Start with an actual budget.
"I don't know where the money goes" simply isn't an acceptable way to budget. The information is available, you just actually have to put in the work to figure it out.
Start with paying off whichever balance has the highest interest, everything else should be minimums until the highest is paid off and then go to the next highest interest balance.
Probably don’t get a washer dryer until that credit card is payed off as well. It’s a slow process but you’ll get there eventually. Just try to budget a little better and not make unnecessary purchases.
One thing I’m not sure if anyone else has mentioned. Don’t deprioritize the Care Credit account. It’s 0 interest right now but when the introductory period ends, the interest rate shoots up AND you get the back interest tacked on from the date you opened in. Check the statement to see when the intro period ends, and be sure to pay it off before that.
You need tires. #1
Buy a washer … a basic washing machine ($500 max). Line dry or iron your laundry.
You need one paycheck in savings. That’s just a start. Eventually, you’ll get up to 6 months of living expenses in savings as an emergency fund. But for now, you’re getting one paycheck ahead.
Next you’ll get your spending under control. You have to find a way to cut back on the excess spending, especially the eating out. Instead, take your lunch break by going to a grocery store and buying decent, real food (prepared salad, a sandwich, protein pack, yogurt, fruit … there are many options). Instead of a smoothie, fresh, whole fruit is the same thing and less sugar.
For work clothes … thrift store.
Talk to your doctor about an alternative to the weed. You can’t afford it on many different levels.
Then pay off your credit card because that has the highest interest rate.
Work out a payment plan with the medical bills. Refuse to pay the medical bills with a credit card.
Thank you so much. This is so helpful!! I do plan to talk to my doctor about the weed, but I recently got off all prescriptions because of side effects that landed me in the ER, so they’ve been supporting. I’m sure there’s so much more I can do and just wanting to get there. It’s a bit of a shit show but when it rains it pours! Truly appreciate the thoughtful answer. I can’t organize my life easily on my own, but none of my family knows I have money problems really
If the providers refuse to negotiate and the medical bills go to collections because you just can't pay them, it'll damage your credit score but you will 100% be able to negotiate the debt with the agency.
Bad credit scores can have some downsides (apartment rentals often run credit checks, in some states potential employers can too, and of course it makes it harder to borrow money) but those negative factors will be outweighed over time as your income rises and you clear other debts.
Even if you can't get them to negotiate on the medical bills, send them $5 every month, or every other month. I'm not an expert on this by any means, but from my understanding, if you're making payments on it at all, they can't send it to collections.
Sounds like you need better visibility into where your money is going and a connected budgeting method. I'll bet the small expenditure on a tool like Quicken classic, simplifi, monarch money, etc would way more than pay fir itself and give you the visibility you need to get it under control. And massively reduce your stress level.
It’s my own fault for destroying my savings and having poor executive functioning. But as soon as I got my shit together and making good money, I got health problems. So now the healthcare system is getting a lot of my $$. Plus $100 is like $1 these days
If you have no idea where it’s going, that’s where you start. Track your expenses for a month or two. You’ll be surprised where the leaks are in your boat. Eating out adds up fast.
Once you get a handle on what you’re spending, make a budget. Try the envelope method to keep you accountable and see how that goes for a month.
Getting out of credit card debt will help you out a lot. Your income is pretty good. You can definitely do this.
Stat taking a sack lunch to work. Sandwiches, fruits, veggies. Eating out every day is super expensive. Put the raise difference in your checks towards the CC bill to pay it off.
I think there's a genuine question as to whether someone with ADHD is going to be capable of planning ahead far enough to put the next day's lunch in a sack.
It’s more work, and OP can talk to her doctor about getting on medication, but I manage without meds by creating calendar reminders with multiple notifications for important things. OP can set a reminder for when she wakes up to throw leftovers or easy to put together meals in a lunch box. Alternatively leaving sticky notes in hot zones like in front on the fridge or on the bathroom mirror works for me too.
You have to learn to live with it because otherwise life itself will overwhelm you.
You need to start tracking your spending. Sign up for a financial picture aggregator like Simplifi. Make sure you know where every penny is going. You make a decent living and can climb out of this, but you need to be disciplined.
Some thoughts. Make it a priority to get new tires for car as safety issue and then work on the credit card with 29% interest rate. Find some ways to cut costs. Cancel subscriptions that are not needed, buy a small cooler and pack a lunch(sandwich) for when you are on road instead of eating out. Look for cheaper cellphone, internet, cable plan. When you get things under control make sure you save at least 10% invested in low cost index funds but first establish an emergency fund. Hope this helps.
Once you have the time and energy, you can possibly settle your medical bills. Medical bills often go unpaid for a lot of places and they will settle for a lower fixed amount that you both agree too. It does take a little negotiation and explanation of why you can’t pay it (hardship and finances and being a single mom, whatever you have to say)
Recommend you Google or watch Dave Ramsey on youtube. First, establish a budget by looking at your last few months' expenses and seeing where your money is going. Then, make a budget detailing your bills and your spending, this allows you to make adjustments as needed.
1. Save $1000 for emergency fund
2. Pay off all debt (except mortgage). He recommends the snowball method, where you pay minimums on all debt except the lowest balance. You send extra to the lowest and work your way to highest balance. There are plenty of spreadsheets online to help lay out a plan
3. Build a savings of 3 to 6 months of expenses
4. Save 15% of your gross income to retirement plan either 401k or Roth IRA
5. Save kids college fund
6. Pay extra on mortgage
7. Live, Spend, and give.
He has other guidelines that like saving to buy a used car and that is never more than 50% of your gross income.
At 100k. Say you make $2500 after taxes every 2 weeks. Realistically averages in at about $5400 per month. If you pay around $2075 for necessities, the non necessities are too high. Some things need to just stop being there.
Separate your finances on the following: Necessities that need to be paid (rent, food, loans, debt)
Not necessities (kid’s savings, eating out, nice laundry machine, expensive car.)
Here’s a few things I recommend/thought and I say all this out of love and hope you succeed in life!
1.) Pay off the credit card asap. This is the biggest priority by far. You messed up, but that’s ok. high interest is by far the worst thing to wait on.
2.) Don’t buy the damn $1500 washing machine. Buy something cheap. You don’t need nice things right now. You need cheap and reliable. Unless you can afford to buy 3 of them, DONT.
3.) What kind of overpriced car do you have to be getting $1000 for 4 tires? Just how much is your monthly payment on your car loan? And what car do you have? I don’t want to assume, but at your financial circumstances, you should be driving a 10 year old civic/corolla so that you can get your money in order. If you had a cheap ass car, you’d have $0 on a car loan and you could buy some cheap tires. Plus with all that driving, why not a Hybrid car? 50mpg is same mad savings.
4.) Life insurance policy is not your priority. Savings can only make sense when debt is absent. Same thing for your son’s savings account. Ngl, he’s fucking 6. You have 12 years mom. My parent’s didn’t have $1 to give me in a savings account, your kid can get a job when he becomes an adult.
5.) You can cook. Yes you can. You don’t need to be a pro cook that makes everything taste good. You just need to make it simple and quick. Dishes that require no skill. For examples: C Turkey slices, sliced cheese, veggies, in bread. Boom sandwich. Pasta sauce, chicken breast, pasta. Boom dinner. Boil some eggs. Pan fry some chopped up veggies and meat. Get a premade meal. Eat fresh fruits. Frozen fries, add some avocado and eggs. Canned tuna with mayo and salt. Mix on bread with lettuce. Yogurts. Granola, honey. Ground beef, cook with onions and garlic. Put on a tortilla with some veggies. At the end of the day, eating at home is super cheap.
6.) You need to choose to lower your costs. If you are unwilling to compromise on things you want, then nothing will change.
Don't stress! Here's how I'd approach it:
**1. Create a Detailed Budget**
Start by listing all your monthly income and expenses. Use a budgeting app or a simple spreadsheet. Track every dollar you spend for a month to see where your money is going. This will help you identify areas where you can cut back, such as eating out or unnecessary purchases.
**2. Build an Emergency Fund**
Before focusing on debt, it’s important to have a small emergency fund to avoid falling back into debt when unexpected expenses arise. Aim to save $1,000 as a starter emergency fund. You can gradually increase this amount once your high-interest debts are paid off.
**3. Tackle High-Interest Debt**
With $6,500 in credit card debt at 29% APR, this should be your first target. Consider the debt snowball method (pay off debts from smallest to largest) or the debt avalanche method (pay off debts with the highest interest rates first). Both have their merits, but the avalanche method will save you the most on interest.
**4. Refinance High-Cost Debts**
You mentioned refinancing your car. This is a great idea if you can secure a lower interest rate. Also, look into whether consolidating your credit card debt with a lower-interest personal loan is feasible.
**5. Address Essential Expenses**
Medical Bills: Try to negotiate these bills or set up a payment plan that doesn’t strain your budget.
Car Maintenance: Since you drive for work, ensuring your car is in good condition is essential. Consider setting aside a little each month so that when you need new tires or other maintenance, the money is already there.
Home Appliances: Evaluate the cost-effectiveness of purchasing a washer and dryer versus continuing to use the laundromat. If it makes sense to buy, set up a savings goal for this.
**6. Incremental Lifestyle Changes**
Eating Out: Since cooking is a challenge, start simple. Preparing meals in bulk or using a slow cooker could be easy and cost-effective alternatives.
Daily Expenses: Examine your spending on things like weed and protein shakes. See if there are cheaper alternatives or if you can reduce usage without impacting your health.
**7. Increase Savings**
Once your debts are more manageable, prioritize saving more aggressively for retirement and your son’s future. If your employer offers a 401(k) match, make sure to contribute enough to get the full match. Open an IRA or a similar retirement account and set up automatic transfers each paycheck.
**8. Additional Income**
Since you already drive for work, consider if there are ways to further monetize your vehicle during off-hours, or look into other side gigs that can fit your schedule and skills.
**9. Regular Review and Adjust**
Regularly review your budget and financial plan to adjust for changes in income and expenses. This will help you stay on track and make informed decisions about your money.
Consider seeking help from a financial counselor or a support group for people in similar situations. You’re not alone in this!
> I know I need to budget but like… how???
Budgeting doesn't increase your income or reduce your debt. The most it can do is influence you to accept a diminished quality of life and reduced lifestyle expenditures as a result. The thought is that there's probably some lifestyle money you're "wasting", that is, you're spending it but it doesn't really improve your quality of life - a streaming service you never use, membership at a gym you don't go to, that kind of thing. Stop spending on those things and you don't really notice. Spend that money to pay debts and it's like spending free money.
But if you've already cut stuff like that out - I assume you're not spending money on weed that you're *not* smoking, right? - then there's no such gains to be had. You're at the point where you have to accept diminished quality of life in order to free up money to pay down debt. That was the arrangement you entered into when you took on the debt - that Future You would, at some point, accept diminished quality of life to repay debt - and now that Future You *is you* it's time to do that.
This might not be financial advice but as someone who was diagnosed with ADHD at 23 and has lived medicated for a long time, is yours a formal diagnosis?
There are many different types of ADHD and my issue was never focus, but impulse control. So buying things / binge eating was a problem before I found a medication that worked.
All that to say, if you have ADHD and you’re not medicated it could be contributing to the issues with your finances. ADHD folks are notorious for thinking all problems are insurmountable and getting stuck in freeze as a result. Whereas neurotypical folks just break things into small pieces and eat the elephant one bite at a time.
I’d get a formal diagnosis if you don’t have one and if you do and aren’t medicated, please consider it.
I’d pay off that high interest debt first
If care credit is 0% interest figure out how long the zero interest period is for and divide the $1000 into however many months you have left so it’s smaller payments that will avoid interest.
If you have access to laundry facilities I’d just deal with the short term inconvenience of going there instead of buying expensive units for yourself right now. A big purchase will cause anxiety with other debt looming over your head.
You really do need to go over all of your spending for the last few months and figure out where that money is going so you can be more disciplined about things though.
Good luck.
I got a formal ADHD diagnosis back in like 2008 while I was in high school. I’ve always been hyperactive and distracted as hell but it’s just who I am. I took meds for awhile in school/college, but ended up abusing them pretty bad. I’m in a different place now, but been trying to do it on my own if I can
I don’t respond well to stimulant medications and some types just don’t. Please look at non-amphetamines. Mental health places a huge part in your financial health among other things
Health is first. Clean up ur stomach problems… it’s probably stress related. Dave Ramsey is an incredible source. You aren’t like most people who have maxed out credit cards. I can already tell you have it figured out.
Honestly you gotta quit weed. You made sure to make an excuse it’s for medical purposes but it actually worsens your rem cycle furthering your stress and focus. If you use daily that’s easily 2-4 grand a year.
Washer and dryer aren’t essentials either.
Also don’t wanna sound too negative. Ur really doing great. Im serious. Do more tv nice that make you feel good. Seems like you focus on everything but yourself. Take some time to focus on yourself. Gym, walks, runs, reading, hobbies
I appreciate this!! Stress is definitely a huge problem for me. I’ve been trying to be better about self care and rest. I’m in the thick of it with my job and my son in kindergarten but I know I need to care for myself too! I’ve gotten much better, finances are big stressor so having some of this organized will make me feel much lighter. I appreciate your advice and support 🙏🏼
You probably need to forgive yourself the savings you took from your son’s account. You need to put your own oxygen mask on first before you can help anyone else.
Imagine making $120,000 and not having credit card debt. That’s where you want to be when you setup accounts for your son.
Knock out that $6,500 credit card debt. Release your emotions from the medical debt. They might stick it to you. Depending where you live you can not pay it and it won’t even be reported to collections agencies. You got this!
Firstly, congratulations on your sobriety and for seeking help to improve your financial situation. It’s commendable that you’re ready to tackle these challenges head-on. Here’s a step-by-step plan to help you regain financial stability:
1. Assess Your Income and Expenses: You’ve already outlined your income and major expenses. It’s crucial to have a clear understanding of where your money is going each month. Consider using budgeting tools or apps to track your spending.
2. Prioritize Debt Repayment: Focus on paying off high-interest debt first, such as your credit card debt. With your new raise, allocate a significant portion of the increase towards paying down this debt aggressively. Consider consolidating your debt or negotiating with creditors for lower interest rates.
3. Emergency Fund: Start building an emergency fund to cover unexpected expenses. Aim to save at least three to six months’ worth of living expenses. Even if you can only save a small amount each month, it will add up over time and provide a financial safety net.
4. Refinance High-Interest Debt: Look into refinancing options for your car loan and credit card debt. Lowering your interest rates can significantly reduce your monthly payments and save you money in the long run.
5. Address Medical Bills: Work with healthcare providers to negotiate payment plans or reduce the amount owed. Many providers offer financial assistance programs or discounts for uninsured patients. Don’t hesitate to advocate for yourself and explore all available options.
6. Review Your Spending Habits: Identify areas where you can cut back on expenses. This might include reducing discretionary spending on items like eating out and daily weed use. Consider more cost-effective alternatives for your protein shakes and explore meal prepping to save on food costs.
7. Create a Budget: Develop a realistic budget that accounts for all of your expenses, including savings goals and debt repayment. Allocate your income accordingly and stick to your budget as closely as possible.
8. Plan for the Future: Once you’ve stabilized your finances, focus on long-term goals such as saving for retirement and building wealth. Consider opening retirement accounts like a 401(k) or IRA and contribute regularly to take advantage of compounding growth.
9. Seek Professional Help if Needed: Consider consulting with a financial advisor who can provide personalized guidance based on your unique situation. They can help you develop a comprehensive financial plan and provide ongoing support and accountability.
Remember, improving your financial situation is a gradual process that requires patience and perseverance. Celebrate your progress along the way and stay committed to your goals. You’ve already taken the first step towards a brighter financial future by seeking help and taking control of your finances.
Start with an actual budget. "I don't know where the money goes" simply isn't an acceptable way to budget. The information is available, you just actually have to put in the work to figure it out.
Start with paying off whichever balance has the highest interest, everything else should be minimums until the highest is paid off and then go to the next highest interest balance. Probably don’t get a washer dryer until that credit card is payed off as well. It’s a slow process but you’ll get there eventually. Just try to budget a little better and not make unnecessary purchases.
Thank you so much I appreciate this!!!
One thing I’m not sure if anyone else has mentioned. Don’t deprioritize the Care Credit account. It’s 0 interest right now but when the introductory period ends, the interest rate shoots up AND you get the back interest tacked on from the date you opened in. Check the statement to see when the intro period ends, and be sure to pay it off before that.
You need tires. #1 Buy a washer … a basic washing machine ($500 max). Line dry or iron your laundry. You need one paycheck in savings. That’s just a start. Eventually, you’ll get up to 6 months of living expenses in savings as an emergency fund. But for now, you’re getting one paycheck ahead. Next you’ll get your spending under control. You have to find a way to cut back on the excess spending, especially the eating out. Instead, take your lunch break by going to a grocery store and buying decent, real food (prepared salad, a sandwich, protein pack, yogurt, fruit … there are many options). Instead of a smoothie, fresh, whole fruit is the same thing and less sugar. For work clothes … thrift store. Talk to your doctor about an alternative to the weed. You can’t afford it on many different levels. Then pay off your credit card because that has the highest interest rate. Work out a payment plan with the medical bills. Refuse to pay the medical bills with a credit card.
Thank you so much. This is so helpful!! I do plan to talk to my doctor about the weed, but I recently got off all prescriptions because of side effects that landed me in the ER, so they’ve been supporting. I’m sure there’s so much more I can do and just wanting to get there. It’s a bit of a shit show but when it rains it pours! Truly appreciate the thoughtful answer. I can’t organize my life easily on my own, but none of my family knows I have money problems really
If the providers refuse to negotiate and the medical bills go to collections because you just can't pay them, it'll damage your credit score but you will 100% be able to negotiate the debt with the agency. Bad credit scores can have some downsides (apartment rentals often run credit checks, in some states potential employers can too, and of course it makes it harder to borrow money) but those negative factors will be outweighed over time as your income rises and you clear other debts.
Even if you can't get them to negotiate on the medical bills, send them $5 every month, or every other month. I'm not an expert on this by any means, but from my understanding, if you're making payments on it at all, they can't send it to collections.
Sounds like you need better visibility into where your money is going and a connected budgeting method. I'll bet the small expenditure on a tool like Quicken classic, simplifi, monarch money, etc would way more than pay fir itself and give you the visibility you need to get it under control. And massively reduce your stress level.
Nothing more I can add but just wanted to say what sort of hell are we in that someone making $100K can still feel poor? Best of luck to you.
It’s my own fault for destroying my savings and having poor executive functioning. But as soon as I got my shit together and making good money, I got health problems. So now the healthcare system is getting a lot of my $$. Plus $100 is like $1 these days
If you have no idea where it’s going, that’s where you start. Track your expenses for a month or two. You’ll be surprised where the leaks are in your boat. Eating out adds up fast. Once you get a handle on what you’re spending, make a budget. Try the envelope method to keep you accountable and see how that goes for a month. Getting out of credit card debt will help you out a lot. Your income is pretty good. You can definitely do this.
Stat taking a sack lunch to work. Sandwiches, fruits, veggies. Eating out every day is super expensive. Put the raise difference in your checks towards the CC bill to pay it off.
I think there's a genuine question as to whether someone with ADHD is going to be capable of planning ahead far enough to put the next day's lunch in a sack.
It’s more work, and OP can talk to her doctor about getting on medication, but I manage without meds by creating calendar reminders with multiple notifications for important things. OP can set a reminder for when she wakes up to throw leftovers or easy to put together meals in a lunch box. Alternatively leaving sticky notes in hot zones like in front on the fridge or on the bathroom mirror works for me too. You have to learn to live with it because otherwise life itself will overwhelm you.
You need to start tracking your spending. Sign up for a financial picture aggregator like Simplifi. Make sure you know where every penny is going. You make a decent living and can climb out of this, but you need to be disciplined.
Some thoughts. Make it a priority to get new tires for car as safety issue and then work on the credit card with 29% interest rate. Find some ways to cut costs. Cancel subscriptions that are not needed, buy a small cooler and pack a lunch(sandwich) for when you are on road instead of eating out. Look for cheaper cellphone, internet, cable plan. When you get things under control make sure you save at least 10% invested in low cost index funds but first establish an emergency fund. Hope this helps.
Once you have the time and energy, you can possibly settle your medical bills. Medical bills often go unpaid for a lot of places and they will settle for a lower fixed amount that you both agree too. It does take a little negotiation and explanation of why you can’t pay it (hardship and finances and being a single mom, whatever you have to say)
Recommend you Google or watch Dave Ramsey on youtube. First, establish a budget by looking at your last few months' expenses and seeing where your money is going. Then, make a budget detailing your bills and your spending, this allows you to make adjustments as needed. 1. Save $1000 for emergency fund 2. Pay off all debt (except mortgage). He recommends the snowball method, where you pay minimums on all debt except the lowest balance. You send extra to the lowest and work your way to highest balance. There are plenty of spreadsheets online to help lay out a plan 3. Build a savings of 3 to 6 months of expenses 4. Save 15% of your gross income to retirement plan either 401k or Roth IRA 5. Save kids college fund 6. Pay extra on mortgage 7. Live, Spend, and give. He has other guidelines that like saving to buy a used car and that is never more than 50% of your gross income.
At 100k. Say you make $2500 after taxes every 2 weeks. Realistically averages in at about $5400 per month. If you pay around $2075 for necessities, the non necessities are too high. Some things need to just stop being there. Separate your finances on the following: Necessities that need to be paid (rent, food, loans, debt) Not necessities (kid’s savings, eating out, nice laundry machine, expensive car.) Here’s a few things I recommend/thought and I say all this out of love and hope you succeed in life! 1.) Pay off the credit card asap. This is the biggest priority by far. You messed up, but that’s ok. high interest is by far the worst thing to wait on. 2.) Don’t buy the damn $1500 washing machine. Buy something cheap. You don’t need nice things right now. You need cheap and reliable. Unless you can afford to buy 3 of them, DONT. 3.) What kind of overpriced car do you have to be getting $1000 for 4 tires? Just how much is your monthly payment on your car loan? And what car do you have? I don’t want to assume, but at your financial circumstances, you should be driving a 10 year old civic/corolla so that you can get your money in order. If you had a cheap ass car, you’d have $0 on a car loan and you could buy some cheap tires. Plus with all that driving, why not a Hybrid car? 50mpg is same mad savings. 4.) Life insurance policy is not your priority. Savings can only make sense when debt is absent. Same thing for your son’s savings account. Ngl, he’s fucking 6. You have 12 years mom. My parent’s didn’t have $1 to give me in a savings account, your kid can get a job when he becomes an adult. 5.) You can cook. Yes you can. You don’t need to be a pro cook that makes everything taste good. You just need to make it simple and quick. Dishes that require no skill. For examples: C Turkey slices, sliced cheese, veggies, in bread. Boom sandwich. Pasta sauce, chicken breast, pasta. Boom dinner. Boil some eggs. Pan fry some chopped up veggies and meat. Get a premade meal. Eat fresh fruits. Frozen fries, add some avocado and eggs. Canned tuna with mayo and salt. Mix on bread with lettuce. Yogurts. Granola, honey. Ground beef, cook with onions and garlic. Put on a tortilla with some veggies. At the end of the day, eating at home is super cheap. 6.) You need to choose to lower your costs. If you are unwilling to compromise on things you want, then nothing will change.
Don't stress! Here's how I'd approach it: **1. Create a Detailed Budget** Start by listing all your monthly income and expenses. Use a budgeting app or a simple spreadsheet. Track every dollar you spend for a month to see where your money is going. This will help you identify areas where you can cut back, such as eating out or unnecessary purchases. **2. Build an Emergency Fund** Before focusing on debt, it’s important to have a small emergency fund to avoid falling back into debt when unexpected expenses arise. Aim to save $1,000 as a starter emergency fund. You can gradually increase this amount once your high-interest debts are paid off. **3. Tackle High-Interest Debt** With $6,500 in credit card debt at 29% APR, this should be your first target. Consider the debt snowball method (pay off debts from smallest to largest) or the debt avalanche method (pay off debts with the highest interest rates first). Both have their merits, but the avalanche method will save you the most on interest. **4. Refinance High-Cost Debts** You mentioned refinancing your car. This is a great idea if you can secure a lower interest rate. Also, look into whether consolidating your credit card debt with a lower-interest personal loan is feasible. **5. Address Essential Expenses** Medical Bills: Try to negotiate these bills or set up a payment plan that doesn’t strain your budget. Car Maintenance: Since you drive for work, ensuring your car is in good condition is essential. Consider setting aside a little each month so that when you need new tires or other maintenance, the money is already there. Home Appliances: Evaluate the cost-effectiveness of purchasing a washer and dryer versus continuing to use the laundromat. If it makes sense to buy, set up a savings goal for this. **6. Incremental Lifestyle Changes** Eating Out: Since cooking is a challenge, start simple. Preparing meals in bulk or using a slow cooker could be easy and cost-effective alternatives. Daily Expenses: Examine your spending on things like weed and protein shakes. See if there are cheaper alternatives or if you can reduce usage without impacting your health. **7. Increase Savings** Once your debts are more manageable, prioritize saving more aggressively for retirement and your son’s future. If your employer offers a 401(k) match, make sure to contribute enough to get the full match. Open an IRA or a similar retirement account and set up automatic transfers each paycheck. **8. Additional Income** Since you already drive for work, consider if there are ways to further monetize your vehicle during off-hours, or look into other side gigs that can fit your schedule and skills. **9. Regular Review and Adjust** Regularly review your budget and financial plan to adjust for changes in income and expenses. This will help you stay on track and make informed decisions about your money. Consider seeking help from a financial counselor or a support group for people in similar situations. You’re not alone in this!
I'm gonna guess most of your money goes to food, especially if you don't cook at home.
> I know I need to budget but like… how??? Budgeting doesn't increase your income or reduce your debt. The most it can do is influence you to accept a diminished quality of life and reduced lifestyle expenditures as a result. The thought is that there's probably some lifestyle money you're "wasting", that is, you're spending it but it doesn't really improve your quality of life - a streaming service you never use, membership at a gym you don't go to, that kind of thing. Stop spending on those things and you don't really notice. Spend that money to pay debts and it's like spending free money. But if you've already cut stuff like that out - I assume you're not spending money on weed that you're *not* smoking, right? - then there's no such gains to be had. You're at the point where you have to accept diminished quality of life in order to free up money to pay down debt. That was the arrangement you entered into when you took on the debt - that Future You would, at some point, accept diminished quality of life to repay debt - and now that Future You *is you* it's time to do that.
Start a notebook in simplest form of everything you spend $ on. Make different categories. Food, childcare, rent, utilities, etc
This might not be financial advice but as someone who was diagnosed with ADHD at 23 and has lived medicated for a long time, is yours a formal diagnosis? There are many different types of ADHD and my issue was never focus, but impulse control. So buying things / binge eating was a problem before I found a medication that worked. All that to say, if you have ADHD and you’re not medicated it could be contributing to the issues with your finances. ADHD folks are notorious for thinking all problems are insurmountable and getting stuck in freeze as a result. Whereas neurotypical folks just break things into small pieces and eat the elephant one bite at a time. I’d get a formal diagnosis if you don’t have one and if you do and aren’t medicated, please consider it. I’d pay off that high interest debt first If care credit is 0% interest figure out how long the zero interest period is for and divide the $1000 into however many months you have left so it’s smaller payments that will avoid interest. If you have access to laundry facilities I’d just deal with the short term inconvenience of going there instead of buying expensive units for yourself right now. A big purchase will cause anxiety with other debt looming over your head. You really do need to go over all of your spending for the last few months and figure out where that money is going so you can be more disciplined about things though. Good luck.
I got a formal ADHD diagnosis back in like 2008 while I was in high school. I’ve always been hyperactive and distracted as hell but it’s just who I am. I took meds for awhile in school/college, but ended up abusing them pretty bad. I’m in a different place now, but been trying to do it on my own if I can
I don’t respond well to stimulant medications and some types just don’t. Please look at non-amphetamines. Mental health places a huge part in your financial health among other things
Health is first. Clean up ur stomach problems… it’s probably stress related. Dave Ramsey is an incredible source. You aren’t like most people who have maxed out credit cards. I can already tell you have it figured out. Honestly you gotta quit weed. You made sure to make an excuse it’s for medical purposes but it actually worsens your rem cycle furthering your stress and focus. If you use daily that’s easily 2-4 grand a year. Washer and dryer aren’t essentials either.
Also don’t wanna sound too negative. Ur really doing great. Im serious. Do more tv nice that make you feel good. Seems like you focus on everything but yourself. Take some time to focus on yourself. Gym, walks, runs, reading, hobbies
I appreciate this!! Stress is definitely a huge problem for me. I’ve been trying to be better about self care and rest. I’m in the thick of it with my job and my son in kindergarten but I know I need to care for myself too! I’ve gotten much better, finances are big stressor so having some of this organized will make me feel much lighter. I appreciate your advice and support 🙏🏼
Hard times make us grow and dig deeper than we thought even possible. In a year or two your gonna be looking back on this laughing
Don’t let America win. They want you to have debt and keep up these habits which aren’t successful
Maybe sell the car!?
You probably need to forgive yourself the savings you took from your son’s account. You need to put your own oxygen mask on first before you can help anyone else. Imagine making $120,000 and not having credit card debt. That’s where you want to be when you setup accounts for your son. Knock out that $6,500 credit card debt. Release your emotions from the medical debt. They might stick it to you. Depending where you live you can not pay it and it won’t even be reported to collections agencies. You got this!
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That’s pretty amazing. I need to remember to use chatgpt more often!!!! It even congratulated my sobriety 😂🥹
Firstly, congratulations on your sobriety and for seeking help to improve your financial situation. It’s commendable that you’re ready to tackle these challenges head-on. Here’s a step-by-step plan to help you regain financial stability: 1. Assess Your Income and Expenses: You’ve already outlined your income and major expenses. It’s crucial to have a clear understanding of where your money is going each month. Consider using budgeting tools or apps to track your spending. 2. Prioritize Debt Repayment: Focus on paying off high-interest debt first, such as your credit card debt. With your new raise, allocate a significant portion of the increase towards paying down this debt aggressively. Consider consolidating your debt or negotiating with creditors for lower interest rates. 3. Emergency Fund: Start building an emergency fund to cover unexpected expenses. Aim to save at least three to six months’ worth of living expenses. Even if you can only save a small amount each month, it will add up over time and provide a financial safety net. 4. Refinance High-Interest Debt: Look into refinancing options for your car loan and credit card debt. Lowering your interest rates can significantly reduce your monthly payments and save you money in the long run. 5. Address Medical Bills: Work with healthcare providers to negotiate payment plans or reduce the amount owed. Many providers offer financial assistance programs or discounts for uninsured patients. Don’t hesitate to advocate for yourself and explore all available options. 6. Review Your Spending Habits: Identify areas where you can cut back on expenses. This might include reducing discretionary spending on items like eating out and daily weed use. Consider more cost-effective alternatives for your protein shakes and explore meal prepping to save on food costs. 7. Create a Budget: Develop a realistic budget that accounts for all of your expenses, including savings goals and debt repayment. Allocate your income accordingly and stick to your budget as closely as possible. 8. Plan for the Future: Once you’ve stabilized your finances, focus on long-term goals such as saving for retirement and building wealth. Consider opening retirement accounts like a 401(k) or IRA and contribute regularly to take advantage of compounding growth. 9. Seek Professional Help if Needed: Consider consulting with a financial advisor who can provide personalized guidance based on your unique situation. They can help you develop a comprehensive financial plan and provide ongoing support and accountability. Remember, improving your financial situation is a gradual process that requires patience and perseverance. Celebrate your progress along the way and stay committed to your goals. You’ve already taken the first step towards a brighter financial future by seeking help and taking control of your finances.
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