Personally my family want to be debt free. Working extra hours and living below our means we have been able to pay off $230,000 of debt in just under 5 years. The debt included (my husband’s school loans, the remaining balance on our truck, and last month paying off our HOUSE). We have a remaining $24k left… which is from our unplanned Jeep Wrangler purchase. – We aren’t perfect and make choices out of emotions too, just like anyone else. The monthly payments are within my recommended 10% of net (bring home) monthly income.
Being debt free is not desired by many which is perfectly fine. Yet living in your means is needed…. So you don’t become a burden on others.
My recommendations are as followed:
Try to get your mortgage in a 15 year loan if possible. When you are young there is no problem getting a 30 year loan then try to refinance when your career picks up.
Have 3-6 months worth of expenses in saving for emergencies (job loss for example). Savings is needed to decrease stress in your life; therefore, helping balance your wellness dimensions.
From your Net income (take home income- after taxes have been taken out)
25% = mortgage
10% = savings for future/retirement (Example: Roth IRA)
10% = vehicle loan (try to have 1 vehicle loan at a time)
5% = saving for short-term
50% = remaining for living and fun money (broken down into: 40%- food, 30%- household bills, 30%- fun money)
EXAMPLE monthly budget to help make this possible for you.
Net income a month $5,000
25% = mortgage ($1,250)
10% = savings for future/retirement ($500)
10% = vehicle loan (try to have 1 vehicle loan at a time) ($500)
5% = saving for short-term ($250)
50% = remaining for living and fun money (broken down into: 40%- food ($1000), 30%- household bills (750), 30%- fun money ($750)) ($2,500- total a month)
Life Takes Discipline
If you want to live in a more expensive house then cut back on other areas such a vacations. If you want to spend more on vacations, clothes, toys; then live in a smaller less expensive house. You want to do both... then guess what... your need to MAKE more money, not BORROW more money... or you will be a burden on someone. DON'T BE A BURDEN. (A burden is defined as: to make someone accept or deal with something difficult).
Financial Issues
Step 1 – get $1000 in savings ASAP
Step 2- Pay off credit cards, period.
-if you can’t pay off credit cards every month then you should NOT be making the purchase. If you are a prisoner to credit cards pay everything with cash.
Step 3 – Work on getting a healthy budget within your means.
Money Tip: Need more money then pick up a side hustle or don't spend so much
Everyone has different situations, need help? Reach out and get education. Don’t reach out and ask for money… instead get the tools that will help you succeed, don’t be a burden on someone else. Time to grow up and become responsible with your finances. START NOW.
All with LOVE,
Mama Bear
