So I have been lurking for a couple years now and even posted a little on another acct, and it doesn't seem like I am getting any better at saving money, never mind be able to become mustachian. I haven't been losing money like in the first part of my life due to 0 financial literacy growing up etc. This is is pretty silly that I feel like I have made improvements but I assume this will make most of y'all sick to read.
To jump in:
M(28)
Live with GF(28) who is way better off(has a great 401K, no debt, $100K+ in savings)
Income after taxes:
$33408 gross
$12000 gross in commissions(this varies by month, but this month was $1300)
I average $20-25/hr driving Uber/Lyft part-time(have not been doing this because just got burnt out working 70+ weeks with school)
I am aiming to only do 20/hrs/week:
$1600/mon
Breakdown of uber
Gas Spent: $480
Car Expense: Tires $508(80K tires from Les Schwab, one blew so I had to replace them all)
Earned: $5700 in 7months.
10Kmi driven, most for ridesharing
(Side note on Uber: I know that MMM and many others do not think this is a good idea, I have weighed the pros/cons on this and believe it is worth it. Like any independent contractor you are responsible for being successful as a driver and maximizing earnings. I believe I have done this by the car chosen, times driven, tips earned etc. I would prefer not to get any facepunches on this specific topic, there are plenty of other options, like a lot)
My goal between commissions and driving is to top $5k after taxes. This is far more than I have ever made and yet it still feels like it goes in one side and out the other. To make matters worse I am attempting to start a business in 18 months and I have to be saving/have good financial acumen by the point.
Expenses are pretty large and I am not sure which I should put on hold till after the business is up and running in 2-3 years.
Hello so I wanted to break the debts down in a simpler way so they are easier to read:
Student loans from federal gov:
$33410 @ 5.25% interest is deferred while taking 6 credits or more
State student debt:
$5348 @ 12.5% no deferrment
Car loan
$10748.59 @ 15%
Min Pay $263/mon
Mortgage
$134,000 @4.75%
Min pay 767/mon
Monthly Expenses:
HOA $375/mon
Internet: $43/mon
Insurance: $224/mon
Subscriptions:
Netflix: $11.99/mon
Youtube: $9.99/mon
Amazon: $5.99/mon
PocketGuard: $3.99/mon
Credit Cards: $1046
Student Accounts: $5348 at 12%
Toyota Prius Purchased because old car died: 10748.59 at 15% and 263/mon min
(I know it's insane for this forum, but having a car that I can trust to turn on each morning is necessary to get to work etc. and I plan to pay it off quickly by using it for Uber[$5500 made since Jan])
Mortgage: $1000/mon (Me and the gf are doubling up on payments to get it paid off more quickly, at this rate it will take 8 years)
HOA Fee: $375/mon (It's shitty but we almost got hit with a loss assessment because the complex pool started leaking on to the street)
Internet: $43/mon(had to haggle for 75min with Comcast to get the cheapest. They charge $13/mon for modem rental, I haven't gotten a replacement purchased just yet.)
Insurance: $224/mon
Prius: 93.24
$1million Umbrella: 10.33
Life Ins for me and Gf: $72/mon
Disability for me and Gf: 37.58
Entertainment:
$9.99 for Youtube premium
$11.99 Netflix
$5.99 for AmazonPrime
Education:
I am still trying to average 6 credits per term which is approximately $375/mon
I will try to go to a less expensive school and where it will be approximately 175$/mon
Student loans: 33,421
While I am in school the interest on these is deferred. Otherwise the payments are $300/mon at 5.25% It creates a weird situation where it is essentially better to be in school then out.
Student loans 5348 at 12%
These are a major focus and accrue interest regardless.
$86/mon but obviously I want to knock this out asap.
$1086 in credit card debt that will go away in the next paycheck or two. I have about $2500 in available credit that I use as an emergency fund.
$200/mon for groceries over the last 3 months.
$100/mon for fuel/car costs (have a service contract that came with for no charge for any major repairs for 10K more mi)
$59.99 for Gym. I have a home gym now
$200/mon for fun. This varies a lot(took an anniversary trip that was $300+)
3.99 for budgeting app. I have been using the PocketGuard app for tracking expenses for about 2 months now. It is fantastic because it tracks CCs, cash and even Venmo. It uses AI like YNAB but is much better at it and can show the data in a variety of ways. It also allows you set goals for budgeting, debt payment etc.
I think if I could coalesce my questions into one idea is how do I get ahead? I am looking at this and immediately seeing areas that I need to improve drastically, but many things could be worse. I have tried working 70+ hrs/week but then I am stressed or will miss payments which hurt me further, or I lose self-control and spend "comfort money". How do you work 70+hrs a week, be exhausted but still manage your money correctly and stay motivated. It seems almost impossible.
Basically I am just tired of feeling like I have to spend money for things that will hurt me in the long run. For example, bachelor party that was planned last minute and now will cost $400. It's not because of other people either. I feel like I am trying to play catch up for all the mistakes I made as an 18-21 year old in school. And the harder I work to try to catch up the more shit comes up. Example: Because I am making enough money now, the student loan servicer is now forcing me to either stay in school or pay 300/mon and accrue 5.25% interest. And the harder I work to get ahead the more money I spend to pay off old mistakes and it feels like I am no further ahead then two years ago.
I know I am lucky to have a house, be able to make 60K after taxes considering how I grew up but the mo money mo problems is my exact mood right now.
The biggest reason I am trying to start over on the mustachianism system is that I am finally able to take a breath from the last year and focus on the next project. Backstory: About 5 years ago I was living out of a van that I drove for work(not by choice). Working for a very unscrupulous boss who paid solely on commission that the people I managed made. Meaning I made nothing because buying them lunch and fueling the van completely ate up any income I earned. It wasn't a specifically conscious decision but I decided to change everything and over time the HOW has settle into three stages.
Stage 1: Just get a place to live, and food to eat. I became a wildland firefighter and actually did fairly well, except all the money was gone as soon as I made it. After two years of this I realized I needed a better career because WWF is not sustainable. You are gone for six months out of the year and the other six months you are unemployed.
I decided to try and go back to school or find something that would pay year around and allow me to grow.
Stage 2: Be at the same level as a modern American. This is where I am at now. I have a less than 10 years old reliable car, own a house, make above average money etc. This last year has been a whirlwind but I need to work harder and faster if I am going to get where I want to be. Looking at government statistics, there's about a 90+% chance I will never make it to stage 3.
The purpose of getting my own business is to move into Stage 3. This is where I believe a lot of mustachians are: no debt, 100K+ invested, on a clear path to FI. In order to get to Stage 3 I have to save up approximately $20K, take over a business from the previous franchisee, greatly succeed for a year to be given a permanent contract, then focus on actually generating income until I get to the goal range which is approximately $200K/year. The timeline on this is 36-48 months minimum. In 8 months I have the opportunity to start this process, I have gotten so much better at managing my finances(yes it could be worse than this) but I have also slipped back into shitty old ways a lot and I can't do that anymore.
I feel lot of pressure as well to stay in school from the GF's family(they are in order of closest relation: doctors, lawyers, tech millionaires, engineers, and CDC researchers. It's great...). I want to finish engineering(environmental/energy systems) but it's really just not feasible right now. Does anyone know how to deal with this kind of situation without embarrassing the GF?