How am I doing?

[elisemjmt]

120 k yearly earnings . What should I cut? Save on?

Rent $1600 (Socal ridiculously expensive), Car note , my gf pays it $600 bucks. It’s actually $500 but we put an extra $100 bucks on the loan, Water - zero included in rent, Trash - included in rent, Electricity - $50 bucks, Range gas - 35 bucks, Car Insurance on 2 vehicles - $200 bucks, Health insurance for my son - $270, Credit cards I owe (2) one at $2800 at 7 percent interest and $6500 on another CC with zero interest for couple more months, Cell phone bill - $200, Groceries - $500, Eating out maybe $200-$300. Oh yea, vehicle gas $250.00. Student loan I owe $9 k. I put anywhere from 150-200 bucks a month towards it.

Total in all monthly expenses are about $ 4,000 - $ 4,200 a month.

Savings - currently have around 25 k, not included some underperforming stocks.

 

[jfhodge852]

@elisemjmt Can you edit your post to fix the formatting?

 

[ksmom4]

@elisemjmt wtf. You have savings but also cc debt? Bro pay off the credit cards and cut them up. Only use a cc if you can full pay it off every month. Sitting there with money in your account but $8000 in credit cards bills and making payments on them is literally just throwing money away. There’s your saving.

 

[elisemjmt]

@ksmom4 Right, one will be fully paid of this month. Leaves me with one that has zero interest for the next 12 months . That one I don’t use it anymore and pay here and there . No other debt other than the student loan and the car note.

 

[tomparkinson]

@elisemjmt This is a very dangerous mindset. Pay them off and don’t use them again unless you have the cash in your account to pay them off in full at the end of each month.

 

[elisemjmt]

@tomparkinson Yep. That’s what I do. The other cards I have I pay in full every month.

 

[sportygal45]

@elisemjmt Pay off the 7% CC debit immediately. Your HYSA is only going to earn 5% (if your savings is in a HYSA).

For the other CC debt, best to get that as low as possible or zero before interest starts.

If you don't have a HYSA, I suggest you get one. HYSA is short for high yield savings account btw.

 

[dreis]

@elisemjmt where is your rent only $1600 in socal though put me on plssss

 

[elisemjmt]

@dreis Ok so I got this shack apartment 2 beds in 2017 back then it was 1150, now it’s 1550 . Smh . But, yes compared to other areas it’s considered cheap.

 

[dreis]

@elisemjmt i can’t offer you any financial planning (i need it too) but i wish you the best! hopefully your rent stays on the lower end forever

 

[elisemjmt]

@dreis Thank you

 

[elisemjmt]

@dreis It’s tough out there.. rentals have gone up

 

[catherineone]

@elisemjmt Is $120k your gross or net? Are you contributing to your company’s 401k? Does your gf work? Not that you’re responsible for her income/expenses, but how do you share? Is she in a good spot? Do you have your son full time, or shared custody? Do you pay child support or just insurance? Day care?

If it’s gross, let’s say your take home is around $90k which is $7500/month and your expenses are $4200. That leaves over $3k/month to pay off the $6500 in 2 months. Attack the student loans after that and have those paid off in another 3 months. Then the car (unless it’s in your gf’s name). Presuming the car isn’t yours, you’ll be complete debt free by October at the latest.

Then up your 401k to max, and then into savings for 6-9 months of expenses. Look into the college savings plan for your son. It’s pre-tax contributions so you’ll benefit at tax time. After that, then look into Roth IRA, etc.

You’ll be in a great position to buy a house, or pay cash for a nice used car, or whatever.

 

[elisemjmt]

@catherineone It’s gross. She doesn’t work right now. Takes care of my kid, no day care . You brought up some good suggestions that I will look to start on asap.

 

[luckyrosie]

@elisemjmt Switch cell phone to mint mobile or US mobile. Will save $150 a month.

Where is the rest of your money going? You should not be attacking your high interest loans immediately. Having almost 10k in credit card debt with 25k sitting in a savings account makes no sense. Pay it off now, stop paying interest, don't use them anymore if you can't pay them off monthly.

 

[elisemjmt]

@luckyrosie Understood. So right now, one card has a 2.8 k balance which is at 7 percent. Next month it will shoot up to 30 percent, that card is getting paid this month. That will leave me with only the 6.5 k CC card on zero interest. I don’t use the cards anymore. I mean I do use some cards but pay of right away, I use them to collect the pints and regards, cash back.

 

[kamga]

@elisemjmt I cannot evaluate your success or lack of success without knowing your age. Your lack of a retirement plan is a severe red flag. With your salary you should have no credit card debt.

You dont mention where you live. Do you live in California or New York City or The New England states?
Or do you live in the midwest or south where cost of living is modest. I suggest that you seek out a financial planner to help you identify your goals and give you guidance how to get where you want to be financially.

 

[elisemjmt]

@kamga Yes, I agree. I neglected my retirement plan for so long. I am 35 and need a plan asap. I live in California, 120 k here is not a lot imo.

 

[leira]

@elisemjmt You only owe 2800 on the CC. Just pay it off... Then start saving some more to pay off the other card, which will have interest again soon. I'd need to know more about the APRs for your car note and student loans to evaluate whether its worth paying off sooner, rather than arbitrage by investing in tax advantaged accounts.Your current net worth is under 7k despite making a very reasonable income. The lack of retirement investments is quite concerning. Do you really want your son to have to take on the financial burden to take care of you when you are old?