Getting $40K into debt by age 22

What is a “smart” financial choice? And how can an 18-year-old know what’s “smart” when making decisions that will impact them for years to come?

In this episode, Karisa shares how she got into $40K of debt by age 22. Here’s what you’ll hear:

  • The various debts Karisa took on at a young age
  • Her plan for being in debt long-term
  • The psychological differences between ‘loan’ and ‘debt’
  • What she wishes she had known when she was 18

Karisa shares that, “Most of my friends were in debt, and had to take out loans to pay for school. It felt not normal if you weren’t in debt.”

-Chi-En and the Goodbudget Team

Show Notes:

  • Debt Progress Report
  • Reflection question: What’s something you’re spending, saving, or giving to that you might not be seeing clearly or looked full in the face? Maybe you need to think about the trade offs you’re making in your current budget or life in order to support that choice. Or maybe you need to think about the trade offs you’re making in your future budget or life. Let us know your thoughts in the comments below.

Music credit: Puzzle Pieces by Lee Rosevere

Subscribe to
The Goodbudget Way: Money | Budgets | Real Life

Or subscribe with your favorite app by using the address below

2 thoughts on “Getting $40K into debt by age 22”

  1. One uncertain thing I’m saving for right now is moving costs. I’m going to try and find a new place soon, but I don’t really know how much it might cost to move my things, especially since I don’t know where I’m going yet. And someone also reminded me I have to prepare to put down a security deposit… so I’ve been spending super tentatively lately because I’m not really sure how much I might need.

  2. I remember when I found out how much dorm living would cost–it really did just seem like a big number to me. After working and tracking my spending for a while it’s easier put it into perspective–living in the dorms in college cost me X number of months of pay, Y months of spending money, etc.


Leave a Comment