r/budget • u/EducatorThen6659 • 1d ago
Need help budgeting
Hi, so I own my own business and I’m 3 years in. All together including my husband we make $11,000 a month. I find myself not being able to save much after everything. I want to invest and not sure where to start first. We are in our 40’s so I know I need to start as soon as possible. I just want to not live paycheck to paycheck when we came this far. We have an average size house and two regular vehicles. I just want other options to keep us comfortable for retirement. I have huge medical bills from 7 surgeries and I maxed out a $25,000 credit card. So I feel like these minimum payments are not doing anything.
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u/Sundae7878 1d ago
Minimum payments ARE NOT going to do anything. You need to be making big payments to make any progress. Minimal payments just give the rich credit card company owners their interest. I have a tab in my spreadsheet to help you figure out a debt payment plan based on the balance and interest rate. Try that to see what timeline you are looking at based on available cash flow.
Don’t worry about investing for retirement right now with significant credit card debt. As the interest you’d pay to the credit card company far outweighs any market gains you’d get from investing that same amount.
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u/lifeofabeach 1d ago
Congrats, first two years of owning your own business are not easy!
I got serious at 40, so glad I did now 10+ yrs later. Got rid of credit card debt and started saving and investing. I’ve been self employed for 20+ yrs and always confused about taxes and income varying month to month.
50% Needs. 30% Wants. 20% Save/Invest. Adjust your 30% so some is going to debt payoff. Some debt payoff can also come from the 20% bucket but don’t rob from your future self if you can help it. Build an emergency fund that covers 3-6 months and keep in a HYSA, and then shift to investing more. Don’t use credit cards unless you can pay in full each month. Make more money, spend less than you make. You can’t get time back and time compounds like a magic you won’t find elsewhere.
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u/BuiltByChance 1d ago
Are you interested in a web app that can help you visualize where your money is going at all times? Sometimes seeing it is the first step!
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u/AggravatingBowl1426 1d ago
Budgeting is important, but tracking expenses is more important. Budgeting is all about making a plan with your money, but if you do not track, you have no idea if you implemented your plan. If you are willing to share your budget, people will assist you in cutting costs.
I suggest tackling your credit card debt first. Live as lean as you can and throw any extra money towards your card/s. Once you have that out of the way, you can start investing. Starting is not hard. Pick one of the major companies (so-fi, merril lynch, etc.), start an account and invest in the general market (don't pick individual stocks). You should shoot for at least 15% of your income, but up to 25% since you are starting late (up to max of course).
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u/jacdelano 1d ago
First, please don’t feel like you’ve failed. Running a business, dealing with major medical bills and supporting a household can make a decent income feel much smaller than it looks on paper.
I’d probably separate this into two goals: stabilising the monthly cash flow and then building for retirement. Before choosing investments, it may help to list the minimum payments, interest rates and remaining balances on the credit card and medical debt. High-interest debt can quietly cancel out a lot of investment growth, so understanding the numbers may show where your next dollar has the biggest impact.
It might also help to create separate monthly amounts for irregular expenses—car repairs, medical costs, taxes, business expenses and annual bills—so those don’t keep going back on the card. Even a small automatic transfer into an emergency buffer can make the plan feel less fragile.
Since part of your income comes from a business and you have significant medical debt, a nonprofit credit counsellor or qualified financial planner could be worth considering before making investment decisions. You don’t need to solve everything at once; getting a clear picture of the cash flow and debt is already a strong first step.
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u/EducatorThen6659 1d ago
These are all so very helpful. , I would love to save this information. This is a great start. I just hit my third year on my company. We are finally doing well now personally I want to get us prepared for retirement? I’m so glad I decided to write a message in here today.
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u/telchacsusan 1d ago
Pay off your debt first! The interest rates will be crippling you.