broke roughneck

[skimsurf]

So, I like most of you like money. I dont think its the money so much, just what I can do with it. Anyway, I now make around 65-70k a year and only work 6 mos of that year. Now for someone with no formal education, this is pretty impressive. For anyone that wonders what I do, I work as a roughneck on a natural gas drilling rig. I gross about $2700 a week when I work and take home around $1600. But I work for 14 days, and have 14 off, both straight.(although the 14 off goes much faster than the 14 on) Anyway, my credit sucks due to past mistakes, I spend all of it, and still have trouble paying my bills. My bills in total, probably account for one paycheck a month which i get 2 of. To be completely honest, going thru a case of beer every two days doesnt help, but it adds up. I smoke, and I see people that do the same things as I do, that have much more than I do, make much less than me, and have killer credit. I drive a 16 yro vehicle that I would love to tear down and rebuild but I dont have a clue how to start and I put a band aid on it to get me to and from work. I like things to happen quick, so I am not really looking for a lengthy credit repair, especially since my debt is only around 15k. But everything on my report is negative. I need some help, some pointers, anything. I am actively pursuing a welding career in the oilfield, which will triple or quadruple my income now but if I am making more now than I have ever made and still cant save how will this help? I need some real advice, something. I was told once that when you are not working, you are not making money, and probably spending it. But 14 days on a drilling rig, you dont want to do another day after 2 but you just power through it. I need help, I need a drill Sargent for money management HELP!

[swanson719]

First, you need to make a budget and stick to it. List all of your expenses vs your income and be realistic. Next, I would go talk to your local pizza place and see about delivering pizza's for those two weeks that you're not working. It's a little extra cash to give you a quick fix on your money problems, not a long term thing. Will probably be an extra $500 a month, if not more.

You say you net about $3,200 a month and your bills are about $1,600 a month. That means your net income is $38,400 or thereabouts. In order to pay off $15,000 in debt, you're looking at about a year of really living close to the belt and putting every extra penny towards that debt. I suspect between beer, smoking, and bills, you're closer to $2,000 a month spent. That means you should have $1,200 a month going to fluff spending. So if you put that $1,200 a month on debt, it will take you 12.5 months to pay off the debt, not accounting for interest. If you do get a side job at $500 a month, plus the $1,200, it will take you 9 months to pay off the debt, once again not accounting for interest. If you lived on $1,600 a month and picked up a side job, you'd be putting $2,100 a month on debt and be rid of it in a little over 7 months.

[lovcom]

So, I like most of you like money. I dont think its the money so much, just what I can do with it. Anyway, I now make around 65-70k a year and only work 6 mos of that year. Now for someone with no formal education, this is pretty impressive. For anyone that wonders what I do, I work as a roughneck on a natural gas drilling rig. I gross about $2700 a week when I work and take home around $1600. But I work for 14 days, and have 14 off, both straight.(although the 14 off goes much faster than the 14 on) Anyway, my credit sucks due to past mistakes, I spend all of it, and still have trouble paying my bills. My bills in total, probably account for one paycheck a month which i get 2 of. To be completely honest, going thru a case of beer every two days doesnt help, but it adds up. I smoke, and I see people that do the same things as I do, that have much more than I do, make much less than me, and have killer credit. I drive a 16 yro vehicle that I would love to tear down and rebuild but I dont have a clue how to start and I put a band aid on it to get me to and from work. I like things to happen quick, so I am not really looking for a lengthy credit repair, especially since my debt is only around 15k. But everything on my report is negative. I need some help, some pointers, anything. I am actively pursuing a welding career in the oilfield, which will triple or quadruple my income now but if I am making more now than I have ever made and still cant save how will this help? I need some real advice, something. I was told once that when you are not working, you are not making money, and probably spending it. But 14 days on a drilling rig, you dont want to do another day after 2 but you just power through it. I need help, I need a drill Sargent for money management HELP!

I think you need to grow up and knock off the beer, and the cigarettes. Living like that will significantly shorten your life and lower your quality of life too.

Make a list of goals, then ask yourself "how will I achieve these?".

Your debt is only $15,000? I would say this is a huge debt and a very big deal. You need to see it that way otherwise you minimize the damage holding such debt can do to your financial future, and your ability to be happy.

First save 6 months worth of expenses in a savings account.

Then make massive payments against your debt to get it to zero.

In the meantime, start exercising; perhaps run and/or join a health club.

If your friends drink and smoke alot then dump them and get new friends; the kind that are into self-improvement too. The wrong type of friends are toxic to one's future and can hold one back.

Once your debt is wiped out, then start growing your savings in big ways. Just keep socking it away, once you reach $10,000 go see a certified financial planner. Do you have a girlfriend? If marriage is in your future, I would demand she sign a prenup to protect that hard earned $$ you have acquired...nothing destroys one's hard financial work faster then a future spouse, or even a girlfriend.

Time to think like a grown up, and graduate from the party scene...it's for losers and those that have little clue about their future.

You can do this!! You can succeed!!

[maat55]

As mentioned above, you need a budget(spending plan). The quickest and most motivating way to get out of debt and build savings,IMO, is to cut your budget to the bone(no beer, cigarettes,etc.).

You also need to fill your extra time earning and not spending, get a second job, it will help pay your debts sooner.

Once you have your debts paid, you need to dedicate at least 20%(EF, car fund, consumption wants, retirement) of your income to savings and investments.

In order to prosper, you have to have a financial plan. I do not borrow to pay for anything that goes down in value, I save and pay cash for consumer items, I save and invest automatically first, I buy frugally. Never carry a balance on a credit card. These are simple mindsets that lead to a higher credit score and prosperity.

Simply:

Cut all non-essential spending
Make an strict budget
Earn extra money(during the other 2 weeks)
Pay all minimums then apply all extra funds to one of the debts(smallest to largest or highest interest to lowest)
Develope a personal financial plan(read a few books on personal finance)

[kenyantykoon]

gain financial discipline and prudence because those are things that you lack. I might tell you to open such and such an account or get this an that credit card but unless you really want to change then it will all be useless data. Change your inner man and you are good to go

[CalireEHughes]

It's not about how much you make it's how much you SPEND! It sounds to me like you need to stop the bleeding. Make a budget, set goals and give yourself an allowance. Don't touch the other money. Also, it you auomate your savings it will make your life so much easier!

[buildmybudget]

Like everyone else has suggested, you need to find the best way to maximize your income and minimize your expenses. The only way to reach your financial goals though is to be able to see where you are headed financially. You need to be able to see how much extra income you have each month, how long it will take you to pay off your debts, how much you can allocate to savings thereafter and so on.

Use a pencil and paper and map out your monthly income and expenses and take into account the periodic expenses that will pop up in the next year. Work backwards to figure out how much you can save each month towards your debts or down payment on a house and then implement the plan. The key to reaching your goals is to be able to see where you are headed financially.

Do you have a budget and cash flow projection? In tough situations like this, the best solution is a cash forecast that shows you exactly where you are headed...so you can see whether your goals are plausible and if you will run into any trouble spots. Create a budget that shows you this and you'll be empowered to make better decisions.

[jpg7n16]

I like things to happen quick, so I am not really looking for a lengthy credit repair, especially since my debt is only around 15k.

This may not be as quick as you want it to be. You average about 65-70k a year.

65k * .80 (estimate for taxes) = $52,000 = $4,333.33 a month on average.
70k * .80 (estimate for taxes) = 56,000 = $4,666.67 a month

You have 15k of debt. Even with no interest, this is how much it would take to pay it off in the following timeframes:

3 months: $5000/month
6 months: 2500/month
1 year: 1250/month
15 months: 1000/month
2 years: 625/month

Even if you live on 1/2 of what you make, you're looking at between 6 months to a year before the debt is gone.

I think Swanson's estimate of 1 year is probably reasonable, unless you can super deprive yourself for 8 months.

[snafu]

if you don't get control now...when? $65K-$70K isn't really all that when you have a wife, couple of kids, mortgage and new truck payments. What happens when you're 40? Too old to work on the rigs as a roughneck?