Fast Food Taking Over!! Millennial Real Life Budget Review Ep.30

welcome to the next episode of millennial real life budget review today we are taking a look at a couple who have two young children and fast food is taking over the budget we're going to find out exactly what's happening why this is such a chaotic mess and help them reorganize things so that they can feel financially confident hey guys it's Justine your host of the debt free Millennials channel here we talk about all ways to help you Achieve Financial confidence and Crush debt at least to more fun and fewer pay payments thank you so much to today's sponsor Taylor Brands Taylor Brands is the ultimate business builder for all things business formation this platform takes your vision and transforms it into a legitimate business but more on that later and I think this is like the perfect sponsor for this video but let me get into the review first because I know you're eager and excited to hear all about what this couple is experiencing so first it's a data analyst and a jeweler living in Orlando Florida the biggest thing they struggle with financially is overspending on eating out drive-throughs are like their jam they are struggling to save and pay off debt at the same time they're just kind of all over the place their top two to three financial goals they want to accomplish goal one six-month emergency fund we're going to talk about that goal two is payoff debt goal three start saving for sinking funds in college for kids they currently have 3,1 $172 set aside in their emergency fund now a little bit more of the backstory here most of their money goes towards preschool she says our kids go part-time Monday Wednesday Friday my daughter will be five next year going to kindergarten at a public school so this will free up about half of that preschool money yes I also have two side hustles Etsy and YouTube I want to know what your YouTube channel is they never they didn't include it in the application my YouTube pay is a part of our income and I keep Etsy business income in an ally account separate from our personal budget we would like to save up for 3 to six emergency fund in Ally and then start saving to buy my husband a newer year used car so a new to them car we have a 2007 car with over 145,000 M and just wanted to start to save to get something updated in the future our 2016 Su was paid off in 2022 going back to Etsy and YouTube If you have not formed a legitimate business business around your brand for Etsy and YouTube whether they're separate or not Taylor Brands could be the perfect solution to help you form that LLC if you've ever thought about starting a business from scratch you might feel a little confused there's a lot to think about a websites the LLC formation logos branding merch it's a ton of stuff to think about luckily Taylor brands has you covered instead of diying Taylor Brands can do so much more first they help you form an LLC so you don't have to pacil documents and find a lawyer and a registered agent and try to put all these things together on your own they actually have a stepbystep process that makes it really easy for you to form a legitimate business next is saves time I mean first off timing is of the essence when we're talking about formulating a business and getting paid through that business and Taylor Brands is going to save you heaps of it through their automatic process using their forms and their platform I've personally gone through their dashboard and thought it was a really easy step-by-step instructions to follow it's a no-brainer plus you can tap into the power of AI with their AI powered tools you can get really beautiful designs for a fraction of the cost everything is just plug in play and ready to go so that you can be up and running in no time plus Taylor Brands can help you navigate trademarks eins business licenses and more because we all know it doesn't just stop with the LLC formation there's so many other documents that you have to have in place in order to be a legitimate business on paper especially for tax purposes it's just a lot I really love what Taylor Brands is offering and if you click on the link in the description box below Taylor Brands is offering the dfm family 35% off their LLC formation using the link in the description box below thank you so much to Taylor brands for sponsoring this video and let's get back into the review so like I said Taylor brand was a perfect sponsor for this video because we're talking about your side hustles we want to make sure those are legitimate businesses and uh an LLC potentially could be the right Avenue for you or at least just getting everything kind of housed under one umbrella right I see a lot of different things you said you know you wanted to get your husband a new to him car but I actually didn't see that as a top goal it wasn't even one of your top three goals so I'm curious how significant the car purchase is I want to take the six-month emergency fund off the table right now because we really need to focus on your starter emergency fund which is the thre Monon emergency fund for you that's equal to um your basic living expenses 3 months of basic living expenses your mortgage utilities uh gas Transportation your groceries The Bare Bones internet cell phone that sort of thing so I want to jump into your budget and see what's going on we didn't get so much into their debt but they do have two debts here they have a student loan and a personal loan equating to $ 68,5 they are bringing in a combined $7,150 for the month they've all pretty much eaten up all of that in their monthly expenses leaving just $250 left over in savings so if I can go down here they already did the math for their emergency fund over here which I love they know the drill they left out the uh preschool the daycare cost so I'm guessing if were really to hit the fan they would just take the kids out of preschool okay so they have rent or mortgage payment of $1,238 um cell phone they filled out this wonderfully so they have two lines they own their phones $146 for two lines M that is expensive I mean we're talking over 70 with 7 $3 per cell phone data plan which is way too much you guys know all right I'm going to keep sharing it until you actually go and check them out mintmobile Taps into the T-Mobile network so you have access to that Network anywhere there's T-Mobile you'll you'll have mint mobile service $30 for an unlimited data plan and anytime that you're like oh well it's kind of spotty which I I will admit it has been spotty at times I connect to Wi-Fi it's no big deal when I'm at home I'm on Wi-Fi any any anyways so it's just it makes sense if I can save myself and say help you save more than half of that on your cell phone bill we've done our job here ladies and gents um no just kidding we need to keep going $86.99 for internet seems really high for your internet as well um if you've also heard there are various if you have access to like web pass I can tell you webp pass was $70 when I was using it in San Diego uh when I was in LA I was using T-Mobile's uh internet plan and that was $50 unless your Internet is just stupid crazy fast and you don't want to mess with it I think that's another area that we could definitely reduce then you've got your utilities your groceries gas car insurance for two cars okay Insurance pets and alarm system okay now we're getting into all of the fun stuff the eating out the drive-throughs are $475 in the month kids $36 $6 pull-ups toiletries clothes honestly kind of high I feel like you know pull-ups I get cuz we're in the pull-up phase as well but if you can buy that in bulk at Costco or Sam's I think that's going to save you a lot of money and clothes honestly once they get into this age of you got a two and a four-year-old I find that honestly buying clothes once a year maybe twice a year if we're doing it seasonally seasonally but you're in Orlando so it's always nice you really don't have to buy much for them so $360 in the month does seem kind of high for your kids um like toiletries clothes pull-ups that sort of thing um hair and nails and pedicure wow every month $375 that does seem quite High I don't even know if it's just the fast food at this point I feel like it's kind of these three three categories that we really need to watch that's $1,200 that's just out the window on these things those are areas that I feel like you could really address $200 for Miss miscellaneous $250 for the emergency fund we've got 3,172 in there now so you've got one month of expenses I'd love for you to really work on between nine oh yeah no I want to see this between 6 and 9,000 two okay so two months would be $6,000 3 months would be 9,000 so you guys kind of pick your own adventure knowing what your expenses are as is I would try to aim for a $9,000 starter emergency fund cuz you guys make enough money this is something that I feel like we could definitely work towards goal one $9,000 emergency fund that means if we are taking a look at the calculator okay so you need 58 28 left right now you're putting 250 in there I mean that's going to take you over 2 years we need to get to that goal a lot faster so if I could get you to do this and like the next I don't know 6 months we'd have to be putting like close to $1,000 per month into that emergency fund until it was completely built up and the way that we do this is is we are going to reduce the amount that you are putting towards that personal loan if the minimum payment is truly 188 then we need to be making minimums on all of the debts and therefore moving reallocating that money that you're putting towards towards the personal loan towards the emergency fund so I could even like reduce your miscellaneous here we need to really reduce these three things and really start bumping up the amount of money that's going towards the emergency fund I'd love to see as you're building up Etsy and YouTube really building up that that cash source and putting it towards the emergency fund as fast as possible I literally just got off a coaching call with one of my current clients and we were talking about her emergency fund and I was like we can make this as short or as long of a journey as you want to and I'm betting that drawing this out even longer is going to feel really frustrating because the debt is still there but we really got to it's like the emergency fund is like pouring the concrete foundation prior to building a home you cannot put up the framework without this concrete foundation if we don't have that we have nothing to build our finances on that is how you need to be treating your emergency fund this is a good amount to start with A Healthy Start amount of over $33,000 but we need to Triple that now and how quickly can I encourage you to triple it like this needs to be a Sprint and one of the ways that we can do that is cut back on these three areas temporarily and I see a couple of things here like we talked about internet and the cell phone plan these are easily expenses that we can reduce over time to help you with that the preschool stuff is also temporary right your daughter's going to go off to kindergarten which is huge congrats like that's like a big milestone and so now we're going to uh free up $900 that's really going to help you here so this is where I want this 250 how can I come up with extra cash to really bump this up so I can get this done in 6 months or less even faster right like 3 months would be amazing for you if we could do it then the next thing that we're going to be looking at is your debt payoff plan which really is very simple because you just have the personal loan and the student loan the student loan is I that balance is quite High 60k um but you're only paying $289 on it so that's good if we go down to just taking a look at how long this is going to take we could look at doing the snowball method it doesn't matter snowball or Avalanche is still going to prioritize it the same because the student loan debt is just so much higher it's not going to take you that long to pay off the personal loan cuz if I could even free up between the two of them oh you're four it's not 438 it's 188 is your minimum hold on let me change that all right there we go 188 if I can get us paying all in 1,000 bucks so $477 and an extra $522 if you did an extra $500 towards the debt you could have that personal loan paid off within a year like probably even better 1,100 yeah extra an extra $600 towards the personal loan you could have that paid off in a year the student loan is going to be a different Beast because you have such a high balance on it but what I would encourage you to do is the student loan is kind of like your marathon and when I was thinking about my student loan debt when I was paying off $35,000 in student loan debt and when I first started that I was making $10 an hour I told myself I'm not going to be on this 10year standard repayment plan that's nuts I can't imagine doing this for 10 years um so I made it a goal to cut it in half if you can just cut that timeline in half and commit yourself to say okay not 10 but five if you can kind of look at it that way it's going to gamify it for you and you're going to be challenged enough to pay it off even faster and I ended up paying it off in just under 2 and 1/2 years so my goal was five and then I even cut that in half so it if I can like just sprinkle that those vibes to you through this screen to show you that's what's possible for your student loans you absolutely can do that because if I'm looking back at your budget you guys make a lot of money by the time you get to the point of paying off your student loans the preschool tuition is not even going to be a thing your kids are going to be in school in public school and you're going to be freeing up a lot of money that is how I would do your budget and we've got to be asking oursel in terms of mindset because I think this is a mindset thing especially when we're talking about eating out drive-thru stuff I want you for the next two weeks this all I'm asking of you next two weeks I want you to write down every single drive-thru eating out transaction over the next two weeks date where you went how much you spent next I want you to go back through and just make a little note to yourself you can do this on your phone you can do this on a piece of paper on on a whiteboard in your fridge whatever I want you to write down whether you felt positive negative or neutral or you're just like eh I can tell you I went and got Jimmy John's for lunch today I feel very positive about that it was so good it like hit that craving and I was very very happy about it that is something I was like yes if you can delineate between that habit spending and intentional spending this was intentional I wanted Jimmy John's I had been thinking about it I was willing to pay the $12 for the sandwich that felt good to me or ah I found myself going through the Chick-fil-A drive-thru for the third time this week probably didn't need it that's habit spending try to differentiate that with the eating out drive-through stuff same thing with your your kids expenses like clothes and stuff same thing with hair and nails if you are truly spending $375 per month on hair nails and pedicure we have to take a hard look at that and say what am I willing to sacrifice am I willing to sacrifice my outward appearance in pursuit of financial confidence because right now what I'm seen is we've got some savings we've got a lot of debt we've got spending that's kind of all over the place and it's not prioritizing the true goals that you want if you want to do the car fund which I don't see any money currently allocated here we could do a small amount while you're building up the emergency fund but there is a a financial priority for you and we really have to prioritize the emergency fund we're going to prioritize the debt car fund can still absolutely have a dollar amount going towards it every single month but it's not going to be $1,000 per month unless this is like a Do or Die thing and we really need to figure out okay yeah we have 145,000 mil on this vehicle and it's not going to last for a another 2 years we got to make some fast decisions that's when I would think about reallocating some cash to cash flow that car purchase that's where I think you and I and your boo we all should be sitting down and talking about your financial goals and coming up with a strategy you guys would be a perfect fit for my signature coaching program that is linked Below in the description box if you want to check that out but at the very least you have this video to get you started thank you again to Taylor brands for sponsoring today's video from creating a brand identity to effortlessly forming an LLC online Taylor Brands is a Nob brainer click the link in the description box for you to take advantage of that 35% off your LLC formation with Taylor Brands exclusive for the de free Millennials family I'm so excited thank you so much for Taylor brands for sponsoring this video and if you want your budget anonymously reviewed on the channel click that Google form below that's going to open up the form for you to fill out everything the more details you can give me the better advice that I can give to you inside of these review videos are you still enjoying them if you are hit that like button it helps out my channel so so much is free resource to you and people get honest feedback from me and it really just helps them grow in their financial journey and honestly I just love doing the videos as well and I'll catch you in the next one [Music]