable.
If it were me: all those credit cards need to be put into a tub of water & frozen in the freezer so they can't be used on a whim (but don't cancel the cards as that affects the credit rating). Remove the card nbrs from any online payments & use debit card instead. Create a sensible budget of needs & small amount for wants & stick to it.
Meal planning to reduce grocery spend & cook healthy budget meals incl lunch for work, DIY coffee at home & work. Thrift stores for clothes for the family. Shop around for cheaper options for bills.
2k emergency fund to start then snowball those debts for the little wins. It honestly becomes fun if you treat it like a game! I had a very frugal 16 months but I did it & I'm out of debt now!
Great job! 🎉🎉
May I suggest as a " hefty" vacation to go with a baloney sandwich?
Something tell's me the income & debt overview part of future 2024 videos are going to get more and more interesting.
When I looked at the mouth if she saved that $700 a month 7 month he would take her more than 10 years of sacrificing to pay off that student loan... I totally understand her... That's the first time in 15 years that I sided with somebody having fun instead of paying off their student loan.. It is just so crazy overwhelming... My boyfriend and I saved select crazy and then 2 weeks after we bought a house before we moved in. I went to pick him up for breakfast and at 55 years old. I found him dead... Not worth avoiding all the fun we could have had.
Has anyone else used the template with a bi-weekly schedule? I've been shifting it to the two pay periods to see how that works for a few months, so instead of June, it might be May 30-June 27, then July is June 28-July 24...etc.
Great advice 😊❤😊
For an individual like her, she should get a balance transfer 0% interest APY for 18+ months because there’s NO WAY she got those high ass interest rates.
What is your opinion on debt management plans?
Wow, youre 1k away from the Silver Play Button 🎉
Her car insurance is clearly for her and her nephew - a 17 year old male. Yeah, it's gonna be expensive.
Car insurance is expensive when you have a teenager driving in your household, and for some reason, it is more expensive for boys. I am wondering if that is her case
VELOCITY BANKING IS THE ANSWER HERE. Oh my goodness gracious. She needs to change her spending habit first or the debt mentality. You can use velocity banking here. And can definitely easy clear out some debt. But, to be honest, i dont think she can change that spending habits. It might be for the meantime, but it looks like more of a personality issue.
Crazy how people can even think of using a 30% interest credit card. Her monthly payment on her debts is already a quarter of her gross pay. That’s nuts. I’d be in constant anxiety if these were my numbers. If you don’t have the money, don’t spend it.
Is this how most people in America live? It’s very stressful.
400 for car insurance 😮
That is 5x my payment lol
17 year old male driver is my guess. I have 19 and 17 year old sons and average 200 a week for 4 drivers
You all don't have teen drivers and it shows.
8K from 86K still leaves 71K.... so how can you fault people with 10+ of loans to pay off when their payment takes almost 1 decade!!!! WTF a whole lot can change in just 5 years (Covid pricing for example!!!!)
Did her husband leave her any life insurance when he died?
Hey Justine! Do you edit videos yourself, or have you hired someone? I offer high-quality edits and would love to discuss, if you’re interested.
Nice vid but she should follow the Dave Ramsey plan for at least the first 3 steps. 1. Quickly save $1000 for an "emergency fund" 2. Pay off the smallest credit card, cut it up, then move onto the next card. Pay that off, cut it up, and so on until she reaches her student loan. She can then toss more $$$ a that and get it wiped out then she'll be debt free. 3. Then she can save up for her 3-6 month emergency fund.
Yeah usually following Dave’s plan is a little risky because of the $1k emergency fund…. but if saving $6k is going to take over a year then she should probably start paying off some debts before that point just to get rid of minimum payments.
Honestly, if she can prioritize the EF and like cut back on the fun money and personal spending bc she's spending $712.84 on fun, she could build up $6k quickly. Any extra cutting she can do and extra income opportunities to really fuel the EF is going to be crucial bc those interest rates are charging her ridiculous rates on a daily basis, the quicker she can get the EF built up the less time the credit cards will charge her interest on her balances and the less she will pay in interest.
And that car insurance is outrageous, shop rates and see if you can cut that in at least half, that right there would give you an extra $200 to put towards the EF and debt payoff, each month.
Dave is garbage
No, with 80k plus in debt, you shouldnt have any fun allocation. Do free things until thats gone, thats crazy
Totally agree. Just over a decade ago, my wife and I decided we were sick to death of the debt load we were carrying. We made good money and we’re still living paycheck to paycheck. We spent 3 years going completely “scorched earth” until we got the debt paid off. We found our entertainment at the $5 movie theater, walks with our dogs at a nearby park, free summer concerts, and a variety of other very cheap entertainment. The weight we felt lifted off our shoulders once we cleared the debt was worth every minute of the struggle it took to get there.
It appears to me that the fun money spending may not be properly budgeted for. Restaurants, fast food, coffee shops, personal spending etc all got $0.00 in the planned section of the budget. If you really are spending that amount of money plan for it, and then track every single purchase, every time you go to Starbucks for example and spend $5.67 on a mocha latte record it in the actual column, every time you go to McDonald's and buy a cheeseburger for $2.07 record it in the actual column, and continue doing that for every purchase. don't know what personal spending is to you so I can't give specific 6:50 examples there. Just looking at those numbers they're very round numbers and I know it's unlikely that you spend $130 exactly on fast food, $95 exactly on restaurants, $5 exactly on coffee shops. It's usually like $128.61 or some odd number like that for actual. You could plan to spend $130 though and plan to spend $95 on restaurants, and plan to spend $5 on coffee shops, but that's just a little too exact on the actual spending, in my opinion.
Being a paralegal doesn't pay. People think it's a highly respected professional job, but its not. You're not a lawyer, you're an assistant. That doesn't mean sh*t.
Wow you're 1k away from a silver placard
Her car insurance would be that much if the 17 year old is a licensed driver.
Might be the 17 year old is on the insurance list, driving up the price.
Why is she having 700 dollars of fun every month when she’s got a child to raise and a ton of debt ?!
When you owe $86,000, $700 isn't going to make a dent. They might as well have fun.
Daycare! Ha! What a waste of money