How Broke Millennial Budgets Student Loans | November Budget


Here’s the Video Transcript:

I’ve paid off nearly sixty thousand dollars of debt since I started my debt free journey about two years ago with 108 thousand dollars of debt I’m going to show you exactly how to use every single dollar to go towards my goal of becoming debt free one day and I hope to hire you to create your budget so that you can also meet your financial goals so you can live your best financial life [Music] hi I’m Shane envelope five and I credit videos to help you eliminate debt burn income and build wealth I’m going to walk you step-by-step through my November budget using my real numbers every millennial who doesn’t make a lot of money currently so as you can see how I’m getting closer to my goal of becoming debt-free and I hope that you will pull out your own spreadsheet or your pen and paper or whatever you use to budget so that we can both get in control of our income so that we are able to meet our financial goals and live our best financial life so if you’re ready to get started I’m gonna get started right now the first thing I do when I’m creating my budget for the month is plan out the income that I expect to receive throughout the month and so for this month I plan to receive income through four different sources two of those sources are through me being an employee and then the last two sources are through self income or self-employed income and so the first two employees type of income come from me being an adjunct professor so as you may know I teach at two different universities and so from one of the universities I get paid on a bi-weekly basis and then the other university pays me on a monthly basis I get paid on the last business day of the month then my self-employment sources of income are through YouTube so through your generosity I’m able to bring in money through YouTube so every time you watch my videos I’m able to earn some money and that money goes way towards how we meet my financial goals then the other self-employment source of income that I had it’s through instacart so typically whenever someone uses my referral bonus to sign up as an insta car shopper once they complete a few batches then they’re able to not only earn themselves a bonus but also earn me a bonus and I’ve actually been seeing bonuses upwards of $2000 recently but I do know that I’ll be paid out a bonus for this week actually that would be five hundred dollars so I’m bringing in my income through those four different sources so my total income for the month in two thousand two hundred and sixty-seven dollars after taxes so that’s after accounting for the taxes that I need to pay through my self-employment sources of income if you’re wondering what spreadsheet I am using to create my budget you guys should get your hands on this same spreadsheet because I created this spreadsheet and it’s available for you to have and so I use a spreadsheet and the great thing about it is that it not only tallies my income but also accounts for my self-employment income and so I’m able to figure out how much money I need to be saving and then how much money I have to be able to work with afterwards so if you’re interested in using this same spreadsheet to do your budget you can get it now and the link will be in the description box and also I’ll put the link in the comment section as well and if I can’t I’ll link it up here too in the cards so the next thing I do is I start to plan out my expenses for the month and usually I have my expenses broken out in two major categories so some of the major categories are like giving housing transportation insurance and debt and all of those different categories and then under each category I’ll put out the or our itemized the different expenses for the month and so we’re gonna first start off with the category of giving that’s the first thing that I do my income and so forgiving I usually ties to my church and I tithe 10% of my after-tax income and so that will be about 200 so the next category that I have in my budget is related to housing so technically the item that I have under the housing category isn’t really housing it’s storage because you might know that a few months ago I actually moved out of my apartment and then I moved in with my boyfriend but that left me with a lot of my personal items that didn’t have space for and so I have a storage unit in Atlanta that has all of my items and so I consider that my housing expense now that I don’t actually pay rent and so my rent on my storage unit is about 84 dollars every single month okay so that’s my only housing expense now the next category is or utility so there are many things that fall in other utilities but as of right now the only utility I pay is my phone bill and so my phone bill is a $78 I have t-mobile I get a lot of questions about that I have C mobile service that is on a family plan where I’m the account holder but I also just recently bought that iPhone 11 Pro so a part of that bill is not only just the service but also my installment plan for the phone so the installment plan on the phone is about $40 and then the rest of the money is the plan or my portion of the plant plan which is about $29 so that comes out to the $78 I’ve paid t-mobile every single month for my phone the next category and my budget is related to food so food is typically the expense that a lot of people struggle with and it’s something that’s been able to not only get down over time but fortunately since I’ve moved in with my boyfriend that’s actually an expense that he decided that he take on but I do cut money into my budget for food because I need to have money for food if I ever you know I’m out and about out of town or if I just want to run into Publix and grab something real quick I don’t want to necessarily rely on waiting on him to you know provide me money for that so I do put money aside and my budget for food and I put about a hundred dollars a month for food and that will for this month I know will cover like I said any runs to the grocery store but also when I go to Atlanta in two weeks because I have a job interview in Atlanta and so while I’m there I’m probably going to need to eat because my job interview is around lunchtime and so I know I will be starting once I leave that job interview and before I hit the world I’m going to need to grab something to eat so for a time like that that’s what the $100 for the month is used for anything anytime a food purchase done mate transportation is the next category in my budget so for this month I’m gonna be spending about $250 on transportation and $50 is gonna go towards gas because I don’t drive around that much now that I live in Columbus Georgia but I do need to account for filling my tank up when I go to Atlanta in a couple weeks and so that should be sufficient and then when it comes to maintenance for my car I’m gonna have to spend about $200 on mayonnaise and that’s just a estimate and so one of the things that I do in order to figure out how much money I might need to spend on maintenance is I keep all the maintenance receipts from the past I keep them in the glove compartment of my car and so that way if I’ve already had a serve son and I need a head that similar type of service them again I’m able to go to the receipts and estimate how much money I’ll have to spend on that so what I did was I looked at how much it would cost for an oil change and I also need to get the brake fluid change in my car and also my brakes there are also a few other things that need to get change like the transmission fluid but if I were to do that and also cabin filter and air filter that will run me up to six hundred dollars and it’s not an expense that I see as a major or urgent need right now so I decided to only go with the oil change and the brake maintenance and so based off of that I estimate to spend about two hundred dollars this month in car man is the next category in my budget is insurance so for me the only insurance that I pay is auto insurance and typically I do pay my insurance at the six-month mark so that I’m able to pay a large portion of the premium and then able to able to get a discount and so I actually did just pay my premium in October and so the money that you see here is actually just I guess the monthly portion of the six-month premium I put that in a sinking fund so that way when the six-month mark comes about I’m not scrambling and looking for $900 instead I have $900 already set aside earmarked for my auto insurance and so if you want to learn a little bit more about sinking funds I have a video here so that you can check them out and it’s a really great tool it’s going to show you a lot of stress and also save you some money too when you really think about it just by having thinking fund and place and so that’s what I do for my auto insurance so the expenses that fall under the personal category are my toiletries and clothing those are they without plan to pay out for this month and Kimberly said K out some of it is once again sinking funds too late for my toiletries I actually don’t need any toiletries that I can see right now I might need to buy some shampoo and conditioner but we might also be able to get through the whole month but what I do is I just put about $25 a month and a sinking fund so if I do need to buy shampoo or whatever else the only rent lotion or whatever I need I have the money set aside for that and then for clothing I don’t typically buy clothing but the women is changing and there might be a few items that I might need to purchase like I already know that I need to buy some wool socks I do already have wool socks but they’re like hidden somewhere and my storage unit I don’t know where they are and so it’s just gonna be a lot easier for me to run up the Sam’s Club where I do buy my wool socks I bet the festival sucks anyway I run up the Sam’s Club and then buy a pack of wolves socks for I don’t know five dollars and so that’s something you know that plans to buy and who knows what else I might need to buy due to the weather changing so I’m just putting a little bit money aside for that and I also think I want to get a new shirt so we’re on my interview that I have I have one shirt but I just want a different kind and this might not be enough purchase and it also might be might be a purchase that end up buying depending on what I eat out there but it’s just something I’ve been thinking about so I have money inside for clothing if I do want to buy any clothing in this month now my largest expense for the month will come from the debt category so I have student loans that’s my last step my only debt that I had and I owe about $54,000 on my student loans and so last month I did a video about my student loans talking about how I was able to get a zero dollar payment due to the income-driven repayment program and so if you’re interested in checking that out check it out here at the link above so I do have a zero dollar a month payment but I decided and I’ll talk about a little bit in that video and I’m going to take the interest that accrues on my sumos every single month because if I don’t pay the interest that accrues on my sumos every single month I will end up owing a lot more money due to interest capitalisation or the you know just the interest just stacking on every single month you know and so I want to make sure that I pay the least amount of money possible and so what I’m going to do is I’m just going to pay the interest now last month by delaying the interest stack up day by day week by week I end up paying about four hundred and fifty dollars in interest or the month and so what I’m gonna try to do is pay the interest on a weekly basis so every single week I’m going to go into my loan my loan provider website and I’m going to pay whatever interest accrues for that we actually I mean remember now that was supposed to be trying to see how much money accrues day by day so that also have a good idea of that but I’ve already failed for the week actually no I haven’t yeah so I’m gonna do that that’s gonna be a little experiment for me so I’m gonna go in today and see how much money I accruing interest every single day but I’m going to try and stay on top of the interest on a week-by-week basis so that way I’m able to spend even less money on interest overall so my estimate is that I would pay about two hundred and seventy five dollars for the month but we’ll see them my number might need to be a little bit more in order to keep my principal at the starting principle that I had once I went to retainment so that’s the goal pay on my interest every single week and hopefully that will be no more than $275 based off of all of those expenses my total expenditure for the month will be one thousand two hundred eighty nine dollars so that is less than the money that I plan to bring in for the month so that means I’ll have a extra pot of money that I can use for a number of reasons I haven’t really decided what that will be so here are my thoughts so one I can either decide to start contributing into my IRA again so if you recall from last year’s goals video my goal is to max out my IRA to the full contribution limit 2019 which is six thousand dollars I think I was only able to save up about three thousand dollars so far because I stopped contributing money in about June and so I could decide to pick that back up if I wanted to the other thing that I could do with the money is to pay more money towards my student loan I think that’s gonna be the least likely situation because I’ve already met the maximum for interest that can be deducted from your taxes for the year and there’s no real rush yet especially since I’m not making like a full-time income yet to pay down my student loans any more than just the interest right now so that’s probably gonna be the least likely scenario unless one day I’m just like I want to get rid of this debt and I want to do that now the next option could be using the money towards moving and so I have two jobs right now then I’m in the running for one that will be out of state and then one that is in Atlanta and so obviously no matter where I move to is gonna cost some money but definitely if I move out of state that’s gonna be a lot more money that needs to contribute so I might just want to keep that money just to see what happens with the interviews that I have over this week and in the next two weeks because those are kind of like the final interviews and then I will hear what happens from those so that’s my thought process on what to do with the remaining money but I haven’t decided yet exactly what I’m gonna do and so just gonna save it for now so that’s the money that I plan to earn in the month of November and you can see exactly what I’m doing with that money over the month and you’ve also seen that most of the money that I’m earning is going towards my student loan debt to ensure that I’m not paying any more money and interest than I have to and that’s going to eventually help me towards my goal of becoming debt-free so if you are interested in creating your budget and you want to learn more on how to do that I have a video that wants to step-by-step how to create a budget and you’ll want to check that video right here but if you also want some of my budget tools if you want to use the same spreadsheet that I use you’ll check that out at the link below here but I hope that you are subscribed and you get the notification bell so that you can learn about more information that I’ve put out on tips and tricks on how to budget in the future thanks for watching


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