#FinancialBurden #MonthlyExpenses #EmergencyFund
Understanding Your Financial Situation
Feeling like you’re drowning every month can be overwhelming, but taking a closer look at your financial situation can help you gain a better understanding of where your money is going. Here’s a breakdown of your monthly expenses and income to help you assess your current financial standing.
Monthly Expenses Breakdown
– Rent: $1180
– Car: $300
– Gas: $50
– Auto Insurance: $120
– Utilities: $135
– Groceries and eating out: $300-400
– Investments: $200
– HYSA/Emergency fund: $200
– Hobbies: $200
– Others: $100-200
Financial Challenges
With a take-home pay of around $1600 bi-weekly and expenses totaling close to $2500, it’s understandable why you may be feeling the financial strain. Saving up for emergencies is crucial, but unexpected major expenses have been depleting your emergency fund, leaving you with little to no savings.
Breaking the Cycle
It’s important to take proactive steps to break free from this cycle of financial stress. Here are some suggestions to help you improve your financial situation:
1. Budgeting
– Track your expenses and identify areas where you can cut back.
– Prioritize essential expenses and find ways to reduce non-essential spending.
2. Increasing Income
– Consider finding additional sources of income, such as freelance work or a part-time job.
– Explore opportunities for career growth and advancement in your current job.
3. Building an Emergency Fund
– Focus on replenishing your emergency fund by setting aside a fixed amount from each paycheck.
– Aim to have at least 3-6 months’ worth of living expenses saved for unforeseen circumstances.
4. Seeking Financial Assistance
– Look into financial counseling or workshops that can provide guidance on managing your finances.
– Explore community resources or assistance programs that may offer financial support.
Final Thoughts
Feeling trapped in a cycle of financial struggle is challenging, but by taking control of your finances and making proactive changes, you can work towards a more stable financial future. Remember, seeking help and exploring different strategies can lead to improved financial well-being. Don’t hesitate to reach out for support and guidance as you navigate through these challenges.
How much left do you have on your car loan?
When I was in your situation, I cut out hobbies completely and just focused on surviving. then when I got back on track, I slowly expanded my spending again.
How did you calculate these specific numbers? Do you have a budget? Did you review your bank statements?
Once I actually started budgeting, I saw where my money was going and I was waaaay off. Something to consider.
Do you need the car? If not, sell it. Financing a car is a big mistake. Get a cheap reliable cash car and put liability insurance only on it if you need a car. The insurance industry is a scam. They will take your premiums for years, enough to buy the car a second time, then when you file one little claim, boom. Your rates skyrocket.
You’re doing great in my humble opinion. Life is a struggle at times, but you seem to have your head on your shoulders and are making it work. As others have said you can try to cut the proverbial fat out of expenses (eating out) or try to find either a side hustle or a higher paying job in your field. Is there someplace close to where you live that’s hiring? Alternatively if you find a similar paying job that’s closer to where you work you could get rid of the car & insurance altogether if you don’t want the burden of the car.
Stop investing. Pay off the car first and go get yourself a roommate. Then get that emer fund up to 6 months of minimum expenses
That’s life for the average American, honestly.
I personally can’t do roommates, I hate living with other people, I’d take high rent over roommates any day. Mental health > money.
But definitely cut out the eating out part. I crave burgers, pizzas, and wings but at the end of the day I make myself those cheap ass dollar store ramens, it is upsetting but it saves me a lot of money to then you use in investments. You can get like a 12 pack ramen for 4 dollars.
You’re doing a good job, it’s hard starting out. I agree with the advice to get a roommate if possible. That being said, if you can survive long enough to build your career, you’ll be just fine. The goal is to hold the line on your expenses while driving your income higher.
It sounds like you have a reasonable strategy for managing money, which is better than most people can say.
The only place I feel I would do any differently is spend absolutely nothing on eating out. Only home cooked. Eating out is a luxury these days, and even then the usual suspects of fast food isn’t even close to being worth the cost (and if we keep spending money there, they’ll just keep raising the prices (greedy buggers)). Depending on the “others” category, you could likely keep that at 100 or below by being as frugal as possible, but that depends on what that category consists of.
Are your investments easily liquidated? If not, maybe put only $50-100 towards them per month and put an extra $100-200 in the savings to build up that emergency fund.
Biggest expense is rent, try to get a roommate or rent a room. Suck not having your own place but can cut that cost in half for a while while you get better work etc.
Do not stop investing as long as you can put those $200 without hurting yourself in other way, if you don’t mind me asking, what’s is that Hobby? I used to spend too much in Art supplies just because I “found a good” deal and I’d always be too busy to actually take advantage of it, at this point I can afford it but instead I focus on actually working with I have at hand.
Your budgeting is reasonable (although you could potentially cut hobbies/others if in a jam), so this is an income problem. Maybe look for a second part-time job for more breathing room?