I’m 39. I have no retirement. I have started over again during a divorce. I’m constantly broke. I’m not good with money. I don’t know how and what to do to become good financially. I grew up being poor so money always has been something that hasn’t been in my life. My credit is absolutely destroyed. It’s been a wake up call and I want to learn.
I do spend a lot of my paycheck. I know it must be as simple as don’t do that. However, I don’t know how to save. How much of a percentage do I do? What are some disciplines that yall adopt? Am I screwed or is there a way out of this? Is there a way to make extra income? Any help or advice would be greatly appreciated.
Listen up, because we’re about to turn your financial life around. You’re 52, no retirement savings, and you’re sitting on $10K while carrying $20K in credit card debt? This isn’t just a wake-up call – it’s a five-alarm fire. But don’t panic – we’re going to tackle this head-on.
First off, good job landing that nice-paying job. That’s a game-changer, and we’re going to leverage it. But here’s the kicker – we’re not stopping there.
Let’s address that anxiety about your money. When you’ve been living paycheck to paycheck, seeing your bank account dwindle is scary. But here’s the cold, hard truth: holding onto that $10K while paying interest on $20K of credit card debt is like trying to bail out a sinking ship with a teaspoon. It’s not just ineffective – it’s costing you money every single day.
Here’s your action plan:
- Take $8K of that $10K and pay off a chunk of your credit card debt immediately. Yes, right now.
- Keep $2K as an emergency fund.
- Set up automatic payments to tackle the remaining $12K of credit card debt. Be aggressive – aim to pay it off within 12-18 months.
- Once the cards are paid off, redirect that money into retirement savings. Open a 401(k) if your employer offers one, especially if there’s a match. If not, set up an IRA.
- Start educating yourself about personal finance. Hit the library, find some reputable finance blogs, or take a course.
- Launch a side hustle: You need to supercharge your income yesterday. Aim to bring in an extra $1,000 to $2,000 a month. Every dollar you earn should go straight to debt repayment, then to retirement savings. No excuses.
Remember, at 52, you don’t have the luxury of time to be timid with your finances. You need to be bold and decisive. This isn’t about working yourself to death. It’s about leveraging your unique skills to create high-value work that pays well for your time.
Your future self will thank you for taking action today. Now, stop reading and go make that credit card payment. Then, set up that side hustle and make your first extra dollar. Move! Your financial life begins right now.