Hey everyone, I’m in Vancouver, Canada, and I’ve been struggling with figuring out a good budget plan. My expenses are pretty low, but I built up some serious credit card debt during a tough time when I couldn’t find work. I’d really appreciate any advice on how to manage what I have and get on track. Here’s my situation:
Take home: $3,700 (wage + side gig)
Credit card debt: $14,570 at 20.99%
Personal loan: $7,000 (no interest, $100/month minimum)
Bills:
Amazon Prime: $12
Adobe: $89
OBS Studio: $16
YouTube Premium: $19
Kindle Unlimited: $11
Cell phone: $84
Car insurance: $160
Rent: $660
Debt:
Current minimum Visa payment: $330
Personal loan: $100
Variable expenses:
Groceries: $350
Gas: $120
Wax: $73
Travel (visiting family): $50
Car maintenance: $30
Makeup/clothes: $50
Christmas/birthdays: $60
Fun: $____
Emergency fund: $____
I know paying down the credit card debt is a priority, but I also feel like I need to start saving, even if it’s slow. I don’t want to have nothing to fall back on if I lose my job again. I’m OK with being strict on my budget, but I also want to be realistic. Going with no fun money at all sounds like a bad idea. Any tips or suggestions are appreciated!
It’s a good idea to trim down non-essentials. You might want to reconsider YouTube Premium or Adobe if you really don’t need them. Try to make sure you’re putting as much as possible toward the credit card debt to get rid of that interest.
@Hunter
I need Adobe and OBS for my side gig, so those are non-negotiable. But you’re right, maybe I can cut back on some other stuff. Thanks for the input!
I get the need for some fun money, but I would try to make it as small as possible for now until you can get ahead on your debts. Even if you just dedicate a little bit more toward the credit card, you’ll be amazed at how fast the balance goes down. Maybe focus on free or cheap ways to have fun while you tackle that debt.
@Bao
I think I can manage that for a while. It’s just hard to find a balance where I don’t feel like I’m cutting everything out. I’ll see where I can trim down, though.
If I were you, I’d focus on building a small emergency fund first, just to have a bit of peace of mind. Maybe aim for one month of expenses ($2k or so) and then put everything else toward your credit card. You’ll feel a lot better knowing you have something set aside.
I’m also in Vancouver and I can relate to how expensive everything is here. Try meal prepping to cut grocery costs a bit, and maybe walk or bike more to save on gas. Those little savings could go a long way.
If you have a decent credit score, it might be worth looking into a balance transfer credit card with a lower interest rate to help pay off that debt faster. That could save you some money on interest while you work to pay it down.