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(MSN)   How I dug out of $80,000 in debt. Step #1: Start by saving even just $5 a month somehow   (money.msn.com) divider line 22
    More: Interesting, Married... with Children, SmartMoney, young professional  
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15062 clicks; posted to Main » on 13 Jun 2013 at 6:01 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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Archived thread
2013-06-13 05:01:13 PM
6 votes:
Let me guess:

1. Cut rent as much as possible, either by moving in with parents or with 8 roommates
2. Don't eat out, and eat rice and beans at home
3. Work 80 hours a week, probably including nights and weekends
4. Don't have a car payment, cell phone contract, or any other big ticket expenses
5. Kiss all entertainment and new purchases goodbye
6. Oh...and one of those 2-3 jobs will need to pay significantly more than minimum wage

/ at the end of the day, it's really just about #6
2013-06-13 06:06:25 PM
4 votes:
Get rid of wife that would rather buy a new Coach handbag then pay bills that are due
2013-06-13 05:08:03 PM
4 votes:
Step 2: Find $80,000 in cash on the street.
2013-06-13 06:17:57 PM
3 votes:

dustman81: Those three alone will save you at least $500 a month.


...which will just about keep you even on the interest on a debt like that.

I notice that these stories of bootstrappy debt recovery are usually sponsored by some credit card company or CNBC or some other finance-related entity. Ostensibly, they're supposed to encourage sound fiscal behavior, but I always feel like there's a strong undercurrent of  see? you CAN (and should) work like a dog for 3 - 5 years straight to repay your debt to that multibillion dollar corporation, and not default!

Which is ironic, because those are the self-same companies that get massive low-interest bailout loans when THEY get in trouble. I wonder how AIG would be doing these days if they had been hit with the 22% penalty rate a lot of companies charge you if you miss a payment or two...
2013-06-13 10:06:21 PM
2 votes:
frugalfellas.com
2013-06-13 06:38:48 PM
2 votes:

SevenizGud: FTFA:
<i>We can drive ourselves crazy trying to cut out a lot (of small expenses), like trying to bring our lunch to work. If you're really good about it every single day, that might add up to $50 or $100 at the end of the month.</i>

Because we all live in places where we can get lunch for $2.50 to $5.00 per meal. I am sure that is especially true in New York City.

Eating out is the #1 money waster for most people. You go out to eat with your spouse almost any place that isn't Wendy's or Sonic, and you are looking at about $20-$25 minimum.

The exception is having children. You just dropped a minimum of $50,000 for the first 5 years of that little crying poop-machine. Don't have kids. Ever. And that's not just because of cost. Children suck. Why would you do that to yourself EVEN IF RICH?


Hell, I was living very comfortably before I had a girlfriend. She cost me a lot of money.  So instead, just buy a fleshlight and watch free internet porn.
2013-06-13 06:19:25 PM
2 votes:

fat boy: Get rid of wife that would rather buy a new Coach handbag then pay bills that are due


If she is able to buy a fancy purse and then still pay the bills, why get rid of her?
2013-06-13 06:14:29 PM
2 votes:
I married a rich wife...
2013-06-13 06:06:47 PM
2 votes:

whistleridge: Let me guess:

1. Cut rent as much as possible, either by moving in with parents or with 8 roommates
2. Don't eat out, and eat rice and beans at home
3. Work 80 hours a week, probably including nights and weekends
4. Don't have a car payment, cell phone contract, or any other big ticket expenses
5. Kiss all entertainment and new purchases goodbye
6. Oh...and one of those 2-3 jobs will need to pay significantly more than minimum wage

/ at the end of the day, it's really just about #6


You don't need a brand new car (with the attached car payment). Get a good used car
You don't need the unlimited everything iPhone 5 plan. Get a Tracfone
You don't need the cable package with every premium channel on the planet. Get an antenna

Those three alone will save you at least $500 a month.
2013-06-13 05:13:30 PM
2 votes:
Some mod just lost their job.


Don't worry Drew, you'll still get my 5 bucks
2013-06-13 08:07:35 PM
1 votes:

Gyrfalcon: Devo: Don't carry a balance on your credit cards.

Don't have credit cards. I've not had any for 20 years, and it's been a huge relief since my student loans came due. One less problem...


Nope. Devo was correct. You can get 1-3% cash back on everything and build a credit score which can be useful for things besides taking out loans, like renting an apartment. As long as you just use it as if it were cash and not "woo, free money," you come out ahead by having one.
2013-06-13 07:14:55 PM
1 votes:

adamatari: It's very doable on a middle-class salary. Just cut expenses - really, you DON'T need cable, and if you are serious you will not have a car unless it's cheaper than living near work/public transit. If you make $40k, you can probably live on $30k or less and put away/pay off $10k+ a year. If you make $50k or more? Then it's all gravy. Honestly, if you apply yourself you can retire early.

That said, there is an absolute limit to cutting expenses. Even if you are careful, you still need to buy (cheap grocery store) food and pay rent (for the apartment you share with your roommate or roommates). If you make $25k, cutting expenses down to $15k a year is very hard, and if you make $20k you can forget about cutting expenses to $10k. If your pay barely cuts it, you're screwed.

At $5 a month, assuming no interest, it would take over a thousand years to pay off $80k. Sorry.


Something that changed my life, but old advice that not enough people do:

Take 10% of take home pay and send it to an online account the day you get paid. You learn to do without it when it isn't in your account and it adds up. I have emptied mine a few times (I have other investment and savings vehicles) for down payment for house or other things I have deemed reasonable but it is nice to have the cushion. The trick is to keep it ~3days away via transfer. Makes you really think "do I transfer it or get by?"
2013-06-13 06:32:46 PM
1 votes:
Save $5 a month... then in 1333 years you'll be debt free!
ಠ_ಠ
2013-06-13 06:32:16 PM
1 votes:

meyerkev: dustman81:You don't need a brand new car (with the attached car payment). Get a good used car
You don't need the unlimited everything iPhone 5 plan. Get a Tracfone
You don't need the cable package with every premium channel on the planet. Get an antenna

Those three alone will save you at least $500 a month.

Doing these in reverse.

#3) Maybe.  Dad did the antenna thing for a bit, got annoyed at not getting certain channels (like ABC and Fox), and picked up super-basic cable for $30/month.
#2) Yup.  Also, if you must have a smartphone, see if you can mooch off family. Picking up $60 to add an extra line to the family plan is WAY cheaper than $120 for your own plan.  (Or heck, if work requires a smartphone, see if you can get them to pay for it or at least make it tax-deductible)
#1) Maybe.  I did the math once, and having a new car with sweet warranty was about $300/month more (including fark-you 20-year old new car insurance) than the used car IF nothing broke.  It may be worth $300/month to have the certainty of never going "Whoops, I blew a head seal and now I'm out 5 grand."


your math sucks then. I payed my truck off over 5 years ago and we bought my wifes car around the same time with cash. In the past 5 years we have spent $3100 on repairs between both vehicles. That 3100 also includes oil changes for 5 years. that averages out to only $51 a month for TWO vehicles and included general maintenance. Not to mention our car insurance is significantly cheaper with 2 vehicles that are both over 10 years old vs a new car. The cost of a new car vs used it way more than the $300 a month you claim it is. Not to mention all the money i am saving on those payments is going into my kids college fund and our retirement.
2013-06-13 06:26:25 PM
1 votes:

Zul the Magnificent: whistleridge: Let me guess  Zul's Divorce Aftermath:

1. Cut rent as much as possible, either by moving in with parents or with 8 roommates
2. Don't eat out, and eat rice and beans at home
3. Work 80 hours a week, probably including nights and weekends
4. Don't have a car payment, cell phone contract, or any other big ticket expenses
5. Kiss all entertainment and new purchases goodbye
6. Oh...and one of those 2-3 jobs will need to pay significantly more than minimum wage

Ain't life grand?


Have you maybe considered NOT being an asshole ex husband, and becoming a miserable deadbeat sonofabiatch asshole ex husband instead? Either way you suck, but at least with one of them you get to keep your money...
2013-06-13 06:19:25 PM
1 votes:
FTFA:
<i>We can drive ourselves crazy trying to cut out a lot (of small expenses), like trying to bring our lunch to work. If you're really good about it every single day, that might add up to $50 or $100 at the end of the month.</i>

Because we all live in places where we can get lunch for $2.50 to $5.00 per meal. I am sure that is especially true in New York City.

Eating out is the #1 money waster for most people. You go out to eat with your spouse almost any place that isn't Wendy's or Sonic, and you are looking at about $20-$25 minimum.

The exception is having children. You just dropped a minimum of $50,000 for the first 5 years of that little crying poop-machine. Don't have kids. Ever. And that's not just because of cost. Children suck. Why would you do that to yourself EVEN IF RICH?

Finally, a pointer to almost all who will read this. If you don't have at least $80,000 lying around when you graduate high school, then you aren't college material. The only way you would NOT have at least $80,000 lying around is if BOTH of your parents are total losers. And since you are their kid, you are therefore homozygous for loserness. People with a double dose of the lazy stupid loser gene should abandon college fantasy and not spend that money, since nobody is hiring a journalism major with a 2.6 GPA anyway. You losers would be best mowing lawns and the like.
2013-06-13 06:13:19 PM
1 votes:
That's why I let other Farkers buy me TF subscriptions. Saving up for a Ferrari.
2013-06-13 06:13:11 PM
1 votes:
1. Eschew earth money
2. Transcend financial dependence
3. ?
4. Profit
2013-06-13 06:12:23 PM
1 votes:
I think I'll stick to gambling and prostitution thank you very much.
2013-06-13 06:10:52 PM
1 votes:
YAY! It's this thread again!

I used to like reading the personal finance threads when I first joined Fark and started caring about my monthly income and expenses. Now I just find them repetitive.
2013-06-13 05:53:56 PM
1 votes:

whistleridge: Let me guess:

1. Cut rent as much as possible, either by moving in with parents or with 8 roommates
2. Don't eat out, and eat rice and beans at home
3. Work 80 hours a week, probably including nights and weekends
4. Don't have a car payment, cell phone contract, or any other big ticket expenses
5. Kiss all entertainment and new purchases goodbye
6. Oh...and
one of those 2-3 jobs will need to pay significantly more than minimum wage


FTFY
2013-06-13 05:05:59 PM
1 votes:
1. Pay your bills.
 
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