[Ashleigh]

I’m struggling to understand how people are thriving financially. I make good money but it feels like with upcoming bills (student loans and Mortage).

I am also getting hit with a 30k salary decrease due to new structure come may.

My weekly take home as of now is $1600. My monthly bills, including everything (food, living, extra of $200 a month for fun stuff) is about $3500- $3700.

That’s not putting into a 401k yet.

In my area a basic house house for a mortgage is going to be $3200-$3500 and student loans are coming due for $400.

That puts me around $7200-$7800 a month plus an extra couple hundred for a 401k.

That doesn’t even allow me to save and still need to get an extra job and that’s with out the pay decrease coming up.

I’m scared.

[Domi]

A 30k cut isn’t acceptable.. source a new job immediately.
In the mean time look for a cheaper living situation.

Good luck!

[Victoria]

Maybe renting is cheaper? Also, your salary will likely grow over time as your carrer develops and you build new skills.

[Richard]

Honestly if housing in your area is that high, then your expenses sound downright lean. Housing has skyrocketed in many places.

Good luck!

[Christy]

Move and find a new job. If housing is a min of 3200 I’d move first and foremost.

There are plenty of places affordable.

[Steve]

Your 401k is pretax money, so start by paying yourself first and that will increase the money you take home by reducing taxes.

From there, I’m confused… you’re at $3500 plus $400 for student loans, so $3900-$4100 (for fun money) gives you $2,300 to save towards a mortgage.

Are you living for free?

If you save 5 years to buy a house, like most people, that’s around $150k you should have for a down payment.

[Debbi]

I wouldn’t buy a home yet. You’ll want to have extra money set aside before you do.

[Erin]

Sincere question, what is the $3700 per month if it’s not addressing housing?

I’m in a M/HCOL area and my bills with housing are less than that.

[Alison]

You’re not alone. I make about $160k in a HCOL area. I hustle on the side dog sitting (about $1500 per month now that I have a good clientele) and things can still get tight.

Without a breakdown of your bills it’s hard to tell what’s accounting for your outflow.

I suspect you overcommitted on the mortgage but I’m only guessing.

[Ashton]

1. Pay off all your debt

2. Move to a less expensive area.

3. Find a better paying job

Not necessarily in that order. I would start with moving and finding a better job

[Karah]

Do you live in southern Maine or Portland? I see you mention both… if you need to stay in the same area, get roommates to cut rent and share utility costs.

I also see mention of family nearby, can you live with them so you can get your debt paid down?

[Christian]

if you really can’t make it I would move or find cheaper housing. Everyone always says they can’t find cheaper housing. High end homes rent for 4k here.

Average about 2k. Not so good side of town 700$. Also vehicles rob alot of money if you have payments.

I live in a 500k home and choose to drive a $250 honda lol
Thriving young family of 4.

Paid off home, vehicles and investing.

[Gemma]

Ive never heard of an employer reducing pay, even under the banner of a restructure, outside of a performance issue. I strongly advise getting another employer.

Restructures are nice corporate word for either outright firing people or or by incentivsing certain behaviors…those who benefit will stay, those who dont, will leave.

They know what they are doing. It doesnt mean anybody did anything right or wrong, just they are trying to change direction and need people who align.

[Andrew]

It often doesn’t allow to live in a $3500/mo house and takes some sacrifice. I know multiple ppl with 1-2M+ who don’t have that high of a mortgage.

If your job is giving a 30k pay decrease, I would be skeptical of the long term security of the job and likely start applying elsewhere

[Kristen]

We’re struggling as well. Eating at home all the time helps. I also get Black Friday deals for streaming services.

I would look over your budget and see what can be cut.

For example, maybe you can switch internet and cell phone providers and insurance carriers, and/or cut out subscriptions and memberships you don’t use.

[Susan]

It would appear your current situation is unworkable. If that’s the case then you have no choice but to make changes to a different job or a second job to increase income.

If rent is too high where you live then you may have to move to wherever the net of money earned is more than rent and expenses.

If living near family is so important then maybe they will let you live with them for a while… until you pay off your loan and save up for a down payment.

Or Find roommates for those higher rent apartments or houses.

[David]

The main tricks I used to make it work for me is to make 401k contributions and employee stock purchase contributions non-negotiable.

They happen first, before I see the money. Other savings occur after the check is in my account.

Without any details on your budget, it’s hard to find where you can economize, but it would be all the Dave Ramsey stuff – Stay out of consumer debt, don’t drive a new car, watch the eating out / drinks / coffee spend, watch the subscriptions, etc.

Ultimately you may also find that buying a property is not something your paycheck can afford right now.

[Tweetie]

If you had to travel 30 minutes to get to work, how much would housing in those areas cost?

You will probably “have to” find cheaper housing.

[AJ]

I’m not a Dave Ramsey fan in regards to investing advice or the order of some of his steps, but I do think his initial baby steps are sound.

Focus on reducing debt, budgeting (including considering moving or renting to reduce housing expenses), building up an emergency savings and a down payment, and investing.

I think this flowchart is generally sound advice, tailored to meet your needs.

A $30k salary reduction is a huge red flag. You have to seriously love your job and have your ducks in a row to agree to that.

A part of the ducks in a row meaning be ready to find another job either because you can or because you have to because your company is going under or will be going through layoffs.

[David]

Put something into that 401k, anything actually. Housing makes me think a roommate is in order. Wild to think it’s 3200 a month (I’m comparing to mine but prices differ everywhere).

You are under water before the 30k hit.

[Jacob]

1. You need to get your spending under control. No more “loans” for your business and do not spend money you do not have = debt.

No more going out with the girls and no unnecessary spending (clothes, jewelry, or partying etc). Do not use your credit cards.

Stop all streaming services. It’s time to go bare bones.

2. You need get a temporary roommate to help you. That extra income could help you pay your debts.

3. Pay off your debt. In a previous post, you mentioned 5k in credit card debt, 7k in IRS debt, now student loan debt. I want you to take anything extra and throw it at the 5k debt until paid off.

This will cause a snow ball effect to pay off the 7k than keep it going to the next lowest debt.

4. Your area is very expensive – it may be time to downsize your home or move somewhere else cheaper.

5. Sell items you don’t need for extra money to go towards your debts.

6. Get an extra job for income (if needed or able). This could be stressful, but sounds like you’re already stressed.

7. Controversial topic – I recommend to stop funding 401k TEMPORARILY and throw that extra money into debt.

You need to attack your debt fast. I do understand people that say to contribute to meet the match for free money.

8. You have a lot of decisions to make, but you need to make them soon.

You are one life event from going under (ie. the car, major house damage, or losing your job). Of course, you need an emergency fund to fund 6 months of living expenses.

People will give you all types of advice here, but make decisions that make the most sense for you. Good luck!

[John]

A $30,000 reduction in salary due to, what, ‘new structure’? Tell them to stuff it and find a new job elsewhere, even if you have to move.

[David]

More from the side of personal finance than FI/RE, but here goes…
It’s more or less coming together now. Your expenses include or are going to include: yoga studio membership, Netflix, Spotify, car loan, basement renovation loan, upcoming student loan debt, support for two dogs, rent, surely a phone bill and at least part of the utilities, food, occasional meals out, clothing, health/beauty, and a whole bunch of other stuff I’m missing.

Don’t be overwhelmed by the list, but this is where things need to be rationalized.

Yes, housing is expensive, but so many of the expensing we get into in 2025 were not even a thing 20 years ago.

Could you forgo Netflix during the summer months? Is streaming radio a possibility instead of Spotify during the workday?

Yes, the dreaded “needs vs wants” discussion when rationalizing your budget. It needs to happen.

As much as a pain as this is, you are going to need to track every dollar for a couple of months and really focus on economizing.

Sharing living expenses will help, so look into roommate situations. With the 1099 work and what you shared about a pay cut, your priority needs to be on building an Emergency Fund – and looking for a new job.

401k can wait until you have the fund. Get your fund and retirement in order and then work on buying a home.

In nearly all markets right now, it is better to rent than buy, so I’ve heard.

It sucks, but like eating peas and carrots you need to do what’s good for you and tighten the budget.

[Jonathan]

My monthly spend was $7500 living in a $4500 manhattan apartment and I def don’t live frugally. Should be some expenses you can cut.

Note that the 401k contributions are part of savings, not spending

[David]

The easiest way start saving and having extra money and building a retirement is house hacking. Find a duplex use your income and the rental income to qualify for the mortgage.

The rental income should cover half if not more of the mortgage and over the years will increase to cover all of it.

Even if that is all you do for retirement, you will eventually have a property paid off and a reliable source of income that adjusts for inflation.

[Author]

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