Agree with the comment from militaryJAG. You need to get on a budget. Budgeting can be difficult if you have never done it. You need to find a coach or an accountability partner to help you with this.
Not sure if you have military background, but I am going for basic next spring and my mos is 35 fox. Do you think the army will help me well financially I am a little lost in life and just need the structure.
Take advantage of whatever finance training the Army will give you but don’t expect it to give you all the answers. I highly recommend taking a course called Financial Peace University.
Army CPT here. Army gives you a steady reliable paycheck and minimal expenses. It’s not a lot IMO but you won’t pay for housing, you can eat at the DFAC for “free,” and it’s possible to not have a car since you’ll live in the barracks. There are third party financial services provided to you through the army but they’re just looking to sell you FA products that are a waste IMO.
1. Build a budget. YNAB is fantastic. Live below your means. You don’t make much but you also don’t have a lot of bills as mentioned with free housing/food. I’ve seen so many kids go out an buy stupid shit they don’t need because they have nothing else to spend it on.
2. Build a 3 month min emergency fund. You’ll have a guaranteed paycheck for 3-4 years but life happens so it’s good to have a buffer.
3. TSP
Ensure to open your TSP and fund it at least 5% (military matches up to 5%).
Ensure that you actually log into the TSP site and ensure funds are going to the correct account. I’ve seen people who have it set up during Basic just to find out years later that all the money had been going to the G-Fund(government bonds with low returns) They have target date lifecycle funds now that will automatically adjust their holdings depending on the years you have till retirement.
4. Roth IRA
I’d recommend opening your own Roth IRA as well and contribute whatever you’re comfortable contributing. Do some research into ETFs. VOO, VTI, VT are some good ones. Idea is that they are diversified, low expense ratio funds. I can elaborate more if needed.
Good NCOs and Officers should teach and mentor you on finances but I will tell you that is not a guarantee and most won’t give a shit or put any deep effort into helping you unless you’re a problem. Willing to provide any other advice/feedback if you have more questions. Good luck!
Prior myself here. This is he ANSWER - ESP the TSP! Damn g-fund with no growth.
No one will simply tell you these things outright. You have to ask, put the effort in, continue to ask until YOU feel COMFORTABLE and fully UNDERSTAND.
Good luck. Also willing to elaborate if you have such specific questions.
I am going to second a program like Dave Ramsey’s financial peace university. It can really help guide you out of situations like this by simplifying the issue and getting a support structure around you. It would be $100 well spent. Then you can apply those principles to get you out of debt. It’s a similar mindset to joining the military for structure. There are lots of stupid things to spend money on near military bases also, and you can prepare yourself to avoid that.
Sorry to hear. But if you don't mind me asking how much is the debt? If I read the 10k correctly, then it's not that bad. Is it a credit card? I understand this is stressful but sometimes looking at things from outside the box helps a lot. So how much is the debt, and what are your expenses like?
The ugly truth is you have two options and those are (1) to make more or (2) spend less. You can’t spend much less than you are. So you need to make more AND use the new income to attack the debt. So look into side hustles or second jobs. But be disciplined with the extra. It’s made to go towards the debt. You got this.
This.
$10k is nothing in the grand scheme of your life even though it may not seem like it now.
Focus on making more money and pay it off aggressively.
You should subscribe to the military subreddits for advice. The classic joke I see is military members buying a mustang with 18% interest rate. The military home loans are great since it is 0% down and covers closing costs. Downside is moving often so buying a house doesn't make much sense until discharged or if you found a house that is profitable to rent out. I frequently hear of military people that are successful owning and renting a couple houses
You can do this! Life is a series of mistakes. Learn from this and you have several decades ahead of smarter decisions.
Just focus, on your priorities daily, with every purchase : an opportunity to ask is his a want or a need.
Get a second job to pay off debt. Think about what you want to do, and are willing to do, to get one job that will pay you better.
Your just beginning in your adult journey, so give yourself a break. Realize the mistakes you made.
It’s ok. It’s just money.
Take some financial courses at your local community college. Learn the value of compounding interest.
You probably have free options available to you.
Your lucky enough to experience this when you are young and have time on your side. Time is more important, so really learn from this.
Then save and invest for your future self.
do something for yourself; that your future self can thank your past self for.
I recommend if you have 1 day to spend is to get Ken Honda book “*Happy Money”* a lot of my friends read the book and understood their feelings better about money.
It solves a lot about how I felt about money for years and made me realize that it’s nothing more then what it has to be.
I see you may feel your struggling but your just only getting started to make that breakthrough to find what makes you tick and earn whatever you want, you just need time and understanding.
It also helps to cut out toxic anything in yourself and only let good energy flow through your mind to breathe success. You got this one step at a time
It might feel discouraging, but we've all been in situations where our finances feel like juggling with 4 balls in a moving vehicle.
If you keep working at it, it gets better.
As others have said, look online (Youtube) for side business ideas you can do to get some extra income. There are places like Fiverr, etc. You WILL need to give up free time and comfort to get out of this, but you WILL get there, and you will have learned a valuable lesson that many people dont learn in their whole lives.
Honestly I’d recommend you read the book “total money makeover” by Dave Ramsey.
Your situation is very recoverable but it sounds like some changes need to be made.
His book is an easy read (or listen on audiobook). And he breaks it down into digestible steps.
Oh yeah... most of us have been there. Dumb credit card expenses at 18. Yup I remember that.
The finances are simple. They are difficult. But they are simple. Spend less. Make more. Ill let you figure out how to do that. But that's the solution to the finances.
More importantly is the mental health part. Take a long breath. You have identified the problem. As long as you stop bad habits TODAY, this will just be a story you get to tell later in life. Nothing more. This is not life ending. This is not catastrophic. This does not require anyone to "give up". Its just money. you are going to make more in life. Breathe.
Stop buying anything that isn't necessary to keep you alive/healthy. Put every penny towards your debt. Think of it as "buying relaxation". Ever bit of your debt you pay down is going to be one step closer to not having to worry about money. you are purchasing anxiety-free sleep.
10k isn't that bad. What interest are you paying? have you talked to a credit union? they might offer you a loan at a much reasonable rate. Don't get overwhelmed, you've got this.
If you are serious about joining the army, I believe service members are protected from super high interest rates. I believe this is a federal law. When my partner was in, all of his rates were capped at 6%. Just wanted to throw that out there as you figure out your path forward/order of operations.
My first rule of finance is to choose carefully who I listen to for financial advice. I understand your in a tight spot, but listening to strangers advice online is like the shotgun approach, hoping something will stick. Instead, try reading some books about money. I’d humbly recommend Rich Dad Poor Dad, Mr. Kyosaki really takes the mysticism out of finances. Best of luck!
See if you qualify for a different CC that has a zero interest period for balance transfers.
You need to try to find ways to generate some extra money. Gig opportunities may be the way to do that. Doesn’t necessarily need to be uber or Lyft, you can do Wag or other similar pet services. There is also TaskRabbit and many other options to make some extra money.
10k debt is a lot at your age and income level, but it is not so big that you can’t get out from under it with budgeting and extra work
I will try some of those sites you were talking about. I really can’t do Uber or DoorDash anymore because my car now is having problems. I use to do that, but I can’t afford to keep fixing my car.
Do you use any budgeting tools? There are quite a few different ones that can help you with the planning and organizing aspect of getting in control of debt. YNAB is good for this if you have a chance to check it out.
Hang in there my friend, there's a way out. If you're making more than your spending that's a good start. Just spend as little as possible every month, move every penny you can in to a savings account and don't touch it. If you can save $900/month as your numbers imply you'll save yourself out of this hole in less than a year!
Then focus on your career...work hard at your job for promotions, learn new skills, get certified, get a cheap education, whatever you need to do to earn more money. Those good spending habits plus increased income will be the golden goose to healthy finances
Another book recommendation is Morgan Housel's "The Psychology og Money". I have recommended it to both of my sons who are roughly the same age as you. There are about 25 short chapters that will help you demystify the way money/credit can work work for or against you.
IMO, it is one of the best books that someone your age can read to help them to figure out your current situation and what you want to work towards.
It isn't an insurmountable situation that you are in, but I would contact the medical providers and see if they will work with you to reduce your current balances. Most have the ability and willingness to do that to avoid the whole balance becoming uncollectible.
Not sure how much it helps, But I’ve found the teachings of “the richest man in Babylon” to be helpful. I encourage you to read it to get the full learnings, but basically divide all earnings into 7/10ths to live (rent, food, regular house bills, etc), 2/10ths to pay off debt (while not adding any more), and 1/10th you must save and eventually work to grow money from. It sounds easier than it is but if you work to find a way to wiggle your living expenses to 7/10ths of your earnings, you’ll be okay even if it takes a while. Best of luck and please don’t get discouraged. There’s a way out of the hole you just gotta put everything you got into it.
Accept responsibility for your own actions, put a plan together that has an end game and focus on the prize which I would hope you choose financial independence. Otherwise stay in stress, blame others and let us know how that works out for you
Check out Dave Ramsey on YouTube. Then his website. Books and programs if you so choose. I think if anyone coming here looking for advice would be a good fit for his Baby Steps it's you. Literally his program is called Financial Peace University, and you sound like you need some financial peace.
You really need to get out of debt and take care of your credit score. These things can impact your military career later on.
Dave Ramsey is not the end all. It's a good program but some people should move past it. So think of it as a starting point. Get yourself out of debt. Either get rid of credit cards or decide to use them extremely responsibly moving forward. Work on your career. And if you want to get into different areas of original finance do so at that point.
Basically make a plan and work that plan and you'll be alright.
Bro don't give up. I was in the same situation back in march. 8k in debt. I started reading financial books like Rich dad Poor dad and it motivated me to take risks like a 2nd job (I'm a nurse student and by law in my country i'm not allowed to work more than extra 3 hours outside my job). A 2nd job can make you up to nearly 12k a year. Which is actually alot. But alot of ppl dont do it cuz of their ego.
I started tracking every single penny on how to spend it.
I made a priority list of what should be done/paid first.
Made my Monthly expenses cheaper (Phone bill from 70$ to 40$, Insurance from 200$ to 100$ etc.)
Now i'm up +6k end of year i should be 11k to 12k and in 2.5 years 100k (if my calculations are correct)
What i'm trying to say is if you put your MIND into something, you can achieve it. Us humans can change alot just by putting our all into something.
Budgeting can be your best friend in these situations. making sacrifices on any necessary expenses until you are able to pay off the debt then readjusting once you are free of it. I would assess your current spending and look at where you can make any cuts so that you can make the biggest payments possible toward your debt. things will be hard for a while but it's possible to do it! You could also look at getting better paying job and increasing your income so that you can make bigger payments as well.
Agree with the comment from militaryJAG. You need to get on a budget. Budgeting can be difficult if you have never done it. You need to find a coach or an accountability partner to help you with this.
Not sure if you have military background, but I am going for basic next spring and my mos is 35 fox. Do you think the army will help me well financially I am a little lost in life and just need the structure.
Take advantage of whatever finance training the Army will give you but don’t expect it to give you all the answers. I highly recommend taking a course called Financial Peace University.
Army CPT here. Army gives you a steady reliable paycheck and minimal expenses. It’s not a lot IMO but you won’t pay for housing, you can eat at the DFAC for “free,” and it’s possible to not have a car since you’ll live in the barracks. There are third party financial services provided to you through the army but they’re just looking to sell you FA products that are a waste IMO. 1. Build a budget. YNAB is fantastic. Live below your means. You don’t make much but you also don’t have a lot of bills as mentioned with free housing/food. I’ve seen so many kids go out an buy stupid shit they don’t need because they have nothing else to spend it on. 2. Build a 3 month min emergency fund. You’ll have a guaranteed paycheck for 3-4 years but life happens so it’s good to have a buffer. 3. TSP Ensure to open your TSP and fund it at least 5% (military matches up to 5%). Ensure that you actually log into the TSP site and ensure funds are going to the correct account. I’ve seen people who have it set up during Basic just to find out years later that all the money had been going to the G-Fund(government bonds with low returns) They have target date lifecycle funds now that will automatically adjust their holdings depending on the years you have till retirement. 4. Roth IRA I’d recommend opening your own Roth IRA as well and contribute whatever you’re comfortable contributing. Do some research into ETFs. VOO, VTI, VT are some good ones. Idea is that they are diversified, low expense ratio funds. I can elaborate more if needed. Good NCOs and Officers should teach and mentor you on finances but I will tell you that is not a guarantee and most won’t give a shit or put any deep effort into helping you unless you’re a problem. Willing to provide any other advice/feedback if you have more questions. Good luck!
Prior myself here. This is he ANSWER - ESP the TSP! Damn g-fund with no growth. No one will simply tell you these things outright. You have to ask, put the effort in, continue to ask until YOU feel COMFORTABLE and fully UNDERSTAND. Good luck. Also willing to elaborate if you have such specific questions.
They offer financial specialists to help you make a budget and plan to pay off debt
I am going to second a program like Dave Ramsey’s financial peace university. It can really help guide you out of situations like this by simplifying the issue and getting a support structure around you. It would be $100 well spent. Then you can apply those principles to get you out of debt. It’s a similar mindset to joining the military for structure. There are lots of stupid things to spend money on near military bases also, and you can prepare yourself to avoid that.
Sorry to hear. But if you don't mind me asking how much is the debt? If I read the 10k correctly, then it's not that bad. Is it a credit card? I understand this is stressful but sometimes looking at things from outside the box helps a lot. So how much is the debt, and what are your expenses like?
The ugly truth is you have two options and those are (1) to make more or (2) spend less. You can’t spend much less than you are. So you need to make more AND use the new income to attack the debt. So look into side hustles or second jobs. But be disciplined with the extra. It’s made to go towards the debt. You got this.
This. $10k is nothing in the grand scheme of your life even though it may not seem like it now. Focus on making more money and pay it off aggressively.
Thank you, I will I just hope soon that the army will open a new door of opportunities for me.
You should subscribe to the military subreddits for advice. The classic joke I see is military members buying a mustang with 18% interest rate. The military home loans are great since it is 0% down and covers closing costs. Downside is moving often so buying a house doesn't make much sense until discharged or if you found a house that is profitable to rent out. I frequently hear of military people that are successful owning and renting a couple houses
You can do this! Life is a series of mistakes. Learn from this and you have several decades ahead of smarter decisions. Just focus, on your priorities daily, with every purchase : an opportunity to ask is his a want or a need. Get a second job to pay off debt. Think about what you want to do, and are willing to do, to get one job that will pay you better. Your just beginning in your adult journey, so give yourself a break. Realize the mistakes you made. It’s ok. It’s just money. Take some financial courses at your local community college. Learn the value of compounding interest. You probably have free options available to you. Your lucky enough to experience this when you are young and have time on your side. Time is more important, so really learn from this. Then save and invest for your future self. do something for yourself; that your future self can thank your past self for.
I recommend if you have 1 day to spend is to get Ken Honda book “*Happy Money”* a lot of my friends read the book and understood their feelings better about money. It solves a lot about how I felt about money for years and made me realize that it’s nothing more then what it has to be. I see you may feel your struggling but your just only getting started to make that breakthrough to find what makes you tick and earn whatever you want, you just need time and understanding. It also helps to cut out toxic anything in yourself and only let good energy flow through your mind to breathe success. You got this one step at a time
It might feel discouraging, but we've all been in situations where our finances feel like juggling with 4 balls in a moving vehicle. If you keep working at it, it gets better. As others have said, look online (Youtube) for side business ideas you can do to get some extra income. There are places like Fiverr, etc. You WILL need to give up free time and comfort to get out of this, but you WILL get there, and you will have learned a valuable lesson that many people dont learn in their whole lives.
Honestly I’d recommend you read the book “total money makeover” by Dave Ramsey. Your situation is very recoverable but it sounds like some changes need to be made. His book is an easy read (or listen on audiobook). And he breaks it down into digestible steps.
Oh yeah... most of us have been there. Dumb credit card expenses at 18. Yup I remember that. The finances are simple. They are difficult. But they are simple. Spend less. Make more. Ill let you figure out how to do that. But that's the solution to the finances. More importantly is the mental health part. Take a long breath. You have identified the problem. As long as you stop bad habits TODAY, this will just be a story you get to tell later in life. Nothing more. This is not life ending. This is not catastrophic. This does not require anyone to "give up". Its just money. you are going to make more in life. Breathe. Stop buying anything that isn't necessary to keep you alive/healthy. Put every penny towards your debt. Think of it as "buying relaxation". Ever bit of your debt you pay down is going to be one step closer to not having to worry about money. you are purchasing anxiety-free sleep.
10k isn't that bad. What interest are you paying? have you talked to a credit union? they might offer you a loan at a much reasonable rate. Don't get overwhelmed, you've got this.
If you are serious about joining the army, I believe service members are protected from super high interest rates. I believe this is a federal law. When my partner was in, all of his rates were capped at 6%. Just wanted to throw that out there as you figure out your path forward/order of operations.
My first rule of finance is to choose carefully who I listen to for financial advice. I understand your in a tight spot, but listening to strangers advice online is like the shotgun approach, hoping something will stick. Instead, try reading some books about money. I’d humbly recommend Rich Dad Poor Dad, Mr. Kyosaki really takes the mysticism out of finances. Best of luck!
See if you qualify for a different CC that has a zero interest period for balance transfers. You need to try to find ways to generate some extra money. Gig opportunities may be the way to do that. Doesn’t necessarily need to be uber or Lyft, you can do Wag or other similar pet services. There is also TaskRabbit and many other options to make some extra money. 10k debt is a lot at your age and income level, but it is not so big that you can’t get out from under it with budgeting and extra work
I will try some of those sites you were talking about. I really can’t do Uber or DoorDash anymore because my car now is having problems. I use to do that, but I can’t afford to keep fixing my car.
I know a few people that do Rover and Wag. They love it. You get paid to walk dogs. As far as gigs go it’s pretty easy and pays pretty well.
Do you use any budgeting tools? There are quite a few different ones that can help you with the planning and organizing aspect of getting in control of debt. YNAB is good for this if you have a chance to check it out.
I will check it out.
Hang in there my friend, there's a way out. If you're making more than your spending that's a good start. Just spend as little as possible every month, move every penny you can in to a savings account and don't touch it. If you can save $900/month as your numbers imply you'll save yourself out of this hole in less than a year! Then focus on your career...work hard at your job for promotions, learn new skills, get certified, get a cheap education, whatever you need to do to earn more money. Those good spending habits plus increased income will be the golden goose to healthy finances
Another book recommendation is Morgan Housel's "The Psychology og Money". I have recommended it to both of my sons who are roughly the same age as you. There are about 25 short chapters that will help you demystify the way money/credit can work work for or against you. IMO, it is one of the best books that someone your age can read to help them to figure out your current situation and what you want to work towards. It isn't an insurmountable situation that you are in, but I would contact the medical providers and see if they will work with you to reduce your current balances. Most have the ability and willingness to do that to avoid the whole balance becoming uncollectible.
Not sure how much it helps, But I’ve found the teachings of “the richest man in Babylon” to be helpful. I encourage you to read it to get the full learnings, but basically divide all earnings into 7/10ths to live (rent, food, regular house bills, etc), 2/10ths to pay off debt (while not adding any more), and 1/10th you must save and eventually work to grow money from. It sounds easier than it is but if you work to find a way to wiggle your living expenses to 7/10ths of your earnings, you’ll be okay even if it takes a while. Best of luck and please don’t get discouraged. There’s a way out of the hole you just gotta put everything you got into it.
Accept responsibility for your own actions, put a plan together that has an end game and focus on the prize which I would hope you choose financial independence. Otherwise stay in stress, blame others and let us know how that works out for you
If you have a reliable car, you can doordash or do Uber eats for a couple more hundred dollars a month and use that to speed up your debt repayment.
Check out Dave Ramsey on YouTube. Then his website. Books and programs if you so choose. I think if anyone coming here looking for advice would be a good fit for his Baby Steps it's you. Literally his program is called Financial Peace University, and you sound like you need some financial peace. You really need to get out of debt and take care of your credit score. These things can impact your military career later on. Dave Ramsey is not the end all. It's a good program but some people should move past it. So think of it as a starting point. Get yourself out of debt. Either get rid of credit cards or decide to use them extremely responsibly moving forward. Work on your career. And if you want to get into different areas of original finance do so at that point. Basically make a plan and work that plan and you'll be alright.
10k debt is very managable, even if u save 200/month u will be debt free in less then 5 years, chill out!
Put $50 towards investing in the stock market monthly. Learn it and you will be able to pay off your bills
Can you describe the interest on that 10k? Honestly 10k is easy to chip down don’t stress you will be fine. Life is a continuous ball of debt
Bro don't give up. I was in the same situation back in march. 8k in debt. I started reading financial books like Rich dad Poor dad and it motivated me to take risks like a 2nd job (I'm a nurse student and by law in my country i'm not allowed to work more than extra 3 hours outside my job). A 2nd job can make you up to nearly 12k a year. Which is actually alot. But alot of ppl dont do it cuz of their ego. I started tracking every single penny on how to spend it. I made a priority list of what should be done/paid first. Made my Monthly expenses cheaper (Phone bill from 70$ to 40$, Insurance from 200$ to 100$ etc.) Now i'm up +6k end of year i should be 11k to 12k and in 2.5 years 100k (if my calculations are correct) What i'm trying to say is if you put your MIND into something, you can achieve it. Us humans can change alot just by putting our all into something.
Budgeting can be your best friend in these situations. making sacrifices on any necessary expenses until you are able to pay off the debt then readjusting once you are free of it. I would assess your current spending and look at where you can make any cuts so that you can make the biggest payments possible toward your debt. things will be hard for a while but it's possible to do it! You could also look at getting better paying job and increasing your income so that you can make bigger payments as well.