Real Answers for Life’s Money Challenges
I am a 27-year-old who still lives with her parents.
Im also a college dropout.
I was never taught anything about finances, and Im just now starting to learn.
I honestly feel so overwhelmed right now.
Its no wonder that youre overwhelmed.
A better approach is to focus on making meaningful progress on one or two goals at a time.
Being realistic about what success will look like for each goal is also essential.
That may require you to break down the big goals into smaller, more manageable goals.
I think you should focus on paying off your debt first.
That probably means youll have to live with your parents a bit longer.
But becoming independent will be so much easier if you arent bringing debt into the equation.
Look at the interest rates youre paying for your medical bills and your car payment.
Put your energy toward paying off whichever one has the highest interest rate first.
Make minimum payments on the rest.
This is called thedebt avalancheapproach.
But you keep paying the minimums you were already paying.
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In 10 days,these 10 practical stepscould help you get back on the right financial track.
Youd start by paying $350 for the medical bill with the 10% APR each month.
But youd continue making the $200 minimum payments on the other two bills.
Once your car is paid off, youd tackle the final medical bill with $750-a-month payments.
Instead, think about what it would take to earn just slightly more.
Making an extra $150 or $200 in the next month would be a huge win.
Try flexing all the worker shortages you hear about every day to your advantage.
Could you work an extra shift or two?
Drive for Uber or findpet sitting gigson Rover?
Pick up some freelance work?
Is Your Paycheck Not Going As Far As It Used To?
We get it.Everythingis more expensive than it used to be, but your paycheck hasnt kept up.
When money is tight,these resourceswill help nearly everyone.
This isnt just about the money per se.
Learning to negotiate and diversifying your skillset will make you more self-sufficient.
If youre able to boost your income, start putting the extra funds toward your debt payoff.
Once youre out of debt, you could shift your focus tosaving money.
In the short term, your best bet is probably to continue living with your parents.
But start thinking about your mid-term priorities.
Again, think in terms of whats doable vs. the perfect scenario.
Is becoming independent of your parents the No.
If so, would you be willing to move in with roommates to make that happen faster?
You say youre a 27-year-old college dropout who still lives with her parents and was never taught about finances.
But you could also say youre 27 with some college education.
Or they find success without getting a degree.
You dont know much about finance, but youre arming yourself with the knowledge you need.
Youve already learned one big lesson, which is to live within your means.
At a time when inflation is at a 40-year high, that means living with your parents.
Where youre at right now is temporary.
Youre far from the only 20-something who isnt independent quite yet.
Focus on taking small steps that you’re free to sustain over time.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
