depressed and trying to get out of debt

**cschin4** · 12-09-2006, 01:11 PM

Re: depressed and trying to get out of debt

You may not be making such a "decent" amount, especially for NYC. It takes alot of money to just get by in high cost of living areas.

**Hypersion** · 12-09-2006, 01:43 PM

Re: depressed and trying to get out of debt

Do you have a budget?

**Broken Arrow** · 12-09-2006, 02:24 PM

Re: depressed and trying to get out of debt

Welcome, flowchart. You are in good company here.

I very much can relate to being financially stressed. I am also glad that at least you are willing to get your finances in order before piling things on. Sadly, I think there are too many who are willing to live on borrowed money, and thus borrowed time.

Please feel free to ask any specific questions. I know this board has some very knowledgeable and helpful people here who would be happy to help out.

**Diolla** · 12-09-2006, 02:32 PM

Re: depressed and trying to get out of debt

Originally posted by Hypersion

Do you have a budget?

I do know how you feel, sometimes just working up a plan and seeing that it doesn't have to be this way can help. Even if it means cutting back on something you felt you just had to have.

I started planning my spending a little over a year ago and am now debt free, except my house, and feel more positive I can reach my goals. I was lucky in that I caught it before it got too bad, only about $8000 in debt, but I did have to make some changes and do a few things that at the time seemed impossible.

Good Luck, if there's anything I can do to help...

**JanH** · 12-09-2006, 06:04 PM

Re: depressed and trying to get out of debt

I think most here would say start by writing everything down. You need to get a clear picture of your income and all your expenses and out of pocket spending. It was an eye opener for me. Then, I could try a few new things at a time. It so helped my depression over my finances to finally be a little proactive. Ask these guys specific questions you might have. They are great about helping! I totally understand about being depressed about it. Hopefully, it won't take long for you to feel a bit more control over the money. Now that you are here--you are not alone!

**PRICEPLUS** · 12-09-2006, 11:05 PM

Re: depressed and trying to get out of debt

JanH us dead on with the advice. You need to know where your money is going before you can make changes.

**cschin4** · 12-10-2006, 04:06 AM

Re: depressed and trying to get out of debt

I really think people beleive they are making decent money but really aren't. About 1/3 of your income is lost in taxes. Then, you are paying all your bills with after tax money, so in reality you need to earn $1.30 for every dollar you spend. (this is not exact math or the exact tax rate, I am just trying to make a point). And, every time you turn around something is increasing, heat/cooling costs, property tax, gas, food. groceries, etc and every little increase requires you earn 30% more than you are spending on those thing to break even. Anyway, that is how I think about it.
Teachers are generally not very well paid. Are there options for you to move and find a place that may pay a better salary and offer some loan forgiveness?

**disneysteve** · 12-10-2006, 06:21 AM

Re: depressed and trying to get out of debt

I think people get depressed and frustrated when they feel they aren't in control of their situation. So you need to take control. Sit down and make a list of everything you owe, to whom it is owed and what the interest rate is. Then, as suggested, record your spending for 30 days - every single penny. Don't forget to include recurring expenses that you might pay less than monthly (like insurance premiums, licenses, professional dues, etc.). Finally, write down what you actually earn, and I mean take-home, not gross. You want the spendable number after taxes, retirement, health care and any other deductions.

Just doing those three things can be a very powerful exercise to make you feel in control. You will know exactly what is coming in and exactly where it is going.

Then you can sit down and analyze that spending list item by item and start finding things you can reduce, cut back or eliminate to free up extra funds.

**Ima saver** · 12-10-2006, 06:40 AM

Re: depressed and trying to get out of debt

Everyone is giving great advice. Write down every penny you spend. What helped me, was I have always saved 10% of what I make. I pay myself first and then manage to pay the bills with the rest. If that seems to much, start with a smaller percentage, then try and raise that percentage every 6 months or so, until you can get to 10-15% saved right off the top.

**JanH** · 12-10-2006, 10:20 AM

Re: depressed and trying to get out of debt

Ima is right. Having even the smallest cushion can help you through an unexpected medical expense or repair. Then you won't go deeper into debt. That has helped me. I know paying things down is my biggest goal, but the cushion I'm developing has helped keep me going.

**doodles44** · 12-10-2006, 11:32 AM

Re: depressed and trying to get out of debt

Flowchart, I understand your situation. I am also in my 20s and work in a major metro area with a high cost of living. I agree with the other posters who say that budgeting should be your first priority.

However, being in our 20s and having so many expenses, it is not easy to get out of debt quickly and it's sometimes frustrating. But I congratulate you for being here to try to put an end to it. Don't expect to have a perfect financial picture living in NYC in your 20s! It's terribly difficult! Just do the best you can.

I would recommend reading Suze Orman's Young, Fabulous & Broke. She has been there herself and is able to give people our age great advice.

Take care and good luck!

**doodles44** · 12-10-2006, 11:46 AM

Re: depressed and trying to get out of debt

Also, I would like to recommend the MSN article on building a budget. It was a lifesaver for me. Figures may be needed to be tweaked due to city expenses, etc. but it's a good guide.

http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/HowToBuildYourFirstBudget.aspx

I started out saving 0, then 7, then 15 percent of my net salary, while paying 7 percent to my debt. It is a long process, but fulfilling as well.

**scfr** · 12-10-2006, 01:09 PM

Re: depressed and trying to get out of debt

You are getting good advice here about starting out by writing down every penny you spend and taking a long hard look at your finances. Once you've done that, come back and ask for opinions; there are no shortage of those on this board!

FYI, no, I am not depressed and trying to get out of debt, but I am in my 40's already. But when I was your age, I had almost no savings and no plan. It wasn't until I turned 28 and got married that I got serious about developing a budget and building a financial plan, and doing that has made all the difference in the world. When I was your age, I worried about money a lot; now worrying about money is just an occasional thing.

Stay calm and positive. You have about 40 years to go before retirement. If you work on your budget first, and then work on a larger financial plan, before you know it you will be feeling in control!

depressed and trying to get out of debt