How do I dig myself out of this financial pit?

[LonelyAndBig]

I make $70,000 a year. Yeah, it is not that incredible, but for a single man (no dependants) without any formal degrees, you would think my salary would boost me ahead.

I am a frontend engineer. I work full time and I enjoy what I do. I work from home and have plenty of flexibility that most others would not have.

Sadly, I am in a financial hole. I am living paycheck to paycheck. I still live at home. My credit is shot and I cannot afford to rent an apartment or buy a house.

I have 3 mandatory monthly payments:

• My 2009 Class A RV that is $915 a month (I live in this thing in my mom's driveway for now)
• My 2017 Honda Accord that is $350 a month
• A Honda Civic that my dad uses but is under my ownership and credit, costing me $202 a month

So while I should have plenty left over, I lost my last job for 2 months before I gained this newer role. I racked up credit card debt and had to abandon my downtown studio apartment.

But I have had this job for over 3 months and still playing catch up.

Of course, everything is incredibly expensive, especially the basics like food and gas. Inflation is terrible (thanks Fucktard Joe Biden).

I feel like I cannot get ahead.

[MrOracle]

Unfortunately, you had put yourself in a position to fall behind in your quest to "level up" - a very, VERY common mistake and one that modern society encourages and expects - and very simply, now you have to work your way out of this hole, and that's going to mean some sacrifices for a while.

Western society is built around the concept of nuclear families, but we've let our nuclear families be destroyed. Women have been encouraged to get careers, and are increasingly encouraged to stay single, which means there is twice as much competition for jobs (which lowers salaries), and twice as much need for housing (which raises housing costs). And houses are much larger and built with far more luxury today than 50 years ago, because banks will loan far more money, because it will make them far more money. This has driven housing costs up for everyone.

In the 60s, you could have bought a house, spending about 20% of your take-home pay on mortgage payments. Today, you're spending 60% of your take-home pay on rent, or, now, on a rapidly depreciating RV that will constantly need repairs simply because RVs are lightly built and aren't designed for full-time living.

You're going to have to start by cutting your expenses as much as possible, and pouring every free cent into paying off your debts - highest interest rates first. Debt is poison, so you've got to stop the financial poison as soon as possible. Once you have the debt paid off, then you need to build up some savings. At the bare minimum, you need 3 months worth of expenses in your savings account. Then, and only then, do you even consider your housing situation - and if you're changing it from your RV, you need to save up separately for deposits/down-payments (don't touch your emergency savings).

If you can, find a roommate. Having someone to split bills with is a huge force multiplier. Be happy that you can do that already to some degree with your parents, but that ride won't last forever. You need savings. You need investments. You need retirement money.

All this may mean that you need to find a way to move up in your career - or that you may need to take some freelance work on the side or something. Keep yourself busy and earning extra money, and dump that into your debt hole to fill it sooner. The busier you are, the less you'll be tempted to spend money on yourself for entertainment. The advantage you have right now is that you are young and full of energy. Use that advantage and figure out how people in your industry level up - where do they go, what type of positions do they move to, etc? Follow that path. Don't be satisfied with $70,000/year. Figure out how to double that, and then double it again. It won't be easy, but what is?

[LonelyAndBig]

Would you say my salary is "good" or "decent" though for someone my age (under 30)?

[LonelyAndBig]

... actually, after conducting a brief search, the average salary for a 28 year old is $47,399.65 and the median is $39,005.00. So I am doing very well for my age, right?

[MrOracle]

Probably, but it's also HEAVILY dependent on your location.

On another board I'm on, several times a year, there will be guys from the Midwest asking if it's really true that programmers can make $125k starting salary in California, and I tell them it's absolutely true. BUT... I also tell them to jump on Zillow and take a look at what housing costs.

For example, this 1500 sq. ft. tract home built in the 1960s sells for a mere $2.5 million dollars in Cupertino:
www.zillow.com/.../

And this isn't some ritzy high-end gated community - it's a 60s tract home development. But Cupertino is where Apple's headquarters is - and pretty close to Google and many other Big Tech firms - so prices are crazy, and thus the higher salaries. Even a 450 sq. ft. studio apartment in the areas is $3000-4000/month, and there are waiting lists.

Location plays a HUGE role in your salary.

[LonelyAndBig]

That is very true. Although, I live in the Southern United States, and my state has no state income tax.

[MrOracle]

So, if you live in or close to Miami, Orlando, Atlanta, Memphis, Houston, etc. - i. e., "money towns", then your salary isn't so great, but if you're away from those "money towns", then you are doing pretty well. But you can always do better.

[Guy13]

Too many toys and not enough saving. 33% of your income should be getting saved. Sell one of the toys. Never better time with shortages of used cars.

[LonelyAndBig]

A car is not a toy, it is an essential, especially because I live in the suburbs and of course there are no bus lines here.
Now for the RV, yes, I feel that was a stupid mistake. I thought I could travel and move around places nomadically for cheap. But I realized, by the time I pay my monthly payment and a spot to put it (also the maintaimence and fuel), I am paying more a month than an apartment or house payment. Sadly, it is worth less than what I owe, so I am upside down.

[Guy13]

You’re not willing to listen and this is why you are where you are. One car and RV goes right into credit card debt. There is no way 1850 deposit twice a month should be living like this. Get a weekend Lowes or Bojangles or something if you keep all the toys. Family can function in one good car. That’s spoiled silliness suburb comment. 40 miles to PHARMA company and my company in a. 2012 298,000 mile Mazda and get dementia to his appointments. You do NOT mean it.

[LonelyAndBig]

My dad does not even live at home. He lives in another city. My mom has her own car. I use mine to travel between my mom and dad's places.

[Guy13]

You said your dad has the civic in your post. I’m going by what you wrote.

[MysticAngel5000]

You live at home... but you live in an RV in their driveway? Is there a reason for that? Why can't you just live in their home temporarily until you rebuild? Selling the RV would be a huge saver.

You mention that you pay for a Honda that your dad primarily uses but it is under your name/ownership. Why is this? Why are YOU paying for a car your dad uses/wanted? Does he not have the ability to pay it? Could you work out an agreement - like it stays under your name and you pay it, BUT your dad pays YOU back for it? That seems fair.

The credit card debt is your main thing you need to tackle and get knocked down. It can be messy, but it's doable. Just how deep in the hole are you? Start looking into solid methods to get that paid off.

Budgeting will be your bestie. Sit down and write out how much money you bring home per week or however often you get paid. Then, minus all your true necessities from that total. Budget for weekly food, gas, bills (car payments, cell phone, credit card debt, etc.). Whatever you have left after that is your "fun money". I'd also suggest you place at least SOMETHING back in savings, even if it's only a small amount at first (aim for even 5 or 10 bucks out of each paycheck until you can afford to do more).

You can always do some side hustles to boost your income until you are more comfortable. You can do Doordash, sell unwanted items, etc.

There are ways to build your credit. Look into easy methods and go from there.

It takes time, but you will get there. Keep on keeping on and be patient with yourself.

[LonelyAndBig]

I wish I can sell this RV. It was a huge mistake getting this. I cannot sell it now because I owe the bank more than the RV is worth, meaning I am upside down on it. The bank will not hand over the title to a new owner unless it is paid in full. Meaning, if I were to sell the damn thing, I would have to cover the difference and lose money.

[LonelyAndBig]

... also, just tried registering as a dasher for Doordash. They are not currently accepting any new dashers at this time due to popularity and they put me on a waitlist.

[MysticAngel5000]

Well that sucks with Doordash. I have heard some areas are really hard to find openings in. Sounds like you will just have to deal with the RV and chalk it up to a learning experience. Maybe someday you can either sell it OR keep it once it's paid for and use it for some fun traveling.

I would suggest looking into other side hustles then. You could try Grub Hub, Uber, etc. Or you could simply do odd jobs - mow grass, gather leaves, remove snow, clean gutters, walk dogs, wash cars, etc. If you are crafty at all, people are always into that. People love DIY/handmade stuff. If you have any wood working talents or just have a crafty gene, try to make some crafts to sell. Even just getting a real second job can help if your regular job allows that time-wise. You could pick up a second job in the evenings pretty easily at a fast food place or a local grocery store I'd say.

Best of luck to you! I hope you start having better luck soon!

[Anonymous]

Sell one of your cars or the RV, or get a part time job. That way you’ll get to meet more people too.

[exitseven]

Things are bad now for everyone. I think America's best days are ahead. Just tighten up your budget and try to pay down your debt.

[TheSpaceGnome]

Stop paying for 3 vehicles, thats your problem.

[LonelyAndBig]

For the most part, my dad pays for the vehicle that he uses. It is pretty much his but under my name. Sometimes I have to chip in and help. His credit was too poor to qualify for a car himself, so they had to use mine.

[LonelyAndBig]

... plus, I want to get rid of my RV, but I owe more on it than it is worth, so I am upside down and cannot sell it. The only way to get it off my shoulders is a voluntary repossession, which will crush my credit for 7 years.

[TheSpaceGnome]

You could sell the rv just to transfer the debt/loan, that wouldn't ruin your credit.

[art84]

Ask your parents for help or sell the VR to help pay for your car payments.

[LonelyAndBig]

I wish I can but I owe more than it is worth. Meaning, I cannot sell it unless I sell it for what I owe, unless I have the means to pay for the difference. The bank will not hand over the title until everything is paid in full.

[Googlemyahoo]

Sell everything. Buy a cheap shitbox good enough to get to work

[Anonymous]

Dude you make 70k. You’ll be fine asshole. 🙄

[LonelyAndBig]

You don't make more than that at 40?

[Anonymous]

So you are blaming Biden for debt you created.

[LonelyAndBig]

He certainly hasn't helped with the cost of groceries. I could have a few hundred dollars more in the bank.

[LonelyAndBig]

I went to the grocery store the other day and purchased crackers, feta cheese, and peanut butter cups. My bill...$17!

[TheSpaceGnome]

As much as a dislike politicians, thats technically not biden's doing, thats the result of trade getting delayed globally from covid related shutdowns, resulting in hyperinflation everywhere, both before and after biden took office.

[MysticAngel5000]

Things definitely have increased. I go to the store for basic items and end up spending 70 bucks no problem. Gas is insane as well!

[LonelyAndBig]

@TheSpaceGnome I don't know if you were paying attention, but gasoline prices began to increase the moment Biden took office.

[TheSpaceGnome]

No, I didn't pay attention to that, I don't personally need gasoline for anything.

[FunkyMonkee]

There's always prostitution.

[LonelyAndBig]

I can't manage to get laid to save my own life.

[FunkyMonkee]

Join the club!

[maximumpower]

Look up "Dave Ramsey."

[MrTaboo]

Dave Ramsey 7 steps