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When I was in my 20’s I got into cc dept I was making only 30k year. I watched Suzy Orman’s show and read her book. She’s still has a podcast where she talks about savings, spending and investing. I now have saved over 200k and I’m debt free.
Ive leaned to value my money and created some boundaries around financial decisions. I leaned about my own authenticity and with that it became easy to differentiate from spending on things I love versus to “keep up with the
joneses”
You’re brave to ask for advice! It’s only a mindset change.
Check out these other financial educators:
Tiffany Aliche - https://thebudgetnista.com/financial-literacy-book/
The Financial Feminist- https://herfirst100k.com/
Ah omg I’ve heard of her when I was younger!! I’m definitely checking her stuff out again she’s amazing
As others have mentioned you have to track whats going on now and find the phantom leakage in your spending - you dont need someone to help you with this. Mint is an easy one and free. Plugin all your accounts and see where the money goes into what category. Over time you can start making choices to reduce those categories. As elementary/offputting as some find him, start with Dave Ramsey to learn the personal finance 101 stuff (avoiding debt, saving for emergencies, insurance etc) and you can graduate into more advanced concepts like investing (simple path to wealth by JL collins is an excellent book). As for spending, start with the big 3 - food, transportation and housing. 60-80% of your spending is probably here.
1. Food. Start here FOR SURE. If you are eating out more than 3 times a week thats hundreds of dollars if not thousands you can save per month. Cook large batch meals on Sunday and freeze or portion out for the week. Saves time and money and healthier for you. Go out on Saturdays to keep yourself sane. Pack lunches yourself.
2. Housing: How can you save money on housing? Hard to do right now I know, but as a single young person now is the time to live cheap (roommates, smaller apartment etc). You will not regret this choice in 5 years believe me. I'm almost financially independent because I intentionally kept my housing the same or less as I earned more money in the 13 years since I got serious. The spread now is crazy (my housing is less than 10% of just my salary, and only 6% of my household).
2. Transport: Do you own a car? Can you sell it and pocket the difference to buy a cheaper used car with good fuel economy and drive it as long as you can? Insurance is less, gas is less, you don't care as much about appearance so no washes or expensive detailing. This all adds up and I credit this move again for the position I'm in.
People get wealthy by: Spending way less than they earn and INVESTING the difference. That's it. Good luck, the first step is getting intentional and being aware of whats going on.
I needed this thank u!!!! Can definitely cut down on my car and food expenses
Rising Star
You are living pay check to pay check- you can't afford a financial coach.
Start with making a budget that has line for savings.
Stick with the budget
Monitor it weekly
You can post your budget here without revealing any personal info and some of us can chime in and guide you.
It’s mostly food and car/gas that’s been messing me up /: I’m gonna cut down on those/start cooking at home more!
^ this.
Hate to say it but your problem here is simple — you spend too much money. The solution is equally simple — spend less money.
I wouldn’t go with a financial coach tbh. I use the app Mint to monitor my spending, credit cards, balances, etc. I had a similar problem out of college when I started making full time money, and Mint really put everything into perspective for me. Made me realize how much frivolous spending I was doing 🫠 But it helped me pay off credit cards and come up with a budget so I now save more than I spend. Highly recommend.
Money. Spend less than you make.
Weight. Eat less than you burn.
Knowledge. Speak less than you listen.
Babies. Condoms more than you don't.
Put money into savings and investments FIRST. And make sure you’re putting a sizable % from your paycheck into your 401k as well. From what it sounds like, you should easily be maxing that out.
Do you have debt? If so, check out Dave Ramsey.
SA1 - No. it’s not “safe” to forgo asset appreciation when you could borrow money for thirty years at 2%. Ramsey provides advice for people who want to maintain their place in the lower middle class.
YNAB YNAB YNAB
I have a high yield savings account with Marcus (I have 6 so I can have categories like emergency fund, vacation fund, etc.) and have money that automatically goes into those accounts when I get paid. Out of sight out of mind.
The YNAB app is great, make the budget and stay within the bounds of your income
Thank you!!
1. Use mint dot com to track and analyze your spending. It is free.
2. Hire a fee only financial planner once you have mint up and running with at least a month of your spend history.
Gonna try this!!
Use Mint. It's an uphill battle to keep track of your finances if you don't have the numbers in front of you to see where your money is going and how you can improve https://apps.apple.com/us/app/mint-budget-expense-manager/id300238550
Every time you get your paycheck put a percentage in saving and investing FIRST. Make separate accounts from the ones you spend out of.
Live life normally and do whatever u want with the rest. Never touch the saving and investing account except for emergencies or buying a house.
Agreed on this. I opened a high yield saving account and have a certain % of my paycheck go in there and don’t touch it unless it is an emergency. I went from living paycheck to paycheck to actually having a decent emergency fund and it is a huge relief. Even if you just put a couple hundred in there every month it adds up more quickly than you would think and interest rates are going up so that helps as well.
OP- I grew up learning 2 important savings principles from my parents:
1. Always pay myself- save 10% right off the top (the more you make, that % can increase). Max out your 401k, investments. Keep some in savings - enough for at least 3 months living expenses.
2. Always pay God - take 10% and give it away (to church, to another donation interest). This is difficult as you make more, so % might be different but the point is to be generous with your money. It comes back to you tenfold.
3. Always live within your means. Best yet to live under your means. You might love that flashy car, but does it meet within your financial means (after 1 & 2 above?)
Good luck!
Agree giving to good causes is rewarding. I’d pick some charities to have automatic payments to regularly. Then set a further % aside for charities you pick in a month by month basis. This keeps your giving regular, and is fun each month as you can find out about and pick different charities.
Start with your biggest cost line item- rent/mortgage then work your way down. You need to create an itemized budget and actualize as you spend so you know where your money is going
It’s fairly simple honestly. Take a look at your check. The NET amount. Now take 20% of that and pretend it doesn’t exist. That’s your savings. Do NOT touch it. Put it in a separate account and don’t tie any payments to it. Of the remaining 80% I wouldn’t spend more than 30-40% on housing (utilities, cable, internet, streaming included). The rest is for food and “wants”.
I’m assuming you get paid twice a month. You don’t need an app or a spreadsheet to get started. Make 2 columns. Put the amount of your paycheck at the top of each. Then go through all of your bills and when they are due. If something is due around the first pay period, put it in that column. The others will go in column 2. Subtract the bills. That’s what you have left for food and incidentals. Include all credit card payments. Try not to use the credit cards for 2 whole weeks, then 4 whole weeks. You need to get used to not using credit to stretch things out.
How much is your rent? Car payment? Dining out? Gym membership? Gas? Medical bills? Prescriptions? Don’t forget incidentals like wedding/baby/birthday gifts for friends.
Don’t ignore what you’re doing. It will probably sting when you realize what you’re wasting money on, but hitting rock bottom is necessary sometimes and the only way forward is up.
YW!
For 30-60 days, keep track of every single cent that you spend, and then figure out where you can stuff out.
Consider doing a "no spend" month a few times a year (no spending other than groceries and gas). This can help you see where you are over spending, and help reign it in.
Also look at your budget- you make X, and your bills all add up to Y, then you should be able to put Z into savings each month
Rising Star
You can go to Dave Ramsey’s website and print out all budget tools, expense trackers, etc. Just start with the basics and figure out where you spend your money each month, then you can figure out what to cut.