Re-starting My Debt Free & Budgeting Journey | $225,698.45 in Debt | 17 Accounts | Real Numbers
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- čas přidán 21. 07. 2024
- Hi everyone! This video is a few weeks old, but the important thing is that I am back!!!
Start Month: August 2023
I've decided it's time to grow up and hold myself accountable. I'm going to restart this journey and use this channel to hold myself accountable. I hope you follow along! I do have some videos recorded and ready to go, but this is probably the best place to start.
While this video is long, there's a lot that I cover:
Introduction: 00:00 - 02:10
Sinking Fund Categories & Buckets: 02:10 - 14:08
Cash Envelopes: 14:08 - 15:30
Explaining my debt and reviewing numbers: 15:30 - 21:10
Debt Wall: 21:10 - 33:16
Debt Tracker: 33:16 - 35:14
Sinking Fund Breakdown: 35:14 - 36:19
Monthly Budget Categories: 36:19 - 41:51
Paycheck Breakdown & Payment Amounts: 41:51 - 53:27
Looking forward to seeing where you are in your own journey down in the comments below!
Both Dave and Caleb would tell you to nix the vacation and any extra luxury funds until more debt is paid off. Nails, clothes, purse, going out, dating… with debt those will likely have to wait. If you want to be serious about tackling the debt, need to be serious about wants vs. needs categories.
I would also add in beside the debt amounts the interest rates and work based on the different methods. It might be a bit more stressful but it’s worth it to see a true picture on the balances and how much interest is being added with remaining balances and paying off the high % first.
Dave Ramsey is a sham! He has built wealth and lost it all, more than once. He’s always being sued for his scams. He’s a grifter! She has her plan and if you ask her to take out any and all luxuries, she will fail.
This type of debt is the type you will die in and pass on to your family. Cutting out ten dollar nail polish and a couple of vacations won't change that.
Nah… it would depend on how high her income is and how dedicated to this she is. I make a pretty high income and was able to pay off over 150k in 5 years. But she will have to GRIND. If I only made 50k and had a family then what you are saying may be correct. I had a newborn daughter at the time and she was my motivation to do it.
Dying on the Walmart floor....
Spending is a behavioral issue. If you can't prioritize your needs then you'll be stuck in debt.Going on vacation/luxury goods when you're in debt is poor decision-making that keeps you in debt@@snappy1908
Going to be totally honest - this was painful to watch. All of the various self care items, luxury sinking fund, streaming services and subscriptions, and paying things for your family members…it seems that if you get out of debt it’s going to take a VERY long time. Which is a shame with your good income. You’ve used that as an excuse. Paying bills for family tells me there are generations of poor money habits and they’re not going to end with you if you don’t get your spending under control. I hope you eventually realize how spoiled you sound with all these “expenses” while your mountain of old debt sits there. Good luck in your journey.
Ngl, this made my stomach hurt. I'm happy to see she finally had a mindset shift but there is going to definitely need to be another few adjustments along the way. She's got quite the road ahead of her.
I agree. I think she needs to be setting aside a certain amount every month for self care, and then she will have to pick and choose which luxuries are most important.
I agree with you fully. There is no judgement or shame behind these words, just the reality of the situation: there is no way she pay off $225k in TWO years with $145k yearly income. That would mean she’d have to live off $65k for two years (and that includes taxes on her income - which she is currently exempt from - why? and the more than likely very high interest rates on all her consumer debt.) the math ain’t mathin’ . Let’s be honest. Good luck to her nonetheless. Perhaps debt free by 43.
@@kattttt9585That’s what I am doing as I am paying off my debt this year. $17k will be gone by mid November. I give myself $30 a week. I choose coffee every time
Thanks for this feedback! You are all right. I listed my sinking funds not as necessities, but as wants, and that's all they are. I'm un-learning bad habits and trying to make up for all this debt. It's going to take me a long time, but it's not impossible. I can sell everything in my possession (both cars), move back home, get a second job, and get it done. Forcing myself into such an extreme situation without addressing my habits is going to suppress them temporarily and I may find myself back in this same situation a few years down the line.
I don't know the exact route I'm going to take, but I'm not scared of a lifestyle change. More realistically, it's going to take me about 4-5 years to get out without any major adjustments, but I'd like to see how much I can accomplish in my original goal. Thanks again for the support! Looking forward to having you all follow along.
So you want to be debt free in 20 months? $225000/20=$11,250 a month in debt payments, plus the interest.
But you take home $118000 a year? $118,000/12= $9833
Time do recalculate from the beginning
🤯🥺
This. I support having lofty goals, but this is so wildly unrealistic that I could see it actually causing more of an emotional setback, once she’s a couple months in and realizes her plan isn’t viable. Hopefully she would just readjust and continue on, but it’s really easy to get discouraged and entirely give up, if you’re choosing not to be realistic from the very beginning.
Agreed, even though she's high income the math wasn't mathing, especially when you consider adding rent/groceries/other necessities that need to be covered. Not to mention all the non-necessities she's budgeting for.
@@MariW736Going on a ZERO DOLLAR budget method is what she needs. If you take home $12k/momthly , every dollar needs to be tracked, & spent on essentials & towards debt. Here, the needs & wants are blurred & the math isnt mathing....i wish her luck & mighty grits!
Thanks for this! If nothing changes and I keep living like this, it'll take me 6 years. I can give myself some slack and give myself 10 years to get out, but I'd rather push myself as far as I can. This was my intro video and the starting point, and I'm willing to change all that I can and make sure those changes stick.
Thanks!
@@budgetsavvyashcash7281 I just stumbled upon your channel and this is the first video I am watching. I just needed to take the time to tell you that I love and appreciate the way you are responding to your viewers. So kind, inviting and humble in the way you are absolutely willing to take advice and even constructive criticism with such great attitude. I have not seen this much on youtube. 😊
With all due respect, your budget is going to result in you being in debt forever!
The single most important factor for ALL budgets, regardless how much debt, is to separate your WANTS versus your NEEDS! Nails, hair color, vacations, eating out, plants, a cute new calculator, etc etc etc are NOT needs. They may feel like needs - but they’re not. NEEDS are: food, shelter, basic clothing, vehicle expenses, basic household supplies, health care.
This is truly rather shocking. I mean no disrespect. Values for so many are out of balance to say the least. I mean - take a big breath and think ….how is a cute new calculator a NEED? You have a working calculator and if you didn’t your phone has one! It is not a need!
I encourage you to take a really had look at your life and decide what do you want it to be?
I agree! Treating yourself is necessary for sanity sake but I wouldn’t have so many self care categories… luxury? There is no luxury with this kind of debt… Dave Ramsey would say rice and beans and beans and rice. Choose one category to splurge on and add the rest to debt. You can splurge on luxury after the debt is gone.
Ok, but you also have to live life and enjoy it. So yes, those aren't needs, but that doesn't mean she can't save slowly for that... yes she could pay it off faster and be done but what if she died before then and didn't get to enjoy her life at the same time? That's why she's budgeting. You don't have to live like you're in prison just because you're in debt
@@acorn297 she’s Al most a quarter of a million dollars in debt! And a significant amount is already from unnecessary purchases! She’s had consolidation loans and still continued to spend. She is willing to buy a new calculator … if viewers want to see a more attractive I’ve! She needs serious professional help.
@@acorn297 i understand that she could be gone tomorrow and not have enjoyed her life…. But she isn’t alive so it truly doesn’t matter until the bills and debt that she had isn’t paid…. They will come looking for someone to pay them….. and that would be her family I think . The chances of something happening to her is slim, but the stress of the debt is not healthy. Do I have debt? Yes I do … does it worry me?. Every day! But I’m not in 220 something consumer debt. She doesn’t even have a home to build equity.
@@acorn297 and that is the younger generations entitlement thought process right there.
I see a few people suggesting you do a financial audit with Caleb Hammer, and I think that might be the way to go! The audit would be free, so you wouldn't need to save for it like the Ramsey solutions. : ) it would be so cool to see you document your journey based off his financial advice as well!
I love his channel I 100% support this
Oh I love your idea of documenting a "I listened to Caleb" series! I would absolutely watch that.
I second her going to Caleb hammer
Hi there everyone! Based on the comments, I feel he would go in!!! And right now, I don't think I can handle that. I actually want to change and having someone yell at me (not sure if Caleb would) would just make me want to keep things as I'm going.
Perhaps in a few months, I'll ask him to do an audit to see if there is anything else I have not already caught myself from all the suggestions and learnings I've been doing
@@budgetsavvyashcash7281what's worrying is that a lot of people are saying very simple, honest and true things such as 'girl, why is sparkling water even on your radar with debt like this' and 'find the root of your spending habits' and you're like...thanks I'm excited for the journey. Respectfully it doesn't come across to me like the seriousness of your situation has hit you, especially of you say that in response to being told the cold hard truth you would just carry on spending. I'm nervous about this one.
A lot of these seem super unnecessary if you're really trying to get out of debt. If you cut down on a lot of them, or eliminate them entirely, you'll be able to enjoy those things much sooner :)
I was thinking the same thing if shes serious about this she needs to cut out all the unnecessary things, get a purse, ur nails done, and go on a vacation after your out of debt!!!
I agree. But sometimes if you're used to the habit and get joy from going out and spending money and buying new things it's a hard habit to break. It's maybe easier to manage the change in lifestyle in the transition time. At least she's planning ahead and not just going out and spending whenever she feels like it. A lot of excess spending is deep rooted in people's psychology for a variety of reasons. This could be useful for the short term then can be re evaluated and changed to be stricter plan. But I agree, a lot of the spending is totally unnecessary. I'd like a nice new car but I can't afford one, so I just don't have it.
@Sofia-ge5wu some people need to quit cold-turkey, or they'll fall right into the same habits. I think if she's still budgeting out all this bs spending, she's not fully realizing how bad her situation is and how much she needs to buckle down.
@@TNJVidz yep. Everyone's different. What works for one doesn't necessarily work for another. I agree there's a lot of unnecessary items budgeted for. But if it helps someone to get on track it's better than continuing as had been spending.
@@Sofia-ge5wu yeah it's definitely better than spending recklessly with no thought. That's for sure. I just hope she sees soon how much better it can get. I know it's much harder for someone with a high income as well. I earn a low income, so when I got out of debt, I had to save every penny I could manage, and gave up a lot of things
I think you and @Calebhammer should do a financial audit together! His budgets are pretty strict but he’s great at cutting out the extras and getting a budget that will pay down your debt quick. It would also be great to follow and see your progress if you do some of the things he suggests. Following to see your progress and wishing you the best on your debt payoff journey!!!
I can hear his opinions throughout this video 😂
I was just thinking that if she went in his show it could be great (free) promo for her channel.
@@shebababytalksmy thought exactly!!!
@@Hnj-f Caleb would say, STUPID DEATH debts 😠
I've heard a few people talk about him in the comments, but no need for me to get it handed to me. I know I let it get bad and right now, I'm focused on getting myself to actually change!
Thank you so much for following along!
Girl, cutting a bunch of these for just one year and postponing the concept of vacation would help you so much. That’s actual “adulting”.
You're right! This was a starting point and I've been working on my habits. Thank you!
I understand your covering your sisters car payment. Maybe by Christmas tell her you will continue to do that as long as she starts a budget and out-of-debt process like you have done. Teaching her the financial responsibility you have learned would be a great Christmas present. You are awesome.
I admire your honesty and your courage to spill your budget out on the internet. If you don't crumble under the negative comments this channel will help you. It does take time to learn all of this (needs vs wants). My whole monthly budget for 3 adults is $3K (rent included, and a lot from your expenses excluded) but it took me years of learning.
Please write down the interest rates for each debt. Those matter a great deal. Pay attention to how much interest is added back to your balance each month. You might decide to pay off the higher interest rate debts first or faster to get the best bang for your buck. Good luck! Please watch Caleb with his financial audits. Just as a resource of more information.
Thank you so much! I have the interest rates written down and I track that in an excel spread sheet. I'll look in Caleb. Thanks, again!
Not being mean. Speaking from the heart. If you can do your nails and there is that much debt why not save money and tackle the debt. Categories like luxury handbags etc will only make the debt bigger 😢 i dont mean to sound so stern.
I appreciate the tone! I do my own nails and I have not paid to have them done in years. I'm not going to lie, being pampered is nice, but it's not a luxury I can afford at this time. Most of those sinking funds are simply placeholders. Thank you again for being so real with me!
You are right..but..she is learning and trying ...she is on the right track❤
Can you stop filing exempt? That IRS debt is going to kill you.
Yeas, the IRS goes from 3-4% penalties and you can only owe 3 years in a row before they start attaching wages.
Yes! Working on getting a CPA to help me with all of this
Having a "high income" means nothing if you spend money constantly. Your debt is practically all consumer debt. Adulting involves being responsible with money and you're now realizing that your "fun" lifestyle is catching up to you. Now, enjoying life comes dead last if you are truly committed to knocking out this debt. 200k is an insane hole to get out, one I wouldn't wish on others. The money wasted on interest alone is terrible. Good luck to you, and cancel all your subscriptions as your first step. You need to save your money as much as possible.
You must be a joy to hang out with! Jerk!
@@jennifersamples2518it's harsh because it's true
@@chrissy_g You could be kind and wish her well instead of being a lecturer. Why are you even watching videos like this if your life is so perfect?? Probably because it isn’t! When you walk an water let me know!
@@jennifersamples2518 I have no idea why you're so upset 🫤
Did she say her income?
The honesty & bravery this takes . Thank you from bottom of my heart to show that we all are human
Thank you! The comments are rough but I have to be honest with myself.
I really applaud you for coming on the internet and being so open about your finances. Good for you and thank you, you're helping a lot of people. I hope you reach a life of being debt free :)
Like others have said, pretty much all of the pink envelopes need to go. You're not in a place to save for luxuries, nails, nail supplies, beauty, hair, yourself, vacation, going out, AND dating. The good news is that sacrificing these things now will help you so much in the future and soon you'll be in a place where you can afford this fun again.
Also, that calculator has a lot of helpful features, way more than a cute aesthetic one would have ;)
Thank you for this! The intention of this first video was to show where I was at the time of my start. Almost all of those sinking funds are there and do not get any money.
Lol at the comment at the calculator! I've since moved to excel to do the bulk of my budgeting, but I completely intend on using my current calculator until it completely dies
oh my god that's not a budget. cut all those beauty envelopes, get rid of the streaming and get rid of that motovational pages. those are not doing you any good. pay the IRS first not the 1000. This is just to crazy to watch it makes no sense !
How are none of these comments, or her, talking about interest on these credit cards?????????
And no plan to save you money should cost you money. Ex. The Dave Ramsey plan. Take his books out of the library for free.
@@crafting1660I’m not even understanding why she’s paying Dave Ramsay if her plan is so wildly different than his 🤔
Thanks for the feedback! The sinking funds are just placeholders that do not get filled. I do not stuff them because they are not necessities. I'm creating a budget to rearrange my payment so I pay it all down as fast as I can
Thanks for this! It's just a placeholder. I use the free tools that are available to me and they work great!
Girl you need to get your priorities straight. A lot of these envelopes are so unnecessary. You need to also cut down on your subscriptions. $144 for Grammarly? Giiiirl there are free alternatives. If you’re serious about budgeting and cutting down on debt you need to go back to basics and simplify this. There’s no reason to have 40 + envelopes. Stop complicating this and simplify it.
Super valid - but as I shared, they are not being used. Most of them are carried over from years ago and I don't have a reason to get rid of them. They're there, but no where near my radar. Thanks!
If theyre not being used, isnt that a reason to get rid of them? You would have so muhc extra to throw towards debt if you got rid of all subscriptions not absolutely necessary :)@budgetsavvyashcash7281
One suggestion I have is pay more than just the minimum on your credit cards or you will never pay them off because of the interest. I'm glad that you recognize that you are living above your means. That's the first step to getting out of debt. You may need to make some small sacrifices, like decreasing the amount you allow for eating out. Another thing would be to adjust your withholdings so you aren't having to owe the irs so much every year.
Thanks for this! I'm going to keep the minimums as they are moving forward (even when the statement says I owe less) to ensure I do not feel like I have "extra money"
I think it's so brave of you to open up online & hold yourself accountable. The first step is often the hardest, and you've done it. I hope you're able to prioritize your needs over your wants and perhaps talk to your family about your journey so they can encourage you too. We can't financially support others until we are financially stable ourselves. Wishing you the best of luck on your debt free journey!
This is crazy but easily fixable. 1st step fix your withholdings. You should not have your withholdings set at exempted. I'm a CPA and I can tell you that's nuts! Please change it today!
What does it mean if withholdings are exempt or not?
@@pumpkin_pie98I think it means they aren't taking out certain taxes. I remember when I was doing my work study in college I had a withholding exemption for FICA. So my gross wages and my net wages were equal.
Agreed! Can’t wait to pass my exam!!!
I'm going to meeting with a CPA to help me with this. A while back, way too much was being taken and I just settled for paying the annual amount over months. More learning and updates to come regarding this! Thank you!
@@budgetsavvyashcash7281 I would rather have them take to much than owe and be paying interest and penalties. I prefer to break even at the end of the year. Having no refund is best. Owing is way worse.
Why don’t you put your extra towards your bills??? Why save for a vacation when you could be out of debt earlier???? What am I missing? This concept doesn’t make sense.
She will end up going on the vacation before she is out of debt
@@kattttt9585and this is the thing… she shouldn’t be taking it. Not putting this fund money towards other debts is only resulting in more interest being charged on cards and loans instead of paying down debt. I agree that any vacation fund should wait for debt to be paid off.
Not everyone is built to sacrifice everything for a goal. Consider she knows herself and knows that she’ll burn out on the plan and abandon it if she doesn’t put some sort of an incentive in place to keep going for the long haul. Yes, it will take her longer to pay it off, but from a mental sanity perspective it’s worth it to her.
What makes sense on paper isn’t always what matches up in real life application.
@@LadyJ1020 in writing down debt amounts I did not see interest rates listed and working down in some sort of system the different debts. It’s all good to save for a ‘free vacation’ but is it really free when the interest has been accumulating on debts in the meantime making them longer to pay down. Better to drop a larger amount for vacation savings later once debts have been paid off sooner.
@@LadyJ1020sacrificing even one year (that means, postponing the vacation for a year) would help her so much more. Honestly, it makes no sense to not prioritize something that will keep you in the gutter and in horrible amounts of stress
My husband went to medical school and we bought a house so we had about $400,000 in debt bt the two. We did not go on vacation, eat out, buy clothes or spend frivolously and we paid both off in 7 years while also saving for a car to be paid for in cash as well as a $100,000 buy in at his practice. Sacrifice everything you can after tithe and living expenses, and you'll get there quicker.
That took a whole lot of daily, intentional focus! Good for you! 🎉
@@tamaraliscia3408 🫠🫠🫠
That's amazing! Since this was in intro video to where I was at that time, lots has changed. I'm super excited about being on this journey! Thank you!
I watched the entire thing and I’m so confused. What is the plan for paying off the debt? Did I miss it? How much is actually going to the debts per month? I only saw money being allocated to every other thing under the sun, but not the freakin’ 225k in mostly consumer debt.
I have a lot of debt too and was excited to see this. I would genuinely love to see a 2-3 year map out of the debt payoff in a future video.
I really admire your willingness to listen to others advice and feedback, even the comments on this video. You have shown a lot of maturity in your responses and that says a lot about you.
I’m right there with you! I’m restarting my journey too. Thanks for being transparent about your debt; I have a lot of debt too. But we’ve got this!
We got this! Trust me when I say, this community is beyond supportive!
i am 43, married and have 2 young kids. our outstanding debt is for our 4 year old minivan (no house payment) and i have a current balance of $300 on my credit card. Student loan balance $900. I drive a 9 year old paid off lexus and this whole video gives me major anxiety!! i cannot fathom carrying that much debt! Good luck to you.
It will be the medical debt that will take out most people's budgets, not the frills. You need to make a high income to weather what is coming. Divorce happens. Covid happens. Don't let your self sufficiency keep you.
What in the world? Based on her envelope categories, she’s not taking her debt free journey seriously.
My thoughts exactly! This is a joke. Two envelopes for nails!? She has plenty of clothes in her wardrobe, I doubt she needs to buy anything else (at least until the debt is gone.) "Self-Care"- she had a dozen or more envelopes that could be counted in that. Spa days, hair, wardrobe, purses, shoes, dating, going out (all unnecessary) ........ One small thing a month like 1 new outfit and 1 dinner out.
All love to her, but I hope she realizes that any type of "luxury" envelope does not need to exist, period.
@@SixthSenseSynesthete she apparently can't even spell 'luxury', she wrote LUXARY
All those envelopes. What? Way too much girl. I could cut all that in half with same results. Good luck with this system.
I don't stuff anywhere near half of them. Outside of the Annual Subscriptions, I use the Snowball/Taxes (which are included in my budget), and then car maintenance.
I have scanned so many comments. I am on minute 34.
HOW HAVE WE NOT DISCUSSED INTEREST?????????????????????
225k over two years is going to cost…450k????? It’s not going to cost 225k.
I have an excel sheet where I can calculate how long it'll take me. At the end of this all, I will do one final video with how much $225K in debt actually cost me
I went through a therapy for overspending. I now find my peace and joy in spending time contemplating nature, bare feet on the ground, breathing in a forest, etc. Reading books, learning new things, listening to music I love, watching CZcams channel that makes me happy. Eating and learning how to cook healthy whole foods, I took a Barista crash course to now make myself delicious coffee at home. I have NO more monthly subscription. When I need to watch a movie or series, I go to a friend's 🤭. I listen to free podcasts on my phone podcast app. I now find joy in non-material/no needs to be paid things.
My nails are all natural, I wear great quality clothes that I bought many years ago. I do spend in great skin care and care for my feet I do myself at home. My friend cuts my hair....
All these things help me staying out of dept. Therapy has helped a lot.
I am rooting for you! Sharing all of this info is NOT easy so props to you.
You’ve got a nice plan drafted. Best of luck working through it. You can do it. Cut up those credit cards!
I wouldn’t call that section “adulting”, I’d call it “Personal Care & Entertainment” Adulting sounds more like paying rent or paying down the debt. The stuff we gotta do to be responsible adults. Adulting can be hard. Making tough decisions. Do what you can to cut back these personal care expenses until you get further along in your journey.
I know I'm late on replying, but I've made some progress and cut back a lot of unnecessary spending. Thank you!
I'm here with you!! Girl we are in totally different income brackets and It's still a struggle no matter where you are in life, I cry for the 16,000 I'm in debt for but finding a good job isn't easy while being a mom. You have a game plan and it's a good one just have a Plan B!!
Thank you!!
I absolutely love this idea…I love that you are rewarding yourself throughout the journey. This will help you stay motivated and not give up!! You got this girl
Thank you! They are small rewards, but I'm sure once I get going, I'm going to want to keep it all going forward the debt payoff
This was so inspiring. I don’t even have any debt but still watched. So proud of you. I subscribed and I’m rooting for you!🍯💰🧸
Thank you! If I could take what I have now and go back, I would have NEVER gotten into debt. I think about what would have been had I not gotten so dependent on it. Only one way out from here.
Please know that suggestions that people are giving u is because we want u to succeed not that we r judging. Rooting u on
Yes, thank you so much! I know it's all coming from a kind place. Trust me, I know these comments are TOUGH, but I need it and I'm sure they can be useful and helpful to others, too!
I’m new here and looking forward to following your journey towards debt freedom. I love how organized you are. I believe that you will be successful and will definitely reap the benefits moving forward after all your debt is paid off. Stay consistent and positive. You’ve got this. Lol, I laughed with the sound you made when you realized you had money in the envelopes. Your income is a huge plus for getting yourself out of debt❤ Best wishes on your journey.
Thank you! Reading your comment made me laugh again! lol
Hi. I stayed until the end. 53:28 you have a lot to do, however your salary can take care of it over time. Please stay in tune with your budget plan. It’s very intense but it’s a great breakdown. Great job explaining it.
I paused and looked over your debts and I wanted to cry for you. Thank you for being open and sharing your situation with us because it also shows that no matter how bad you think your situation is it could definitely be worse. Sending, prayers and likes for all your videos i how my like generates income to get you out of this tuff situation.
I love how transparent you are. Not here to judge you. Good luck, looking forward to to your journey paying down the debt.
Me and my husband are $109,000 in debt. If you want to tackle this debt you have to make alot of changes in your life. My debt scares me. Looking at yours is a nighmare in my eyes. We make close to $100,000 combined income. We both just started working an extra day a week (we have three kids 5 and under ) my husband also does grocery delivery with walmart spark on the side. Getting your self out of this mess is really going to take some major sacrifice . We are going through it right now.
A few years ago I finally got out of debt. I followed the Dave Ramsey plan and am on baby step 4. I love to see all the different approaches and methods people take to get out of debt💜 Different methods but same goal. This is very organized. I just had the plan written down on a piece of notebook paper and worked the plan.
I'm still Dave-ish, but I'll be making the adjustments in the upcoming weeks to keep me from falling off the wagon
I’m on my debt free journey too! Don’t beat yourself up over it because you’re taking steps to pay it off.
This is going to take a "million" steps. Bankruptcy makes much more sense in her specific case.
@@abesapien9930 she could easily pay all this off if she would just stop spending like crazy. I think last month I spend around $500 on personal items and I’m high income and don’t deprive myself. She has like 50 different categories which are frivolous things she wants to dedicate money to like having her water sparkled. All she needs to do is cut out half that shit and she could pay off one of the small debts each month. She could probably pay off 2-3 of the smallest ones and make her life much more manageable by lessening the number of debts she has.
I have to disagree because that doesn’t help her behavior. Her biggest issue is the IRS and student loans everything else she can pay down relatively quickly if she commits to it.
Thank you so much! I got myself in this and I completely intend on working hard to get out of this!
Just leaving a comment to say thank you for your transparency. I’ve had my channel a little over a year and felt I haven’t made much progress toward getting out of debt. Then my husband lost his jobs and my business wasn’t paying the bills.
In any case, my best advice that you didn’t ask for is to cut down on the number of envelopes you have. It seems overly complicated at this point. But if it works for you…
Subbing to the channel!
nothing wrong with a good ol' TI-84. Why get a fancy calculator when yours works?
I paid almost $200 for this bad boy! I'm goin to put him to WORK! lol
My head hurts thinking about keeping up with all those entries. I’m a streamline girl myself. Too many categories make me quit. I’m interested to see how it all works.
I’m the same way. I guess if you have bad habits, this could be one process. I would take all the sinking funds, and instead of putting them in all those pouches, immediately put the cash in savings, then create a spreadsheet for all the categories. Google spreadsheets is free. The moment that money hits the bank, it starts earning interest. I think it’s important to have three separate bank accounts: one for daily spending, one for long terms goals such as retirement, and one for short term goals- and make sure your daily spending with debit cards gives you cash back. Put any cash back, rewards into savings. Set up EFTs with Robinhood or some other investments. Reinvest dividends. Forget about luxury items for now. Now I’m on a tangent!!! Forgive me.
Thank you! For the most part, they are just place fillers and I only use the car maintenance fund
30 here, married, 2 kids under 3, fellow Dave Ramsey follower and debt free! You’ve got this! You’ve got a plan and a great income to start knocking stuff out! Good job giving yourself things to keep you motivated why plucking away at this massive amount of debt. Stick to the plan and you can do it! We became debt free for the first time in November 2017, made an emotional decision when my husbands car died and went $25,000 back in debt in December 2018 and then debt free for the second time in July 2020 (that was with expecting our first son in November 2020 and my hours being reduced from the pandemic). You can do this! Use all the trackers to see your progress and watch videos to motivate you.
Love the book set up. I'm a budget/flow chart/Google sheet making addict. I fuss with mine almost daily and am always searching for efficient ways to track my debt payoff & monthly budgets. Great work on your organizing & trackers!
I just signed-up for Microsoft Office again to be able to use Excel for my tracking!
With 17 (!) different debts amounting to $225,698.45 (!), there is NO room for subscriptions, nails, sugaring, eating out, vacations, a BMW for your sister, etc. Your priorities are totally messed up.
If you want to be debt free in 2 years, you would have to pay ca. $9,400 per month. Right now you have planned minimal payments of ca. 3,260 in total. Your math isn't mathing and you are lying to yourself.
You got this! All of us rooting for you and we will do this together. To this point, the us$ is not worth anything, we gotta be strong and take care of ourselves our family and live our lives. We got this! I've been down lately because of money, I'm just surviving to eat and have a roof over my head. We are an unity, we got this! I hope everyone have a good day despite everything, want to spread good positive vibes and energy.
Girl in my currency I am literally on the same page with your debt outstanding balance - we can do it! I already see so much improvement in my daily life from budgeting
OMG, I needed to read this message! Yes, we can totally do this! We got ourselves here and we can get ourselves out! We got this!
I like your break down. You can easily pay off those smaller amounts by cut down your eat out. $200+ every two week for eating out and it’s only you is crazy. However, you could live in a expensive place. This is kind of scary to make that much money and still feel like maybe it’s not enough. You have a good plan wish you luck 🍀 on this journey.
Putting it on a paper helped me realize it. Even when I go back and edit, I'm asking myself what am I actually doing?! I don't plan on it being just me forever, so I need to change now
I really felt like this was a totally relatable video. I am not high income earner but the rest. I am excited to go on this journey with you
Thank you!
When you pay for stuff (life insurance, etc.) for your mom why don't you subtract that from what you owe her? You could use the month layout to track your daily spending. I used to use a pocket calendar to track my daily spending and looked at the categories at the end of them month. My shock when I realized how much I spent eating out in a month... It's what made me decide to do bullet (mostly budget) journaling. You should probably save getting your nails done and new outfits to special occasions. Or maybe as a motivation? I feel like it wouldn't be hard for you to do your nails yourself and you probably have a full wardrobe already considering how much you owe Old Navy. I wish you luck in your goal of being debt free.
I could totally do this. Thank you! The money that I "owe" my mom has been major things she has done for me and I'd like to pay her back. Since this first video and where I am now, I've made some changes.
I don't pay for any of the beauty things (nails, hair, etc.) I've learned to do it all myself. Those were funds that were carried over and because I don't stuff, they don't really bother me.
Thank you so much!!
When you said the consolidation loan DID NOT help because you kept using the cards, I subscribed right away. It's the realness and vulnerability for me. You are an inspiration and have a great plan. I'm looking forward to seeing you kick this debt in its butt. I totally agree that you are entitled to a few indulgences here and there. You Got This!
Thank you soooo much!!!
I have some suggestions for categories! 🫶🏽
1.Bills - Anything that must be paid month to month or yearly subscriptions
2. Low Priority sinking Funds - Beauty, clothes shopping , personal, vacation ; things you want (just in case) but not mandatory - the things you feel you don’t have to stuff every single time
3. High Priority Sinking funds - Debt , Savings, emergency , health , car maintenance anything that is a priority. These are the things you want to stuff every single time even when money is tight
Hope this helps 🫶🏽 great video !
I love this! Thank you! I'll incorporate these for the September end of month video!
Great comment!
First video i watched from your channel and i honestly cant wait to see you debt free, i honestly love the repetition you put for yourself
Imo I think there is a little too many envelopes and it would make it less stressful and overwhelming cutting down! Proud of you! You got this!!!!
I appreciate your transparency. You have a plan and goal. Remember you can always adjust as needed to make that goal!! I’ll look forward to watching hour progress!!
Thank you for being so supportive!
Each individual's debt journey is HIGHLY subjective to what will work for the person, some people do best being incredibly strict, other people need to build in some fun or 'want' expenses to not feel incredibly deprived and impulse buy eventually to 'feel better'.. I wish you all the best, but also caution that by trying to maintain your current lifestyle with such a high 'wants' segment, your debt payment journey is going to be a very very long one, if that is what works best for you, then you go guuuurl ❤
Thank you so much!!!
I love how you did the bullet budget. I think that's so cool and creative. Good luck on your debt free journey! It sounds like you are very motivated and focused. 🎉❤
Thank you!!
Nice system!!! I'm wishing you all the best on your get out of debt journey!! You've GOT THIS!!! 🙌🏾
Love how you wrote down everything and are doing the box checking off! It’s so rewarding to color them in :) going to take this thanks for the idea!
I have a HUGE debt wall visual in my living room to help me see it all the time to help me stay motivated!
Thanks for sharing and I wish you all luck in getting out of this mess. I worked my ass off for 9 years to clear all of my debt and most of mine was consumer debt like yours. You still seem to have the mindset of 'needing' things that are 'wants'. I like the idea of motivation along the way but dont agree that it is money that you can do what you want with as you still have luxuries like hair, nails, vacacions, purses... in your budget. I had to stop buying all these things to reset my spending. The motivation was seeing the amount of debt going down!!
Thank you! I have been making lifestyle changes and while they are slow, they are sticking. I'm excited about the progress!
Congrats making your decision & I am proud of You! I know it is not easy to share our debt but it's the beginning of everything to tackle it, great debt confession video 👍
appreciate the transparency. Excited to follow your journey. I really like how you set up your planner. To be honest you already inspired me to set up by debt plan like yours. Going to binge watch your other videos.
Transparency is key. I’m rooting for you. 🙌🏼
Finally someone with read bills and debt that I can relate to thank you
I'm glad! I know it's bad, but I'd rather be honest!
Exactly I am tired of seeing videos I definitely cannot relate to or even understand
You need to change your IRS withholding status. It’s obviously not correct if you owe thousands of dollars in taxes every year. Plus you’re paying interest on top of that. Talk to a tax accountant if needed but fix it immediately. 💸💸💸
Absolutely! I'm going to work with a CPA moving forward so I know just what to do to plan and stay ahead of this
Great video! I love how you set up your debt repayment and saving your motivation money for an all paid vacation sounds amazing!! I am looking forward to watching your journey of becoming financially free!
The other thing I think of for your naming of sinking funds is "I need an adult" for your self care, and the other set with the Christmas sinking funs is "I need an Adultier Adult" 😅
Can't wait for the next video!
Me too!!
So funny! lol
Wow, super detailed. I also like using the bullet pages for my budget. I kicked up my debt free journey into high gear this year. Started out with 65k. My plan is to be debt free in 4 years, 2 if I can get a 2nd job. Good luck!
Good luck to you too!
This is a great video and very motivational! Thanks for being transparent. I love the motivational box idea. I'm definitely going to add that to my debt payoff journey. I am a visual person and love the way you laid out each debt in your notebook!😊
I have a huge reminder on on of my walls in my apartment and I needed some place fillers. I'm sure that as I start to gain momentum, I'll use that money toward debt, rather than the vacation. It is nice have those few gems in the plan, though. You got this!
Amazing first step by confronting the debt and coming up with a plan. I’m subscribing to see your progress. You got this!
Hey girl! I used to be in the same boat as you and just became debt free this year! I grew up very poor, and when I became an adult with money for the first time in my life I went crazy spending for a few years. I had tried tons of budgeting methods before but they always felt soo restrictive that I ended up breaking to them. It was like going from 100 to zero considering my spending habits before. Everyone told me to stick to just my needs and cut out my wants to pay off my debt and that was exactly what made me stop budgeting altogether. I gradually cut down on my spending habits and put more towards my debt over time without sacrificing EVERYTHING that made me happy. Just like how debt doesn't accrue overnight, neither does paying it off. Don't feel discouraged by enjoying the little things in life along the way, it's just about consistency. Sure, it took me a little longer, but I still became debt free in the end while being able to maintain the best parts of my lifestyle. I'm happy you're beginning this journey, I know how overwhelming it can be! 🥰
Just wanted to add a few more tips...
Food budget, even in this high inflation economy, should run you $20 a week, that INCLUDES your personal hygiene products. Shop day old bakery, clearance produce, dried beans and legumes, shop low cost grocery stores, batch cook large portions, inexpensive drugstore for personal hygiene and makeup (yep sorry no Sephora).
Shop thrift stores if you need new wardrobe pieces for work, a new purse etc (goodwill is tax free and some thrift storeyhave seniors days with good discounts so take your favorite senior with you on those days) but this should just be for essentials ie corporate Xmas party and you need a new dress. Think $200 new dress from the mall vs $20 used dress, think $100 new purse from the mall vs $5 likely name brand purse from thrift store.
Not sure where you live but if you can walk to work or for groceries or if it would make financial sense to use public transportation rather than own a car, look into it. You have a hefty car loan and pay alot for insurance... Alot of apartments have those car rentals in the parking lot which you could use when needed. If it makes sense, i might sell the vehicle and maybe buy an older used vehicle outright for $5000 or less if a vehicle is necessary.
Start selling alot of your items on Facebook marketplace to bring in some extra money.
Not sure if you have any say over it but the money that automatically goes into your 401k each month... Is it possible to stop that for awhile and restart when you are solvent? While I agree you should invest while young, you have plenty of years ahead to invest and right now you need to get these debts under control and all the extra interest you are paying will not likely equal what you will earn in interest via the 401k. I used to run pension plan for employees and know your contributions can be adjusted or stopped and started but you'll have to talk to HR about it. I just know alot of employees were not aware they can increase or decrease their contributions.
Get rid of all streaming services, get comfortable with Free CZcams, Tubi for free movies and TV shows, only download free apps, try the local library for books, dvds. No concerts, no movies.
Re dating... Very simple, the guy pays. You shouldn't be paying. But keep it low cost for him, coffee, slices of pizza etc. And usually women don't pay on dating sites, make sure you are on those sites.
Your costs each month should be simple, rent, car insurance, hydro or utility, internet, cellphone, groceries, gas.
Ok good luck 🤞👍
Often , the more you make the more you spend (or have debt). Never assume that those earning the $$ are not in debt. If you really cut back on some of these extras you can probably knock your debt down quickly.
I completely agree! I know the lifestyle changes are coming; I just needed to finally start to avoid dragging this out any longer.
The envelopes sound too overwhelming. I would try to separate your finances from your family. I don’t understand the exempt from the IRS.
I myself am in debt, but I am less than 10 minutes in and the fact that you are having set aside funds for shoes, purses, nails, etc., when you have that amount of debt is a huge part of the problem. None of those things are necessities. And they can all be done cheaply. My husband makes a six figure salary and I make a respectable supplemental salary, but my purse cost $30, not $300. You can have nice things without paying big prices. Those things aren't something I budget for because they are such few and far between purchases for me, but yet I still have credit card debt (not to your level, but up there). So number one on the journey; you just need to stop doing those things now at least until you are in a better financial position.
So many categories! How on earth do you keep track? How do you have a “miscellaneous” and an “other” in the same bunch?
I recognize your good intentions, but this seems like such an overwhelming approach to me. I highly recommend more simplified groupings.
I love this because I am actively working on. paying my debt off and I feel like your videos are going to help me be accountable for myself . As a side note though, every year you can shop for new car insurance or call your current one to get a new rate .
Yay! I'm glad and you can totally do this!
I tried shopping around last week and I was quoted some extremely high rates! It was wild! My insurance did go down some but the payments a deducted in a weird way. I'll be able to have a better understanding of that at the end of this month.
Thank you so much!
As you get ready to pay off each card, call the creditor to find out what the pay off amount will be and the date it will need to be paid by. Many people get surprised with a residual interest payment that hits after they think they have paid off the card or loan.
You are also entitled to a free credit report once a year from the 3 major credit reporting agencies. You might want to check and make sure you have a good idea of what is on your report. You can see a clear credit history. It is really eye opening. It might be a good tool to motivate you.
I subscribed because of the transparency of debts and salary. Thanks for taking us on this journey with you. I'm sending you my support through this computer screen lol you got this!
Not going to lie, I feel like I'm completely exposed to the world right now! But I grew up not talking about money, so if I can be an example of what can happen, it's all worth it! Thank you for subscribing!
Hi new subscriber here. Enjoyed the video! I too was in debt a few years ago, got a loan to pay off debt and closed all account except one that I barely charge on. At the time I didn’t care about my credit taking a hit I knew it would bounce back and I didn’t have any control. When I’m tempted to open an account (and I have), but I always close it after I pay it off. I don’t have the control to have charge cards! This will be difficult but stay focused and close some of those accounts so you don’t keep getting into debt.
I'm so ready for this change! It' been years since I've been here and I'm over it. I'm ready to grow up
I was going to sub to watch the journey till she busted out the envelopes. I'll be watching till I die. She's never getting out.
wow, I'm impressed with the whole thing you're doing. I have been cash stuffing for about a year, and it wasn't super organized, but now I want to try this method. I am not in debt, but I have future goals I want to attain. Thank you for explaining your system. I love it. I am going to implement it starting in January of 2024.
I will come along with you…I just started mine a few weeks ago too. I like your plan.
You have a plan that’s the beginning! You can do it. I hear the necessity to get it under control in your voice and see it clearly within your plan.
You got it! Visualize the “debt free scream” now. See the ending!
This is the start to making changes. You have done a lot of detailed work to get this plan figured out. If I can give you any advice you have to do what works for you. The comments can be a lot, but remember you have to do what you know will work for you. In a perfect world you would take every dollar and pay on debt, but in reality you may want to get nail polish…. That is ok! Keep crushing your debt…I am rooting for you!
The comments are rough, but if anyone listens to what I'm saying, they'll see that I don't even stuff that fund. It's more so about the journey
I'm with you! My hubby is physically unable to work due to health issues, the medical bills are stacking up, student loans, etc. I'm about to get a part time job on top of my full time job to supplement and pay things down. I'm hopeful that we'll be okay. I've dug out of a hole before. I am lowering all bills or eliminating as many as i can.
I really respect your transparency so had to subscribe. I recently started a high paying job and getting debt free is a priority. My debt load is very close to yours. I plan to have it paid off in 3 years. 💟🙏
Yay to us! While 23 months is my goal, I know 4 years is a little more realistic to be completely done. I'm aiming for 2 years and anything before 4 years is a win! We got this!
I really like your presentation. The handwritten notebook works well, as do your hands , and your voice. Keep the desk, envelopes, money jar, etc., in camera view. I like the level of detail you are starting with in this video and the following ones through September. The post-it notes with your talking points works. Thanks for sharing. I am sure you will find lots of things to update, change, or correct over the next six months. Regardless of how you got in debt, I think you are well on your way to becoming a personal budget expert!!!!
Subscribed! You got this girl! Thank you for being transparent with your journey. 🙂
All this effort in planners and tickboxes would be better spent in learning new 'no spend' skills. I don't understand the repeated mistakes, like expensive cars that you evd up upside down on. I don't see how you are learning healthier spending habits doing this. If you have a high income, live like a pauper for a few years and get rid of the debt.
I believe it has to hurt for you to learn. Sell things and throw the money at the debt, drive an old banger for a while. No nail spots or treats, just the satisfaction of knowing that when it's paid off, every penny you earn you can make work for you.
Valid points! This was an intro video to where I was at that time. Thanks for this!
I really would consider having just one subscription, and postponing the luxury, going out, dating, eating out, clothing, nails, or at least reducing its budget to half of it, because you need to pay that debt quicker if not interest is not going to lead you anywhere.
Since this video, I've done a lot of cutting back and cutting off things. Thank you!
Just a quick note to say: Your handwriting is amazing!
I appreciate the organization and don't take what I'm about to say negative. There is nothing pretty about getting out of the situation you're in. It's going to take blood, sweat and tears. Forget the fancy, you're in the trenches. Best of luck ❤
Congratulations!! I’m so excited for you! Last year paid over 25k in debt off. We accumulated more debt ( not as much as 25k) due to A LOT of unforeseen circumstances. We killed it last year, but struggling this year. I appreciate your honesty and I cannot wait for your updates! 🥰 maybe you can post a weekly budget update until you get into the habit?
Thank you!! I think I'll have to move toward weekly stuffing, to make sure I keep myself on top of everything and have more accountability
Congrats on taking the first steps. High income incurs more debt, because we dont ever realize how much we are spending. I apprecaite you being as transparent as you are as i believe that you're the most honest with your debt so far. I applaud you for going public. 😊
I didn't realize how much lifestyle creep was happening to me until I looked up and was in way too deep! Thank you for your support!
@budgetsavvyashcash7281 I've been budgeting far longer than this community has existed. So I know how difficult it is, as I was 18 once and lived spending money I really didn't have.
Culturally, I understand about helping others, especially family. But you have to let them know that you can not help them unless you help yourself first. That's essential.
Put YOU first always and talk with them about your money problems. There is no shame in that. I taught my sons about budgeting when they were little because when you are a kid, your needs are more important, so they had to earn their money. I created a banking game with it, so it would be fun for them. Now as young men, I think they are better at budgeting than I am.
Like you, I make the 6 figures, but I also have a doctorate and paid my student loans continually before they came due because I did not want my kids to incur my debt should anything happen to me. Being able to spend my money on myself is my reward.
My son introduced me to this budgeting community, and I only watch the folks who keep it real and are very simple. You should check out Monet's Money; she's 26 and is living debt free. I'm sure there is something that might register for you on her channel because she is not pretentious and doesn't have all the bells and whistles of the other budgeting community; she focused on her wants and her debt.
I wish you all the best and will follow along with your journey because I want to see you win 🏆.
You misspelled LUXURY on your envelope and in your tracker. I just thought you may want to know. I do love your video and the details that go into your tracking are really nothing I have seen in any other video. This was very informative and gives the viewer an option to track their expenses in a different way they didn't know about before, but now they do because of you. Kudos!! 👍🏻👍🏻
Get it girl!! I wish you all the blessings to make this all disappear! Never forget you're one day closer to your goal. Get it girl! You got this!
Thank you!!