I am 27 1/2 years old. One bank account. Zero dollars in my savings. Overdrawn credit card with that I pay the minimum amount every month. I live check to check, usually crawling to the next payday with a couple dollars to my name. 50% of my monthly income goes to bills. Does anybody relate? Any advice? Anyone that was in the same situation and has turned it around? I wish I could talk to somebody professionally. I’ve downloaded the apps for budgeting and subscription reducing. I know I can do it by myself, but I have ADHD and I am a chronic procrastinator and just terrible with organizing and budgeting in general.
I have ADHD too. Time to use your ADHD powers for good and hyperfocus on it instead of letting it get the better of you. There's no magic bullet here - it's all income, expenses, and discipline. You can do it. In order to help you though, this sub will want to hear more of a budget outline. What is your income, what are your expenses, what are you goals, does your job offer a 401(k), etc.
Start here, particularly with the flow chart: https://www.reddit.com/r/personalfinance/wiki/commontopics/ For now, budgeting is the first step. Determine how much money is coming in and where it is going. Identify areas where you can cut back. Simultaneously, look into increasing income. What can you do to develop your career in the long term? Training, job hopping, taking on more responsibility at work? Those are really the only two things you can do to fix your situation. There's no magic bullet other than reducing expenses or increasing income.
Okay so I make $3000 a month. Right now my bills are rent ($850, but that’s going up to like $1100 in a couple months), dte (like $100, but again going up to like $200 in a couple months), WiFi ($35, again going up to $75 in a couple months) and car insurance ($300 rounded up). And then there’s groceries, gas for my car… and life since we basically pay to breathe atp. In a couple months, I’ll be going from splitting everything with my roommate to living by myself. Which is where this existential crisis is coming from. I am looking for a part-time second job, I currently work a regular Monday through Friday 9 to 5.
You can't afford to live alone. Is living with your parents an option? If you could live with your parents for a year for little to no cost, you could clear all this debt.
Currently, your stated expenses are $1285 and they are going up to $1675 in a couple months. That means you've had $1715 left for groceries and everything else, and will have $1325. You need to figure out where that money has been going. You've got one bank account and one credit card, download your last three months of statements and answer the question. Then, you can decide whether you can reasonably adjust your spending to afford living without a roommate while you work on increasing your income, or whether you need to spend the next couple months finding a cheaper living situation.
Those expenses leave almost $1000/month unaccounted for (assuming $600/month for groceries plus gas). Do more digging to figure out where that money is going. Look through credit card / Bank statements. $300/mo is also pretty high for car insurance unless you have a bad accident history or expensive car. Consider shopping around on that. Finding a new roommate will also reduce expenses.
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There are so many ways to make money. Let me list a few for you: Sell something in a fair: toys, lemonade, roasted corn Sell Services in a fair: face painting, balloon twisting Learn to be a handyman in a house : example learn to put in an artificial turf. You can make in the thousands each month. Do something sell something?
I have been telling myself that I need to come up with some sort of passive income. Unfortunately, I don’t have any skills… I am looking for a second job, something like waitressing. But it would be nice if I had a skill of some sort.
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Look into credit card balance transfers if you still have decent credit.
I don’t know how accurate credit karma is, but my credit is in the early to mid 600s. So it’s not awful, if accurate. What is a credit card balance transfer?
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Are you sure 50% of your money goes towards bills? That's actually pretty good and you should have enough left over for other stuff. But... Most people calculate that number incorrectly and are actually spending way more on bills than they think
Okay it’s a bit more than that. Like 62%
I've been in that boat. I decided I didn't like it so I cut out a lot that wasn't necessary. I really liked the things I cut out, but I like not being constantly broke better.
Things like what?