patmorgan235

patmorgan235 t1_iyal0br wrote

The median wage for the SF bay area is $96,000/year. So you're in the 'not poor' range but I wouldn't necessarily put your income in the 'good money' category yet.

Realizing the problem and reaching out for help is a really good sign so here's what 6oi need to look at for you next steps

  1. Stop the bleeding

Stop all new charges on your credit cards. Call the credit card companies and cancel all your cards and ask to be put on a low interest repayment plan.

  1. Take control

Start taking all your expenses, every single penny, use a tool like YNAB or Mint or just plain old excel/Google sheets. If All you're spending is on debit/creditcards. This is really easy using bank imports.

Categorize all your spending. (Make sure to differentiate between essentials and luxuries, like groceries vs eating out)

This will show you where all your money is going. Look through all the graphs of what category you're spending the most. What stores you're spending the most at.

  1. Cut expenses

Reduce your budget as much as you can.

Cook at home more. (Eating out is super expensive, especially in big cities)

Unsubscribe from all but 1 streaming service (you still need some entertainment).

If you have an expensive car sell it and buy a Nissan Altima

  1. Contemplate your relationship with money

What are you actually spending your money on? Are they things/experiences you value? Or are you spending mindlessly?

  1. Think long term

Is living in SF actually affordable for you? Are you likely to get a promotion/raise soon?(if you do 100% of it need to go towards getting rid of this debt) Can you move somewhere cheaper? Get a roommate? Etc?

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