On reddit the other day, was this plea from a young woman who couldn't figure out where all the money was going. But if you read her detailed scenario, one thing jumps right out at you. She has an awful lot of credit cards and other loan debts, for a young person:
Long story short. I am a 25 year old female who is continually struggling with money and debt even though I now work two jobs, both above minimum wage, and I can’t really figure out why. Looking for some tough love and harsh truths, right down to people telling me exactly what to do here.
Below I have outlined my debts as well as my bills, and my estimated earnings for both jobs. Both are hourly so they can vary depending on clock in/clock out times, but rarely by much. Neither have opportunity for overtime. Both are new jobs, Job 1 I’ve been at since the middle of September and Job 2 since about two weeks after that. Before that I was laid off for 2.5 months which is where the spiral into money issues really took its toll. It’s no excuse, I should have been better. I know better. Though I will say that 2/3 of the AMEX debt was a very expensive dental surgery I needed that couldn’t be avoided.
I currently have less than $200 cash to my name. No savings re-built yet from when I depleted it during my layoff.
Job 1: 40 hours/week @ $15.50/hr = $944 biweekly after tax
Job 2: 18 hours/week @ $8.25/hr = $232 biweekly after tax
Total: $1176 biweekly, ish.
|3,970||American Express Blue Cash Preferred Credit Card †|
|1,219||Huntington National Bank Voice Credit Card|
|999||Barclaycard Sallie Mae Credit Card †|
|973||Credit Union “Flex” Credit Line **|
** This has no interest at all
|190||Car Loan Payment|
|160||Healthcare and Dental|
|100||Personal Loan Payment|
|65||Student Loan Minimum Payment|
|50||Huntington CC Payment‡|
|50||AMEX CC Payment‡|
|50||Barclaycard CC Payment‡|
|30||FlexLine Payment Minimum|
|26||Frivolous Monthly Things|
NOTE: Speaking of normative cues, I am sure this young woman gets "a starbucks" every day and tosses the "barista" a huge tip and thinks nothing of it. After all, "everyone does it" right? Everyone else is broke, too. No one wants to think that "trivial" thinks like fast-food lunches and designer coffees are making them broke, but in truth, they are.