Financial Advice

Financial Friday: Acquiring More Debt

FML. That’s my thoughts early this morning. As I was reviewing my budget planner for the last six months, I was shocked st how much money I was just throwing away (I’ll post a pic of my final budget review tomorrow). I was literally floored at how much I spent on groceries, eating out and miscellaneous things, in just six months!! This scone half of the year, I have got to do better.

Due to all this frivolous spending, despite saving as much as I did, I ended up having to take out a small personal loan yesterday. Unfortunately, financially I will not make it through until school starts in August. I’ve revisited my budget again and again and unless I find a teaching position before August, I’ll literally have $0 in the bank. That means no rent money nor car payment.

I’m so pissed at myself for that too. I just paid off my last credit card and only had my student loans and car note debts left. I’m hoping that I won’t need to use the loan, but I’m thinking that may be out of the question. I really beating myself up about this but hey, things happen.

My next goal over the next six months is to save 6 months worth so that I don’t have to experience this again. Luckily, I was able to push paying my student loans until December, but depending on how things go, they may have to get pushed further.

I’m really going to buckle down this second half of the year. I’ll explain in detail in a later post.

Financial Advice

Financial Friday: USAA Credit Card and Loan Debt is Paid

 

 

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I’m debt free!!! Well, with USAA I am. I made my last credit card payment with them on May 31 and it just now hit my account. I cannot be happier. I owed them a total of $5,000 in credit cards and a personal loan. I have paid off and closed all accounts. I feel so much relief have one less debt. Now, all I have left is my car and student loans. That’s it.

Next, I’m going to tackle these student loans. If you are new to my blog, I am a single mom on a debt free journey. As of June 4, 2018, I only have student loans and my car to payoff and then I am officially out of debt. Along this journey, I will be sharing what I use to stay on top of my finances. I am not a financial advisor, coach, consultant or guru. I am just using what I learn to get me out of debt in order to retire early and give my son the best life.

Setting goals is important on this journey as well as budgeting. I’ll soon be selling budgeting products in my shop, so stay tuned for that.

Financial Advice

Financial Friday: Cut Expenses, Add Hustles, Getting Out of Debt

I have been on a “kicking debt’s ass” journey for the past couple of years. I am so determined to be out of debt at 30 and so far, I am on the right road. In the past couple of years I have paid off a credit card ($2500), a personal loan ($3500), the IRS ($500), medical expenses ($200) and as of this month my teacher certification program ($400). Altogether that is $7,100 in two years. That may not seem like a lot to those who have paid off more, but for someone with similar debts as myself, that is a lot, especially considering my main sources of income.

If I still lived at home, I would be halfway through  my loans and my car would be paid off, but life happens and circumstances arise. How did I pay off these debts, you may ask? Here are somethings I did and somethings that others I know have done:

  1. Cut my cable and got an Amazon Fire Stick. It is the best decision ever. I was late to the game, but better late than never right? I know many people who have taken this route and noticed how much money they were spending on cable.
  2. Meal prep and cook at home more. This is a huge thing to cut money and to cut weight, being that we are the fattest country in the world. Meal prep saves you from cooking during the week and from putting on those extra pound.
  3. Upwork is a freelance site that I use to ghostwrite, edit novels, papers, essays and so much more. There are all kinds of freelance jobs on there from virtual assistant to graphic designer. Find your niche and get to work.
  4. GrubHub, DoorDash, UberEats and Postmates are other ways many millennials are making money. They’re like Uber and Lyft, but for food. Someone orders food, you pick it up and deliver it.
  5. Kick your Starbucks habit. I would be afraid to see how much some of you spend on Starbucks in a year and I am sure y’all are too.
  6. Apply for odd jobs like dog walking, babysitting, personal assistant, in home cleaning jobs, etc.
  7. Buy clothes from thrift stores and secondhand shops. $300 purses and shoes are not necessary and will not add value to your life.

There are so many ways to save and make money to get out of debt, you just have to be willing to make sacrifices.

Other Financial Posts:

Financial Friday: Minimalism Saves Money

Money & Health (plant-based living)

Financial Friday: My Plan To Get Out Of Debt

Financial Friday

Financial Advice

Financial Friday: How I Got In Debt

DISCLAIMER: I AM NOT A FINANCIAL ADVISOR OR COACH

My goal is to be out of debt by this time next year. This goal is still feasible but I am not going to stress myself trying to make it happen. I owe $21k in student loans and $10k+ to my bank. So, in essence, I owe over $31k. I know that’s a lot and being that I will be a full time teacher in the fall, it’s manageable. Now, you may be wondering how I plan to get out of debt by this time next year. I will save that for next Friday, but first, let’s talk about how I got in debt.

  1. As for student loans, I mean that’s self explanatory. Many of you reading this have four year degrees of some sort and racked in a surplus of loans. We all know what a pain in the ass they are. I know some of you may have more and some of you may have less. But yeah, being the child of parents who made too much money, I did not receive any free money. My four years in college were borrowed. Originally I owed $26k, but now it’s $21k (interest). I will talk about how I paid that down next Friday.
  2. I got my first credit card in college because I heard that was the thing to do. It was a way to get credit and before I know that having a credit score was BS, I wanted to have a line of credit. My limit was $2500 and I maxed it out quickly and not by going on shopping sprees. Soon as I got the credit card, my car broke down. The A/C went out, my fan broke, I had to replace all four tires. That $2500 went fast and not by choice either. It seems every time you get more money, something always happens to where you have to spend it. Just my luck, my car hated me. I eventually had to get a new one. All that money just wasted.
  3. I got my second credit card a few years after the first because I was working for a nonprofit organization and I could not make ends meet. I was legit struggling. I never made it to my next paycheck without being in the negative. That one maxed out pretty quickly due to more unforeseen events. That limit, too, was $2500. So now I am at $5k that I owe my bank.
  4. I then took out a loan for $2500 from my bank because I worked for another nonprofit, and the last month of my contract, they decided to not pay me and it was two months before I got a paycheck from my next job. I was pissed. I had no money to pay bills, buy food, put gas in my car, nothing. So that put me at $7.5k that I owed my bank. Oh, it gets better.
  5. Remember how I had to get a new car? My old car was paid off and I am so sad that I ended up having to get a new car. So, I had to take out an auto loan to get my new car and that was $9500. That put me at owing my bank $17,000! Yes, all to my bank. I cried a lot because I was like on top of loans, how am I going to swing this?

This is how I got in debt, not by careless spending (that’s how I stayed in debt and still am), but by unforeseen events. I couldn’t help any of my situations. Stay tuned for the next Financial Friday post to see how I now only owe my bank $10k and my loans are now $21k, and how I am paying some of my debts down.

xoxo,

Simply Moniqua