DEBT CONFESSION: 40 Year Old Has $15,000 of Debt & No Savings! | Debt Confessions Episode 4

[@laurensmoneymindset]

*Get the Budget Dashboard: tidd.ly/3EFq9ho *Want to work with me 1:1? Book a coaching call here: stan.store/laurenmiller/p/book-a-11-zoom-call-with-me-ezbnx *Retirement Toolkit: tidd.ly/3VVDpbD If you'd like to be featured in a future episode of Debt Confessions, you can apply here: docs.google.com/forms/d/e/1FAIpQLSepe2f9zA5Txg0QC9j-kz1Q1jvCnAfc1ApP-x7drR7Q90H0hQ/viewform?usp=sf_link

[@justwait9822]

Even 65 a month for phone is too much. Just use mint or helium. I haven't paid more than 20/month for mobile service in years. But this person likely has phones financed through their provider. Anytime you see a monthly phone over 100 you can pretty safely assume they're financing phones.

[@musictorelaxandunwind]

Start a Candle Business profitable cheap to start

[@jakefranchise7463]

I’m debt free. No car payment, no credit cards and no student loans. My advice is to not become car poor. People driving $50-$120k cars with payments up to $1,000. Trying to impress random strangers at red lights that you’ll never see again is a waste of money.

[@jortega61924]

Who says they are out to impress somebody they don’t know.

[@kimford-cc1tk]

Me too just house to pay off

[@DianeCrystal]

I’m 26 years old and $30,000 in debt. I am doing the snowball method to pay off my debt and only have $600 left to pay off my car 🎉❤ Make the most of the small victories and keep your heads up!!

[@laurensmoneymindset]

Amazing that you’re already focused on this in your 20s! You’re in great shape 👏

[@can1687]

I also did that

[@DianeCrystal]

@@laurensmoneymindset aw thanks! I hope to be debt free before 30 😁

[@elainesteward3130]

I think Christmas is a number one priority for a sinking fund. Especially if she has children, Christmas gets people into debt every year. The best thing that I did was saving money every paycheck for Christmas and gifts.

[@suprememagnetic4850]

I’m about $20,000 in credit card debt with no savings. Starting to budget and hope to be debt free in a few years. 🙏

[@MegaMarlon0123]

😬

[@rubybabiera6407]

Good luck!! We are all in this journey together

[@iati6294]

I remember when I was younger I had planned to used the income tax refund to take my toddler to Disney world, the IRS took all my refund! Let’s just say i learn to never make plans with money you might not even get! I counted my chickens before they hatch and we didn’t go that year. I learn my lesson and now I just save and pay cash for vacations. I’m debt free now at 41. Also paid off home and cars.

[@lunam.9640]

Why didn't you get your refund?

[@BM_100]

I paid off my debt by living at home with parents and sometimes working 2 jobs

[@absndus]

Yup that is amazing! I know it is "taboo" in America. But it is the most efficient way to save monies and save monies for retirement. I know it is hard for a lot of people, but it takes small steps even during tough times.

[@TheRachelShow]

I’m $93,000 in debt at 41 and have no savings.

[@kckuc310]

You need to stop spending

[@TheRachelShow]

@@kckuc310 I’ve already done that now I’m just paying for all my poor decisions in the past. I have an entire video about this on my page if you want to go watch and look at the details.

[@laurensmoneymindset]

I just watched your video and I have so much hope for you! If you want to apply for my debt confession series (link in pinned comment) I can share some ideas and I’ll link the video on your channel

[@bigshotadventur18]

Do you have a plan to better your situation

[@TheRachelShow]

@@bigshotadventur18 yes!

[@michaelearlgrey]

$75k net. This should be a pretty quick fix. Few behavioral changes and she'll be loaded in a couple years.

[@goma12x]

I entered 40 just paying off my college debt and now at 46 no debt and six figures in the bank. Not fun, work a lot of OT but turning it around is worth especially when your paycheck is not tied to paying debt.

[@laurensmoneymindset]

Love this! Great work 👏

[@TripSoul10]

Have you projected when you will have enough for retirement? Like to see you have at least $500K in retirement accounts by age 50

[@julianamartinez9737]

i wonder if her spouse also has an income. that would help her a lot

[@kiwifruitkl]

I think much of household debt or individual debt is caused by financial illiteracy. There are just way too many financially illiterate people in the world who think that credit cards just provide you with free money to buy things, and then you just have to pay the minimum balance. No... you have to pay the full balance or else it will penalize you with interest.

[@MattsGamblingSlots]

People need to understand that they cant tell someone who is past 40, in debt and no savings to stop spending. Thats the equivalent of telling a depressed person who lost so much in life to stop being sad

[@tiamat_023]

Indicative of a larger problem. Yes yes

[@Dre2Dee2]

Cant teach an old hag new tricks, as they say

[@rhondaminga3198]

She could also transfer her high interest credit card to a 0% and knock that debt down faster. As far as student loans go, look to see if her job is eligible for Public studen loan forgiveness.

[@rkw2917]

I've been debt free for over 50 years Got a pension, car, and travel at will My recommendation, do not go into debt for a car

[@victorcretu7741]

I have only bought new cars , but cheap (under $25k) and with preferential loans ( under 2.5% interest rate) I buy them new and keep them at least 8 years because in Ontario, Canada, you have to pay sales tax even for used cars you purchase from car owners. That's outrageous! They have already paid the sale tax.

[@lisawan1279]

$1200 for food is a lot. I would advise her to cut that down to $800 which is still a lot for 4 people. That will give her an extra $400 to put into paying down debt.

[@kckuc310]

People are suckers for marketing, who can afford a Tesla or any fancy car only the top 5 percent but 75 percent of the population think they can

[@mrcmid9132]

😂 lmao

[@victorcretu7741]

Having debt is not a problem. Not having savings is!

[@rhim7266]

Having no saving is not a problem. Having terrible credit is!

[@victorcretu7741]

@@rhim7266 Obviously, you do not know how North America works. If you borrow money to invest, the borrowing cost is tax deductible. If you place money into a registered retirement fund, the income tax is deferred.

[@Spirit-FilledMindset]

Forget the investing until you pay off that debt. You will be glad you did.

[@18MikeMitchell18]

I like the breakdown of priorities for money when it comes in. One thing I would say when looking at future investments, it would be wise to account for inflation. You made the assumption that she would increase her pay by 3% per year but at the same time, you know inflation is going to wipe out that 3% gained.

[@Username_CC_]

Thats the point. My raises have been barely keeping up with that but every new job I get a 20% raise. You have to keep up with inflation or get a new job.

[@ac979]

Exactly. She says she’d have $1.8M by the time she’s 65. 25 years if inflation that number is worth less than $600k in todays dollars. That’s nowhere near enough for retirement.

[@one100billneoone4]

It does take discipline and sacrifice for sure to become financially free. Also, remember to alway live below your means. I reached financial independence 8 years ago to include buying a newly built condo. I am grateful and thankful as it has made my life 100 times easier. Unfortunately I cannot say the same about my ex-wife. Oh well….divorce was her choice. Life is beautiful.

[@AppaTalks]

Great video! Thank you for sharing. I bet the phone bill has part of the bill going to those deals where you get the phone with the plan, and pay off the phone over the contract.

[@deersakamoto2167]

12:05 While it's true that average 30-40yo earns more than 20-30 but if you look at income by age stats it's not at all clear that people's earnings increase between 40-65yo (it tapers off around mid 40s), especially if you take into the fact that we are talking about someone who has zero savings at 40 (probably not great with numbers and other things that might affect people's earnings)

[@keycaru]

I can't believe you said her rent was "pretty reasonable I think" for the amount she brings in. $1200 in today's rental market is on the lower end, and $6000 a month is nothing to blink at. That's a great rent for the salary she brings in, especially in today's rental market.

[@Dre2Dee2]

600 bucks a month on childcare, lol so stupid Women will literally waste THOUSANDS just to get away from their own children. So utterly demented

[@one100billneoone4]

So where’s the husband’s income? How much is she/they paying for rent? 2 big pieces of critical information missing don’t you think? Unless that is her 1/2 of the total bills.

[@oarancards4443]

Im 60 maje 50 k a year .have 300 k in savings ,,im very frugal..my ritzy friends driving bmws are dead broke but continue to post outings at expensive joints .living a delusional life .they get what they deserve ,ok just got in my 15 yr old mazda im hsppy

[@melodyn6419]

Is it true with $20k per month passive income No mortgage No debts, you could live or travel comfortably anywhere in US or the whole world?

[@Yugiboii]

Do the math

[@travisroe9542]

Got heavy into debt with immigration and moving my wife and daughter here. Had some savings but the government likes to hurry up and wait. So ended up 25k in debt handling fees lawyers plane tickets and a new place to live. Spent the last year under this crappy economy slowly digging my way out and now down to 16k. Hopefully by tax time will be down to 4 to 6k left in debt. Hopefully after that be able to start putting away money into retirement besides my union pension.

[@119jle]

Deport

[@bushbashr]

pay it off and start an emergency fund pronto

[@Courtz843]

Do you ever give this kind of advice for people who are not struggling? Just have a lot of goals and feeling pulled in so many directions

[@laurensmoneymindset]

Definitely! I work with people in a wide range of situations. You can apply to be featured or apply to work with me directly in budget coaching (both linked in video description)

[@DLG24]

Debt is what it is. But your energy and ambition is the difference maker.

[@jaymoar3561]

She needs to pay off all the credit card debt first before even investing a dollar. Very rare an investment will bring you over 20% of returns which is the same interest as her credit card. So she would not be making any profit unless she pays off her credit card first.

[@ratedrgamer4370]

This lady is delusional. Pay off your debt first before investing a dime. That would free up lots of purchasing power

[@laurensmoneymindset]

Investing $300/year is not going to impact anyone’s debt payoff in a significant way

[@Spirit-FilledMindset]

@@laurensmoneymindset Actually it will and $300/year in investment isn't going to jack for retirement and inflation.

[@childzplay5253]

The only debt I have at 31 is a 59 000$ mortgage at 1.72% interest. on my journey to debt free, recently sold a newer truck to get out of a loan and down graded to 3 older high mileage cars. I think the key is to avoid car loans, and learn to complete your own maintenance/repairs. (The three cars total value wouldn't be over 15000$)

[@Spirit-FilledMindset]

You'll be there in no time!

[@lindadorman2869]

1. Switch to Mint Mobile phone service @ $15/mo. 2. Groceries for a family of 4 should be around $800/mo. 3. Pay off debt before saving or investing for retirement. 4. Always keep an emergency fund to cover 3 months of expenses. 5. No personal spending or miscellaneous until debt is paid off. If you have to wear old clothes, cut your own hair or whatever, sacrifice comfort until you're debt-free. Not being able to spend creates a sense of urgency to get out of debt faster.

[@brianadams6204]

You can only increase your investment amount to a certain point there is a maximum yearly contribution amount. For your 401k

[@mitchthornton1820]

Her income doesn’t add up especially since she has kids , $39000 in taxes and other things coming out of her check and none of that is savings or investments seems off to me . She should be taking home around $80k ..

[@laurensmoneymindset]

Fed and state taxes plus health insurance & FSA can easily add up to $39,000 for a family with kids.

[@Niafunn]

@@laurensmoneymindset don’t you think with a relatively high income and the fact that she needs to accumulate as much as possible, she should go traditional 401k. What shes investing in doesn’t matter at this point. 8% or 12% is incidental on 0 dollars. Tax savings, higher contribution limits than an IRA offers, and most workplace retirement plans these days have a low cost target date. Everyone touts Roth like they’re super investors and need a million options. Like they don’t pay taxes to get it in there. It is a great option, but if tax rates are the same, it actually has little benefit. Especially when somebody decides they want to invest in palladium because they heard if one candidate gets elected war will start and the dollar will collapse and there is the great depression coming. But seriously, 10% plus say a 3% match into a target date, then any Roth contribution she can make after expenses seems like a shorter path to her benefitting from compound growth. In California, my marginal rate is like 34%. State and fed combined. At about 125k/yr. Losing 35 cents on the dollar on the way in is crazy to me. I max my 401k and contribute to a Roth outside of work retirement when I have a bit extra. And Fidelity has 0.015 funds.

[@chrissycrazy4]

Hey Lauren! FYI vanguard doesn't offer automatic investing into any etfs including theirs. I was looking at m1 finance to see if it can do that.

[@Brandons125]

I use M1 and it's good for retirement accounts since any dividends seem to be reinvested right away, however, dividends don't get re-invested automatically for normal taxed accounts unless you are constantly funding the account. I think it's like a $25 minimum before the auto investment pulls funds to buy so there might be a few days that money just sits as cash before reinvested so just keep that in mind. It makes sense since they can collect interest on uninvested cash as a source of income for their 'free' tier of accounts. They did just send me an email where the free tier is actually going away and they auto charge you based on average account balance if your account falls below a certain amount, so look into that as well. I like M1 because it's simple to use, but it is in no way 'free' so just read all the fine print.

[@Polostar79]

You can auto invest into a MMF then use that to buy shares of an ETF. That’s what I do. I have $75 auto invested into VMFXX every two weeks. From there I buy fractional shares of VOO.

[@sarahpollick269]

What about her husband?? He might not be on board. His money might cover gas/misc expenses, cars, etc....

[@Nonesheit]

I have $5000 in debt and O savings age 39

[@autobotdiva9268]

she could door-dash that emergency fund asap or pick up extra shift at a hospital

[@billyfitzgeraldjnr4441]

Great video 👏

[@laurensmoneymindset]

Thank you!

[@mariaelizondo7808]

You are fantastic at what you do. I follow several finance advisers on you tube you are absolutely my favorite. Thank you!🙏

[@laurensmoneymindset]

Wow, thank you so much!

[@ivanmedina8612]

can you do this for meeee?

[@violettefemme21]

I would love to hear your thoughts on the book “Die with Zero”. I listened to the audiobook recently and it’s an interesting take on money and retirement.

[@laurensmoneymindset]

I hear about it but have never read it! Just added it to my Libby queue!

[@violettefemme21]

@@laurensmoneymindset if you have Spotify Premium the audiobook is on there!

[@KayFabe87]

Just finished reading it. Very thought provoking. The concept of spending while you can still enjoy it is great, but there are some drawbacks as well. Overall; interesting book and philosophy. If only we knew exactly how long we have so we could plan and spend accordingly.

[@ReadEphesians612]

💥 Excellent job!

[@JohnHobbs-o3z]

WHAT IS EFT?

[@_youurstrully_]

13:28 sooo true 😂😂😂😂

[@shiela_a1990]

Hi Lauren! Sorry to ask this here since I asked the same question on your other videos😅 What internet/phone company do you recommend?

[@laurensmoneymindset]

No worries! We have xfinity

[@shiela_a1990]

@@laurensmoneymindset Thank you! 😊

[@blackgrandpa7652]

Im 53 no debt i own my home no mortgage my net worth is 2 million accumulated after divorce and child support and i didn't go to college 😂😂😂😂

[@clifforddean232]

$1200 for a condo? Is she paying condo fees and wow that's cheaper than my condo and I own mine.

[@taurusthebull76]

She's renting it.

[@clifforddean232]

@@taurusthebull76 exactly $1200 is to cheap to include condo fees. That's probably an expense she forgot to add.

[@brenda994100]

I thought the same thing, considering it’s probably a 2 bedroom one since she has a child.

[@blueants-lq7lr]

Her rent is 1200$ ???? I must be living in the wrong location. Average in my part of NYC is just shy of $3000.

[@jorn3706]

You should speak much faster, so that more people can understand you. ❤

[@mohammadusman6309]

GO WOKE, GO BROKE

[@abbiealverez2960]

That debt isn't actually that bad for two of you.

[@laurensmoneymindset]

Right? I think she's in great shape to be very successful

[@jaymoar3561]

Problem is 0 investment or saving at 40. But she can definitely turn it all around.

[@Spirit-FilledMindset]

It's pretty bad if they can't get control of it.

[@Spirit-FilledMindset]

@@jaymoar3561 Not necessarily a problem. The debt is the problem. The rest can be figured out after.

[@AnnikaWheeler-ft1pn]

I’m 17 and 30 million in debt

[@carlos-ik1pc]

Onlyfans

[@smokeyjail4394]

Im dead 💀