40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $4 million, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.

I live in Brooklyn, NY so I get some of these costs. However, $3,000 for birthdays and Christmas for 2 kids under 2 makes absolutely NO SENSE, when you have debt like this. Those top 3 debts need to become priority. Sacrificing a little to tackle those will be worth it in the long run. Interest is what is keeping you stuck.

I appreciate her wanting to spend a lot on her daughters’ birthdays and Christmas, but they are 1 and 2! At those ages, they will not really appreciate anything you do and will probably love the balloons more than any big cake, venue, or gifts. I’m glad you recommended a cut there (and it will still give enough money to celebrate pretty big!).

I love these real life budgeting episodes. This example shows that even with a good income, money needs to be spent properly. Thanks for sharing your talent.

After a YEAR of paying my student loans, I actually called the loan company because the checks were being cashed, but the number didn't seem to be going anywhere. This is when I first learned about my nemesis - interest! The woman on the phone was kind enough to tell me that the minimum wouldn't be touching my principle for a very long time, but that it was totally okay to send them more money, allowing me to check a box that said 'apply to principle'. It was a light-bulb moment! It was still awful to pay off, but when I restructured my priorities, I could find a spare $50 - 100 to send to the company, and I really started to see the amount going down. I am DEFINITELY an avalanche person!

$6k in gifts is crazy, especially when you have that much debt. they already have $1200 saved which is HEAPS, put that $600/month towards debt and knock out the debt omfg. Like yeah gifts are fun, but thats just trying to keep up with the jones'. That pays off no 8 in one month, no 3 in month 2 (if they throw like an extra $200 at it), no 7 in month 5 (maybe even 4 but lets assume 5) no 6 in month 9 no 5 in month 11 (cause remember minimum payments are still going towards it, so by now its like $1200 with approx interest if not less)) just leaving the 3 big hitters, but also freeing up $300/month in minimum payments, which is now $900 towards those (even using that $300 towards gifts instead and continuing to throw $600 at the debt), however with those insane interest rates, i would be considering debt consolidation with a bank/CU to save on that interest. It makes it a lot easier to make a dent in those debts when your payinf 10% instead of 20+% APR

This budget just shows that it doesn't matter how much or little you make, it's all a mindset. You have to know what you want and know what you need to compromise on to reach those goals whether you make $30,000 or $100,000 per year. Kudos to the watcher you submitted her budget. It was probably difficult and I hope Miko was able to give some recommendations that will work for you and your family. ❤

3 year pay off section on credit card statements to show what the “minimum” payment is sooo valuable and a section often overlooked!

Something I’m learning from these debt videos is how difficult it is for many people to conceptualize their debt within their income. A lot of people have pretty substantial debt, but they spend their money like it doesn’t exist. In this case it’s a lot of their sinking funds, and even some of their monthly payments (peloton, water delivery, beauty, etc). It seems like the biggest hurdle is recognizing that even if they’re making six figures, with six figure debt: No. You. Don’t. When that debt is paid off, you can go on expensive trips, plan expensive birthdays, and take on the expenses of a higher earning family. Until then, if you want to see ANY movement on your debt, you need to live as though you are a much lower earning family. Because in reality you are. There doesn’t need to be shame in that, plenty of families live at those means.

Where is HER birthday fund?

Great video, sorry, but when you have that much cc debt and high daycare costs, a 3000 birthday party is too much for any child at any age, too much on Christmas and hubby's birthday as well, some sacrifices are necessary to live the life you deserve.

I so needed this, I am so motivated to pay off my debt but it just seems overwhelming sometimes. It's nice to hear from other people like me and hear REAL stories of people paying off their debt! It CAN be done y'all, let's do this!💪

Not sure what type of bday celebration they’re throwing for a 1 & 2 year old but $3k seems so crazy high to me & like a SF that can be lowered (along w Xmas) to pay down debt.

The amount of money they spend on beauty and birthdays blows my mind (and I live in a very expensive area)

These are absolutely my favorite videos on KZfaq! I love that you cover situations that are about people who come from very different backgrounds, priorities, and income levels. It helps remind us that people of all sorts can have the same issues because we’re all human! 💚💙💜

I love all the BBP videos. This one was probably one of the best ones. Lots of advice and alternatives. Thank you for helping others without judgment.

Love the extra stuff you added to this video to show differences in how long it takes to pay off based on different decisions/scenarios! Keep doing this! I am a numbers nerd....😂

Silly question… could they do snowball to get the three lowest balances paid off, then switch to avalanche? Lower the amount of bills, then attack the highest interest! I would like some quick wins to feel like I made a dent, then really attack the highest interest.

I know what you mean by overwhelming. I budget once a month and it is so much easier for me. I get paid twice a month, the 4th Wednesday and the 1st of every month. So for example I used last month’s February 22 paycheck and the March 1st paycheck to pay all my March bills. Every person should do what works best for them. I have 2 credit cards remaining to pay and I will be debt free. All my extra cash goes to debt. I have a few sinking funds but none with high amounts, so that has helped me pay debt down very quickly. I think some people go overboard with sinking funds and that hinders them from paying down debt sooner. Paying down debt should be #1 priority for high interest, high balance credit cards and loans.

Eventually, it might be easier in the long-run for this family if they save up a month's worth of expenses, have their checks deposited into another account, then use last month's checks for this month's expenses. That way they can put everything on auto-pay without worrying about due dates. I do that now, and I'm only paid twice a month. Keeping track of their payment schedule seems dizzying 😵‍💫

I do like this setup, verses the prior ones. All the extra pages, visuals, and different choices of payoff rates allows us and the person you are doing the choice best. I'm debt free but do kinda think this would if helped me back then.

Awesome video! I’ve been using your budget my paycheck method for over a year and it’s such a game changer! 🎉 I’ve been working loads of overtime at work and putting it towards my sinking funds and a medical debt that I’m paying off in June. Seeing this woman’s numbers I’m like 😮 with that income I would live like a queen lol👸

Yay mikoooo!!! I was watching old videos as I’m washing the dishes. I hate washing dishes and watching your videos makes the process easier😅😅. Thanks for this video!! Please upload videos more often! I love this real life videos!

Thank u for sharing Christina's story! I think people get use to a certain income and have family expectations. You have opened their eyes to what they can do to change their life for the better. Living simply and having an open heart = happiness. You can still give back to family and friends in other ways not just material gifts. :)

The real stories are so informative. I have been working on this for years, and almost always have a bare bones budget. When there is extra, I don't change my habits but usually invest it in keeping my home in good shape or even improving it. For me, birthdays were a fun activity with $100 max for gifts . At these little babies ages they won't even notice, and she could easily have an extra $5300 in the first year to knock out some major debt. You were very gentle. My next cut would be the grown up birthdays for a year. OR she could use all the savings to start her month ahead plan as her monthly financial management must be so arduous in time and attention to not miss anything . I pay all bills once a month, because the paperwork had been overwhelming trying to keep up with the various days each month. Also if she knocked out the two lower interest rate debts,- they are small and it would be quick- and eliminate 2 credit companies to deal with each month. She has many options now, and because it has risen to the top in her life , she will now no doubt focus and get on track :)

I am paid weekly and “budget” 4-5times and I find it so simple. My budget is the same every week, I put money into my sinking funds for my bills and variable expenses and the money is there ready when I need it. The way you explained only having to budget once a month is kind of appealing though but I’m like you, I like checking on my money regularly

Been using the paycheck method almost a year and has been life changing. This video is absolutely kick ass. Totally motivated. Going to use the debt calculator. Expecting a bonus and using it towards debt.

I’m so confused. Why haven’t they tried transferring to a new zero interest credit card. Or getting a personal bank loan to consolidate the 2 highest cards. If I made 13k per month I would of thought I won the lotto.

All I can say - you are very patient with them. They spend like crazy and their debt is quite bad. Yet, they spend like crazy.

Omg Miko! You just completely opened my eyes to the reality of my own credit card debt. I opened my first credit card as an emergency fund after my divorce two years ago and really had no idea how to use it other than very carefully. Unfortunately my 20 year old card inevitability broke down and needed over $1,000 in repairs and I ended up putting everything except the cost of labor on that card and have been carrying the balance and slowly adding to it every month since. I never even thought to check to see if my monthly payments were even enough to cover the interest charges. I just paid as much as I could, sometimes that was the minimum amount but usually it’s a little more. I feel pretty dumb now that you’ve brought this to my attention, but I’m so glad you did. Thank you for sharing your knowledge and experience with us all! It really does help and make a difference! ❤

Great video! I have a slightly different strategy 1. First assuming Medical Bills 1 and 2 are 0% throughout, I would move those 2 into a sinking fund and not include them in the debts. So total of 2308/12 months(say) =192 to accumulate until it's paid off. 2. I would pay the 1101 right now as it is small and is in the top 3 interest rates. 3. Then I continue the same way as suggested here by Miko, only now my monthly amount to pay per month towards debt is reduced by 192 because of point 1. So now I have reduced my debt list by 3 and it's smaller and more motivating. Also, my consumer debt is gone by Oct 2024 as per Miko's calculation. It's only the mortgage that's taking so long! So within 2 years, Christina is in a good position already.

I found your channel last year and it's made a difference. Budgeting by paycheck works for me and I'm paying off my debt faster. I also learned to pay attention to interest rates. Thank you!😊

GOT YOUR BOOK YESTERDAY. TARGET!! Also this month, IE April, I am hunkering down on my debt to get it really rolling. Snowball. I ❤❤❤ your channel.

This was soooo good. At the beginning, I was like wait did I submit my story 😂 so helpful.

Personally if you feel like you aren’t making progress I would suggest Snowball on anything under $2k and Avalanche after that.

For credit cards, by law they have to print how long it will take to pay off the current balance with only minimum payments. This is usually found on your statement. More people should be looking at this to really understand why paying the minimums isn't enough, even if you're not using the credit card anymore.

Awww ❤❤❤ congrats to you and your family on your baby news 🎉😊

The first month I would have ignored the interest rates and paid off the Freedom CC and Med Bill#1 completely. It feels good to get the small stuff knocked off and not have to keep up with so many payments every month. Also limit the sinking funds to get those 2 high interest credit cards paid off. It has to be a little painful in order to change your habits for good. (We are debt free including mortgage since 2016.)

Pay off the small ones in a few months, then use the avalanche method. Get rid of the small ones, see progress and add monthly payments to pay off large ones quicker. Maybe?

It’s so good to see how you approach each budget and I can only imagine how life changing this must be for Christina. Thank you - these videos are so helpful 😊

I first have to say I love your real life budgets. I learn so much. In their debt picture, wouldn't it be more of a snowball/avalanche like you did? I would pay off the freedom CC and the Personal loan #2 to free up those funds to tackle the BoA CC. Give them some momentum in tackling their debt.

I know this is an older video, but I just subscribed. I love your videos and have been binging. I already have been naturally doing the calendar method with my bills, but I’ve still got a lot to learn. Thank you so much. ❤

Thank you so much for this video. That spreadsheet program was explained so well. I'm so glad you made a video like this to show what happens when minimum debt payments don't even cover the interest. Helocs are a good example too. Thank you for sharing.

Honestly anything below 2k can be cleared right away and tightening their budget further. Then focus on the highest interest payment this way u declutter and are more focused on whats to be allocated. Small achievements will help her focus and then motivated to tackle the big ones as well.

This is probably my favorite real life budget story. Thank you!

Miko, your videos always help my mind get back on track! Thank you!

Can you do a video on a family who made a bad home purchase? One where they are spending a lot of their money on house repairs! I am in this position and it’s nearly impossible to save! 😭

im just hearing of your new addition.. congrats...!!!!

I wonder if they were able to refinance their mortgage so that they could put those high interest credit card debts on the lower interest rate. And then make it a goal to pay the mortgage off you would be saving a ton of interest. I am in Australia, I dont know what childcare is like over in the US but a lot of Australians are opening their own "family daycares" in their house and people pay heaps less to have their children in these small family home daycares. That might be something to consider with cost. In terms of kids parties and Christmas. Honestly my kids are 7 and 4. I often pick up some amazing second hand gifts from market place or opp shops and my kids have no idea at this age that it is second hand they are just excited that they get a barbie. I pay $40 instead of $200 brand new. It still brings them the same amount of joy. I know we just want to give our kids the "best of the best" but honestly kids are happy with paper rolls, paint and some glue and some quality time with you. Try dont care how much you spent, it doesn't make them feel more loved to have expensive things. Its more our guilty conscience of what we perceive to be "the best", save your dollars guys 😀.

I think you just have to face your debt and spend less on b-days and holidays - till you are debtfree. It's not fun but the only way in this picture

This particular Real Life Budget meant a lot to me as a fellow Asian trying to "fit"in and deal with the ups and downs of debt. I am very proud of how much debt I have managed to pay off, but I'm stuck now. I think I have to go back to the basics and start over. I'm having a difficult time trying to find the worksheets you use in the videos. Can you tell me where I can find the worksheets please, so I can restart my debt free journey again? Thank you Miko for sharing your insights and passion for helping others to get out of debt and be money smart.

Congratulations Miko! This real life scenarios motivate me to keep working on my debt.

I would personally give them one quick win and pay off the small Freedom credit card first, THEN begin the avalanche method. Other than that, it’s a great plan! I love seeing people getting out from under lots of debt. ❤

I appreciate the in depth explanation and the visuals help a lot. The good explanation helps me understand a lot better and I love the indepth explanation

Can I just say that I love these.

Thanks for showing us the Vertex spreadsheet calculator examples.

Could she combine her bills and see about reducing her interest? Also the kids are little enough to do without all that for a few years

3k on birthdays and Christmas?! Wow. Great video, really inspiring thank you!

This… my husband and I both get paid weekly and our number one goal aside from an establishing an emergency fund is getting month ahead.

Daycare is so expensive. We pay $315 per week school year, $360 per week during school breaks. That's on a cheaper side than other places. Crazy. I would stay at home, but my income covers this plus savings and other expenses. Times are hard.

Greets from Germany, I love that kind of videos - I learn so much ! Really thank you for being you - and work out those super budgets - with so many super ideas !

$600 for two kids to eat and wear clothes?? I don't think my kids were more than $100 a month and that included needing to formula feed. Holy moly. I can't imagine spending $300 per kid, especially a young one that isn't even in sports or music lessons yet (likely)

I'd take the house out of that debt snowball. the 2.85% interest rate is a great deal. I'd pay off the consumer debt ASAP & start investing.

Congratulations Miko and thanks for providing such great information that I can use towards my budget as well.

I definitely need to do a month ahead. Going to work on that this month!

March is a 3 paycheck month for people who get paid every other week - their income is actually much less other months.

I'm not sure if the lady whose budget this is is watching but if she is, here's what I'd say. Hi, I'm a mum of 3 and I can tell you from experience that no child under 4 remembers or even truly understands their birthdays or Christmas. I understand the need to shower them with everything you thought you missed out on as a child but I promise you, at their ages, they're missing nothing. Do this *now* before they're old enough to remember it. Then you can shower them with whatever you want with that freed up money when they're old enough to remember it.

The children don't even know it's their birthday's. I would either have a party at the expensive daycare or in the house backyard. And for the adults just turn off the lights. We are each others gifts.

600 $ on kids although they spend 1,200$ on food already. I know clothes but I feel like she could reduce that drastically. Also if they wait it out another 3 or 4 years without childcare cost, they will be fine.

6000 a year for babies birthdays??? Omg. 😂

I love all this information 🔥❤️ keep doing it !!!!

What would be better, the debt snowball or the avalanche? I’m trying to find the best way to pay off $22k in debt with my husband. We still want to be able to enjoy our yearly vacation while paying off debt if that’s possible too.

$1140 for food for TWO people(the kids' food and snacks are another $600)????? What are they eating??????

The kids are under 2? And they wanna do 3k for bdays? They won't even remember. We get a bouncy house, cook food ourselves and have a blast with family (last year my stepdaugther's wish was to have as good a birthday as last year, which felt good since I planned a lot of it) for like $500 total. Although that was still a little high with the bouncy house. The kids enjoyed it though and we did a pinata as well. I also don't take any spending for my Bday. Maybe when I'm older and we're in an even better place.

If this were my budget... I'd cut the grocery budget first. Then, the holiday/birthday budget. And put that towards the credit cards. Then, look to see if I could transfer at least one credit card balance to a zero interest introductory card. And hit that one hard. Then do the same with the other.

I don't understand the $3,000 birthday budget, that's crazy. And they aren't saving for vacations?! Weird priorities

I would of done the avalanche but paid the freedom first and its 20% but will free up another 100 a month within the first month to get them big ones knocked out.

Dang. I live in Kentucky and don’t make that much in 9 months. I’m up a creek without a paddle (drowning). 😢

I just purchased your LRP and the BBP planners. I was wondering if you had a video for unknown income? We own a small business and we get paid once a week, but our pay is always different, and that makes our fuel bill different. Would you have a video explaining something like this? Thank you for the real-life videos, they are very helpful tools for us newbies lol.

Well dang I didn't know you were pregnant!!! Congrats!! I am so happy I don't have this kind of debt and payments.

We were paying more for daycare than for our mortgage when our twins were young and they are 17 now. This is not a recent development, unfortunately. It's a crushing expense for families and at the same time providing quality care is expensive though the care givers earn peanuts.

Such a good video!!! Thank you Miko!!

Congratulations on your growing family 🎉. I loved this BBP and all the tips offered.

Also after a few more years their daycare should go down some

I just was wondering if it would be better and cheaper to get a loan through her bank to pay everything off then throw all the extra money at the loan?

Hi Budget Mom. I just found your channel. Thank you so much for your videos. This has helped me tremendously

This video gives me pointers towards my debt. Thanks Niiko 😊

Your amazing thank you for giving me the tools to better enhance my budget goals.

I would like to know if paying higher minimum payment to debt no.2 (to cover interest) while proritizing debt no.1 with extra payments, would help reduce the interest payed? Maybe it would also shorten time period.

Their debt would keep me up at night.

I love this one, but am I crazy? Where are the expenses for groceries and gas for your car? It looks like all the money is moved to the next week without putting money out to actually live. I've got to be missing something here.

I feel like Christina. We make good money but just aren’t doing our best at paying down our debt.

In the example, you were able to set aside extra money every week towards the highest interest credit card. Should we send the extra amounts every week (multiple payments per month) or all combined on the bill due date?

They legit could be debt free in a few months with cutting almost everything for a few months.

I really miss your videos. I hope that everything is okay with ya'll.

Where do I find the sheets that show the bills and variables and all that? I don't see them on your website.

I am sorry, I can’t resist: this woman needs to re-assess her priorities. $4000 on three birthdays, including for two children who probably will not recall one instant of them? Get the girls a toy in a box and they’ll likely play more with the box. And, as a husband, I don’t want $1000 spent on me either. Spend $300 for all 3 and use the $3700 left over to pay down 1/4 of the highest interest credit card with the 3700 you save. That will be a better gift to the entire family than 3 lavish birthday parties. Her statement says one thing about her priorities, but her behavior says something different. I didn’t mean to be a downer, and I thank you for your non-judgmental assessment of this situation, Miko.

Miko I could watch your videos everyday. I absolutely love them. Thank you so much for what you do so willingly and generously. It helps more than you know. Btw, do you have videos on how to get one month ahead ? I would like to do that this year.

Where can I get these worksheets.? I like the way you explain things

Ooh, I just love this series!