FinanceHelp #BudgetingTips #FinancialFreedom
Hey everyone! 👋 Let’s talk about unscrewing our financial situations, shall we?
So, imagine you’re a 25-year-old guy, working hard part-time in a warehouse/retail job, making decent money but with some serious debt and bad spending habits. Sound familiar? Well, that’s the situation our friend here is in. But fear not, because we’re here to help!
Here are a few tips on how to turn things around and start building a brighter financial future:
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Create a realistic budget: Take a hard look at your income and expenses and figure out where you can cut back. Budgeting apps like Mint or YNAB can be super helpful.
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Pay off high-interest debt first: Tackle that student loan and personal loans ASAP to stop the interest from piling up.
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Increase your income: Consider picking up extra shifts, finding a higher-paying job, or starting a side hustle to bring in some extra cash.
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Save, save, save: Start building an emergency fund and setting aside money for your future goals, like moving out or buying a car.
- Seek financial advice: Consider talking to a financial advisor or counselor who can help you come up with a plan tailored to your specific situation.
Remember, it’s never too late to start making positive changes to your financial situation. With a little discipline and dedication, you can turn things around and start working towards a more stable and secure future. So, how did you unscrew your own financial situation? Share your tips and success stories below! 💸💡🚀
I think it’d be in your best interest to go to apsjobs.com begin applying to APS2 and APS3 roles. Although, the first thing you should do is to pay off your personal loan then your hecs. I’m assuming personal loan has a higher interest rate than the hecs.
Well fixing your spending habits and paying off your personal loan would be a good start…. what exactly are you spending on?
In your situation, reduce stress (pay down debt), invest in yourself (education), spend less than you earn.
Essentially, if you make more good decisions than bad decisions over the course of your life, you’ll be better positioned than your inevitable competition.
Doing a job that you’re passionate about is a bit overrated. Find something that’s interesting and pays well. As long as you can do it for 40 hours a week without hating yourself, that’s a win. Once you know what you want to do, use your spare 15-20 hours a week to start working towards getting into that field.
In the meantime cut your spending and pay off those personal loans ASAP.
1. focus on paying off the 5k debt
2. save up 6 months of expenses for emergency fund
3. start investing into IVV using CMC
4. once you have $50-100k use the 5% gov deposit scheme (preferably with a partner) and buy PPOR or IP and rentvest
Why are you only working part time?
Start working full time hours (and consider a bit of overtime) and pay down your personal loan first.
Have a goal to with paying off the high interest debts, accumulate super as much as you can and invest some more outside super too.
Youre in a prime postion to work a 2nd job and this will get you out
You need to decide how bad you want your financial situation to improve.
It seems like your desires for instant gratification outweighs the desire to change.
You need to change your mind set otherwise all these other solutions are just temporary illusions of improvement. You will revert back to your old ways once the short term motivation wears off.
I mean, you can work as a graphic designer still. Just need to work on your portfolio in your spare time.
You might say, “I don’t have spare time.”
Yes you do. You have weekends. You have time after work.
Get some experience, should be able to land something in the 55-65k range with relative ease with a half way decent portfolio. Get some experience. A year or two. Change jobs – 70-80k.
Then pivot from graphic design to something else.
Mate you could go put your name down
for hire company like Hayes and get $30 as a gardener labourer. Sorry this doesn’t really answer your question.
For me it was when I got into Truck Driving. I went from 50k/ year as a concretor (casual) to 100k+ in the trucks (full time perm), this was 7+ years ago.
From there I learnt the company and am now in a comfortable office role.
I have no debt other than a mortgage, and am still struggling. Scored an extra $134 per fortnight with the tax cuts, but I’m thinking I’ll be paying that soon with everything else going up.
Get a traffic control night job or a fifo job while you plan what career to pick in the future. Stop fking around.
For me, getting out of debt unlocked everything. Reading the barefoot investor helped along the way. Understand that moving out of home, buying a car, buying a house, after the initial costs bring commitments to ongoing recurring costs that you will need to also have a budget for.
Best of luck.
Easiest way is to just get paid more. Obviously easier said than done but it is a goal.
An idea would be to get into UI/UX design, it has more opportunity and less competition, and a much deeper progression. All that being said only if you’re keen, but if you enjoyed the Graphic Design it’s a nice middle ground that gives you a career.
Semi similar situation, ended up going into digital marketing. Most of my job is still designing things I just get paid better for it 🙂
Got out of warehousing and went to drive fuel tankers full time. Clocked just under 230k last year
Warehouse job is almost the worst job for progression, pay never really changes and you dont upskill, best advice would be get a skill or job that has large progression that would get you to 6 figure in 3-5 years, heaps of jobs out there. Dont stay in warehouse job!
Should go for a job that pays well if I am in ur shoe
If nothing changes, nothing changes. You got yourself into this situation and you can get yourself out. Make a plan of attack.
First, fix your spending habits. Find out where your money is going. What can you cut back on? Sacrifices will have to be made.
Second, the debt has to go. Hyper focus on paying it down ASAP. That means picking up more hours at work, or looking for more hours elsewhere, selling unwanted items, looking for other sources of income. Whatever you cut back on or cut out completely can go towards the debt.
Third, build an emergency fund. This is a savings buffer so when shit hits the fan you won’t default to credit cards or loans to bail you out. You can aim for 3-6 months living expenses.
Fourth, save for a modest car that’s cheap to run if you really need one. The dream car can wait, you don’t have the means to support an expensive car and the extra costs that come with one.
Fifth, get started on that house deposit.
Won’t worry about the student debt, it will take care of itself and will eventually be paid off, but keep in mind it will reduce your borrowing capacity when you apply for a home loan. When you’re closer to this stage go talk to a broker who can tell you exactly how much it will be reduced by and you can weigh up paying it off or not.
If you want to achieve this all as quickly as possible, you’ll need to stay living at home with minimal expenses, and make some major changes to your spending habits, as clearly you are living above your means right now.
As for the graphic design degree, since it was a while ago and you said you didn’t learn much, unless you have a quality portfolio and some work experience you’ll find it hard to enter that field. It’s highly competitive and not all that well paying. But if you’re determined you could start taking on projects outside of work through word-of-mouth and go from there.
I got skills in a field of growing demand and limited supply of people. Pays well, hours aren’t excessive.
Downside- took years of education and over a decade of work to get here.
Create a budget, stick to it. Prove to yourself you can save. The only way to get financially where you want is to take accountability and start planning your future (house loan etc)
Assuming you earn $50k a year, only pay your board, electricity, internet and throw all available funds on the student debt and personal debt. Make take a year of being very tight with money but then you can start fresh with no debt.
Maybe book a meeting with your line manager and show your enthusiasm for progression in the current workplace. Such as getting a forklift licence or doing some extra training that would open up higher up/better paid positions?
Google what jobs pay what. Determine what qualifications (if any) are required to get there. Seriously consider TAFE.
Otherwise, pick up a trade.
Every job sucks the first 3 years due to pay. But if you give a damn, work hard and have a good attitude, you’ll be okay.
Good luck mate
Can you use your graphic design skills for a few hours each week in airtasker? Fill in the hours between shifts at the warehouse while you look for a full time job.
I thought there are some good opportunities around for graphic design as an independent consultant/contractor once you build a portfolio.
Maybe focus on that, Rome wasn’t built in a day
Covid happened. Due to not being able to go anywhere or do anything I was able to pay off all my debts over 2 years. (35k). So now debt free except the house loan.
Did you not come to the conclusion or answer your own questions when typing this post?
By your post history, I’d safely assume not. It’s a little disturbing.
Read back on everything you wrote and read the groups postings. You will very quickly find the answers.
1. Increase income by working more hours / second job / better job
2. Repay personal loans and save $5k emergency fund
3. Start saving for vehicle
4. Purchase vehicle + insurance + rego + repair fund
5. Start looking for better job
6. Start investing in ETFs / save for rental deposit / save for house deposit while living with parents.
By 30yo you’ll be sorted
You sound like you’re doing ok. I’m assuming “student loan” is HECS? Don’t worry about that part for now. Pay down the personal loan then just keep saving. In the meantime, build your portfolio and seek work that makes you happy and is potentially higher paying. You’re very young and you don’t sound ‘screwed’.
I have never worked a job I am passionate about and I have been in the workforce off and on from over 25 years. Working is about money. Make enough so you can spend time doing the things you actually enjoy.
Take advantage of living at home. While you are paying living expenses there, it’ll likely be the cheapest you’ll ever have. I assume on average you take home a little over 1500/fortnight. Your expenses between board, utilities, loan payment, etc is probably what, half of that? To be conservative, let’s say 1k/fortnight. Do a budget to confirm. Throw most of what’s left after that onto the loan – your priority is getting rid of that ASAP. Make an automated transfer for pay day so it’s gone straight away. Then play with whatever is left. That way you can’t overspend. Reassess once the loan is gone.
You just have to prioritise unscrewing your financial situation.
A lot of this stuff isn’t hard, but when you start adding stipulations like “I can’t go without <hobby>” or “I want to work in <suburb/field/industry>” that’s when it becomes a lot harder.
You have to earn more, have less bad debt, spend less and learn to save more. Otherwise waste the rest of your life like many others living paycheque to paycheque with bad finances.
Pay off your personal loan. If nothing else, make this your one goal.
In 2017 I had no job, no partner, a shitbox car and 100 bucks to my name.
Today I still have a 100 bucks to my name and no partner but also managed to save for a mortgage and buy a house. I don’t earn amazing money, in fact I was only earning 62k when I bought the house in 2022 and still pay it on my solo wage though I am making a fair bit more now.
At some point I just kinda realised the only way to get out and above was to make it happen for myself. It hasn’t been the easiest ride but avoiding spending has made a lot possible.
Stop drinking. Drinking is wonderful but the Australian government has ruined it with tax. It’s a poverty trap in this country. There’s countries you can have beer for less than a coke, but not here. Don’t smoke for the same reason.
Two bank accounts. On payday pay your bills then move the money you wanted to save into the savings account. A couple hundred if you can since you live with mom and dad. If you make it to payday without spending it all the paycheck yeet the rest into the savings. You need fun money, you need savings. But It’s much easier psychologically to save if you separate what you wanted to save from your fun money.
All the banks will give you a free high interest savings account for every normal account you have.
If it’s a HECs debt then disregard your student loans. They don’t matter to your weekly budget. It just mean you’ll never be able to count on your tax return since the government will take it which sucks lol. Unless you get an awesome job like well over 100k from what I hear it won’t matter until the tax return. It’s different to American student loans.
* Works 60-70 hours at $26.50 per hour
* lives at home
* has 1k in savings
Stop spending all your money on shit you don’t need. It’s literally that simple. You should be saving like mad right now.
Owed about 20k in debt from extending travels in my mid 20’s. Basically just set up a budget, lived like a uni student (strict weekly budget) and got it paid off in a little over a year. It sucked at times but the relief at the end was worth it and I learned a lot about my spending habits and how little I actually missed what I wasn’t spending my $$ on. As for student debt, you’re in Aus. Don’t stress too much – it’s coming out of your pay when you’re earning enough to afford it. Just worry about getting your personal debts down and focus on getting a few months worth of emergency funds into your savings.
A spouse with their head screwed on the right way. Combine energy and resources. Keep fit and find something creative other than work and family to keep you thinking. Everything in balance but be flexible. My creative outlet (playing alt rock) was part of my path to destruction until I started getting my act together at 25 but I never abandoned it and it’s kept me youngish as I hit 60. Children and dogs are great but they don’t solve problems so don’t go there unless you’re certain you’re ready and equipped. Join a union.
There are some very good advises in the thread.
Big one i can see is cutting down on your spending. If you are in this situation and looking to change, then start acting on it. Live frugally. Make a plan for every single dollar you have at your disposal.
Its also good that you have acknowledged your bad spending habits, it means you know where you are going wrong and you will know where to pick yourself up quicker.
Once you have set your budget, stick to it. Now in your free time, instead of your hobbies maybe start picking up some side gig, waiting tables, ubereats delivery on bikes etc.
You can afford to have fun after you steady the ship.
Good luck.
Working full time + doing OT would help your situation, but income isn’t your issue, expenses are.
You need to figure out why your spending is so bad you felt the need to take on a $5K personal loan whilst living at home. There’s not much point in earning more if you’re just going to spend it all.
Long story short = Barefoot Investor book and his bucket theory.
Get a job you can sustain, put extra money on your HECS, weekly if you afford it, you’ll knock it off quickly and avoid indexation. (Too many people rely on their tax return to pay it off, and this is the wrong way to go about it)
Once HECS is paid, you can start really saving by putting what you used to put on your HECS into a savings account. Withdraw $100-250 a week in cash and try to live off that. Still keep money in the bank to pay bills and whatnot, but try to live off your cash. Physically going somewhere and spending it will be enough to deter you from spending. If you don’t spend your cash budget that week, top it up the next. Eg. If you cash budget $250 and only spend $100, you only need to top up that $100, putting that other $150 you would normally budget into your money tin.
I did this for 12 months and bought a new car from my money tin.
Everything adds up to a lot. $20 here, 50 there, 80 there. You can burn 500 in a week without realising. You’ve gotta go back through the transactions of shame and see what’s adding up that you can start avoiding. Uber Eats, clubbing, video games, etc. You’ve got ok money coming in for your situation, but you are leaking money from several angles. It shouldn’t be hard to tackle. Don’t treat it like a big deal. Just take control and it’ll fall into place. I used to burn money on shit in my 20s. Now I’m way more careful, and I save heaps.
The least risky way to make money is either get a well paid trade and get good at it. Or get into a well paid degree like engineering.
So tertiary education.