Re-starting My Debt Free & Budgeting Journey | $225,698.45 in Debt | 17 Accounts | Real Numbers

Hi everyone! This video is a few weeks old, but the important thing is that I am back!!!

Start Month: August 2023

I've decided it's time to grow up and hold myself accountable. I'm going to restart this journey and use this channel to hold myself accountable. I hope you follow along! I do have some videos recorded and ready to go, but this is probably the best place to start.

While this video is long, there's a lot that I cover:
Introduction: 00:00 - 02:10
Sinking Fund Categories & Buckets: 02:10 - 14:08
Cash Envelopes: 14:08 - 15:30
Explaining my debt and reviewing numbers: 15:30 - 21:10
Debt Wall: 21:10 - 33:16
Debt Tracker: 33:16 - 35:14
Sinking Fund Breakdown: 35:14 - 36:19
Monthly Budget Categories: 36:19 - 41:51
Paycheck Breakdown & Payment Amounts: 41:51 - 53:27

Looking forward to seeing where you are in your own journey down in the comments below!

[nicolernorman]

Going to be totally honest - this was painful to watch. All of the various self care items, luxury sinking fund, streaming services and subscriptions, and paying things for your family members…it seems that if you get out of debt it’s going to take a VERY long time. Which is a shame with your good income. You’ve used that as an excuse. Paying bills for family tells me there are generations of poor money habits and they’re not going to end with you if you don’t get your spending under control. I hope you eventually realize how spoiled you sound with all these “expenses” while your mountain of old debt sits there. Good luck in your journey.

[papabear]

With all due respect, your budget is going to result in you being in debt forever!

The single most important factor for ALL budgets, regardless how much debt, is to separate your WANTS versus your NEEDS! Nails, hair color, vacations, eating out, plants, a cute new calculator, etc etc etc are NOT needs. They may feel like needs - but they’re not. NEEDS are: food, shelter, basic clothing, vehicle expenses, basic household supplies, health care.

This is truly rather shocking. I mean no disrespect. Values for so many are out of balance to say the least. I mean - take a big breath and think ….how is a cute new calculator a NEED? You have a working calculator and if you didn’t your phone has one! It is not a need!

I encourage you to take a really had look at your life and decide what do you want it to be?

[___melanie]

So you want to be debt free in 20 months? $225000/20=$11, 250 a month in debt payments, plus the interest.
But you take home $118000 a year? $118, 000/12= $9833
Time do recalculate from the beginning
🤯🥺

[starrwinter]

Both Dave and Caleb would tell you to nix the vacation and any extra luxury funds until more debt is paid off. Nails, clothes, purse, going out, dating… with debt those will likely have to wait. If you want to be serious about tackling the debt, need to be serious about wants vs. needs categories.

I would also add in beside the debt amounts the interest rates and work based on the different methods. It might be a bit more stressful but it’s worth it to see a true picture on the balances and how much interest is being added with remaining balances and paying off the high % first.

[ConnorJames]

A lot of these seem super unnecessary if you're really trying to get out of debt. If you cut down on a lot of them, or eliminate them entirely, you'll be able to enjoy those things much sooner :)

[saraangel]

Girl, cutting a bunch of these for just one year and postponing the concept of vacation would help you so much. That’s actual “adulting”.

[ashleyr]

I see a few people suggesting you do a financial audit with Caleb Hammer, and I think that might be the way to go! The audit would be free, so you wouldn't need to save for it like the Ramsey solutions. : ) it would be so cool to see you document your journey based off his financial advice as well!

[ew]

I admire your honesty and your courage to spill your budget out on the internet. If you don't crumble under the negative comments this channel will help you. It does take time to learn all of this (needs vs wants). My whole monthly budget for 3 adults is $3K (rent included, and a lot from your expenses excluded) but it took me years of learning.

[martinyeager]

I understand your covering your sisters car payment. Maybe by Christmas tell her you will continue to do that as long as she starts a budget and out-of-debt process like you have done. Teaching her the financial responsibility you have learned would be a great Christmas present. You are awesome.

[travelingoni]

I think you and @Calebhammer should do a financial audit together! His budgets are pretty strict but he’s great at cutting out the extras and getting a budget that will pay down your debt quick. It would also be great to follow and see your progress if you do some of the things he suggests. Following to see your progress and wishing you the best on your debt payoff journey!!!

[chrissy_g]

Having a "high income" means nothing if you spend money constantly. Your debt is practically all consumer debt. Adulting involves being responsible with money and you're now realizing that your "fun" lifestyle is catching up to you. Now, enjoying life comes dead last if you are truly committed to knocking out this debt. 200k is an insane hole to get out, one I wouldn't wish on others. The money wasted on interest alone is terrible. Good luck to you, and cancel all your subscriptions as your first step. You need to save your money as much as possible.

[sarab]

I watched the entire thing and I’m so confused. What is the plan for paying off the debt? Did I miss it? How much is actually going to the debts per month? I only saw money being allocated to every other thing under the sun, but not the freakin’ 225k in mostly consumer debt.

I have a lot of debt too and was excited to see this. I would genuinely love to see a 2-3 year map out of the debt payoff in a future video.

[ekajnaabi]

Girl you need to get your priorities straight. A lot of these envelopes are so unnecessary. You need to also cut down on your subscriptions. $144 for Grammarly? Giiiirl there are free alternatives. If you’re serious about budgeting and cutting down on debt you need to go back to basics and simplify this. There’s no reason to have 40 + envelopes. Stop complicating this and simplify it.

[lin]

Not being mean. Speaking from the heart. If you can do your nails and there is that much debt why not save money and tackle the debt. Categories like luxury handbags etc will only make the debt bigger 😢 i dont mean to sound so stern.

[grogers]

Please write down the interest rates for each debt. Those matter a great deal. Pay attention to how much interest is added back to your balance each month. You might decide to pay off the higher interest rate debts first or faster to get the best bang for your buck. Good luck! Please watch Caleb with his financial audits. Just as a resource of more information.

[jomlin]

My husband went to medical school and we bought a house so we had about $400, 000 in debt bt the two. We did not go on vacation, eat out, buy clothes or spend frivolously and we paid both off in 7 years while also saving for a car to be paid for in cash as well as a $100, 000 buy in at his practice. Sacrifice everything you can after tithe and living expenses, and you'll get there quicker.

[sashaf]

The honesty & bravery this takes . Thank you from bottom of my heart to show that we all are human

[destinystup]

Can you stop filing exempt? That IRS debt is going to kill you.

[jeniferbanda]

One suggestion I have is pay more than just the minimum on your credit cards or you will never pay them off because of the interest. I'm glad that you recognize that you are living above your means. That's the first step to getting out of debt. You may need to make some small sacrifices, like decreasing the amount you allow for eating out. Another thing would be to adjust your withholdings so you aren't having to owe the irs so much every year.

[hiimmia]

I really applaud you for coming on the internet and being so open about your finances. Good for you and thank you, you're helping a lot of people. I hope you reach a life of being debt free :)

Like others have said, pretty much all of the pink envelopes need to go. You're not in a place to save for luxuries, nails, nail supplies, beauty, hair, yourself, vacation, going out, AND dating. The good news is that sacrificing these things now will help you so much in the future and soon you'll be in a place where you can afford this fun again.

Also, that calculator has a lot of helpful features, way more than a cute aesthetic one would have ;)