Getting Out Of Debt Homepage

Question: Going to be in debt about $45,000 when i graduate college this december... any advice?

(Posted by: Audrina on 2009-07-02 06:26:42)

I'll be getting my bachelor's in psychology... I have about $3000 in the bank right now, and my dad's always on me about saving money and living conservatively to pay my debt, and is always on me about my money... which before made me angry but I guess he's right. I have a part- time job now and I think I'm gonna put most of my money in the bank and but spending dramatically from what I've done before. Question though, when I graduate if I find a job that pays between 25, 000- 30, 000 a year to start and keep my part- time job on the weekends (cashiering, make a little over $8 an hour) and live "conservatively " would it be enough for me to move out? I'm 23 and really want to be on my own and right now live with my parents... and my dad constantly looks at my bank account and what I spend. I just want a little freedom... but then again mabye he is right. I meant put money in the bank and NOT spend dramatically like before

Posted by: sassy2 on 2009-07-02, 06:38:26

You should have at least 5 to 7k in savings before you move. Rent, Security, utility deposits and such can run you 3 to 4k. The extra is your safety net so you can always pay your rent. Reality is a income of 30k Leaves you bringing home 21k for the year that's 1750 a month. Not much to live on when the average rent is 800 plus utilities.

Posted by: brainwave68 on 2009-07-02, 06:55:30

A lot of it depends on where you live as some areas cost less to live than others. My advice is to go get the book "The Total Money Makeover " by Dave Ramsey. Reading that will put you almost halfway towards becoming debt free. Also go to daveramsey.com and in his search engine put in drive free for life and watch the short video entitle drive free retire rich. The way he teaches everything is by doing baby steps. Step one is an emergency fund of $1000 which you have. Step 2 is listing your debts smallest to largest and then paying them off using the debt snowball., etc. It is all on his website and in the book. Also if you can go to a live event please do so.

Posted by: shnicklefritz38 on 2009-07-02, 07:29:59

You will be just fine; a great way to start out is to find a roommate, maybe someone at your first job with a two bedroom. If you consolidate your student loans into one payment it will be approx. $250 a month; well worth a decent job in this economy. You sound like a level-headed person, as long as you don't go crazy and buy a corvette, you will be able to save a little too. p.s. Dads worry, make it easier for him by making a budget and discussing it with him.

Posted by: life_guru on 2009-07-02, 08:00:58

I was in your situation way back when my dad nagged me everyday and was always reading my mail. I had no privacy. I was always good with money and he was still trying to give me advice on how i should handle money. So, I moved out when I was 20 to another state and earned ~35K. I had 20K in school loans and 18K in car loans. I also had monthly credit card bills which I paid off in full every month. I paid off my entire car loan in 3 years and I paid off all of my school loans in 5 years. This is how I did it...I lived in a cheap apartment(450$/ month) that offered free water and free sewer/ trash disposal. I turned the air conditioning and heat off. I joined several service clubs/ associations so I could socialize and avoid boredom. I watched TV/ DVDs, listened to music, used the apartment's athletic facility. I spent only 50$ a month on food, but I ate well. I used coupons, bought lots of spaghetti, tuna, ramen, chicken. I did lots of window shopping, but when I did buy clothes it was always something for work(several great quality skirts, cotton button-up shirts, and professional tanks). Good luck, I remember how much I hated being treated like a child even though I was an adult.