Spends $3k on Food and $239k in Debt | Millennial Real Life Budget Review Ep. 22
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- เผยแพร่เมื่อ 16 มิ.ย. 2024
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🌟 Millennial Budget Review! Couple faces $239K debt. High earners, high spending on food ($3K/month). Emergency fund: $250. Justine advises $27,519. Debt plan: $2,200/month. Target: debt-free in under 5 years. Mini-rewards crucial! Subscribe for financial insights! 💸🚀
Chapters:
0:00 Intro
1:41 Couple Monthly Budget
2:38 High Mortgage
3:22 Grocery
6:53 Get a Spending Tracker workbook
7:20 Emergency Fund
11:14 Debt Plan
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At least they were honest about what they spent on groceries and eating out. I think a lot of people lie about it.
I wouldn't say they lie, they just don't know and don't look to find out.
This screams lifestyle creep. The 4k mortgage, the house cleaner, over a thousand on restaurants after already spending over $1600 on groceries, $1200 on clothes. Maybe this was an “off” month, but damn.
I have a similar student loan burden and income and I would never spend this much so frivolously. Curious what their retirement/investments look like.
Nothing saved. They spend everything and more.
$350 for cat food? That's more than my groceries🤣🤣🤣
My dog requires a prescription can food. His food cost $110 per month :( with our cat it is $35. so we spent $145 a month for pet food. I can't imagine what kind of food they feed the cats that cost $350....
Maybe they got their diaper and cat food categories mixed up. 350 dollars for diapers is more believable.
Yeah but they’re rich and you’re not.
Oh wait. JK. They’re keeping up with the Jones’s so they spend like they are Bill Gates. A man with no bills is a rich man.
@@dreindenver798 Maybe. How can a cat, any cat, possibly eat $350 worth of food? My grown son and I only spend $300 a month for food.
I'm hoping they have multiple cats lol. Maybe on a prescription diet? No idea, but that's so expensive
Most jobs are losing value daily with massive layoffs, Last year I was working full time budgeting groceries, unable to afford date nights, and missing time with my kids just to make extra money. These days I learn how to make money online, Using my job to finance my goals, You can't be an employee forever everyone should know by now, making extra cashflow interest everyday or weekly should be the goal now.
ensure you add value to your life first not always to your employer, everyone is replaceable. I am always making sure of this to ensure my own sanity and future security.
After the massive layoffs, I have defaulted on debts, my savings are lying waste to inflation and my portfolio losing gains everyday. It’s all leading to financial exhaustions and depression.
Big ups to everyone working effortlessly trying to earn a living while building wealth even after the massive layoffs. My wife and I we are both retired with over $2 million in net worth and all paid off debts. living smart and frugal with our money, made it possible for us this early, even till now we earn passively with our asset coach.
Adapt to a lifestyle, be thrifty, set a budget, save money and build more streams.
Fine steps! you could also take advantage of some growth stocks at the moment, every pro is currently bagging some digital dips. For me, my coach Margaret ann myatt my advisor has been using every opportunity to ensure I benefit, well positioned as I’m also privy to improve.
Protect yourself against your job, Run a side business or contribute to an open earning project streamline that is unrelated to your day job, that way you develop an independent skill against layoffs.
Madness, with the cat food, bloody cat costs more to feed than me a month 😂 couple needs an huge “get real”’moment. They could be so wealthy with no debt, it’s ridiculous.
Maybe they have 10 cats 😂😂😂
If you have a high income. You have no one to blame for yourself. If you have a low income. Good luck to you.
sick input brother.
I'm doing the Dave Ramsey baby steps. Using the Snowball method of paying off debts, they could easily clear the credit card in 2 months. They need a good hard talking to on the size of their grocery bill, that's insane. $1000 on restaurants and eating out when they're this deep in debt is just unacceptable.
You tell em Karen.
@@robertpetersen436 can you not be rude and misogynistic to strangers online please.
@Jess-T read the room karen. Your comment was rude.
@@robertpetersen436 once again, please could you not speak to strangers with disrespect. It's not ok for you to come online and call women names.
@@robertpetersen436nah she’s right, ur an asshole.
With 15k a month take home, in 5 or 6 months of self control and going Dave Ramsey these people could get rid of the credit card debt and have a good start on an emergency fund and probably a good start on paying down the car.
The 25-30% guideline is for all housing expenses, not just mortgage. So that includes insurance, taxes, mortgage payment with interest, and utilities (which to me includes Internet since pretty much everyone has it).
25-30% of net income for all housing expenses is pretty much impossible for 90% of home owners (at least in Germany that is). The median income per month over here is about 2.200€, which would require your housing expenses to be around 650€. Now with where mortgage rates are, that might get you half a bed in a burned down shed in the countryside.
Awesome content; a very good example of it’s not about how much you earn in salary, but how you manage your money. Appearances could be deceiving.
This is such a great series! Even just watching you review someone else's budget helps me make decisions about mine.
You should watch Caleb hammer he makes this video as his main topic
As someone who lives in Rhode Island and has kids, Rhode Island is not a super cheap cost of living area because of our proximity to Boston haha. For daycare especially, we don't have that many so the costs are super inflated (esp near the hospitals). We pay $3300 for two toddlers.
Mortgage is debt, so truly their debt is probably hundreds of thousands more...
For sure! My review videos focuses on all debts outside the mortgage, so I don't include that.
Mortgage is not always an issue even though so many people on youtube seem to be really hung up on it. ie, a self employed, high earner could defer tens of thousands of dollars in income into a retirement account. That deferment can increase net worth well over any losses to mortgage interest, while also being available as an "extended emergency fund" for things like income loss.
You don't even have to be self employed. My wife and I work regular jobs but defer enough income every year to add almost $30,000 to our net worth in tax savings and matches. That more than covers any interest we are paying (that is not including market returns and company matches, which significantly increases the value of this move). In example: we bought a new house in 2018 and within only 3 years we had added enough to retirement accounts to "pay off" the mortgage (I put that in quotes because that's not exactly how I would do that if I lost my job, only that there is enough there to not worry about it). We would not have that much money accrued if we instead were trying to pay down debt with after tax cash. This is like a "tax snowball" and it can be very, very potent .. but I never see anyone talk about it.
The 100% debt free thing isn't always the way to go, mathematically. in fact there a lot of scenarios where prioritizing income deferment instead of paying off debt puts you hundreds of thousands of dollars ahead. I believe Ramsey would argue that keeping debt around is some kind of "risk", which is true when you are keeping debt and not saving OR debt leveraging multiple houses or something, but carrying one mortgage on your own house while socking away 20,000, 40,000 or more annually in retirement accounts? I don't see a problem there. If you are in a high enough tax bracket (we pay almost 34% fed and state), income deferment can be a clear winner and quickly build up enough reserves to no longer be concerned about paying the debt back. Our mortgage certainly doesn't bother me.
I love this series.
Really good video. Nice work.
Good for them for trying to improve.
That’s what daycare costs here in Boston. In fact, unless you can find a home care situation, a lot of places cost more than that.
been looking for my first kid in May. Cheapest I've seen was $2500 and the wait-list is long so we probably won't get it smh
Omg I am so nosey and would LOVE to hear their response to this!!!
You would like Caleb Hammer's show then.
@@annemarie3636Only if you want to hear Caleb screaming at 21yo aspiring actors who just make excuses for 60 minutes to get name recognition. That channel went from useful to financial Jerry Springer.
Absolutely amazing series. Love how people spend their money, like wow look at cat food lol.
Why do I see so many high earners wasting so much money? It's almost like the more people make the less they can actually budget their money. 😢
This is why I am not always convinced that people need to earn more money to be able to able to live more comfortably and save and buy a house and all that stuff that fits into that American Dream.
More money means nothing if there is poor money management. How do lottery winners get bankrupt?
I see people that make a lot of money have nothing saved, and people with average income have more money to their name and live comfortably and still feel like they can achieve many lifestyle goals. Money is a great tool, but it doesn’t replace you as the driver.
I'm glad they're trying to improve their budget!
I can't lie, sometimes i watch these videos & unconsciously realize my situation isn't that bad. 😮
My dog may get $350 of food in a year. In a month? Absolutely not. 😂 we'll both be homeless.
$1500 a month for groceries is average for us - 2 teenagers, 2 adults, extremely expensive area (Vancouver region in BC) and rarely eating out.
Yeah, but that’s $1500 Canadian, and even after the exchange rate groceries are more expensive in Canada on average, I’ll be that’s more like $850/m if in the US
$1500 Canadian is basically free in America. @@nodsib
Yeah not true. You are basically feeding 4 adults with higher cost in Canada. They have two adults and a tiny person that doesn’t eat much and they double your cost. They are just spending poorly
Keeping up with the Jones is EXPENSIVE !!!!
No shade, but why do financial channel folks not have any concept of what parts of the country are expensive…Rhode Island as a low cost state? What? $100 spent on clothes is high for a family? I out back a fast fashion hoodie at Target today b/c it was $45…
Freshly subscribed! I'm so relieved to find women who talk finance. Some of the other channels I've been watching (hosted by men) have become more and more unhinged as the months pass. I appreciate this content!
I think I know what channel you’re talking about 🙃
I think I know, too. Thanks @JKRBW .. I'm not trying to openly bash people on their budgets. You're gonna get my raw reaction AND I genuinely want to help people see their way out by offering some coaching during these videos.
Why? Is it because men intrinsically understand the biggest debt trap is .....women. Is that what pisses you off?
@@1969bones69a good woman is an investment. You’re sounding a little sus.
Finally a woman talking about personal finance and also finally someone on TH-cam who doesn’t talk down at people
Nice work
My family’s monthly budget is $800 for groceries and $400 for restaurants(and our household income is about 50% higher than theirs). I feel guilty about the $1.2k total. But looking at their budget, I feel much better 😂
Their cats are eating better than most Americans.
Thank you being a change agent in this world!! You are and always have been amazing. I'm glad they took the time to put a budget together to make things real for them. I look forward to them making the changes for the better 🎉🎉🎉
$350 monthly for cat food? Insane!!!! What about their monthly retirement, HSA, etc. savings? Is this $15,000 income monthly AFTER putting in the maximum for all retirement, HSA, etc.? If not, they got lots of work to do.
I appreciate that these people probably work so many hours at their intense jobs and they probably don’t have the time to cook. This is one of the draw backs of two parents working full time. But they can still eat out less. Trader Joe’s, Costco, and even regular grocery stores have lots of options for pre made meals or frozen options to avoid eating out. Having kids, your own business, and not having an emergency fund is an EMERGENCY.
My dad has two old Bentleys that he paid 50k each for both.
So it’s very easy to get into so much debt
That’s how banks make money not when you pay cash no fee interest
We have six cats and we spend around $350 a month on food, litter, treats.
What I just watched was not a budget. Budgets have limits and sacrifices, neither of which these have such as not going to to resturants for example. They broke through all their allocations and they have allocations for everything, not a family focused on getting out of debt. An income of $180000, a huge shovel! Success can be done if can get in control.
Why have such a high car payment. When they haven’t paid off student loans? Bet they felt the need for a big honking SUV for one child and to keep up with the Jones at daycare drop-off.
@6:00 uou said the emergency fund had money going to it but actually they didnt put any in and that was the amount they planned to put into it
Two of my cats are required to be on a special diet (one is diabetic and another has colitis) so cat food is high for them. My other two are not required to eat diabetic cat food or dairy free cat food, but I still feed them the same food as the special needs cats since they are advancing in age. So yes, the cats food is more expensive each month. People do want to make sure their pets eat healthy.
It would be nice if you could link to the couple’s video in the description (unless I missed it).
Perfect example of high income earners and no money/no emergency fund! That's wild and truly sad. How can you make 15k PER MONTH and not even have $5,000 saved?! Stop being so burdened and chained to so much debt, they have so much wiggle room to cut their lifestyle (eating out, gym, fun money, clothing, etc). Time to eat rice and beans only and change your life (as Dave Ramsey would say). Sell that car!
Blowing almost $1,500 on hair, nails and clothes when they could be out on the street if either one suffered a job loss. Absolutely mental.
My food budget is $300 a month, and that includes eating out more then I should. $2600 is absolutely insane.
I spend $600 a month on my senior dog . That’s because she has kidney disease and needs treatments, special food, insurance and supplements . It adds up but she is my child so will do whatever I can to keep her
Same with my dog. He was, is and always will be no. 1 priority
48 percent of my net pay goes to mortgage, taxes and insurance. Of course that went up due to the increase of property taxes and insurance, but I have no debt. Basically, I have 45 percent of my net paycheck that I can spend on gas and food, but I only spend about 25 to 30 percent of that 45 percent. I bought my house in November of 2022, and it will be paid off by 2029.
When a debt is paid, go and reward yourself. Maybe a dinner at McDonald’s? That cost about $1,500.00 for two combo meal dinners.
CC debt should take priority over anything!
Why isn’t the mortgage included in the debt section? It amazes me how people who make so much money can be worse off financially than others who make less money but manage their resources better.
Might as well just keep buying houses with mortgages.....cuz apparently that's not debt.
I agree. They make more than me and I have way more money in my emergency fund than them. Their income monthly is amazing they can pay off debt and save quickly
It’s debt secured by an asset. People do in fact continue to buy homes and get mortgages on them (and then flip them or rent them out). If done strategically and correctly, it is in fact how they become wealthy.
Well a. You have to have housing so if you didn’t have the mortgage you would still be paying rent in its place and b. It is secured debt with an appreciating asset that is likely worth more than the debt. Most people in 2024 have equity on their homes and are not underwater. She did touch on the mortgage and that it is a good percentage of their total income, which is what you look at to evaluate a mortgage.
@@brentlorrilliere6057Oddly enough you just described what venture makes a lot of people millionaires. Lol.
What about their 401K, ROTH IRA, 529 or other investments? I was waiting to see if that was in their budget! Did I miss it?
In the excel it was zero dollars! They have none.
The budget planned towards it but most of their categories were over budget so the savings ended up at 0
This is the sort of story that makes me question everyone who is living paycheck to pay check. They can’t save a dollar but spend well over 7k a month on housing and food. As they sip their wine at a fancy restaurant they are crying about how they are broke.
Appears they contribute the big goose egg.
We make about 350,000 a yr but wealthy due not wasting money on expensive items!! My budget is 5,000 rent includes everything! groceries probably 1200 a month, 1500 cars, probably spend 500 or so out eat. I do live in Bay Area and everything so expensive.
$350 for cat food!?! Do they own a Bengal Tiger?
LOLOL
I don't know what kind of education led to that level of education loans, but they certainly gained no life skill in personal finance
Kitty eats like a king
Where does the term Ninja Rich come from??? Now you know!
Clearly the people in the example have more than $239K in debt since they have a $4K+ monthly mortgage payment. I agree that their food costs are nuts including the cat food (unless they have 10 cats). They also need to shop around on the car insurance. $192/mo is more than four times what I pay for full coverage on two cars.
That’s actually the norm now.
What about retierement??
Food is dependent upon where you live and what you eat. Grass fed, organic, clean, food allergies all increase costs.
I have 2 dogs and 1 cat and it cost 150 a month for food and everything else to take care of them (Pure breeds and special foods so they don't get sick). Once you make this much money, you are either working way too much to even care to cook food...I know because I work mentally about 10-12 hours or more a day and I don't want to cook (I spend 1k on food). When I physically worked, shoot I could cook and do stuff, but mental is completely taxing. I don't make 15k a month...I wish, but I do make a good amount and still can't really save.
I am kinda perplexed... why Mortgage is not considered debt in this analysis? It normally is.
Kinda weird since I am technically a millenial, but not in living in USA, no relation to USA. To me the degree of "fixed" costs spent on debt (including mortgage) is insane. All payments reach close to 50% of massive earnings of 2 people adding daycare it's even more...
I think the issue is living beyond means here, best rule of thumb is to assume your earnings are entire tier lower than they seem while buying things like car or apartment/house. Look poorer, live better - get cheaper apartment cheaper car cheaper clothes eat cheaper food...
I wonder if they have multiple cats? I have 6 (yes that's right...I won't mention how many dogs) to give them quality food costs a lot, but I can't imagine how you would spend that on just one.
I guess it all comes down to if they can afford to spend that much on their pets - and they can't with their current income/expense ratio. We all love our animals but we only can feed them what we can realistically afford.
@@chutneysmith6469 that is very true.
I don’t see any amounts for property taxes, income taxes, and homeowners insurance. What am I missing?
It might be rolled into the mortgage payment.
I work with a lot of younger (than me) folk on their budgets. What I tell all of my victims with large incomes/debt is that, yup, this is sustainable as long as you don't get sick such that you can't work anymore. Then your firehose of cash goes to $zero but you still have the debt.. Bankruptcy is then not far away. SO for the love of god, start hitting the debt as fast as you can. That CC + student loan could easily be done in 6 months, possibly 3 months if they got serious.. Then hit the mortgage. If you have the roof over your head paid for then you are probably safe from anything that life can throw at you. I didn't earn anything close to this but 10 years after I paid off the house I had over $1M in savings and retired at 52 years old.. I never sent a car to a mechanic and didn't have any kids!
Maybe I'm miss reading. They owe about 210k in CC+Student Loans. They make 15k per month. How do they pay this off in 3-6 months? Even if they get really serious.
Wow just wow. All I can say is what jumps out the most is $72 in nails and $0 in college fund. I buy Essie and China glaze at the dollar tree and do my own nails for free. This couple is insane!
Off topic but how is your skin so perfect lol
wouldnt it be better to focus on their SL payments until the Citi CC is at 0% interest but once the interest kicks in wouldnt it make more sense to shift focus onto that card?
Depends. Some cards will charge you the interest that you missed, at the end of your 0% period if it's not paid off in full.
A financial advisor I spoke to said to pay the 0% first. The other CC will keep gaining interest no matter which you focus on. Plus after the 0% period you get hit with all the interest that’s built up
How many cats do they have? That's a lot even for fancy cat food. Anything Purina is good quality for cats and dogs- hth. Also they don't pay for health insurance?
Fun should equal $0 until they are out of debt.
Lmaooo yo god bless this couple. Big baller shit right here. Go big or go home 😂
That 350usd upkeep in the pet is the real problem here.
we became debt free minus our house which is almost paid off this past month
I spend about $300 a month on cat food for 2 cats 😮💨 one of them is a very picky eater.
This is where the boomer avacado toast meme came from
“Outstanding car balance of30k geez what do you guys drive” come on you gotta know that the average price of a car is 40 K
The cat food y’all!?!
300 week for weekly store food and 100 for takeout. 1600 a month
Sounds reasonable
They better have 5 stars daycare LMAO
More money more problems... Its so true. The more you make the more you live outside your means.
It seems they don’t consider there mortgage part of the debt they owe.
30k for a car is super low in todays world
we spend 50% of our income on rent :') and it's not a fancy place and not a high-end city to live....
Cat food,litter even vet should not cost $386 / month they allocated 350 but spent more UNLESS they are doing several months stockup which is what I often do. I have 3 cats no way do they eat $350/ month !
Childcare is expensive so leave that amo0unt alone.
Food ARE YOU KIDDING ME ? You can eat well for $450 or even lower a month once you build up a decent prepping pantry with basics, purchase on sale, clearance - why waste money ? Learn to cook inexpensive meals.
Eating out $1,343 ? NO ! That is an emergency fund right there ! If you need snacks bring crackers, humus, Banana, raisins you get it think ahead ! As to restaurants, once a month maybe twice should suffice. No running to fast food twice a week or restaurant take out just because.
* Cook a protein that will make at least 2 meals 4 portions , a couple of vegetables, a salad kit, rice or potatos, and fruit and that is dinner for two nights. Make a soup or casserole have different sides each night and that is two more nights. A leftover dinner once a week and you have eaten 5 dinners - at home, inexpensive, and nutritious and delicious ! SAVE MONEY
Great concept but I could make up numbers also.
My poor cat gets 10$ a month ..am I a bad cat mom lol
$350/month for cat food? OMG!!!
They could have kept the food budget at $1400 and cut the restaurant to $200. If they do start utilizing the gym membership they’ll be spending more on food. If you cut the food budget to $1000 then just remove the gym membership that isn’t being used. Ditch the housekeeping and do better about cleaning up after yourselves - that’s next level wasteful. We have three dogs and even we don’t use $350 a month in dog food and treats.
$386!!!!?!?!? on Cat Food. I cant' even look at anything else. You're spending over $12 a day on cat food. Is the cat going out to a 5 Star Cat Restaurant for dinner each night? Does the cat have its own personal chef? Do you have 20 Cats?
My husband and I just retired. We are not concerned. We always lived below are means. Drove Toyotas. I drove mine for 25 years. Bought a house lower than we qualified for. Bought rental property. Everything paid for. Boring but no worries!😂🎉 Let's get this party started .No one was ever impressed by our cars.🤪
They think someone else will take care of their debt.
Single person, I budget 200 a month on all food groceries and restaurants combined. Most of my food is high quality direct from local farms/butchers. Meal plan, freezer prep and stay out of restaurants and don’t eat processed or convenience foods. I batch cook once a week and never spend more than 20 minutes daily preparing my 3 meals. Until last year my budget was 125, this is absolutely doable but takes effort.
Their eating out spent is beyond ridiculous. They shouldn’t be spending that AND buying groceries.
We spend $100ish a month to feed 5 cats!!! Wtf is going on there…
a shitload of money and zero knowledge how to handle it
the cat would be at the local spca
There has to be so much food waste ):
It’s amazing how irresponsible people are
These people are the definition of lifestyle creep
How does clothing come under “fun”? Especially with a growing kid. $200 in one month could be 70% of a frivolous party dress at Nordstrom, sure, OR it could be: a winter coat + warm boots + insulated pants + mittens + a hat + a scarf for a child who definitely outgrew last year’s & lives in Rhode Island. That’s $200 easy.
It's pretty normal to be a millennial and have 6 figure debt... At least if it's a mortgage...
live like king queen much? wtf
Get rid of the cat!
Is Ur background AI generated?
I never understood these financial channels and their incessant focus on emergency funds when people already have debt.
What are we trying to avoid when we have an emergency fund? We're trying to avoid situations where our spending is more than can be paid for with our income causing us to have to take out high interest debt. Whether it's job loss, and unexpected car or house fix or whatever else it may be. If we _already have_ higher interest debt, why build an emergency fund?
The $240k in debt is mainly from student loans of $200k. So real debt is only $40k. They appear to be young and their income is likely to increase further soon. No need to worry, just keep your spending at this current level, when your income increases. Many commentators want them to live much more frugally. But that means less freedom and enjoyment. Is it really necessary? Well, perhaps not. 😊