Deep Dive
Why does Alice struggle financially despite a recent pay raise and supplemental income from streaming?
Alice struggles financially due to overspending on non-essential items like trinkets and frequently eating out, prioritizing instant gratification over long-term financial stability. While her rent is reasonable and she has supplemental income, her spending habits and accumulating debt prevent her from making financial progress.
What is Alice's primary financial concern?
Her main concern is a private student loan with a 14% APR, which she deferred for six months. She took out the loan for a business/marketing degree, but did not finish college.
How much does Alice spend on going out to eat?
$416 per month.
How much did Alice spend on a piece of art for her birthday?
$400.
How much supplemental income does Alice earn from streaming?
Around $1000 per month for the past two months.
How does Alice's ex-boyfriend factor into her financial struggles?
Alice blames her ex for enabling her poor financial habits by covering expenses and making financial decisions for her during their relationship. She claims this prevented her from learning the value of a dollar and establishing responsible spending habits.
What is Alice's plan for her streaming income?
She plans to use some of it for a merch shop and to pay her artists, but expresses concerns about the platform's 25% cut.
What is Alice's current credit card debt?
She has $1368.27 on a Discover card with a 24.74% interest rate, but plans to pay it off completely. She also has a Capital One card that she intends to use for Twitch-related expenses and pay off monthly.
Why did Alice defer her student loan payments?
She deferred them initially because she hadn't received a promotion and felt she couldn't afford the payments on her previous salary. She continues to defer and struggle with payments despite increased earnings.
What other debts does Alice have?
Alice has a $2327 debt in collections, federal student loans that she is making payments on, a car loan of $2017, and a $364 debt with T-Mobile which she thought was resolved but has reappeared. She also has another collection for $364 and a debt related to Grand Canyon University for $1061. She also mentions a debt with Upstart, initially intended as a student loan for community college, which became problematic after she enrolled in a program that advised her to stop paying her debts.
How much does Alice have in savings and retirement?
$1071 in savings and $14,000 in retirement.
What is Alice's total annual income?
Approximately $38,000 from her job and an estimated $6000 from streaming, totaling around $44,000.
Why does Alice choose to prioritize Twitch over paying off her debts?
She believes Twitch offers more opportunities for career advancement and partnerships, despite the financial strain it causes.
How does Alice justify her spending habits despite her financial struggles?
She justifies them as necessary for her happiness and well-being, claiming she needs "trinkets" and frequent meals out. She also blames external factors and past relationships for her current financial situation.
- Alice, a 23-year-old content creator in Dallas, is experiencing financial difficulties despite a recent pay raise and increased income from streaming.
- Rent is a major concern, with Alice and her roommate paying close to $2000.
- Supplemental income from streaming has increased, reaching close to $1000 in recent months, but Alice still struggles with budgeting and managing expenses.
- Alice admits to overspending on non-essential items and "trinkets."
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