💜 being a long time crocheter I understand the struggle. It is actually 2 hobbies. The crafting and enjoying creating and the 2nd hobby of buying all the beautiful supplies. I personally have enjoyed actually using up my stash. And to get my fix on all the new and wonderful things, I ask for gift cards to my favorite craft stores for birthdays and holidays.
💜 As someone who crotchets I understand the temptation to get yarn and notions (tools and accessories) BUT if my goal is to pay off debt I would curve that or lower that significantly. Also, I would cut the trips in the near future until I can get a better balanced budget. You're observations and suggestions were realistic, so I would follow it if I were this bestie. ETA: As some mentioned before, I would start throwing some money at those student loans while they are deferred. That will lower the balance, as well as the interest associated to them. Personally, i would look into an income based repayment plans for the federal loans. With her income she may be lucky enough to get a $0 payment and those still count as an on time payment. For those unfamiliar, in the US there is a stipulation for student loans where they are discharge (basically forgiven) after the individual makes a certain amount of payments, months in deferment dont count but if you're in a repayment plan, even if the payment awarded by the plan is $0, those count towards that payment goal.
💜 💜 💜 This is a difficult one. Changes need to be made. Maybe start a little less agressively than suggested so habits / behaviours can be changed gradually, but in a reasonalbe time-frame of 3-4 months? Cut the yarn purchases in half, spend time organizing yarn rather than purchasing new yarn or patterns. Then after a month of half the amount of purchase, do the yarn box subscription. I would have never thought of doing that and think it is a great idea. While those 2 months are happening, look at building up a stock of small items for an inventory, and find local farmer's markets or craft fairs where a table can be rented. We are coming up on the holidays so small animals, scarves, gloves/mittens, long socks, dish clothes, potholders, etc. Blankets or throws would sell too. Money from the side hustle would go to taxes, pay off debt, emergency fund, replenish yarn for further product inventory only as absolutely needed. Can also take orders for particular product while at market, and produce those. Be realistic about what you are charging for each item... cost of yarn and your actual time making the item plus a bit. And I strongly recommend paying down on the principal of the loans if it won't trigger required payments. Sometimes if you make any payment on the student loan in deferral it stops the deferral and kicks in with interest. Would have been interested in knowing what the original subscriptions were for to know if it is reasonable to cut...?. So hard to live on such a limited income, even with help from family, especially with knowledge that things will become more demanding rather than less in the foreseeable future. Best of luck unknown bestie, in making the changes needed to achieve your goals.
💜There are Americans who still have student loans at retirement so they shouldn't ignore it. 💜 Well done Ira, this would have been a tough budget for you to do as you not a fan of Dave Ramsey style budgets but this person's budget calls for a little tough ❤ and the individual to get creative about increasing income. 💜 If they don't already do this, they can consider applying for students grants even tiny ones as everything will help. The trick might be to treat the grant application like a part time job dedicating 10 hours a week to searching and writing applications which will reduce over time as they become more efficient.
Depending on what this Bestie does for work they may never have to pay back the student loans. So that’s missing information. If they won’t be paid off or forgiven due to the employment they should put $50 or $100 a month towards their student loan. I would stop buying yarn for a while to pay off the car and credit card. Otherwise your budget was great.
Great video. I think you chopping down a lot of the Sinking Funds and envelopes is very, very necessary. I also agree that they should try to sell some of the items that they make. Technically, they can't afford to have pets, but maybe they share costs with family members. Regular student loan payments start up again this month (October) so eventually they will need to start paying. Yes, this one was tough, but you did a good job with it.💜💜
The initial budget is so confusing. It’s like you brought it back to reality
💜 being a long time crocheter I understand the struggle. It is actually 2 hobbies. The crafting and enjoying creating and the 2nd hobby of buying all the beautiful supplies. I personally have enjoyed actually using up my stash. And to get my fix on all the new and wonderful things, I ask for gift cards to my favorite craft stores for birthdays and holidays.
I would forget Europe for a while. That's a lot freed up for debt.
Some big adulting-type decisions to be made for this budget. 💜
💜 As someone who crotchets I understand the temptation to get yarn and notions (tools and accessories) BUT if my goal is to pay off debt I would curve that or lower that significantly. Also, I would cut the trips in the near future until I can get a better balanced budget.
You're observations and suggestions were realistic, so I would follow it if I were this bestie.
ETA: As some mentioned before, I would start throwing some money at those student loans while they are deferred. That will lower the balance, as well as the interest associated to them. Personally, i would look into an income based repayment plans for the federal loans. With her income she may be lucky enough to get a $0 payment and those still count as an on time payment. For those unfamiliar, in the US there is a stipulation for student loans where they are discharge (basically forgiven) after the individual makes a certain amount of payments, months in deferment dont count but if you're in a repayment plan, even if the payment awarded by the plan is $0, those count towards that payment goal.
This is fantastic priceless advice I hope they follow this as it will make their life now and future very bright and fruitful 💜💜💜
💜 I’m in the US and I think this is a good plan! Those are some huge student loan payments lurking in the budget.
Love this series.
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This is a difficult one. Changes need to be made. Maybe start a little less agressively than suggested so habits / behaviours can be changed gradually, but in a reasonalbe time-frame of 3-4 months? Cut the yarn purchases in half, spend time organizing yarn rather than purchasing new yarn or patterns. Then after a month of half the amount of purchase, do the yarn box subscription. I would have never thought of doing that and think it is a great idea. While those 2 months are happening, look at building up a stock of small items for an inventory, and find local farmer's markets or craft fairs where a table can be rented. We are coming up on the holidays so small animals, scarves, gloves/mittens, long socks, dish clothes, potholders, etc. Blankets or throws would sell too. Money from the side hustle would go to taxes, pay off debt, emergency fund, replenish yarn for further product inventory only as absolutely needed. Can also take orders for particular product while at market, and produce those. Be realistic about what you are charging for each item... cost of yarn and your actual time making the item plus a bit.
And I strongly recommend paying down on the principal of the loans if it won't trigger required payments. Sometimes if you make any payment on the student loan in deferral it stops the deferral and kicks in with interest.
Would have been interested in knowing what the original subscriptions were for to know if it is reasonable to cut...?. So hard to live on such a limited income, even with help from family, especially with knowledge that things will become more demanding rather than less in the foreseeable future.
Best of luck unknown bestie, in making the changes needed to achieve your goals.
💜💜💜 tough budget. Great job walking us through it.
💜There are Americans who still have student loans at retirement so they shouldn't ignore it.
💜 Well done Ira, this would have been a tough budget for you to do as you not a fan of Dave Ramsey style budgets but this person's budget calls for a little tough ❤ and the individual to get creative about increasing income.
💜 If they don't already do this, they can consider applying for students grants even tiny ones as everything will help. The trick might be to treat the grant application like a part time job dedicating 10 hours a week to searching and writing applications which will reduce over time as they become more efficient.
💜 Great budget with the information that you have. Best to plan for the worst which is what you have done.
Great plan again ❤
I get less than that a month. I had to give up my hobby for now. Due to more medical bills.
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Depending on what this Bestie does for work they may never have to pay back the student loans. So that’s missing information. If they won’t be paid off or forgiven due to the employment they should put $50 or $100 a month towards their student loan. I would stop buying yarn for a while to pay off the car and credit card. Otherwise your budget was great.
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❤ good evening how are you doing today
Great video. I think you chopping down a lot of the Sinking Funds and envelopes is very, very necessary. I also agree that they should try to sell some of the items that they make. Technically, they can't afford to have pets, but maybe they share costs with family members. Regular student loan payments start up again this month (October) so eventually they will need to start paying. Yes, this one was tough, but you did a good job with it.💜💜
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