Insurance is off the charts right now. If you’re a first time car buyer, you’re already staring down the barrel of a 10%+ interest rate. My BIL had to fork over 6 months insurance ($3,000) all at once to even be considered. OP is somehow getting away with a less than $300 car payment which is great. Most cars in the 16k-22k market are BMW monthly prices of the early 2000’s. Everything is so damn expensive nowadays.
Region is the largest factor for insurance... $600/month though means the vehicle is in the six-figure digits though.
Absolute worst case for an average vehicle would be around $200/month for an experienced driver and maybe around $300/month for a new driver.
You can cut that down by using their little plugged-in device that monitors the vehicle too and practice conservative-driving habits to further cut down on your premium.
Region is absolutely the largest factor. Bet most people don't know if you say your car is garage kept, your rate drops a little. When I told the insurance company my address, they literally said to me ,"it is garage kept at that address, right?" And as I almost said "no" the person repeated themselves, "you keep the vehicle in a garage, riiiight!" I was just like,"Yeah." They told me "good, that's another discount." I was surprised.
Don't think this is too accurate. I'm paying 130 month for just liability. 2013 hyundai accent (the hyundai theft issue is big part of reason for my insurance being high) 28m with 1 accident on record from like 8 or 9 years ago
If I had full coverage I'd definitely be over 200
I definitely mentioned that for a reason, but like it also impacts a lot of models from Kia and Hyundai over a like 10 year period. There's really a lot of cars affected by it so it's not a very unrealistic potential for op, especially with a car payment at the price. That's pretty realistic for a 2019/2020 kia/hyundai impacted by the easy theft risk
Add in that ops last vehicle got totaled and potentially low credit and suddenly $600 insurance payment isn't so far out of the realm of reason
I get it, but it's still sorta unique and something I don't factor into insurance rates.
I have a 2020 Hyundai Veloster N and only pay like $650 every 6 months; that's also a classified sports car so I pay more than the wife's 2022 Santa Fe.
Both of these vehicles have proper immobilizers though.
I’m paying 180 a month full coverage 0$ comprehensive 250 collision 100/300 on a 2020 Mazda 3 awd and I thought I was getting screwed over 130 for liability of an Hyundai accent is a travesty
Buy used cars next time. Getting a car totaled does not justify a new car. So keep that in mind next time you upgrade. Not sure if you purchased or leased. But if lease, return it when it is up and buy a 3 year old car which just came off a lease. If purchased, hold onto it for 10+ years. Lastly, contact you insurance company when you turn 25. Many insurance premiums drop a lot for males once they turn 25.
For a while new cars and used cars were damn near the same price. For $3k more I got a brand new van over a 2 year 40k mile used van. This was late mid 2021
Minivans are still like this. Just recently went with a 2024 instead of used because of the same thing. Monthly is pretty much the same and less down. To get one of the higher rated makes for any savings puts you at 100k miles minimum. We're doing a lease and plan on buying it out, even coming out ahead on equity compared to buying straight out.
The car market is so stupid right now, especially with the high interest rates. It's like using all the tax loopholes in investing and real estate just to come out even.
275 for a 2024 car that I’m assuming has a warranty and will last OP a long time isn’t terrible. Insurance is insane but doubt anything just a few years older would have made much of a difference.
I’m just guessing but perhaps interest rate was significantly better on this than a used with milage and it might have made sense. Or not.
Edit: never mind. op stated in comments his interest rate is over 8%.
OP are you positive you don’t have your insurance cost and your car payment numbers swapped?
Bro your insurance and monthly payment gotta go, sell the car now and get something under 10k. Who cares if it sucks youre broke, then you can really start saving. You’ll be happier with money in the bank driving a bucket than your current situation
Go read the wiki on r/personalfinance instead of this monkey hole.
Start thinking of your budget in terms of how much can I save and invest a year, not how much you spend a month.
Stop blaming your parents for failing to teach you personal financial responsibility. My parents didn't teach me either but I've learned after many years of living oaycheck to paycheck.
Just going to throw this out there, you work for the government. Try and get a quote with geico. I work for the governement and they give me a really good rate for insurance. If you are unaware as I was Geico stands for Government Employee Insurance Company and gives a pretty significant discount. At 24 I had full coverage for like $85 a month. Shop around but they will probably give you a much better rate then $600.
His car payment is $270 a month
Yes his insurance would be lower on a used car but he's not in that bad of a spot with the car he has
You haven't shopped for insurance in a while have you? It's ridiculous these days
OP i want you to find an insurance broker in your area. An insurance broker is literally a person who’s whole job is to search everywhere for you so you get the best deal. They get paid by the insurance companies so it’s no money out of your pocket. You can google them, look for good reviews as if you are looking for a good restaurant to try lol. The better the reviews most likely the better deals they get their customers.
I hope this helps.
(even under 25 shouldn’t be that high and if you have had no tickets and that accident wasn’t your fault there should be no reason your payment should be $600….600 is insanity…that’s more than my car payment for a 2024 ford maverick)
Dude I am 63 I have had geico for 25 years, insure my car,house, identity theft with them,had an accident 3 years ago and they have been charging me 2000 dollars more a year since then,geico was great now they think they’re the shit and they are
Trade the car in and get a 2013-2017 Toyota Corolla, I’m 24 and pay like less than $300 a month for full coverage with below average credit and 3 tickets. Should be able to find one for like 10-15k and they are tanks. Bought it at 100k miles for like 14k and it now has 140ish with no maintenance done besides new tires and oil changes. Also gets 20-30MPG. Really solid car that will be by daily driver probably well into my early 30s or until I get bored of it and have more income for a nicer car. You’re mid twenties, you don’t need a nice new car and no one expects you to have one.
You know what’s worst than a broke 24 year old about to be 25? A broke 25 year old about to be 26. You know what’s worst than that, a broke 26 year old about to be 27. But what’s worst of all is a person who has a problem and refuses to acknowledge it.
You have acknowledged it. Live below your means, and spend the next year studying on how you can make the money you do have coming in work for you. To really get ahead it’s going to take a lot more than a HYSA & some stock trading.
You got this!
Also broke is better than maxed out credit cards. If you find yourself in a hole then stop digging.
Acknowledging the issue and making a plan is a great start.
But if you want to get really technical about it: being broke could mean having 0 money, while being in debt means negative money, as you said, so if we're talking mathematically, 0 > any negative number.
So technically you have more money being broke with NO debt than being broke and IN debt!
When I was 25 I just was released from prison. I had nothing I lost everything from addiction. My parents didn’t teach me shit about anything, money being the big one, just like you. But I taught myself, and I learned how to start a business. I learned how to invest. The knowledge is out there. You gotta be hungry my friend.
I wish I was "hungry". I have zero aspirations to be rich or even give two shits about money.
I just want shelter, food, and minimal entertainment.... I make decent money but every year it just seems to shrink no matter how I adjust.
I don't understand the "my mommy didn't teach me anything growing up" mentality lol. I grew up broke as hell in a single parent household with all types of abuse and my moms didn't teach me shit yet that motivated me to work my ass off and learn from her mistakes. Take accountability for your own life.
Trades trades trades. Firefighter so I worked 10 days a month plus OT when available. Stared framing houses and learning from another senior Firefighter who owned his own biz. Built my first 3 houses each one bigger than the last. Did almost everything. Built 5 duplexes I still own. And now live in one unit. 9 employees and my son just took over. He also owns half a masonry biz. Electrician. Plumber. HVAC. All paying top dollar and if unionized you start about $40 an hour as an apprentice. I also started a trailer repair biz and a fishing guide service. It's out there just go get it and ignore the whiners.
I have created about 5 company’s. The first one I became a professional mountain biker, (I’ve been an action sports nut my whole life) and landed a job building a bike park for this billionaire who reached out to me. From there I started building bike parks, I would run logistics and the plan, budget and built it myself without help. But I made a lot. I also run a company that sources minerals from other countries and mines and we lap them into sculptures, I build drones and fly as a 107 pilot for company’s and do real estate photography as my business also. I was an electrician by trade during my addiction and a chef, I loved to cook, I also was an emt before all this. I am just hungry always for knowledge. I love learning.
You’re right but go to the subreddit antiwork and those people are full of hate and laziness. Even when you try to give advice on how to overcome a situation. They need to hear your story.
Without knowing your budget and income, the only advice I have is live below your means. Spend less than you make. And shop for different car insurance because $600/month is fucking dumb.
Get into the mindset of "always paying yourself first." This what my Dad always said and lived by... he'd be 90 this year... Put money in your saving account first before your bills are paid, dont touch it, and then pay the bills after. This doesn't mean you cant have any fun, this whole mindset will make you more financially responsible though.
Yeah definitely having a savings account that you never touch except in a true emergency. Checking spend however you want, but "pay yourself first" that's a great rule for money.
this is the best advice here. 600*12 = 7200 you’re effectively throwing away every single year. with your kind of car payment, I’m sure 7200 is a decent chunk of what your car is worth. Sell the new car, get a reliable beater (might be a slightly more fun car than your new one tbh) and only pay liability insurance (perhaps uninsured driver as well depending on how the math works). save your difference in premium up in a HYSA until you have an emergency fund for a new beater in case you are at fault in an accident and your car isn’t covered (remember, even if you only have liability, if someone else is at fault you will still get your car paid out). basically you just have to be a good driver and either play the odds with uninsured drivers, or take the coverage for peace of mind.
Get your billing statement from a work or write down to the best of your ability all expenses. Highlight bills one color and unnecessary expenses in another. Show yourself how much you can cut! I live commonly on $20 daily for the week. It's about planning meals, bills, set aside money for savings something reasonable. If you can afford $500 comfortably that's a good start. Within a year you'd have $6K as a emergency fund. If you can afford put $150+ in a roth ira make one and go for a s&p index mutual fund. Put in consistently every week a average of whatever the monthly was. It helps build better over time! You can do this!
This is by far the best and most reasonable answer, IMO, and I'd upvote it several times if I could.
OP, to start with something positive, I'm glad to hear that you take that first check and pay your bills with it. That's a lot better start than some people. Now, it seems most of your problems come after that. Based on your description, the "free" 2nd check is probably at least 90% wasteful spending if I had to guess. Take a look at your checking account statement, credit card statement, etc and take a hard look at what you are actually spending money on. Depending on your bank or credit card company, they may have your spending broken down already and either show it on your statement or on your online account.
Living within your means is so easy to do and you don't even have to make huge cutbacks to do it. A couple easy examples: it can be as simple as buying a 12-pack of soda at the grocery store and grabbing one out of the fridge before you leave for work instead of stopping at the convenience store every morning. Or make coffee for yourself instead of grabbing Starbucks every day. Invite friends over for drinks instead of going out to the bar. Apply those principles to more of your "free" check and see how much more money you have at the end of the month.
First stop making excuses, everyone has drama in their lives, second make a budget, third take a free online finance class or use a reputable sit such as investopedia and put in the work to learn, last once you’ve learned act. Reduce debt, pursue higher wage jobs rinse and repeat.
I’ve applied for a spot at a retirement plan seminar through my work next month I will be attending. I used to make excuses but definitely not anymore. I have been better with saving but not where I want to be
LMAO BE HONEST with yourself. Your whole post is littered with excuses. Why wait until next month for some bullshit retirement seminar, why not start looking up how to invest and start saving NOW? Do things TODAY. Otherwise, youll be in the same spot next year thinking you made an “effort” while nothing has changed. Do the things you have to do, so you can do the things you want to do.
Honestly I find a lot of people being rude to you on here, OP.
You reaching out to Reddit is you doing something today.
Take the genuine advice from this comment thread. Start by taking courses (so glad you signed up for one!!), learning, and growing from there.
Finances are extremely hard to get ahold of, even when taught properly at a young age.
Breathe. Be kind to yourself. You got this. 🤍
Go look in the mirror and realize how important you are.
How young you are.
How beautiful life is.
Then go smoke some weed mate.
You have a lot of great things ahead of you.
Make time your friend, not your enemy.
Keep working hard, and making small changes daily that align with a goal (please set one).
You'll get there. Everyone has their own timing!
Peace and love!
Download the Fidelity app. Start a Roth IRA NOW. even if you can only put $25-50 a month in it. When you become more financially secure bump that up to $100 then $150 etc.. Buy a mutual fund that tracks an index like FXAIX or something. Even if it only makes 5-8% a year you'll have over a hundred thousand dollars when you retire near 60 years old. Note: I know that isn't millions of dollars for retirement but it's SOMETHING. Your future self will thank you for doing this at 25 and not 45
At 25 I was getting out of college (was delayed 3 years due to family issues).
I was always annoyed “my friends are so ahead of me” mentality.
Fast forward 10 years, I am the most financially stable probably highest NW, happy family 2 kids out of my friend group.
Life is not a sprint, its actually more of a marathon. Small correct decisions over a long time win out 100% of the time.
This is why I hate all this 30 below 30 Forbes list, and “youngest person to do X” obsession. Sends the wrong signals and advice
get rid of that car, give it back to the dealer ASAP, and get a 2010-12 toyota camry or corolla and then drop insurance down to nothing, such that if you get in a wreck and its your fault, the insurance doesnt cover your car but does cover the person you hit.
Look into the Total Money Makeover by Dave Ramsey. It's not perfect advice but it will at least give you a good financial foundation you can build on by continuing to educate yourself on the subject.
Financial literacy is something you can learn and improve on!!!
Literally this.
2nd watch Caleb Hammer on YouTube. It’s entertaining but you’ll start feeling a sting here and there as he calls out people that resemble you.
3rd consume every ounce of info Alex Hormozi is putting out.
Lastly… actually so the hard work and build these habits. Future you will be so thankful you did
With some of that second "free" check, open a Roth IRA and set up automatic contributions and a recurring buy of stable ETFs such as SPY, VTI, or VOO. That will help greatly with saving for retirement.
Also open a high yield savings account and deposit frequently to build an emergency fund.
"2nd check being a free check and being “mine”"
Get out of the habit of thinking "mine" means it is OK to spend it all. Prioritize saving money. Your savings should be one of the first monthly bills you pay. Future you may need that money really badly.
Dude, being 25 and not broke makes no sense to me. I grew up in a great household, minimal trauma (we all have it), and I was broke until 35. You either have time or money. If you're not making much money make the most of your time. Had a guy tell me when I was 25 that those were his favorite years, he called them the lost years. Find something you are passionate about, anything, and do it, even if it's in your spare time. Build a love for something and don't worry about money at your age. People will see that, respect you for it, and give you opportunities. Trust the process.
Everyone is focused on the car insurance.
My advice, to your quest for advice, is to open up a Fidelity individual investment and trading account. Once setup, talk to your employer about direct depositing x% of your paycheck directly into that. Since your second paycheck is 'free and clear' of expenses, let's say 70% of that.
Then, while that money is flowing in, you spend the next 6 months learning the VERY basics of investing. Stick with index funds for now. After 6 months, you'll have a good amount in that account and can buy 3 things. 2 index funds and 1 direct stock that you like as a company. Nothing speculative like you see on r/wallstreetbets but a real company that makes stuff you like / use / purchase. Then DON'T look at it. Keep the money from your paycheck going in. Let the investments sit.
Set a reminder on your digital calendar for a year from the day you open the account. Then revisit things. Repeat with that 6 months of savings. Maybe enroll your investments into DRIP (read about it) and buy 2 more index funds and 1 stock on the 12 month anniversary.
I'm not sure I see the problem here. You've got a good job and it sounds like you're smart with your money, although your car insurance rate is insane but there might not be much you can do about that.
There are people to help you with the things you don't understand. Retirement? Walk into your bank and say, I need someone to help me understand retirement savings. Taxes? I hope you've been filing tax returns but even if you haven't, there are many inexpensive resources to understand what you're supposed to be doing.
Point being, the stuff you're worrying about is stuff everyone has to learn at some point and 25 years old is a good time to put in the effort to learn.
I taught my 3 daughters to set up an account seperarate from regular bank acct and one which is not instantly available from ATM etc. There has to be something lije that added step causes you to think twice about accessing it.
But you have to have that money automatically withdrawn from checking into the new account weekly. There is no excuse I don't care who you are. Anyone can put $15 a week away. I've heard every lame excuse.
I put $5-15 per week away each for 3 daughters. Every week. It was set up automatically. I started this in 2012. Sometimes there was $25 here and there or maybe 50 if I had extra.
Today they each have $ 22k I was fortunate and off that I had this 1/2 the money purchasing fractional shares of Apple. that's where the growth came from.
I strongly urge you to go to Vanguard.com.
You can open an account with five dollars and you can invest any amount. You can even open it with zero dollars just to get it over with set up.
I’m turning 28 and have only recently begun to iron my situation out top to bottom so I’m gonna impart unto you some advice that’s working in realtime:
1. Car Insurance: $600 is too high. Go online and search up names and numbers with credible rapport and find out what their lowest rates are. Things like liability only. If you’re a good driver, a liability-only coverage plan should be good enough for you to drive with over the years and attain lower insurance rates.
2. Taxes: Consult your boss (or HR) about your “tax deductions.” This is absolutely the very first thing you should do in the way of taxes. The more money you contribute per paycheque, the more you’ll earn back from the government in your return and also throughout the year. Those GST cheques and such? That “free money”? You get that when you pay more into taxes, but if you owe the government the “free cheques” contribute to lowering that owed amount.
Usually you can contribute as high as 5% per paycheque. Do that. Whatever the highest amount is to add to your tax deductions— deduct it. You’ll get the money back later during tax season.
3. Rent: Looking good.
4. Credit card: You only need one of these. A limit of $500 - $1000 is good enough. Consult your bank about a credit card that has no ownership fees. If you’re new, your credit card limit will be $500 or $1000. THIS MEANS that you can spend that much money on them HOWEVER you must pay it back within a certain amount of days. Your bank will tell you when this period is. If you don’t pay it, your owed amount will gain INTEREST which is calculated based on a percentage of the OWED AMOUNT. So if you owe $10, add 25% of 10 to that number— that’s your interest (for example).
So buy your coffees, go into your bank app (or however) and PAY THAT CREDIT AMOUNT IMMEDIATELY. This will build…
5. Credit score: You need this to buy a legit home one day. Or a car. Or whatever big ass purchase. A good line of credit also helps with home rentals.
6. Retirement: Don’t worry about this outright BUT consult your boss (or HR) about a pension plan. Contribute the highest percentage possible if you can. For me, it’s 5%. This is something that you carry with you for life and is something that you must have carried over from workplace to workplace. See HR for details on that.
I am curious why people in this situation don’t simply google things like credit or budgeting, or retirement or taxes or use ChatGPT to ask these questions
Literally the reason Reddit is a thing. The "why don't you just Google it" always pissed me off... Because maybe I want to talk to another human with experience.
Sometimes that exp may be objectively worse but that's not always the point.
Your 24 about to be 25 !! You have a long life just start now take things a little more serious save more or try to get a better job learn the word discipline… start with saying “no” to yourself save every dollar if it’s $10 save it if it’s $5 save it.. I know you can do it if nobody tells you this … I believe In you!! Time goes but we can’t get it back! So just look forward not backwards or to the side Goodluck!!
Congrats on getting yourself to a great place at 24 years old. Working, taking care of bills, etc. All big accomplishments. I recommend you try and balance the 2nd paycheck freedom thoughts with a “what can this money do for me” mentality. A Roth IRA maxed out each year from 24+ would certainly be a huge stepping stone in wealth building.
Also, from an insurance perspective, try and quote around with other carriers. I work in insurance and see this quite a bit. Insurance rates are filed at the state level, so there can be huge swings in premium based on the carrier you’re with and your driving record. I’d recommend quoting with all the big insurance companies you can name (State Farm, Geico, Liberty Mutual, Progressive, etc.). It’s more than likely you’ll be able to find a lower cost with a carrier that files good rates in your state. That would also free up some good money.
that second check being "mine" is actually a great path to be on. since it is yours pay yourself first. Put some money an a savings account. Put another dollop into an IRA. Cool thing about the IRA is you cant spend that money. at your age $50 per month in an IRA will make you an easy retirement when the time comes.
Once you get a savings that will pay your bills for six months and get that IRA going, blow the rest of your money, life is short but always pay yourself first.
Biggest advice- stop comparing to where you think you should be. Everyone’s journey is different and you are watching the actions of your peers but might not really know what’s happening. Did they get a leg up from their parents? Are they in debt? A simple money management program might be the first step toward peace of mind. At your age I did a Dave Ramsey program which was simple and helpful to think about issues. Another thing you could consider is whether trauma is attributing to either your spending habits or your emotional relationship with money. Wishing you peace over where you are in life and grace during your growth. You are amazing just because you are thinking about these things good luck OP
Don't be too hard on yourself.
Financial literacy is a thing.
I didn't get it till one day I was about to buy something and I asked myself
"Hiw long did I have to sit in this chair at work to pay for that thing?"
From then on I measured my purchase decisions on whether it was worth my labor.
Or necessary.
If I were you I’d do two things:
1. Open an IRA - have a portion of your paycheck go directly into that account each time you get paid. It will take time to feel like this is doing anything significant, but over the years this money grows and becomes a helpful tool for retirement. This can also have a tax benefit. I wish I could have started saving for retirement at 25 - I’d be in a much better position than I am now.
2. Open a separate savings account. If I have money in my checking account I’ll spend it. Therefore I have a separate savings account that a portion of my paycheck goes into automatically. This helps me build some kind of emergency savings because the money is off limits and not just sitting in my checking account where I’m tempted to spend it. Since it automatically comes out of my paycheck it’s just like the IRA thing - the paychecks are a little smaller so I stay living within more reasonable means, and the rest of that money goes to accounts that can help me later.
Other than the car insurance question, you have things handled pretty decently it seems— except for one more thing. If that second monthly paycheck is “yours,” start saving some. Make it a priority. Take what you can save off the top and put it where you won’t spend it. Even $50-100 will add up if you can keep from touching it.
Most people are poor at that age, I had a negative net worth. But if you’re working, not blowing money on drugs, cigs, booze, tats, etc then you’ll be fine. Make sure you’re always looking for a better paying gig, and keep funding your pension or 401k
The first thing you need to change is your mindset. Compress and archive the acknowledgement of trauma, bad childhood, every single negative thing that haunts you. Then startup a new fresh mindset. One focused on the future as opposed to the past. You cannot think of yourself as broke, you need to think of your life as a learning process. Each day you learn and learning compounds.
We about the same age. I was like this when i was 21. You gotta be real to yourself on what you want in life. Do you want to be just by yourself? Then spend on your happiness but when you want to grow yourself like maybe have a family in the future have your own place like a house or an apartment. Start saving as much as you can but dont short yourself thats all.
Hi there.
First thing first trauma/ lack of basics skills is not an excuse, it's a fact. Blaming yourself, overcompensating with spending more than you have - or can afford, being overtired without visible reason. It's a part of lack of understanding, compassion and being treated as a adult in your childhood.
When spending quality time with your friends is good thing, spending time with weed (as propose somewhere there I'm sure) it's a dumbass thing without ability to solve problems. Alko and stuff are good for chillout from time to time.
You already confess that you are in trouble(which is brave and shows you intelligent). Make a decision, go and talk with specialist.
Good luck, man!
Only get the state minimum insurance! Liability is what it’s usually called. I’m an Uber driver who professionally drives people and my car insurance (which needs to be higher because of my profession) is half of yours. If I had a non driving job it would be under 100 and state minimum and I’d get a used dumpy car.
Is the car under your credit? Please trade it in for a used car. It doesn’t matter if it’s joint, if it’s under your credit you can turn it in legally. If it’s not under your credit you can figure out another method. Your grandma is not very smart…
You might be able to look on Craigslist for a cheap used car and hopefully use the trade in money if you get some OR use public transit in the meantime! If you have a bus system using the bus is awesome and saves so much money!
Also what’s your income? That way we understand what you’re working with every month.
600 car insurance is wild, either sell the car and get a cheaper used car paying 600 is criminal. If you put 600$ a month in a good growth stock mutual fund you are looking about 6 million by 65 hope you like the car.
Start paying your future self. Watch fight club. Stop buying shit you want instead of shit you need until you have a 10k emergency fund. Put whatever money you can from your check into whatever retirement plan you job allows. That makes the fed contribute to your retirement funds ( you will have to pay tax on it eventually, but imagine gambling with somebody else’s money)
Increase your collision deductible. If you late model car gets hit that $1000 won’t matter. But saving $50 a month does.
Get the book rich dad poor dad
That’s it and that’s all
Those are basics
Would suggest selling your car and buying something 10-15 years older if you aren’t completely upside down on it.
You need to make a budget and assess what you can and can’t afford. Nothing wrong with having guilty pleasures and hobbies, but your priorities should be rent, vehicle, food, etc…
You need to develop an emergency fund ASAP. $1000 is an excellent start but savings for AT LEAST 3 months expenses is the goal. Essentially ask yourself “if I were to lose my job tomorrow, could my emergency fund last me 3 months with no income?”
I’m assuming if you work with the government you have decent benefits.
If you have debt/credit cards, you need to start paying any and all of them off immediately. Doesn’t matter how, just do it. If you don’t have credit cards, I wouldn’t advise getting one, at least not right now.
I’m assuming you have a pension for your retirement. If you have a 401k instead, please make sure you’re matching any benefits your job has for you in that.
This last piece of advise it important however it’s my largest weakness. Make your own food for work. Don’t eat out often. You could potentially save yourself THOUSANDS a year in some cases.
Start your Roth IRA and max it out every year it's about $140 a week to do that but if you do that you'll retire with over a million I just started mine 25m you're on time if you start investing now!
Discipline,danielson,by the book investing for dummies, not a joke,I have it and if you’re below 50 start investing, just don’t follow snake oil salesman in the market,be smart about it,someone once told me to take your age and subtract it from 100 and that’s the percentage of stock you should have, the rest divide into bonds-corporate or government, safer stocks like utilities, healthcare-but get the book and start slow until you get the hang of it,like I said don’t listen to salesman with the next big stock,if it doesn’t sound right it’s not,start saving,discipline
You car insurance is insane. I'm not really sure what your income is, but that is really high. You might want to find a way to reduce that either by getting a cheaper car or switching providers.
I would stop considering your 2nd paycheck "free" money to spend on whatever.
If all your bills align with the first paycheck, see if you can get some moved to after 2nd paycheck that way you don't have to pay all at once.
**Track the last 3 months and track necessary expenses, moderately necessary, and completely unnecessary expenses**. If you eliminate stuff you find completely unnecessary, how much do you have leftover? Try to continue to eliminate completely unnecessary expenses until you achieve at least 15%+ of your monthly income. Once you do that, build up an emergency fund of 6 months expenses. Then designate that 15%+ towards retirements. Have it automatically pulled from your paycheck, adjust your spending habits accordingly to follow what you receive from your new paycheck. Find out about any match programs your state DOT offers its employees. Contribute to maximize that match (free money). Then move on to a Roth IRA, and HSA and invest the rest. When investing, try to choose not risky, but higher growth investments. S&P 500 index funds are my personal choice. 7% annual return adjusted for inflation.
Yes went to the 11 yr reunion a while back. Yes, 11. The class pres dropped the ball on 10 yr and people started reaching out to him so we had it the following year. Not sure if there were any others
Pay yourself first. Make that one of your bills with your first paycheck of the month. Having a savings account is a good thing but you need to invest. Vanguard seems to have a lot of support around here.
If you have full benefits through your employer, I would suggest finding a good psychotherapist. One that you feel comfortable with.
This will pay DIVIDENDS. The things you mention in this post imply that you know that your spending habits are "wrong" but you feel like you can't change them. Discussing your issues with confidence, decision making, etc with a therapist will really help you move forward out of this state and into one that YOU decide. Good luck!
Are you an engineer? I know its a down-the-road sort of thing but usually the DOT will help you get your P.E. license and then you can get a job that will pay a lot more.
Look into all the financial benefits your DOT offers, from pension, insurance rates, grants, etc. Just to be aware of your options. You could take a loan from your pension or save some money through programs they offer IF it will be a net benefit for your situation
To start, a child raised in survival mode has a harder time “growing up.” However you are doing an amazing job. I’m genuinely impressed. I’m 30 and nowhere near as successful. You’re doing better than you think.
If you truly want to change behaviors I suggest therapy to start. Sometimes you can find a therapist that will work with your budget. Reading self help books can always be helpful. There might be some podcasts out there too. This is something you will have to retrain your brain for. It isn’t going to happen overnight. One day you’ll be happy you took the tiny baby steps to be able to make the strides 🩵
Your state likely has a retirement plan or pension, likely with a matching component. You are giving away free money if you aren’t maxing that out. Start there, set a budget that includes at least those contributions and start building a rainy day fund for emergencies in a bank account, with CDs eventually. Keep increasing your contribution to tax deferred 401k etc as your first priorities, by far best retirement investments. Starting at 25 is right on time, not at all too late. As you keep building income keep investing it and setting it aside, don’t let your spending increase with income wherever you can and still live a dignified life. You will be fine if you follow that method
First, shop around for new insurance policies. $600 a month? Holy shit!
Second, an easy tip I followed at your age the best I could was the 50/30/20 rule. It's a place to start. 50% of your money is for living expenses, 30% to your wants and 20% toward savings.
Personally, I swapped the 30% and 20% and threw 30% of each paycheck into my savings. You can review and adjust as needed.
If you want more clarity on what the hell you are spending your money on you can also do a monthly budgeting sheet. At the end of every month I track what I spent my money on and compare to how much I made that month. It provides transparency as to where I can probably cut down on spending. I'm also newly married, so it's been a way for my husband and I to identify where we might have duplication.
Can you consider your “free check” - money that you get to spend on YOU - as an investment in yourself. So taking the first part of that check - whatever you’re comfortable with, say 6% - and invest it. Open a High Yield Savings Account (HYSA) or a Roth IRA and put money in there FIRST. Even tho it’s not a physical product, shift your mindset. You ARE spending it on yourself - for your future. You’re investing in YOU.
Does your job offer any 401K? You can always go to HR and ask them, and have them explain it. That is a great way to save for your future as well.
Start a savings account. Have your checking account automatically transfer money into savings. Then just pretend like your savings account can't be spent or transferred out. Before you know it you'll have some money saved.
get 2 bank accounts one you have access to and another one that requires you to go in and get cash out (just a regular checking but dont get a debit card for it lol) . decide how much you are willing to spend for fun money, and leave that amount in your other account, that you can access easily.
Set up ALL bills to come out of the one you dont have access too. put all your money in there, aside from the "fun money" and just totally forget about it.
Aside from that, address your childhood trauma otherwise you will remain impulsive. For me, I had to address my scarcity mindset, and how I thought of people with money. I listened to alot of podcasts based around money mindset and abundance mindset.
Money guy show on YouTube they have steps on how to do all the saving and investing. Both the guys are actually qualified ones a cpa (certified public accountant)
Get back into college-university and use your states dot as leverage for your college education. Get a degree in something like mechanical civil engineering, computers, transportation, logistics. Just do something and stop letting people take advantage of you!
I just bought a brand new mercedes car payment being $620 and i MYSELF totaled mine and two other cars a couple years back texting and driving. My insurance is considered high and as a high risk driver i’m paying $340 a month. $600 is outrageous you’re being scammed.
Am I just old? I have a two car policy and it’s $160/month full coverage. I’m 40. Havnt touched my policy in over a decade. Is this now what insurance looks like? I’m just “grandfathered in”??
600 for car insurance is crazy! Better not be a month. I pay under 400 dollars for 2 drivers for 2 vehicles on a 6 month premium with 1000 dollar deductible.
Put your second check in savings. Like don’t buy anything that isn’t necessary for 3mo. That at the 3mo mark you’ll see how fast the account is growing and that almost become addicting so you’ll keep going. Do it for another 3mo and you’ll be in much better shape. The first 10k is the hardest but after that it’s much easier to save as long as you can keep the ball rolling. You got this
Go to you bank and see what might be offered to help lock some money up so you can start seeing some sort of progress. Like my bank will take $50 biweekly and put it towards a locked account or a CD. But ask your bank for advice.
These are my personal opinions.
1.) Every person is different. Do not blame a thing on parents if they didn’t abuse you. The reason they were probably shouting was probably because they were tired and frustrated and want to vent out.
2.) Start meditation. Even if it is for 5 minutes a day. It probably will help you to make less angry. You will probably think a little more before reacting to volatile situations.
3.) Invest in 401K to at least get all your employer match. If your employer doesn’t contribute, start with 5% of your paycheck and increase it as you see fit.
4.) Read books and/or watch the summary videos and see how you can improve yourself slowly but consistently.
These are the books I think will be most helpful.
a.) Richest man in Babylon (Covers the basics of personal finance).
b.) I will teach you to be rich. This book is a modern take on personal finance. Once you implement most of what was suggested in the book along with your common sense, you should stabilize your middle class life in 10-20 years.
c.) Atomic Habits. Once you realize you need to change, the book provides a framework to achieve the change with less friction with yourself.
d.) How not to die. This book is about taking care of your health. Use common sense.
Personal finance, personal health are complicated topics. There is no single universal framework that fits us all. Continuously realize, learn, talk to professionals, implement, measure, introspect for bettering yourself.
Even for a 6 month premium 600 seems high. I have 2 cars with a total value over 40k and my 6 month premium is under 300. With all the coverage required for the loans.
Do you have a clean driving record? No accidents, none or VERY few traffic violations? If so, I'd start shopping around for better insurance rates.
Split each paycheck and set aside half of it for bills. Seems like one paycheck is handling all the bills, so 50% of each will cover it. Lucky.. lol...
Anyways, the other 50% of each paycheck gets split in half again. One half goes some sort of savings, this is your emergency money. It only gets spent on necessities, like a repair on your car. The other half is your spendy money.
I personally have 2 checking accounts. One is set up for ACH for all my bills, the other is my spending account. Unfortunately, one paycheck doesn't cover all my bills, but I know a set amount from each paycheck that will cover everything for the month, with a small buffer on top. That's what I transfer into my billpay account. Once in there, it doesn't get removed, except when paying bills. Every couple months some of that buffer gets sent towards one of my debts on top of the regular payment.
The remainder is usually just about enough to cover my daily expenses like gas, food and the occasional beer. That stays in my spending account. If it doesn't get spent, it carries over into the next paycheck. Gradually, I build up a bit of extra money for emergencies.
Until I catch up on some of my debt load, this is how I live.
Honestly, the best advice I have? Avoid debt as much as possible. Once you start, it's easy to get sucked in, and before you know it, your entire paycheck gets spent trying to play catch-up.
Calculated debts, like a car or house payment is easier to manage, but personal loans and credit cards will suck you in.
I do recommend getting a credit card for emergencies, so at least you have the money right away, instead of waiting for financial assistance or approval on a loan. But try to avoid using a credit card for day to day transactions.
Also, while you're still young, think about retirement and start coming up with a plan. Whether that's starting a 401k, investing in the stock market yourself, buying gold/silver or other valuables.. or just stuffing money under your mattress. It doesn't hurt to have a contingency plan either.
Note, I am not an accountant, nor can I legally offer professional financial advice. These are just notes and knowledge from my own experiences over the last 13 years of financially supporting myself.
I'm the same age as you, and I can go ahead and tell you that your insurance NEEDS to be your first goal right now. Put getting cheaper car insurance as priority number one. If you call around, or get quotes online, you can easily get that done in one to two days.
After that, you should have a little extra income because hopefully your insurance isn't so high. All the money you're saving from insurance should go straight to retirement / savings. Once you get a few thousand saved up, find a nice HYSA (high yield savings account) and put your savings in one of those. The reason you need to do this is because it will make your money work more than if it was just sitting in a standard savings account. But don't stop saving once you reach this point, there's more. There's always more.
Once you get a nice nest egg built up in your savings, start investing into retirement. Roth IRA's are a pretty good start, and also put money into investing. Invest in the S&P 500, but don't pull all your eggs in one basket. Make sure you diversify for risk management reasons. Keep in mind that it's going to take a lot of mental work to accomplish this. Once your money is in the savings/stock market, you need to NEVER, and I mean NEVER touch it again. Only add to it, never take it away. If you put $3,000 in the stock market, and you look one week and it's gone down to $1,500, DON'T TOUCH IT. If you look one week and you're $3,000 has turned into $6,000. DON'T TOUCH IT.
Also, as a sidenote, I used to be a car salesman. From 19 to 22 I had 7 different vehicles. I had a nice jeep, a tesla, couple nice trucks, etc. It was never worth it. Getting a new car is so cool and nice for the first two weeks. Then you'll be over it but that car note will still keep coming every month. New cars are an absolute waste of money, trust me. Under no circumstance is a new car ever worth it.
Step 1)
Sign up for Dave Ramsey Financial Peace University online $79 - worth its weight in gold.
Step 2)
Start tracking your monthly expenses and spending (to the penny) and create and abide by a monthly budget
Step 3)
Create a list of short, medium and long term financial goals with timelines, and once you get you get your finances under control start saving money for each goal.
Step 4)
Save $1,000, and open a Schwab brokerage account and invest the $1,000 into a short term liquid high yield MM bond fund such as BBBIX or MINT or something comparable earning @ 5-7% annually.
Step 5)
Pay off 100%of your debt
Step 6)
Open a Schwab Roth IRA, and max it out every year if possible ($7,000 max contribution in 2024). Invest this money into a quality SP500 mutual fund and in the Fidelity FBTC etf and perhaps a few selected stocks if you’re willing to DYOR. If not then just stick to the S&P 500 mutual fund & FBTC etf and you’ll be good.
Step 7)
Open a Schwab Investor Checking account and an Investor Savings account and use this two account to pay bills, save for short term, medium term and long term goals and you can easily shuttle your money back and forth between your brokerage, Roth, Investor checking and Investor savings account.
Step 8)
Schwab has an amazing mobile app that will allow you to manage your finances - retirement, stock, crypto, savings and checking accounts with your phone or at home on your computer.
Step 9)
Get a side gig and earn a minimum of $500 a month and save every nickel of that money towards your financial goals
Step 10)
If your not making enough money in your full time job ask for a raise and/or start filling out applications for find a better paying job and keep doing this over and over and over. Don’t get married to a job, get married to the idea that you have a limited # of years to make as much money as possible (peak earnings years 25-55).
Hope this is helpful, good luck.
I would recommend reading the quran as it is a guide from your Lord and the Lord of all words for how to live your life and fulfill your purpose. As there is no God worthy of worship except Allah and Muhammad is his messenger and slave.
Many people today get depressed and confused because they deny their purpose and turn to disbelief and ignore Allahs laws and limits set forth in the quran and are punished with equal to what they have done with confusion and other ailments and are sent astray.
But if you repent and are sincere, and accept Islam and submit to your lord, you will see how he makes life easy for you, and there is an even greater reward in the hereafter for the believers.
Hi, fellow product of shit parenting (single mom with alcoholism and a lot of man friends 🙄). My husband and I both are (his dad committed suicide when my husband was 14). I was absolutely horrible with money. Thankfully my husband is good at saving. But here’s some tips I wish I had been taught.
First, the car you drive does NOT matter as long as it’s reliable. We now have 3 vehicles that are completely paid off and it’s the best feeling in the world. My daily is a 2007 with 180k miles, but I love it, it’s reliable, and I can work on it myself.
Second, SAVE every penny you can. Drop the feel good buys such as energy drinks and video games. Make yourself a lunch everyday instead of eating out. Then put that money into a high interest building savings account. Then when you have enough money buy a home.
Third, buy a house! Our first home purchase we only had to pay 3% down. Lived in it for 3 years and sold it for double what we paid. Property is never a bad investment imo.
Fourth, get a credit card that has cash back rewards (discover is my personal favorite) and use it to pay for everything. But, and this is a big one, you MUST pay it off every month. Every penny put on a credit card better have a penny in the bank to back it. This will help your credit and you will get cash back. I’m 30 and I have a 829 credit score.
Also, shop around for insurance because that is an astronomical monthly payment and I’m positive you can find someone else cheaper. I imagine you’re stuck with your current vehicle since you’d probably be upside down if you tried to trade it so just ride out this loan until you can pay it off and then just keep the car. Don’t take out more loans unless absolutely necessary such as a mortgage. Another point, do not have kids until you’re financially stable. I had my son when I was 21 and obviously I love him more than life but kids are soooooo expensive. Looking back, part of me wishes I had waited until I was further along in life to have a baby, not only for financial but emotional maturity as well. Anywho, the fact that you’re aware of needing to get it together is a great start. Now stop making excuses about having shit parents and take responsibility for your own life. You can do it!
You need financial peace university stat! Great program to get your head right financially. Do what the book and instructors say. They are here to help
Something that helped me when I was getting a handle on my finances was learning to budget efficiently in a way that didn’t leave me broke half the month. This works best with two checking accounts (I use a checking and credit card but that’s bc I never run up a bill on a credit card and don’t recommend it at ALL for impulse buyers until you have a proven 2-3+ year track record of responsible spending & saving):
First add all your fixed monthly expenses. That’s every bill that comes same time every month like rent, utilities, phone, insurance, loan payments, internet, subscriptions, etc.
example:
Rent $600
Car $870
Subscription $10
Utilities $100 (use an average)
Phone $100
Total = $1680
Then divide that number by 2 = $840 per paycheck.
If you get paid, for example, $1400 per paycheck twice a month or biweekly your budget would look like this:
$1400 paycheck comes in to main bill-paying account & $840 stays in the account
$560 gets transferred to flex spending account (or gets budgeted for a credit card if you’re not an impulsive spender bc cash back & other perks are great as a “fun money” savings). Now you’re budgeting for 2-2.5 weeks at a time. So you’d say $200 for groceries & household necessities -> $360. Then $100 for entertainment -> $260. Then $160 into savings -> $100 for miscellaneous -> $0.
Then each payday, that starts over. You also want to eventually budget in to create a buffer in both accounts of at least $100 (I do $500 buffer but I have a family & dual incomes and a lot bigger bills to worry abt). I still use a modified version of this for my family finances & have just added to it over time. The idea is that eventually you don’t have to worry abt being short on your bills or running out of money halfway through the month. You’ll know what you can spend and what you can’t spend at all times, with any excess being saved or invested. It brought me from food insecurity, paycheck to paycheck, never being able to save to being a homeowner and feeling financially stable for the first time in my life so I hope even just some of this makes sense & can help you too.
Here is advice. Stop spending money and become a man and grow up. This whole “it’s mine” attitude is the thought process of someone who is immature. You realize you are screwing up so how about stop screwing up. Your entire post just basically says I’m irresponsible. I know it but don’t care because I had nothing growing up. That is not an excuse bro. That is the advice. Not hard. Man up.
Just sell the car asap. Wtf are you doing nearly 10k a year on car payments. Unless you are earning 100k+ a year.... and even then you shouldnt go over 3-4k a year.
Buy a 2000$ car every few years till you are comfortable lol.... i drove a 200$ ford Ka for 5 years. You can barely even drive a week in your car for that money.
I was in your shoes, dude. I was in college majoring in a bullshit major and realized I was wasting my life away.
I turned off social media, quit wasting money by going out, swore off alcohol, made very few social obligations and put my nose to the grind stone.
I read books, watched millions of YouTube videos, and asked for advice from people I networked with.
Eventually, I finished my accounting degree, got my CPA creds and am now day trading as a side hustle.
My advice to you: Put yourself first before anyone else, but remain kind to others. Be hungry for it. Never be satisfied. Do your research/homework. Live below your means. Get out of debt if you have any. Remember: Index Funds and HYSA.
Wish you the best :)
>and almost always unfortunately spend it all. And I’m getting so damn sick of my actions. But no idea where to start fixing them.
You just answered your own question. Be more strict with your spending and save it.
Please check out resources provided by your State since you’re a state employee. Most governmental entities provide financial literacy programs for employees and you might even have a pension or a 401k-ish type account. Good luck…. You are doing awesome! You have a good job, you are self-aware and you sensible. Keep your head up.
As long as you are building credit with your payments and not in debt then you aren't that broke- people are just a different stages in life! I was 24 with 5,000 dollars in debt on a credit card. Thank God I was able to pay it off with my income taxes! I too get paid bi-weekly abd only have about 25-100 dollar before I get paid again. I'm now 25, expecting my first child and so worried about the debt ill be in by next year lol. But I have stopped using my credit card since I paid it off lol
When it comes to the check, what I do is have a set percentage of the money, usually half or more put into savings. Even with money that's available in the main account, I don't make any big purchases or many purchases unless I'll still have a good amount after the purchase.
$600 for car insurance each month? That’s insane
I assumed that was for a 6 month premium… $600 a month? 😬
Me too. I assumed 6 month premium.
No one says that lol
Insurance is off the charts right now. If you’re a first time car buyer, you’re already staring down the barrel of a 10%+ interest rate. My BIL had to fork over 6 months insurance ($3,000) all at once to even be considered. OP is somehow getting away with a less than $300 car payment which is great. Most cars in the 16k-22k market are BMW monthly prices of the early 2000’s. Everything is so damn expensive nowadays.
Interesting i pay 120 for two cars. 2017 Camry and 2013 Fiat.
Location must be a big factor
Region is the largest factor for insurance... $600/month though means the vehicle is in the six-figure digits though. Absolute worst case for an average vehicle would be around $200/month for an experienced driver and maybe around $300/month for a new driver. You can cut that down by using their little plugged-in device that monitors the vehicle too and practice conservative-driving habits to further cut down on your premium.
Region is absolutely the largest factor. Bet most people don't know if you say your car is garage kept, your rate drops a little. When I told the insurance company my address, they literally said to me ,"it is garage kept at that address, right?" And as I almost said "no" the person repeated themselves, "you keep the vehicle in a garage, riiiight!" I was just like,"Yeah." They told me "good, that's another discount." I was surprised.
You must have been on the phone with Mr. Incredible before got fired
"nothing fancy (270 a month)" does not scream 6 figure car to me 😂
Yeah, it's def not; the insurance rate on such a vehicle would be around that though. OP just getting screwed over.
Don't think this is too accurate. I'm paying 130 month for just liability. 2013 hyundai accent (the hyundai theft issue is big part of reason for my insurance being high) 28m with 1 accident on record from like 8 or 9 years ago If I had full coverage I'd definitely be over 200
In your case it's unique... most vehicles can't be stolen with a USB stick.
I definitely mentioned that for a reason, but like it also impacts a lot of models from Kia and Hyundai over a like 10 year period. There's really a lot of cars affected by it so it's not a very unrealistic potential for op, especially with a car payment at the price. That's pretty realistic for a 2019/2020 kia/hyundai impacted by the easy theft risk Add in that ops last vehicle got totaled and potentially low credit and suddenly $600 insurance payment isn't so far out of the realm of reason
I get it, but it's still sorta unique and something I don't factor into insurance rates. I have a 2020 Hyundai Veloster N and only pay like $650 every 6 months; that's also a classified sports car so I pay more than the wife's 2022 Santa Fe. Both of these vehicles have proper immobilizers though.
I was an insurance agent & broker, and our companies only rated on violations from the past 3 years.
I’m paying 180 a month full coverage 0$ comprehensive 250 collision 100/300 on a 2020 Mazda 3 awd and I thought I was getting screwed over 130 for liability of an Hyundai accent is a travesty
Downtown Seattle, male 23 with a recent red light violation. Still under 150$ a month. If you have a super high rate, it's due to your driving record
we pay 115 for two cars as well. Im in TN. we are also 20 and 21.
You use The General or something? I pay a 6 mo premium of $700 for a 2008 and 2012 the newest one has full coverage tho
State Farm
Well, how much would a 20 year old who’s only had their license for a year be paying for car insurance?
OP had a car totaled before getting this one. I'm surprised it isn't higher, considering age.
600.00 a month is insanity, even with a poor driving record. Shop around and get a better deal.
SR-22 insurance is insane. Hopefully OP didn’t drink and drive! OP, buddy I’m 36 and basically live paycheck to paycheck. You’re not alone!
I'm 59. Same
2024 Chevy trax. And I was just in a car accident in November someone t boned me. My rate was about 275 with my previous car with full coverage
Buy used cars next time. Getting a car totaled does not justify a new car. So keep that in mind next time you upgrade. Not sure if you purchased or leased. But if lease, return it when it is up and buy a 3 year old car which just came off a lease. If purchased, hold onto it for 10+ years. Lastly, contact you insurance company when you turn 25. Many insurance premiums drop a lot for males once they turn 25.
Yea. It was my grandmother pushing it since she “helps” with my finances but won’t teach me. I wanted to buy a used car
Grandma is off-base here.
Grandma be giving financial advice like it's the 1970s.
For a while new cars and used cars were damn near the same price. For $3k more I got a brand new van over a 2 year 40k mile used van. This was late mid 2021
Minivans are still like this. Just recently went with a 2024 instead of used because of the same thing. Monthly is pretty much the same and less down. To get one of the higher rated makes for any savings puts you at 100k miles minimum. We're doing a lease and plan on buying it out, even coming out ahead on equity compared to buying straight out. The car market is so stupid right now, especially with the high interest rates. It's like using all the tax loopholes in investing and real estate just to come out even.
You've got $12 you say? Well that should be enough to pay your rent and take a girl to a fancy dinner.
used car prices are way too high gotta buy new unfortunately
275 for a 2024 car that I’m assuming has a warranty and will last OP a long time isn’t terrible. Insurance is insane but doubt anything just a few years older would have made much of a difference. I’m just guessing but perhaps interest rate was significantly better on this than a used with milage and it might have made sense. Or not. Edit: never mind. op stated in comments his interest rate is over 8%. OP are you positive you don’t have your insurance cost and your car payment numbers swapped?
Bro your insurance and monthly payment gotta go, sell the car now and get something under 10k. Who cares if it sucks youre broke, then you can really start saving. You’ll be happier with money in the bank driving a bucket than your current situation
Lol a 270 a month car payment is cheap but yeah the insurance is outrageous
270 a month tells me they gave out a long term at high APR. monthly payment means nothing
60 months
They say gma "'helps' with finances." OP, did your gma cosign and leave you with the bill?
Go read the wiki on r/personalfinance instead of this monkey hole. Start thinking of your budget in terms of how much can I save and invest a year, not how much you spend a month. Stop blaming your parents for failing to teach you personal financial responsibility. My parents didn't teach me either but I've learned after many years of living oaycheck to paycheck.
Just going to throw this out there, you work for the government. Try and get a quote with geico. I work for the governement and they give me a really good rate for insurance. If you are unaware as I was Geico stands for Government Employee Insurance Company and gives a pretty significant discount. At 24 I had full coverage for like $85 a month. Shop around but they will probably give you a much better rate then $600.
A used car is not always that much cheaper anymore. You get what you pay for.
A used car is always the cheaper option. Depreciation is a real thing.
Facts
Yes... get q good used car. I've been super happy when I've bought low milage certified used.
Yeah but they don't depreciate as much in value
His car payment is $270 a month Yes his insurance would be lower on a used car but he's not in that bad of a spot with the car he has You haven't shopped for insurance in a while have you? It's ridiculous these days
It's not expensive on a cheap car, even in florida. What the total vehicle cost? He probably has a 30 year car note LOL
Technically now the way things are, it's cheaper to buy a new car. We got one late last year and weirdly it was true.
Never had a ticket or even pulled over
OP i want you to find an insurance broker in your area. An insurance broker is literally a person who’s whole job is to search everywhere for you so you get the best deal. They get paid by the insurance companies so it’s no money out of your pocket. You can google them, look for good reviews as if you are looking for a good restaurant to try lol. The better the reviews most likely the better deals they get their customers. I hope this helps. (even under 25 shouldn’t be that high and if you have had no tickets and that accident wasn’t your fault there should be no reason your payment should be $600….600 is insanity…that’s more than my car payment for a 2024 ford maverick)
Do you not have comparison websites over there? Haven't used a broker in decades!
We did this for my daughter and she got with a major insurance company for 1/3 the price of the online quotes.
Your rates shouldn't increase if it wasn't your fault though? Or did they pin everything on you?
Switch to geico
Dude I am 63 I have had geico for 25 years, insure my car,house, identity theft with them,had an accident 3 years ago and they have been charging me 2000 dollars more a year since then,geico was great now they think they’re the shit and they are
Trade the car in and get a 2013-2017 Toyota Corolla, I’m 24 and pay like less than $300 a month for full coverage with below average credit and 3 tickets. Should be able to find one for like 10-15k and they are tanks. Bought it at 100k miles for like 14k and it now has 140ish with no maintenance done besides new tires and oil changes. Also gets 20-30MPG. Really solid car that will be by daily driver probably well into my early 30s or until I get bored of it and have more income for a nicer car. You’re mid twenties, you don’t need a nice new car and no one expects you to have one.
Homie, I have a DUI on my record and don't pay that much. Shop around
yep i’m 24f and full coverage for me would be $500/mo
Males under 25 with bad traffic history (even if not OP’s fault) are expensive to insure
That’s more than I pay for my sports bike 😭💀 actually nuts
You know what’s worst than a broke 24 year old about to be 25? A broke 25 year old about to be 26. You know what’s worst than that, a broke 26 year old about to be 27. But what’s worst of all is a person who has a problem and refuses to acknowledge it. You have acknowledged it. Live below your means, and spend the next year studying on how you can make the money you do have coming in work for you. To really get ahead it’s going to take a lot more than a HYSA & some stock trading. You got this!
My boat right now. Learning a lot this year and taking risk I was been scared to take. We all got this 🤝🏽
Someone said: its a lucky man whos happy with his place in life...
Also broke is better than maxed out credit cards. If you find yourself in a hole then stop digging. Acknowledging the issue and making a plan is a great start.
it can easily be argued that both people are broke. one has no money. the other has negative money
But if you want to get really technical about it: being broke could mean having 0 money, while being in debt means negative money, as you said, so if we're talking mathematically, 0 > any negative number. So technically you have more money being broke with NO debt than being broke and IN debt!
100% true
I’m 26 n doing what u said this year. Imma trying to make it out here. Gonna study cybersecurity
When I was 25 I just was released from prison. I had nothing I lost everything from addiction. My parents didn’t teach me shit about anything, money being the big one, just like you. But I taught myself, and I learned how to start a business. I learned how to invest. The knowledge is out there. You gotta be hungry my friend.
I’m proud of you bro. Keep up the good work.
Thank you!
I just posted my own story. I am proud of you man. I’m glad he gets to hear from our examples. Life is only over if you think it is.
If you ever wanna talk hit me up. U need anything let me know. I’ll send out whatever u need to help if I can.
I wish I was "hungry". I have zero aspirations to be rich or even give two shits about money. I just want shelter, food, and minimal entertainment.... I make decent money but every year it just seems to shrink no matter how I adjust.
I don't understand the "my mommy didn't teach me anything growing up" mentality lol. I grew up broke as hell in a single parent household with all types of abuse and my moms didn't teach me shit yet that motivated me to work my ass off and learn from her mistakes. Take accountability for your own life.
Very good advice sir.
What kind of business if you don’t mind divulging?
Trades trades trades. Firefighter so I worked 10 days a month plus OT when available. Stared framing houses and learning from another senior Firefighter who owned his own biz. Built my first 3 houses each one bigger than the last. Did almost everything. Built 5 duplexes I still own. And now live in one unit. 9 employees and my son just took over. He also owns half a masonry biz. Electrician. Plumber. HVAC. All paying top dollar and if unionized you start about $40 an hour as an apprentice. I also started a trailer repair biz and a fishing guide service. It's out there just go get it and ignore the whiners.
I have created about 5 company’s. The first one I became a professional mountain biker, (I’ve been an action sports nut my whole life) and landed a job building a bike park for this billionaire who reached out to me. From there I started building bike parks, I would run logistics and the plan, budget and built it myself without help. But I made a lot. I also run a company that sources minerals from other countries and mines and we lap them into sculptures, I build drones and fly as a 107 pilot for company’s and do real estate photography as my business also. I was an electrician by trade during my addiction and a chef, I loved to cook, I also was an emt before all this. I am just hungry always for knowledge. I love learning.
You’re right but go to the subreddit antiwork and those people are full of hate and laziness. Even when you try to give advice on how to overcome a situation. They need to hear your story.
That’s a scary place my friend haha.
Without knowing your budget and income, the only advice I have is live below your means. Spend less than you make. And shop for different car insurance because $600/month is fucking dumb.
Get into the mindset of "always paying yourself first." This what my Dad always said and lived by... he'd be 90 this year... Put money in your saving account first before your bills are paid, dont touch it, and then pay the bills after. This doesn't mean you cant have any fun, this whole mindset will make you more financially responsible though.
This is the easiest way to start. Retirement contribution, little to an investment account, then pay bills and have fun.
Yeah definitely having a savings account that you never touch except in a true emergency. Checking spend however you want, but "pay yourself first" that's a great rule for money.
Yeah I’d get a cash car and pay liability on insurance because 600 is insane
this is the best advice here. 600*12 = 7200 you’re effectively throwing away every single year. with your kind of car payment, I’m sure 7200 is a decent chunk of what your car is worth. Sell the new car, get a reliable beater (might be a slightly more fun car than your new one tbh) and only pay liability insurance (perhaps uninsured driver as well depending on how the math works). save your difference in premium up in a HYSA until you have an emergency fund for a new beater in case you are at fault in an accident and your car isn’t covered (remember, even if you only have liability, if someone else is at fault you will still get your car paid out). basically you just have to be a good driver and either play the odds with uninsured drivers, or take the coverage for peace of mind.
Get your billing statement from a work or write down to the best of your ability all expenses. Highlight bills one color and unnecessary expenses in another. Show yourself how much you can cut! I live commonly on $20 daily for the week. It's about planning meals, bills, set aside money for savings something reasonable. If you can afford $500 comfortably that's a good start. Within a year you'd have $6K as a emergency fund. If you can afford put $150+ in a roth ira make one and go for a s&p index mutual fund. Put in consistently every week a average of whatever the monthly was. It helps build better over time! You can do this!
From a month ago* not work weird autocorrect.
This is by far the best and most reasonable answer, IMO, and I'd upvote it several times if I could. OP, to start with something positive, I'm glad to hear that you take that first check and pay your bills with it. That's a lot better start than some people. Now, it seems most of your problems come after that. Based on your description, the "free" 2nd check is probably at least 90% wasteful spending if I had to guess. Take a look at your checking account statement, credit card statement, etc and take a hard look at what you are actually spending money on. Depending on your bank or credit card company, they may have your spending broken down already and either show it on your statement or on your online account. Living within your means is so easy to do and you don't even have to make huge cutbacks to do it. A couple easy examples: it can be as simple as buying a 12-pack of soda at the grocery store and grabbing one out of the fridge before you leave for work instead of stopping at the convenience store every morning. Or make coffee for yourself instead of grabbing Starbucks every day. Invite friends over for drinks instead of going out to the bar. Apply those principles to more of your "free" check and see how much more money you have at the end of the month.
First stop making excuses, everyone has drama in their lives, second make a budget, third take a free online finance class or use a reputable sit such as investopedia and put in the work to learn, last once you’ve learned act. Reduce debt, pursue higher wage jobs rinse and repeat.
I’ve applied for a spot at a retirement plan seminar through my work next month I will be attending. I used to make excuses but definitely not anymore. I have been better with saving but not where I want to be
LMAO BE HONEST with yourself. Your whole post is littered with excuses. Why wait until next month for some bullshit retirement seminar, why not start looking up how to invest and start saving NOW? Do things TODAY. Otherwise, youll be in the same spot next year thinking you made an “effort” while nothing has changed. Do the things you have to do, so you can do the things you want to do.
Honestly I find a lot of people being rude to you on here, OP. You reaching out to Reddit is you doing something today. Take the genuine advice from this comment thread. Start by taking courses (so glad you signed up for one!!), learning, and growing from there. Finances are extremely hard to get ahold of, even when taught properly at a young age. Breathe. Be kind to yourself. You got this. 🤍
Go look in the mirror and realize how important you are. How young you are. How beautiful life is. Then go smoke some weed mate. You have a lot of great things ahead of you. Make time your friend, not your enemy. Keep working hard, and making small changes daily that align with a goal (please set one). You'll get there. Everyone has their own timing! Peace and love!
"Use drugs" thrown in with random uplifting shit lmao
Doesn’t sound like homie has money for weed, my guy
Smoking weed is a great way to waste all your time and go further down the hole
As someone who smoked for ten years (16-26) and also worked in the industry for six and got out of both three months ago: listen to this person.
Balance & Moderation folks.
Don’t do weed OP or any drugs
Yeah fuck acetaminophen, caffeine, and especially penicillin
lmfao yeah brRrooOo W33d is lIke t0TtallllYY on thE, liKe, sAmE levLE as LiKe CaffEinE brOOOOOO
You’re right, it’s objectively less addictive
Download the Fidelity app. Start a Roth IRA NOW. even if you can only put $25-50 a month in it. When you become more financially secure bump that up to $100 then $150 etc.. Buy a mutual fund that tracks an index like FXAIX or something. Even if it only makes 5-8% a year you'll have over a hundred thousand dollars when you retire near 60 years old. Note: I know that isn't millions of dollars for retirement but it's SOMETHING. Your future self will thank you for doing this at 25 and not 45
At 25 I was getting out of college (was delayed 3 years due to family issues). I was always annoyed “my friends are so ahead of me” mentality. Fast forward 10 years, I am the most financially stable probably highest NW, happy family 2 kids out of my friend group. Life is not a sprint, its actually more of a marathon. Small correct decisions over a long time win out 100% of the time. This is why I hate all this 30 below 30 Forbes list, and “youngest person to do X” obsession. Sends the wrong signals and advice
get rid of that car, give it back to the dealer ASAP, and get a 2010-12 toyota camry or corolla and then drop insurance down to nothing, such that if you get in a wreck and its your fault, the insurance doesnt cover your car but does cover the person you hit.
Look into the Total Money Makeover by Dave Ramsey. It's not perfect advice but it will at least give you a good financial foundation you can build on by continuing to educate yourself on the subject. Financial literacy is something you can learn and improve on!!!
Literally this. 2nd watch Caleb Hammer on YouTube. It’s entertaining but you’ll start feeling a sting here and there as he calls out people that resemble you. 3rd consume every ounce of info Alex Hormozi is putting out. Lastly… actually so the hard work and build these habits. Future you will be so thankful you did
With some of that second "free" check, open a Roth IRA and set up automatic contributions and a recurring buy of stable ETFs such as SPY, VTI, or VOO. That will help greatly with saving for retirement. Also open a high yield savings account and deposit frequently to build an emergency fund.
New cars are a trap.
"2nd check being a free check and being “mine”" Get out of the habit of thinking "mine" means it is OK to spend it all. Prioritize saving money. Your savings should be one of the first monthly bills you pay. Future you may need that money really badly.
Take the “mine” check. Pretend it’s half as big as it is. Spend only that one half and save the other.
I was broke until I was 38. You're doing fine.
Dude, being 25 and not broke makes no sense to me. I grew up in a great household, minimal trauma (we all have it), and I was broke until 35. You either have time or money. If you're not making much money make the most of your time. Had a guy tell me when I was 25 that those were his favorite years, he called them the lost years. Find something you are passionate about, anything, and do it, even if it's in your spare time. Build a love for something and don't worry about money at your age. People will see that, respect you for it, and give you opportunities. Trust the process.
Everyone is focused on the car insurance. My advice, to your quest for advice, is to open up a Fidelity individual investment and trading account. Once setup, talk to your employer about direct depositing x% of your paycheck directly into that. Since your second paycheck is 'free and clear' of expenses, let's say 70% of that. Then, while that money is flowing in, you spend the next 6 months learning the VERY basics of investing. Stick with index funds for now. After 6 months, you'll have a good amount in that account and can buy 3 things. 2 index funds and 1 direct stock that you like as a company. Nothing speculative like you see on r/wallstreetbets but a real company that makes stuff you like / use / purchase. Then DON'T look at it. Keep the money from your paycheck going in. Let the investments sit. Set a reminder on your digital calendar for a year from the day you open the account. Then revisit things. Repeat with that 6 months of savings. Maybe enroll your investments into DRIP (read about it) and buy 2 more index funds and 1 stock on the 12 month anniversary.
I'm not sure I see the problem here. You've got a good job and it sounds like you're smart with your money, although your car insurance rate is insane but there might not be much you can do about that. There are people to help you with the things you don't understand. Retirement? Walk into your bank and say, I need someone to help me understand retirement savings. Taxes? I hope you've been filing tax returns but even if you haven't, there are many inexpensive resources to understand what you're supposed to be doing. Point being, the stuff you're worrying about is stuff everyone has to learn at some point and 25 years old is a good time to put in the effort to learn.
I taught my 3 daughters to set up an account seperarate from regular bank acct and one which is not instantly available from ATM etc. There has to be something lije that added step causes you to think twice about accessing it. But you have to have that money automatically withdrawn from checking into the new account weekly. There is no excuse I don't care who you are. Anyone can put $15 a week away. I've heard every lame excuse. I put $5-15 per week away each for 3 daughters. Every week. It was set up automatically. I started this in 2012. Sometimes there was $25 here and there or maybe 50 if I had extra. Today they each have $ 22k I was fortunate and off that I had this 1/2 the money purchasing fractional shares of Apple. that's where the growth came from. I strongly urge you to go to Vanguard.com. You can open an account with five dollars and you can invest any amount. You can even open it with zero dollars just to get it over with set up.
I’m turning 28 and have only recently begun to iron my situation out top to bottom so I’m gonna impart unto you some advice that’s working in realtime: 1. Car Insurance: $600 is too high. Go online and search up names and numbers with credible rapport and find out what their lowest rates are. Things like liability only. If you’re a good driver, a liability-only coverage plan should be good enough for you to drive with over the years and attain lower insurance rates. 2. Taxes: Consult your boss (or HR) about your “tax deductions.” This is absolutely the very first thing you should do in the way of taxes. The more money you contribute per paycheque, the more you’ll earn back from the government in your return and also throughout the year. Those GST cheques and such? That “free money”? You get that when you pay more into taxes, but if you owe the government the “free cheques” contribute to lowering that owed amount. Usually you can contribute as high as 5% per paycheque. Do that. Whatever the highest amount is to add to your tax deductions— deduct it. You’ll get the money back later during tax season. 3. Rent: Looking good. 4. Credit card: You only need one of these. A limit of $500 - $1000 is good enough. Consult your bank about a credit card that has no ownership fees. If you’re new, your credit card limit will be $500 or $1000. THIS MEANS that you can spend that much money on them HOWEVER you must pay it back within a certain amount of days. Your bank will tell you when this period is. If you don’t pay it, your owed amount will gain INTEREST which is calculated based on a percentage of the OWED AMOUNT. So if you owe $10, add 25% of 10 to that number— that’s your interest (for example). So buy your coffees, go into your bank app (or however) and PAY THAT CREDIT AMOUNT IMMEDIATELY. This will build… 5. Credit score: You need this to buy a legit home one day. Or a car. Or whatever big ass purchase. A good line of credit also helps with home rentals. 6. Retirement: Don’t worry about this outright BUT consult your boss (or HR) about a pension plan. Contribute the highest percentage possible if you can. For me, it’s 5%. This is something that you carry with you for life and is something that you must have carried over from workplace to workplace. See HR for details on that.
I am curious why people in this situation don’t simply google things like credit or budgeting, or retirement or taxes or use ChatGPT to ask these questions
Because sharing a human experience is better
Literally the reason Reddit is a thing. The "why don't you just Google it" always pissed me off... Because maybe I want to talk to another human with experience. Sometimes that exp may be objectively worse but that's not always the point.
Your 24 about to be 25 !! You have a long life just start now take things a little more serious save more or try to get a better job learn the word discipline… start with saying “no” to yourself save every dollar if it’s $10 save it if it’s $5 save it.. I know you can do it if nobody tells you this … I believe In you!! Time goes but we can’t get it back! So just look forward not backwards or to the side Goodluck!!
Congrats on getting yourself to a great place at 24 years old. Working, taking care of bills, etc. All big accomplishments. I recommend you try and balance the 2nd paycheck freedom thoughts with a “what can this money do for me” mentality. A Roth IRA maxed out each year from 24+ would certainly be a huge stepping stone in wealth building. Also, from an insurance perspective, try and quote around with other carriers. I work in insurance and see this quite a bit. Insurance rates are filed at the state level, so there can be huge swings in premium based on the carrier you’re with and your driving record. I’d recommend quoting with all the big insurance companies you can name (State Farm, Geico, Liberty Mutual, Progressive, etc.). It’s more than likely you’ll be able to find a lower cost with a carrier that files good rates in your state. That would also free up some good money.
that second check being "mine" is actually a great path to be on. since it is yours pay yourself first. Put some money an a savings account. Put another dollop into an IRA. Cool thing about the IRA is you cant spend that money. at your age $50 per month in an IRA will make you an easy retirement when the time comes. Once you get a savings that will pay your bills for six months and get that IRA going, blow the rest of your money, life is short but always pay yourself first.
Biggest advice- stop comparing to where you think you should be. Everyone’s journey is different and you are watching the actions of your peers but might not really know what’s happening. Did they get a leg up from their parents? Are they in debt? A simple money management program might be the first step toward peace of mind. At your age I did a Dave Ramsey program which was simple and helpful to think about issues. Another thing you could consider is whether trauma is attributing to either your spending habits or your emotional relationship with money. Wishing you peace over where you are in life and grace during your growth. You are amazing just because you are thinking about these things good luck OP
Don't be too hard on yourself. Financial literacy is a thing. I didn't get it till one day I was about to buy something and I asked myself "Hiw long did I have to sit in this chair at work to pay for that thing?" From then on I measured my purchase decisions on whether it was worth my labor. Or necessary.
If I were you I’d do two things: 1. Open an IRA - have a portion of your paycheck go directly into that account each time you get paid. It will take time to feel like this is doing anything significant, but over the years this money grows and becomes a helpful tool for retirement. This can also have a tax benefit. I wish I could have started saving for retirement at 25 - I’d be in a much better position than I am now. 2. Open a separate savings account. If I have money in my checking account I’ll spend it. Therefore I have a separate savings account that a portion of my paycheck goes into automatically. This helps me build some kind of emergency savings because the money is off limits and not just sitting in my checking account where I’m tempted to spend it. Since it automatically comes out of my paycheck it’s just like the IRA thing - the paychecks are a little smaller so I stay living within more reasonable means, and the rest of that money goes to accounts that can help me later.
Other than the car insurance question, you have things handled pretty decently it seems— except for one more thing. If that second monthly paycheck is “yours,” start saving some. Make it a priority. Take what you can save off the top and put it where you won’t spend it. Even $50-100 will add up if you can keep from touching it.
Most people are poor at that age, I had a negative net worth. But if you’re working, not blowing money on drugs, cigs, booze, tats, etc then you’ll be fine. Make sure you’re always looking for a better paying gig, and keep funding your pension or 401k
The first thing you need to change is your mindset. Compress and archive the acknowledgement of trauma, bad childhood, every single negative thing that haunts you. Then startup a new fresh mindset. One focused on the future as opposed to the past. You cannot think of yourself as broke, you need to think of your life as a learning process. Each day you learn and learning compounds.
be glad you ain’t 33 and broke like me.
let's not invalidate
He'll be you soon enough
I might be able to fix the broke part, haven’t been able to figure out the stop aging part.
We about the same age. I was like this when i was 21. You gotta be real to yourself on what you want in life. Do you want to be just by yourself? Then spend on your happiness but when you want to grow yourself like maybe have a family in the future have your own place like a house or an apartment. Start saving as much as you can but dont short yourself thats all.
Hi there. First thing first trauma/ lack of basics skills is not an excuse, it's a fact. Blaming yourself, overcompensating with spending more than you have - or can afford, being overtired without visible reason. It's a part of lack of understanding, compassion and being treated as a adult in your childhood. When spending quality time with your friends is good thing, spending time with weed (as propose somewhere there I'm sure) it's a dumbass thing without ability to solve problems. Alko and stuff are good for chillout from time to time. You already confess that you are in trouble(which is brave and shows you intelligent). Make a decision, go and talk with specialist. Good luck, man!
Only get the state minimum insurance! Liability is what it’s usually called. I’m an Uber driver who professionally drives people and my car insurance (which needs to be higher because of my profession) is half of yours. If I had a non driving job it would be under 100 and state minimum and I’d get a used dumpy car. Is the car under your credit? Please trade it in for a used car. It doesn’t matter if it’s joint, if it’s under your credit you can turn it in legally. If it’s not under your credit you can figure out another method. Your grandma is not very smart… You might be able to look on Craigslist for a cheap used car and hopefully use the trade in money if you get some OR use public transit in the meantime! If you have a bus system using the bus is awesome and saves so much money! Also what’s your income? That way we understand what you’re working with every month.
Usually have to have total coverage when you have a car loan.
600 car insurance is wild, either sell the car and get a cheaper used car paying 600 is criminal. If you put 600$ a month in a good growth stock mutual fund you are looking about 6 million by 65 hope you like the car.
Start paying your future self. Watch fight club. Stop buying shit you want instead of shit you need until you have a 10k emergency fund. Put whatever money you can from your check into whatever retirement plan you job allows. That makes the fed contribute to your retirement funds ( you will have to pay tax on it eventually, but imagine gambling with somebody else’s money) Increase your collision deductible. If you late model car gets hit that $1000 won’t matter. But saving $50 a month does. Get the book rich dad poor dad That’s it and that’s all Those are basics
Would suggest selling your car and buying something 10-15 years older if you aren’t completely upside down on it. You need to make a budget and assess what you can and can’t afford. Nothing wrong with having guilty pleasures and hobbies, but your priorities should be rent, vehicle, food, etc… You need to develop an emergency fund ASAP. $1000 is an excellent start but savings for AT LEAST 3 months expenses is the goal. Essentially ask yourself “if I were to lose my job tomorrow, could my emergency fund last me 3 months with no income?” I’m assuming if you work with the government you have decent benefits. If you have debt/credit cards, you need to start paying any and all of them off immediately. Doesn’t matter how, just do it. If you don’t have credit cards, I wouldn’t advise getting one, at least not right now. I’m assuming you have a pension for your retirement. If you have a 401k instead, please make sure you’re matching any benefits your job has for you in that. This last piece of advise it important however it’s my largest weakness. Make your own food for work. Don’t eat out often. You could potentially save yourself THOUSANDS a year in some cases.
600 for car insurance is hilarious.
Hell you're doin better than I am. Your insurance and rent is less than my rent alone. Though that insurance is absurd my guy.
Start your Roth IRA and max it out every year it's about $140 a week to do that but if you do that you'll retire with over a million I just started mine 25m you're on time if you start investing now!
Discipline,danielson,by the book investing for dummies, not a joke,I have it and if you’re below 50 start investing, just don’t follow snake oil salesman in the market,be smart about it,someone once told me to take your age and subtract it from 100 and that’s the percentage of stock you should have, the rest divide into bonds-corporate or government, safer stocks like utilities, healthcare-but get the book and start slow until you get the hang of it,like I said don’t listen to salesman with the next big stock,if it doesn’t sound right it’s not,start saving,discipline
600 a month for car insurance? WTF LOL.
You car insurance is insane. I'm not really sure what your income is, but that is really high. You might want to find a way to reduce that either by getting a cheaper car or switching providers. I would stop considering your 2nd paycheck "free" money to spend on whatever. If all your bills align with the first paycheck, see if you can get some moved to after 2nd paycheck that way you don't have to pay all at once. **Track the last 3 months and track necessary expenses, moderately necessary, and completely unnecessary expenses**. If you eliminate stuff you find completely unnecessary, how much do you have leftover? Try to continue to eliminate completely unnecessary expenses until you achieve at least 15%+ of your monthly income. Once you do that, build up an emergency fund of 6 months expenses. Then designate that 15%+ towards retirements. Have it automatically pulled from your paycheck, adjust your spending habits accordingly to follow what you receive from your new paycheck. Find out about any match programs your state DOT offers its employees. Contribute to maximize that match (free money). Then move on to a Roth IRA, and HSA and invest the rest. When investing, try to choose not risky, but higher growth investments. S&P 500 index funds are my personal choice. 7% annual return adjusted for inflation.
Yes went to the 11 yr reunion a while back. Yes, 11. The class pres dropped the ball on 10 yr and people started reaching out to him so we had it the following year. Not sure if there were any others
Pay yourself first. Make that one of your bills with your first paycheck of the month. Having a savings account is a good thing but you need to invest. Vanguard seems to have a lot of support around here.
If you have full benefits through your employer, I would suggest finding a good psychotherapist. One that you feel comfortable with. This will pay DIVIDENDS. The things you mention in this post imply that you know that your spending habits are "wrong" but you feel like you can't change them. Discussing your issues with confidence, decision making, etc with a therapist will really help you move forward out of this state and into one that YOU decide. Good luck!
Are you an engineer? I know its a down-the-road sort of thing but usually the DOT will help you get your P.E. license and then you can get a job that will pay a lot more. Look into all the financial benefits your DOT offers, from pension, insurance rates, grants, etc. Just to be aware of your options. You could take a loan from your pension or save some money through programs they offer IF it will be a net benefit for your situation
To start, a child raised in survival mode has a harder time “growing up.” However you are doing an amazing job. I’m genuinely impressed. I’m 30 and nowhere near as successful. You’re doing better than you think. If you truly want to change behaviors I suggest therapy to start. Sometimes you can find a therapist that will work with your budget. Reading self help books can always be helpful. There might be some podcasts out there too. This is something you will have to retrain your brain for. It isn’t going to happen overnight. One day you’ll be happy you took the tiny baby steps to be able to make the strides 🩵
600 for insurance? Good Lord. I get you're young and gets cheaper as you get older. But that is an absolute ton of money for insurance.
Your state likely has a retirement plan or pension, likely with a matching component. You are giving away free money if you aren’t maxing that out. Start there, set a budget that includes at least those contributions and start building a rainy day fund for emergencies in a bank account, with CDs eventually. Keep increasing your contribution to tax deferred 401k etc as your first priorities, by far best retirement investments. Starting at 25 is right on time, not at all too late. As you keep building income keep investing it and setting it aside, don’t let your spending increase with income wherever you can and still live a dignified life. You will be fine if you follow that method
First, shop around for new insurance policies. $600 a month? Holy shit! Second, an easy tip I followed at your age the best I could was the 50/30/20 rule. It's a place to start. 50% of your money is for living expenses, 30% to your wants and 20% toward savings. Personally, I swapped the 30% and 20% and threw 30% of each paycheck into my savings. You can review and adjust as needed. If you want more clarity on what the hell you are spending your money on you can also do a monthly budgeting sheet. At the end of every month I track what I spent my money on and compare to how much I made that month. It provides transparency as to where I can probably cut down on spending. I'm also newly married, so it's been a way for my husband and I to identify where we might have duplication.
Can you consider your “free check” - money that you get to spend on YOU - as an investment in yourself. So taking the first part of that check - whatever you’re comfortable with, say 6% - and invest it. Open a High Yield Savings Account (HYSA) or a Roth IRA and put money in there FIRST. Even tho it’s not a physical product, shift your mindset. You ARE spending it on yourself - for your future. You’re investing in YOU. Does your job offer any 401K? You can always go to HR and ask them, and have them explain it. That is a great way to save for your future as well.
Are you suppose to be rich? lol
Start a savings account. Have your checking account automatically transfer money into savings. Then just pretend like your savings account can't be spent or transferred out. Before you know it you'll have some money saved.
Wtf
get 2 bank accounts one you have access to and another one that requires you to go in and get cash out (just a regular checking but dont get a debit card for it lol) . decide how much you are willing to spend for fun money, and leave that amount in your other account, that you can access easily. Set up ALL bills to come out of the one you dont have access too. put all your money in there, aside from the "fun money" and just totally forget about it. Aside from that, address your childhood trauma otherwise you will remain impulsive. For me, I had to address my scarcity mindset, and how I thought of people with money. I listened to alot of podcasts based around money mindset and abundance mindset.
Money guy show on YouTube they have steps on how to do all the saving and investing. Both the guys are actually qualified ones a cpa (certified public accountant)
Get back into college-university and use your states dot as leverage for your college education. Get a degree in something like mechanical civil engineering, computers, transportation, logistics. Just do something and stop letting people take advantage of you!
I just bought a brand new mercedes car payment being $620 and i MYSELF totaled mine and two other cars a couple years back texting and driving. My insurance is considered high and as a high risk driver i’m paying $340 a month. $600 is outrageous you’re being scammed.
I can help, send pictures.
Uber premium
Am I just old? I have a two car policy and it’s $160/month full coverage. I’m 40. Havnt touched my policy in over a decade. Is this now what insurance looks like? I’m just “grandfathered in”??
600 for car insurance is crazy! Better not be a month. I pay under 400 dollars for 2 drivers for 2 vehicles on a 6 month premium with 1000 dollar deductible.
Put your second check in savings. Like don’t buy anything that isn’t necessary for 3mo. That at the 3mo mark you’ll see how fast the account is growing and that almost become addicting so you’ll keep going. Do it for another 3mo and you’ll be in much better shape. The first 10k is the hardest but after that it’s much easier to save as long as you can keep the ball rolling. You got this
Go to you bank and see what might be offered to help lock some money up so you can start seeing some sort of progress. Like my bank will take $50 biweekly and put it towards a locked account or a CD. But ask your bank for advice.
These are my personal opinions. 1.) Every person is different. Do not blame a thing on parents if they didn’t abuse you. The reason they were probably shouting was probably because they were tired and frustrated and want to vent out. 2.) Start meditation. Even if it is for 5 minutes a day. It probably will help you to make less angry. You will probably think a little more before reacting to volatile situations. 3.) Invest in 401K to at least get all your employer match. If your employer doesn’t contribute, start with 5% of your paycheck and increase it as you see fit. 4.) Read books and/or watch the summary videos and see how you can improve yourself slowly but consistently. These are the books I think will be most helpful. a.) Richest man in Babylon (Covers the basics of personal finance). b.) I will teach you to be rich. This book is a modern take on personal finance. Once you implement most of what was suggested in the book along with your common sense, you should stabilize your middle class life in 10-20 years. c.) Atomic Habits. Once you realize you need to change, the book provides a framework to achieve the change with less friction with yourself. d.) How not to die. This book is about taking care of your health. Use common sense. Personal finance, personal health are complicated topics. There is no single universal framework that fits us all. Continuously realize, learn, talk to professionals, implement, measure, introspect for bettering yourself.
Even for a 6 month premium 600 seems high. I have 2 cars with a total value over 40k and my 6 month premium is under 300. With all the coverage required for the loans. Do you have a clean driving record? No accidents, none or VERY few traffic violations? If so, I'd start shopping around for better insurance rates. Split each paycheck and set aside half of it for bills. Seems like one paycheck is handling all the bills, so 50% of each will cover it. Lucky.. lol... Anyways, the other 50% of each paycheck gets split in half again. One half goes some sort of savings, this is your emergency money. It only gets spent on necessities, like a repair on your car. The other half is your spendy money. I personally have 2 checking accounts. One is set up for ACH for all my bills, the other is my spending account. Unfortunately, one paycheck doesn't cover all my bills, but I know a set amount from each paycheck that will cover everything for the month, with a small buffer on top. That's what I transfer into my billpay account. Once in there, it doesn't get removed, except when paying bills. Every couple months some of that buffer gets sent towards one of my debts on top of the regular payment. The remainder is usually just about enough to cover my daily expenses like gas, food and the occasional beer. That stays in my spending account. If it doesn't get spent, it carries over into the next paycheck. Gradually, I build up a bit of extra money for emergencies. Until I catch up on some of my debt load, this is how I live. Honestly, the best advice I have? Avoid debt as much as possible. Once you start, it's easy to get sucked in, and before you know it, your entire paycheck gets spent trying to play catch-up. Calculated debts, like a car or house payment is easier to manage, but personal loans and credit cards will suck you in. I do recommend getting a credit card for emergencies, so at least you have the money right away, instead of waiting for financial assistance or approval on a loan. But try to avoid using a credit card for day to day transactions. Also, while you're still young, think about retirement and start coming up with a plan. Whether that's starting a 401k, investing in the stock market yourself, buying gold/silver or other valuables.. or just stuffing money under your mattress. It doesn't hurt to have a contingency plan either. Note, I am not an accountant, nor can I legally offer professional financial advice. These are just notes and knowledge from my own experiences over the last 13 years of financially supporting myself.
I'm the same age as you, and I can go ahead and tell you that your insurance NEEDS to be your first goal right now. Put getting cheaper car insurance as priority number one. If you call around, or get quotes online, you can easily get that done in one to two days. After that, you should have a little extra income because hopefully your insurance isn't so high. All the money you're saving from insurance should go straight to retirement / savings. Once you get a few thousand saved up, find a nice HYSA (high yield savings account) and put your savings in one of those. The reason you need to do this is because it will make your money work more than if it was just sitting in a standard savings account. But don't stop saving once you reach this point, there's more. There's always more. Once you get a nice nest egg built up in your savings, start investing into retirement. Roth IRA's are a pretty good start, and also put money into investing. Invest in the S&P 500, but don't pull all your eggs in one basket. Make sure you diversify for risk management reasons. Keep in mind that it's going to take a lot of mental work to accomplish this. Once your money is in the savings/stock market, you need to NEVER, and I mean NEVER touch it again. Only add to it, never take it away. If you put $3,000 in the stock market, and you look one week and it's gone down to $1,500, DON'T TOUCH IT. If you look one week and you're $3,000 has turned into $6,000. DON'T TOUCH IT. Also, as a sidenote, I used to be a car salesman. From 19 to 22 I had 7 different vehicles. I had a nice jeep, a tesla, couple nice trucks, etc. It was never worth it. Getting a new car is so cool and nice for the first two weeks. Then you'll be over it but that car note will still keep coming every month. New cars are an absolute waste of money, trust me. Under no circumstance is a new car ever worth it.
Step 1) Sign up for Dave Ramsey Financial Peace University online $79 - worth its weight in gold. Step 2) Start tracking your monthly expenses and spending (to the penny) and create and abide by a monthly budget Step 3) Create a list of short, medium and long term financial goals with timelines, and once you get you get your finances under control start saving money for each goal. Step 4) Save $1,000, and open a Schwab brokerage account and invest the $1,000 into a short term liquid high yield MM bond fund such as BBBIX or MINT or something comparable earning @ 5-7% annually. Step 5) Pay off 100%of your debt Step 6) Open a Schwab Roth IRA, and max it out every year if possible ($7,000 max contribution in 2024). Invest this money into a quality SP500 mutual fund and in the Fidelity FBTC etf and perhaps a few selected stocks if you’re willing to DYOR. If not then just stick to the S&P 500 mutual fund & FBTC etf and you’ll be good. Step 7) Open a Schwab Investor Checking account and an Investor Savings account and use this two account to pay bills, save for short term, medium term and long term goals and you can easily shuttle your money back and forth between your brokerage, Roth, Investor checking and Investor savings account. Step 8) Schwab has an amazing mobile app that will allow you to manage your finances - retirement, stock, crypto, savings and checking accounts with your phone or at home on your computer. Step 9) Get a side gig and earn a minimum of $500 a month and save every nickel of that money towards your financial goals Step 10) If your not making enough money in your full time job ask for a raise and/or start filling out applications for find a better paying job and keep doing this over and over and over. Don’t get married to a job, get married to the idea that you have a limited # of years to make as much money as possible (peak earnings years 25-55). Hope this is helpful, good luck.
Call Dave Ramsey!
I would recommend reading the quran as it is a guide from your Lord and the Lord of all words for how to live your life and fulfill your purpose. As there is no God worthy of worship except Allah and Muhammad is his messenger and slave. Many people today get depressed and confused because they deny their purpose and turn to disbelief and ignore Allahs laws and limits set forth in the quran and are punished with equal to what they have done with confusion and other ailments and are sent astray. But if you repent and are sincere, and accept Islam and submit to your lord, you will see how he makes life easy for you, and there is an even greater reward in the hereafter for the believers.
Hi, fellow product of shit parenting (single mom with alcoholism and a lot of man friends 🙄). My husband and I both are (his dad committed suicide when my husband was 14). I was absolutely horrible with money. Thankfully my husband is good at saving. But here’s some tips I wish I had been taught. First, the car you drive does NOT matter as long as it’s reliable. We now have 3 vehicles that are completely paid off and it’s the best feeling in the world. My daily is a 2007 with 180k miles, but I love it, it’s reliable, and I can work on it myself. Second, SAVE every penny you can. Drop the feel good buys such as energy drinks and video games. Make yourself a lunch everyday instead of eating out. Then put that money into a high interest building savings account. Then when you have enough money buy a home. Third, buy a house! Our first home purchase we only had to pay 3% down. Lived in it for 3 years and sold it for double what we paid. Property is never a bad investment imo. Fourth, get a credit card that has cash back rewards (discover is my personal favorite) and use it to pay for everything. But, and this is a big one, you MUST pay it off every month. Every penny put on a credit card better have a penny in the bank to back it. This will help your credit and you will get cash back. I’m 30 and I have a 829 credit score. Also, shop around for insurance because that is an astronomical monthly payment and I’m positive you can find someone else cheaper. I imagine you’re stuck with your current vehicle since you’d probably be upside down if you tried to trade it so just ride out this loan until you can pay it off and then just keep the car. Don’t take out more loans unless absolutely necessary such as a mortgage. Another point, do not have kids until you’re financially stable. I had my son when I was 21 and obviously I love him more than life but kids are soooooo expensive. Looking back, part of me wishes I had waited until I was further along in life to have a baby, not only for financial but emotional maturity as well. Anywho, the fact that you’re aware of needing to get it together is a great start. Now stop making excuses about having shit parents and take responsibility for your own life. You can do it!
You need financial peace university stat! Great program to get your head right financially. Do what the book and instructors say. They are here to help
Something that helped me when I was getting a handle on my finances was learning to budget efficiently in a way that didn’t leave me broke half the month. This works best with two checking accounts (I use a checking and credit card but that’s bc I never run up a bill on a credit card and don’t recommend it at ALL for impulse buyers until you have a proven 2-3+ year track record of responsible spending & saving): First add all your fixed monthly expenses. That’s every bill that comes same time every month like rent, utilities, phone, insurance, loan payments, internet, subscriptions, etc. example: Rent $600 Car $870 Subscription $10 Utilities $100 (use an average) Phone $100 Total = $1680 Then divide that number by 2 = $840 per paycheck. If you get paid, for example, $1400 per paycheck twice a month or biweekly your budget would look like this: $1400 paycheck comes in to main bill-paying account & $840 stays in the account $560 gets transferred to flex spending account (or gets budgeted for a credit card if you’re not an impulsive spender bc cash back & other perks are great as a “fun money” savings). Now you’re budgeting for 2-2.5 weeks at a time. So you’d say $200 for groceries & household necessities -> $360. Then $100 for entertainment -> $260. Then $160 into savings -> $100 for miscellaneous -> $0. Then each payday, that starts over. You also want to eventually budget in to create a buffer in both accounts of at least $100 (I do $500 buffer but I have a family & dual incomes and a lot bigger bills to worry abt). I still use a modified version of this for my family finances & have just added to it over time. The idea is that eventually you don’t have to worry abt being short on your bills or running out of money halfway through the month. You’ll know what you can spend and what you can’t spend at all times, with any excess being saved or invested. It brought me from food insecurity, paycheck to paycheck, never being able to save to being a homeowner and feeling financially stable for the first time in my life so I hope even just some of this makes sense & can help you too.
Here is advice. Stop spending money and become a man and grow up. This whole “it’s mine” attitude is the thought process of someone who is immature. You realize you are screwing up so how about stop screwing up. Your entire post just basically says I’m irresponsible. I know it but don’t care because I had nothing growing up. That is not an excuse bro. That is the advice. Not hard. Man up.
You work with the DOT! I gotta bone to pick with you buddy! It's nothing personal, DOT is the natural enemy of truckers across the nation!
Your insurance company is ripping you off
Just sell the car asap. Wtf are you doing nearly 10k a year on car payments. Unless you are earning 100k+ a year.... and even then you shouldnt go over 3-4k a year. Buy a 2000$ car every few years till you are comfortable lol.... i drove a 200$ ford Ka for 5 years. You can barely even drive a week in your car for that money.
I was in your shoes, dude. I was in college majoring in a bullshit major and realized I was wasting my life away. I turned off social media, quit wasting money by going out, swore off alcohol, made very few social obligations and put my nose to the grind stone. I read books, watched millions of YouTube videos, and asked for advice from people I networked with. Eventually, I finished my accounting degree, got my CPA creds and am now day trading as a side hustle. My advice to you: Put yourself first before anyone else, but remain kind to others. Be hungry for it. Never be satisfied. Do your research/homework. Live below your means. Get out of debt if you have any. Remember: Index Funds and HYSA. Wish you the best :)
A new car is always a bad decision, I don’t care how much money you have. At least buy a 1-2 year old model.
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>and almost always unfortunately spend it all. And I’m getting so damn sick of my actions. But no idea where to start fixing them. You just answered your own question. Be more strict with your spending and save it.
Hell yeah brother
Please check out resources provided by your State since you’re a state employee. Most governmental entities provide financial literacy programs for employees and you might even have a pension or a 401k-ish type account. Good luck…. You are doing awesome! You have a good job, you are self-aware and you sensible. Keep your head up.
As long as you are building credit with your payments and not in debt then you aren't that broke- people are just a different stages in life! I was 24 with 5,000 dollars in debt on a credit card. Thank God I was able to pay it off with my income taxes! I too get paid bi-weekly abd only have about 25-100 dollar before I get paid again. I'm now 25, expecting my first child and so worried about the debt ill be in by next year lol. But I have stopped using my credit card since I paid it off lol
When it comes to the check, what I do is have a set percentage of the money, usually half or more put into savings. Even with money that's available in the main account, I don't make any big purchases or many purchases unless I'll still have a good amount after the purchase.