#PersonalFinance #DebtFreeJourney #FinancialGoals
Hey Reddit! I’m looking for some insights and advice on my financial journey.
Quick Background: I was laid off two months ago after over three years at a job earning $32k. After a lot of applications and interviews, I landed a new gig that’s paying me **$60k** and allows me to work from home! 🎉 My wife has been working as a florist for 7 years and makes around **$25k-30k**. We rent a house in a low-cost rural area from her family, which helps a lot with expenses.
Debt Situation: I attended college from 2015-2019, which left me with some hefty student loans. I’ve managed to pay a good chunk down, but there’s still some to go. My wife’s car is almost paid off but has a **17% interest rate**. Overall, our total debt is approximately **$7800**.
My Goals:
- 💪 **Get Debt-Free in 4 Months**: I want to take full advantage of my new salary to wipe out that debt!
- 💰 **Build an Emergency Fund**: I’d love to stash away 6 months to a year’s worth of expenses.
- 📈 **Invest for the Future**: After covering the essentials, I want to explore ways to invest and grow our wealth.
I’ve mapped out my income and expenses, which you can check out here:
Graph of Income & Expenses Through December 2024
Graph of Income & Expenses from January 2025 and Beyond
On a positive note, we’ve trimmed down subscriptions and streamlined our phone plans to focus on what we actually use. I’ve also re-enrolled in college, now that courses are online—totally covered by a Pell Grant, and I expect to graduate next summer! 🎓
Now, here’s where I need your help: I’m not the most financially savvy person, but I’m determined to make better choices for our future. 🙌
Key Pain Points:
- **Debt Anxiety**: High-interest debt can be really stressful and feel like a weight on your shoulders.
- **Emergency Funds**: Without savings, unexpected expenses can derail your financial plans.
- **Investment Knowledge**: Not knowing how to invest can limit your ability to grow wealth over time.
If you were in my shoes, what steps would you take to tackle these challenges? Any tips or personal experiences you’d like to share? Your thoughts and advice would mean a lot! Thanks in advance! 🙏
Congratulations on the new job and huge wage increase.
Does your new job offer a 401k? Do they have a match?
You should research Roth IRAs as well. Be sure to get your financial life in order before lifestyle creep happens. Good luck to you.
Biggest thing I’d recommend with a wage increase this large is to utilize direct deposits. It’s harder to spend money you don’t see in your checking account.
You may consider opening a savings account that you direct deposit a portion of wages to then pay off debts straight from that account. Once debts get paid off you can then start a high yield savings account and direct deposit your emergency funds into there.