Meet the Millenial Giving Finance Tips While Juggling Three Jobs and Credit Card Debt
Adulting is a struggle for many characterized largely by the phrase "death and taxes," and millennials like Jourdan Skirha find themselves grappling with additional adversity in the form of unpaid bills piling up. Skirha (@jourdskir), a TikTok sensation hailing from Arizona, recently shared her financial woes with the world, resonating with the struggles faced by many.
With a full-time job falling short of covering her monthly expenses, Skirha has taken on two more jobs yet finds herself unable to conquer her credit card debt. Part of a broader concern, as highlighted in a 2023 Deloitte survey, 37% of millennials admit to juggling multiple jobs to meet the escalating costs of living. This marks a 4% increase since 2022, reflecting the financial challenges faced by the younger demographic.
The pressing question arises, "How can one stretch their income in a world where the cost of living seems to outpace earnings?" Skirha's story has made many consider a "finances detox," which is a critical examination of spending habits and a ruthless pruning of unnecessary expenses. Experts suggest starting with a meticulous review of fixed expenses like rent, groceries, and utilities.
Establishing a realistic budget that includes debt repayment and emergency fund contributions is an important step. Renowned personal finance guru Ramit Sethi advocates a balanced approach. He encourages allocating 50-60% toward fixed expenses, 5-10% for savings and investments, and leaving at least 30% for discretionary spending on things that bring joy.
A trap that many, including Skirha, fall into is the relentless use of credit cards, leading to a cycle of debt. The Federal Reserve of New York reported a 4.7% quarterly increase in national credit card balances, reaching a staggering $1.08 trillion in Q3 of 2023. The average credit card balance per consumer rose from $5,474 in Q3 2022 to $6,088 in Q3 2023.
To break free from this cycle, financial expert Dave Ramsey's snowball method is recommended. This involves prioritizing the repayment of the smallest balance first, gradually moving on to larger debts. Escaping the clutches of debt not only improves financial health but can also alleviate the mental toll.
Skirha's video reveals a unique challenge faced by single individuals – the "singles" tax. The financial challenges associated with solo living often spark inventive solutions, leading individuals to contemplate sharing expenses by finding a partner. While this idea may be a consideration, there are alternative strategies to achieve savings without necessarily resorting to the more drastic step of entering into a shared living arrangement.
Relocating to a more affordable state or outside a major city can significantly reduce day-to-day expenses. For those unwilling or unable to relocate, options like finding a roommate, collaborating with friends for bulk grocery purchases, or carpooling with colleagues present viable alternatives to trim costs without compromising independence.
Life's expenses may seem overwhelming, but there are practical steps individuals can take to navigate the financial maze. Skirha's journey serves as a reminder that with a strategic approach to budgeting, debt management, and creative cost-cutting, even in the face of multiple jobs, financial stability is within reach. As millennials continue to grapple with the evolving economic landscape, the key lies in adaptability, smart financial decisions, and a resilient spirit.
For more such content and tips follow @jourdskir on TikTok.
