BBP REAL LIFE BUDGET: Credit Card Debt + Budget Tips

It's time for another Real Life Budget. We asked my readers to submit their REAL information. Real spending, real debt, and real savings goals.
I am taking those real-life numbers and showing you how I would organize and budget that information using my Budget By Paycheck® Method.
In this video, I will be showing the real numbers from a reader, Lauryn, and her wife, Bri. Both have high-interest credit cards and have tried debt consolidation in the past. They made the mistake of accumulating more debt while trying to pay off debt and now are trying to pay off all of their credit cards.
CHAPTERS:
00:00 Introduction
01:40 Bri & Lauryn's WHY & Story
03:31 Income
04:21 Bills & Fixed Expenses
07:04 Variable Spending
09:12 Debt Picture
11:19 Savings Goals
12:17 The Budget Calendar
13:41 Paycheck Bill Tracker
16:03 Conclusion & Recommendations
➡️ HOW I TRACK MY SPENDING: bit.ly/3aIe89I
➡️ HOW TO USE A BUDGET CALENDAR: bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: bit.ly/2wDETxF
ABOUT ME
I'm the blogger behind www.thebudgetmom.com. I have a rambunctious 6-year-old son, live in Washington, and I'm passionate about helping people with money management and personal finance. Let me know what you like to learn more about! Leave me comments and suggestions on my video and let me know!
YOU CAN FIND ME AT:
📝 BLOG: www.thebudgetmom.com
📘 FACEBOOK: / thebudgetmom
📸 INSTAGRAM: / thebudgetmom
📌 PINTEREST: / thebudgetmom
GET STARTED
➡️Start Here: www.thebudgetmom.com/start-here/
➡️Free Email Course: bit.ly/2UYgNFf
➡️Free Resources: bit.ly/2PDmTHz
➡️GET 10% OFF my popular Budget-by-Paycheck Workbook - Coupon Code TBMKZbin bit.ly/2CR7U9n

[@bellaboopixi]

This might sound stupid, but sometimes seeing how much in the hole others are is motivating and I genuinely don't mean that in a shitty way. Sometimes I just get so down in the dumps about my debt, but I only have 5 debts and I'm under 20,000 in the hole (and that's with a 4 yr degree). I know it's said all the time that there's no shame in where you're at as long as youre making strides toward betterment, but it still gets me down sometimes, and gaining some perspective helps

[@alshavanattia8773]

What do you get in your tax return Just a question because if you're actually under $20,000 and you make more than that within your tax return you can probably use your tax return to knock a good portion of that out again just a question

[@bellaboopixi]

@@alshavanattia8773 yes! That's the plan 😁😁 last year I got around 4,000 as newly married. We both have better jobs this tax season so hoping that makes a difference. Last tax season I paid off my car 😍

[@Dreamingbigbudgets]

Agreed it motivates me, reminds me how far I've came on this journey I have hardly any bills Compared to before

[@SociallyChrissyTV]

Don’t feel bad I agree. When I was in debt I was like omg I’m not that bad off in comparison of others. Once debt free I realized I needed that.

[@randomnielle]

I agree! It feels bad when that thought comes across. But it especially helps me when someone making less than my husband and I make more progress towards paying off debt!

[@LungCancerWTH]

These are my favorite videos! I learn so much and really apply it to my life.

[@katiekennedy8701]

You should do update videos on the people who you do these budget videos for! That would be interesting

[@adimeatatime6704]

Yes!!! It would be interesting to see if they followed Miko's advice and how far they've come.

[@maggiejoyce1980]

She did an update on her Chanel kzbin.info/www/bejne/qpXbcoxrgadsi7ssi=CiOnoa4R6qS1uS18

[@Lesh004]

The day I panicked when my husband paid a $45 bill before it was due was the day we woke up. We canceled everything but our cellphone plan. No internet, no streaming service, nada! We sold our Xbox, some DVDs, furniture, etc. anything we could sell we did! We traded in our vehicle for something half the price, and $200 less a month. We stopped eating out and changed our lifestyle. The big trigger was finding out that we were expecting. We also ended up selling the vehicle that had a loan on it. We’ve been car loan free since October 2020. And now here we are 3 years later…still no internet or streaming service, no gaming etc. Our 3 year old watches DVDs or cartoons on PBS from our $20 satellite. lol It’s amazing what you think you need and what you really need.

[@MichelleD1989]

Been there before as well with all the misc debts. Stopped all unnecessary spending, got rid of car and drove a cheap paid off vehicle. Takes allot of determination but worth it in the end. Short term sacrifices like Miko said get you motivated watching each balance getting paid off. You can do it!

[@kevini4295]

Amazing video. Great information I am going to use. A minor thing, but so important, thank you for including an LGBT+ family. As a gay man, I often feel neglected. All the gurus it's always "Mr and Mrs" whatever. I have about 8k in maxed out out credit cards, some charge offs, other crap on my credit I am trying to work my way out of. I made 65k this year, no reason I can't get out of it. Bad budgeting on my part.

[@lauriefowles7085]

I had 15 debts when I started & used snowball just to get rid of so many of them early on. Now I have the Big 6 left and 4 of them are student loans, because I took advantage of the pause to clean a lot of the rest of it up. I'm attempting to pay off my car before the loans come back. I hope this couple made progress since this video aired!

[@mj482]

Yes is doable, we just gotta keep the rythm going and don't loose hope, I used to have about 9-10 credit cards I was sick and tired of paying the minimum, found a way to make extra income and was able to pay 4 credit cards all at once with very small balance on each one of them, and then I followed the snow method to continue to pay off the remaining cc. Now Im only left with 1 credit card, with a balance of $1100 can't wait to be finally debt free, we cut out a lot of those runs to dollar tree, walmart, ross, and not to mention eating out, we went from eating out 10+ days per month to only 2x a month and let me tell you the amount we were spending on eating out it was mind blowing. So I would throw all that extra money to our debt. So yes anything is possible if we put our lives on hold temporary until we are at a good place where we can be more flexible to spend a little money on those wants.

[@lindsaykendall3696]

Ohhhhh, bless them. This one gave me anxiety. They will feel so much relief if they implement your suggestions. Best of luck to them

[@Carolmaizy]

Your concluding thoughts make a lot of sense. Thank you! Working on eliminating credit card debt, highest interest cards first. My goal is to go from 6 cards to two. It's exciting to be making progress. My student loan debt is also down to 2500 dollars, from 40,000. Thank goodness that interest rate is below 3.5%! I can see the light at the end of the tunnel!

[@angalabudgets]

I just started using you paycheck and monthly calendar budget breakdown. I love it, very useful and I have a better grip on my spending. I'm also currently doing you monthly savings challenges for 2022. I enjoy watching your videos and it's also good to see that I'm not the only person in debt and trying ro get out.

[@hardsimmer]

What happened to the budget sheet for the bonus check? Was looking forward to seeing how that would have been budgeted? Was it cut by accident?

[@michaelswami]

My heart rate climbed just watching this. I remember those days. Good luck to them and glad they recognize their problem.

[@1019lms]

I have a quick question. You kept their Netflix at $20 but cancel two streaming services with combined billing of $17. I would think that it would be more cost effective having Disney + when there is a child in the house. Would love to know your insight.

[@britneyferndx763]

yes i would have kept the cheaper one

[@meganginger3791]

These are the best! So helpful to share in honesty where we are at! Thanks Kumiko

[@susananderson7473]

You are such a blessing in helping others learn how to help themselves.

[@Mamachickys]

Yay!! I just saw you in GMA and I was so proud of you!! I have been following you for years. My daughters have your budget books and cash envelopes too. I hope you go viral because you deserve it. Much love 💕 💜

[@Lizzy43645]

Mint mobile is the new phone company owned by Ryan Reynolds. It’s supposed to be way affordable so kudos to that!

[@sk8tergurl2412]

It is crazy affordable. 15 a month and you pay for 3,6,9 or 12 months ahead. I have the unlimited plan that 30 / month and I do 12 months. Saved roughly 1000 compared to my old phone service

[@cdavis0519]

Yes! I paid $180 for the year instead of paying $1,092 for a year with AT&T.

[@hanab837]

It is really affordable. We used it for about 7 months and liked it, but then we moved out to a more rural area and had absolutely no coverage. I couldn't use my phone at all, so we had to switch back to Verizon. I was so bummed, because $15 a month was amazing!

[@thisishowweroll8649]

@@hanab837 This is the issue I have as well. I am looking forward to trying out Starlink's new phone service, but don't know how it will be priced. (Elon Musk's Starlink, it will be a satellite phone service).

[@1019lms]

Mint is really affordable because there are no brick and mortar stores so corporate overhead is much lower than other carriers.

[@cjack-caldeira3363]

So many gems/ truths to reflect on. It's not about the income, it's about the having a better relationship with YOURSELF and knowing the strategies to help. Needed this today - thank you:)

[@midnightbudgets]

I enjoyed this video immensely. I think it hits home, for me, to hear the idea that one should not take on more debt while *already in debt.* I'm still learning that! I really enjoy your insights Kumiko, I've learned a lot from your channel in the past couple of weeks (having watched about 15 of your videos already! :) ) Thank you.

[@iyamom4]

Kumiko I just want to say thank you. I watched one of your videos that spoke about the why and it triggered change. It is a journey that I am happy I started. I used to use my tax returns to pay off debt. That was fine and dandy until the returns got lower and lower. I shared the video with my sister. She got a planner and I hope she is doning good. I better check on her.

[@christopherbellboy25252]

Excellent video. I utilize a monthly budget since I get paid monthly. I never really understood how people complete budgets when their income are weekly and their bill due dates are all over the month 😂 adding the colors to the budget calendar was extremely helpful in understanding how the weekly budget works. Thanks

[@DearDebt]

Love seeing these videos! You do a great job dissecting these budgets and providing helpful info

[@KristenHuckeba]

I would love to see how the paycheck on the 21st is used. My husband and I usually count on our tax return like they count on their bonus, so I’d love to see what your recommendation is for splitting that up and where it’s used.

[@Tcb245]

Thank you for sharing this!! It hits home for us. We have a high interest loan also.

[@kmccoypta]

I have my high interest credit card *almost* paid off because of your BBPC method.

[@Lizzy43645]

We believe in you chicas but those cars have got to go! And agreed on the shame to the predatory lender 😡

[@plantsredwine759]

As someone who also has bipolar 2 and credit card debt/spending triggers... I get it 😭

[@laurab4570]

I feel for these ladies! How difficult to have so much credit card debt. We use the debt snowball method and it has been successful for us.

[@valariegaston8020]

Great info. Thanks for sharing.

[@JAR2JAM]

Very informative. It helped alot

[@Mamasboys85]

Sometimes the real life videos are so painful and awkward to watch, I am praying for their family to get ahead of this debt.

[@trblessed1020]

This was really helpful

[@juliesummerfield9784]

Nice ring!

[@curlynic]

I said the same thing😂to myself

[@valeriebabbe7681]

This video was so helpful to us as we are is boat as this couple.

[@matemahe]

You really have amazing advice.

[@Sunnyday069]

Thank you for the reminder at the end. I’m waiting for my zero interest card now and have transferred half my total CC debt onto that card (travel card!) I needed to hear that last part. Here’s to learning, growing and changing!

[@denisepink8794]

I got a notification at 4am that my book arrived on audible 🥰

[@jsassy2002]

They should also consider swapping cars. My husband and I do that since he only works 5 mins away ge drives the SUV. Also Mobile Mint is a wireless company that you prepay and way cheaper then any big company especially if you pay yearly

[@melissa99435]

I love seeing videos like this, helps me put highlight my own budget issues & find ways to deal with them. 🙏Thank you

[@oldmaninthemirror]

Started watching your videos today Jan 16 2022 and am enjoying them very much one comment I’ll make is avalanche vs snowball method of paying off debt as Dave Ramsey said long ago yes the math indicates avalanche but if you were considering math only never would have taken out a loan at these ridiculous interest rates..I think that is why snowball is his recommendation small wins needed sometimes

[@mirainoivuyo984]

I implore you, Miko... please don't classify cloud storage as trivial, especially since they are only paying less than $5 a month for it. If they cancel the storage and some mishap happens to their phone (and it doesn't matter how careful they are with it), they would lose all their data without any hope of getting it back and for most of us, that data is beyond priceless. It's like suggesting that in order to save a few seconds on your drive, you shouldn't buckle your seat belt. There are alternatives to cloud storage or options for "free" cloud storage (I wouldn't do it, tbh) that they can look into if freeing up that $3 is that important, which involves taking time regularly to manually back up to their computer (which also has to have enough space) or understanding how free cloud storage outside of their phone's native operating system would work when trying to restore. Honestly, the $3 is worth the peace of mind and the hassle.

[@britneyferndx763]

i think this is a very good point maybe I would say trying to find a cheaper daycare or finding family to help

[@kelseybrintnall2080]

I just purchased this family cloud storage and honestly this is facts. So much peace of mind and so much easier to get photos from place to place (phone to computer). Plus now I don’t have to upgrade my phone for more storage!

[@Chopperchicjones]

I was about to say wow outrageous car payments but in PA you can’t have just any regular car! They get a lot of snow! With their job trips they def need better cars!

[@rituparnachatterjee1229]

What I would recommend on top of what you have said is it utilize the bonus amount to pay off the highest interest debt, in the order, you have mentioned so that they can free up money from their budget to save for their other priorities.

[@sarahratliff7179]

I think they’ll need to use the bonus for their variables since their income only covers bills.

[@TH0KH]

Mint mobile is a super cheap cell phone plan, it's one of the most budget friendly options

[@realmms]

Wow what an amazing income ! If they figure out the debt I think they will be fine.

[@ciannacoleman5125]

I am blessed in my life to not have any debt starting my adult life thanks to my parents covering school and teaching me to handle money. Miko's style of budgeting gave me the final tool to handle my money in a clear way and has helped me save a lot of money just by being able to see it in such a logical manner. I will be getting married in a year or so (not officially proposed to yet) and not looking forward to figuring out a new system that works for both of us lol. If he doesn't like mine we may just have to write it down on two versions so it make sense to both of us lol.

[@britneyferndx763]

yes you can also have some things paid together in a joint account , I hope everything goes well

[@YazWhyNY]

This is SO random but if you happen to see this comment... I'd love to know where your sweater is from! It's such a a beautiful purple!!

[@thebudgetmom]

I will have to ask my Grandma 😂I believe she got it from JC Penny's but I am not 100% sure!

[@BookFanBudgets]

I’m glad you asked this because I thought the same! Miko, please tell your grandma we love your sweater! ❤️

[@monacarney2689]

I have that sweater lol love it

[@amandaramsay5934]

It's easy to think more debt will relieve current pressure, but it only compounds the situation.

[@MichelleLyn84]

Holy shit! I drive the same distance, and also have a Nissan, it’s a murano, not great on gas, but ok, mainly have it for its AWD, but good lord filling up 4-5 times a week is LUDICROUS!!!!

[@lisaknowles956]

What are your thoughts about refinancing the mortgage for of course a lower interest rate but paying off ALL debt and just having fixed expenses and the mortgage?

[@whitneylau2244]

I have mint mobile for cell phone service. We pay yearly so we can get the price of $15/mo. The catch is you have to pay for it yearly, which I would prefer.

[@morganp4956]

Ok I bought the planner (download) last year but there are several sheets I’ve seen you use that I don’t see in the planner. Where would I find them?

[@zandracrisp6438]

I have a question please.. I have 2 cards 1 at 1800 and one at 8000 it has been way to easy to use because if the crap going on...I found your channel and I am understanding better and started my envelopes thank goodness but back to my Question should I pay off the 18000 first?? Even though the 8001 is a much higher interest rate I feel like I'm pay the 18:1 off faster

[@brroookkeee]

My husband and I also have iCloud and it’s $2 a month so if we got rid of it, we couldn’t back up our phones and get our pictures/videos.. I don’t recommend getting rid of storage since it’s so cheap

[@stepdancer05afgs0000]

I always love these as the real life examples are very helpful. I love these pages you're using but haven't seen them in your free resource library. Are they from the planners? Thank you!

[@reelroyals3222]

they use to be in her free resource library.

[@stepdancer05afgs0000]

@@reelroyals3222 The ones in the free library are a bit different. I use those now too but I like these.

[@midnightowlshoppe2022]

Was the paydays on the 21st supposed to be left out?

[@Mads.2024.]

How do we submit our budget for maybe a future video?

[@ambersabala6028]

Maybe check if their carrier includes a streaming service ?

[@phunt1769]

Amazon prime includes free shipping, lots of movie etc.. It pays for itself with the shipping. It cost only $10 a month. Why do you eliminate it.?

[@emilyb_823]

Hi, do you reach out back to them for an update how it’s working this method for them?

[@ivylin8103]

yay..

[@PlannerGirlLifestyle]

I am in the same boat! Except I don’t have a spouse. How do I join your Community?

[@geralinesanders4525]

I love these videos , how am I able to submit my budget, I would really love for you to help me , im a single mother of a one year old, and trying to save up for a home.

[@maydanava20]

We have an upgrade consolidation loan. My husband pays it but the account is in my name. They send that Upgrade CC offer weekly. SMH, we also thought they’re so predatory.

[@kristadavis2825]

Is there a way to apply for you to do this with us? My husband just started a business and we are trying to find ways of cutting costs as much as possible and a fresh I could really help.

[@albertaadventures7750]

Great video. I was wondering where the breakdown for the pay on the 21 st went with the bonus. I notice it was skipped. It would be great if they can get to a point where that bonus is truly a bonus. It can be banked as a savings to get them ahead 🤗👍

[@maryanaresh9247]

Yes I noticed the same thing and would really like to see how that check was budgeted:)

[@janethlopez9161]

How can we send you our budgets ?

[@Rugersgirl724]

How do you cancel iCloud monthly fee (2.99) and not lose photos? Please. Share it with mine and my son’s, I do have Google photo. Thank you in advance.

[@MsFunnymiss]

Hello there, thanks for the video. I’m not from the USA, maybe you have different fin systems: this family have a long list of debts with obligatory minimum payment on each. In our country, if you don’t pay minimum- they will make an additional fee and start to push you to pay. But in this budget you pin on a budget only first debt from the list. What about everything else?

[@kiwibird1980]

I know this comment was a while ago, but I think she has them still paying the minimum on everything, just directing all extra dollars and pennies into the highest interest loan to pay it off before moving to the next.

[@lilithofedom]

why is their netflix so hight. did they round up?

[@sarahmunoz14]

I always find the variable rates of streaming services interesting. I pay $14 for Netflix. I’ve also seen different rates for Amazon prime.🤷🏽‍♀️

[@candy2325]

Netflix has now raised their prices to $15 and will slowly roll out the new prices soon 😖

[@adorabell4253]

One is monthly vs yearly rates. Another is grandfathered rates. A third is single vs family vs large group plans. For example I have the 9.06can prime payment because I haven’t switched over to the yearly plan but we pay the lesser amount for Spotify duo because we have the yearly two person plan.

[@PrincessMultiracial]

With Amazon, Medicare/EBT members qualify for $5.99/month for Prime

[@ciannacoleman5125]

FYI Mint Moble is a cell company

[@lbernshouse9890]

Your video edit cut out the third paycheck.

[@kiwibird1980]

I’m not in the US and definately not throwing any shame, just genuinely curious. How do US people get approved for that many credit cards as well as car loans?? I only have 1 credit card paid off every fortnight with my pay and use zip-pay and Afterpay to spread out costs of higher price birthday/Christmas presents for my kids but I’d have to jump through a lot of hoops to get a car loan right now on top of just those three.

[@kasiaslupek7782]

Got the budget planner from tbm and watched lots of video how to to properly balance everything but where do you put 401k if it's automatically withdraw from the paycheck how do you file that?

[@adorabell4253]

In that case you don’t count it at all. It’s not part of the budget because it doesn’t go into your bank account. You can track it separately on the savings and investments pages. If you have the printable workbook just print a few more of those pages out if you need them or you can photocopy the page from the printed workbook or I there might be a free printable on Kumiko’s website.

[@kasiaslupek7782]

@@adorabell4253 Thank you! I greatly appreciate the information.

[@adorabell4253]

@@kasiaslupek7782 No problem! I just doublechecked and the free printables have a retirement savings tracker which could probably work for tracking the growth of the 401k.

[@missfroggie909]

They might consider a personal loan to pay off 4 or 5 ccs at a 9% interest rate and have 1 monthly payment.

[@kaycure8629]

The nurse needs to pick up more hours and unless school is going to triple the pay it is not worth it. Get rid of those vehicles!

[@candy2325]

Retail credit cards can get nasty if you don’t have a handle on how to spend properly. I had to get rid of retail cards years ago because I was in the hole DEEPLY. No more! And the credit one credit card is a terrible card company, the annual fees and the APR is gross 🤢

[@kakashi3389]

Hello do you know of any credit card that has 0 balance transfer and a 0apr for a few months

[@thebudgetmom]

Nerdwallet always has a good list >> www.nerdwallet.com/m/credit-cards/pay-0-interest-until-2023?bucket_id=LP2&ds_rl=1246084&gclid=CjwKCAiA_omPBhBBEiwAcg7smd86iD8SBcTgTLU0Ft3SRvLbke7Tje6min9fVv085MQv8SjFLjvTVhoCH7sQAvD_BwE&gclsrc=aw.ds&mktg_body=1678&mktg_hline=11649&mktg_img=3599&mktg_place=kwd-870017195&model_execution_id=29EB13D0-FDF9-4925-A622-3BA95AFB83FD&nw_campaign_id=150238292830084300&+interest+balance+transfer+cards

[@brroookkeee]

Check credit karma also! When you see your credit score on there, you can see credit card offers and weigh out balance transfer fees, apr, etc

[@evakaty9505]

They should definitely buy an Honda CR-V or a Toyota Rav-4 if they are worried about snow, I’m Qc and they are reliable

[@doloresscarber7515]

🥰🥰🥰

[@Dreamingbigbudgets]

Uk credit cards can be from 4-40% ish scandalous

[@cristabelbudgets]

Getting rid of the cars would go a long way. They obviously need cars but getting old and more fuel efficient car would be better.

[@lilithofedom]

mint mobile is Ryan Reynolds' cell phone complany

[@maryanaresh9247]

Did you skip their paycheck on the 20/21st?? I don't think you went over that weeks income??

[@maryanaresh9247]

Just curious because I was looking forward to seeing how you would budget that bonus

[@scorpiodread75]

How much to get you to so mine? I have issues

[@scorpiodread75]

Do

[@Birdmom1823]

💜💙💜💙💜

[@-crazyinlove-]

[@mariesaj1901]

Filling up 4-5 times a week??!! A tank of gas almost everyday?? There’s no way!

[@theropesofrenovation9352]

I've found folks just don't want to give up their way of life to accomplish these goals. I just don't get it. Cards in collections and they STILL get their nails done at $120 a pop. Go figure.

[@dh1743]

Sell cars and buy something cheaper

[@AmeliaGanu]

She can't pay for studies (she has student loans) and she took a car loan for aNissan? Wow......

[@missmister9702]

when are you going to remove those tattoos?