Reply to What to do first? Debt vs Savings/Retirement

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[quote=Anonymous]OP it sounds like you’re on your way to getting back on track.

I agree with most of the other responses to tackle CC debt and the cars right away. Please also check your company’s policy and contribute to a 401k up to the employer match. That’s an 100% immediate return!

Over the next month track your expenses closely and come up with a budget. You’re definitely going to have to cut back but I would also encourage you to build in a designated “discretionary fund”

I think getting rid of everything all at once sets you up for failure. Including a small line item for fun money helps keep that in check. Say maybe $200.

There will be times where social obligations will seem important enough to spend outside of your budget. Making these decisions ad hoc is how you get into trouble. Setting a reasonable limit will get you used to budgeting. You’re not going to be able to go wine tasting for a friend’s birthday, buy a cashmere sweater and eat out every month - BUT you will be able to do some of those things and you will feel good knowing that you are staying within your budget.

Good luck! [/quote]

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