Due to many stupid financial decisions, I have very little money left.

Should I use 15% of it to pay off all of my major debt and make my monthly bill cheaper?

I can afford my rent no matter what...- I might be sleeping on a mattress on the floor but I'll be able to afford it.

What do I do? I've already screwed up my life and what I could have had so bad that my depression is getting horrible.

Any advice is appreciated.

 

What do you mean by "major debt"? Credit card payments? It is best to keep that manageable, since it is usually levied at excessive interest rates. Student loans? Car note?

Suggest visiting the Dave Ramsey website, listen to his radio show or podcast. Staying out of credit debt gives breathing room and options, especially when young.

 

More like medical bills, a tiny bit of credit card debt (not much), I need to get something out of pawn, need to pay off the $400 of money I owe the college, and a personal loan. I made really idiotic financial decisions since I turned 18. Like really stupid. And I'm beyond stressed.

 

Well you're definitely not alone. The important thing is, you've recognized it, and want to do something about it. Some people literally never learn.

 

I do. I also want to get rid of any money I owe on loans etc. is it stupid to do it if I can afford it?

 

Since bank interest rates are next to nothing on your money, paying down higher interest loans makes sense, yes. But you also need to set aside a cash emergency fund of 3 to 6 months living expenses.

Go to the Dave Ramsey website and buy his book, I think it's called the "Total Money Makeover" or something like that. Listen to his show.

 

That sounds like the right name, I think it is

 

i keep 1 year income in reserve for emergency.
it has taken me close to 30 years to get there, but i now do not have to worry about paying bills if i get injured. and everything is paid for. credit cards are for emergency use only are paid as soon as the bill comes in,
if i do not have the cash in my pocket to pay for it, whatever i was looking at was not really needed.
i was very careless with money in my younger years also, mostly because i had it, so i spent it like it grew on trees. then i was hurt bad and it took me 20 years to pay back everything i owed.

 

Is it stupid to pay back everything I owe now and start with a clean slate with only what I need? If I do, even without a job, I could live on my monthly stipend, but I will be having a job.

I'd be selling as much stuff as I can so I'm down to the bare minimum...I.E, my photography equipment, my laptop, my phone, and a bed.

I still have $16000 in reserve that I'm transferring into my father's control because I'm irresponsible.

Also, my dad is trying to get me to sell my IDI, and I don't think I can do it. I mean, she's so beautiful!

 

With all due respect, you have to learn how to handle money, and credit. Now. Not sometime in the future. Transfering it to your dad isn't the way to go. This is one of the, if not the most important things anyone can do at an early age to help set them up for success, or at least avoid failure. Study the habits (and that's what they are is habits) of successful people and emulate them. It takes discipline, and hard work, and self-sacrifice. These are dirty words in todays consumerist society. They want you to borrow money you don't have to buy things you don't need to impress people you don't like. This puts you in hock to the system that extracts your money at every turn (and your time) for years and years. It is extremely difficult not to fall into the credit trap.

Borrowing money isn't necessarily bad, but taking on excessive credit, beyond what is realistic, is the problem. "Never borrow money to buy a depreciating asset". A house or real estate is one thing, a car or truck is different. Many people are completely unrealistic about what they can afford to drive, because of "easy" 7 year notes it seems possible, but they fail to factor in taxes and registration, plates, insurance, maintenance, parking and repairs, tires etc. If you want to stay poor, buying a brand new car or truck is a sure-fire way to do it.

 

I totally get what you're saying, and I don't disagree. I own both my trucks outright with no monthly payments or anything though so my trucks are different. Everything else, you're right about.

I'm guilty of taking out loans to get things I don't need to impress people I don't care about. That's what I'm going to be taking care of ASAP.

 

Also, on my IDI, it has a new Tranny and new heads. The 460 has a new carb, and the IDI has basically new tires...I'm not going to be going broke on the IDI any time soon as it already has me broke!

 

Really. What am I wrong about?

 

Oh! I should've been more clear, you were talking about buying newer cars is a good way to go broke! I own both of my 20+ year old cars outright and would never want to buy a $70,000+ new truck. My dad wants me to sell my IDI that I own free and clear but it's just not something I want to do.

 

X2!!!!
Excellent book/strategy/way of life. I can attest to this philosophy and strongly urge you to pursue it. It sounds like you are willing to commit to it and stay the course which is necessary to complete the plan.