u/butwhytho23

I have recently had a significant change in my income, but i don’t know how to make the most of it before it stops in 5 years…

So…I went from making about $3800 monthly to $9,000/mo.
I have no idea how to responsibly manage the increase bc I’m a piss poor financial manager and don’t know how/where to turn to for help. I don’t know how to truly stick to a budget or financially prepare for the future…

I am a 35 year old single mom of two, 6 and 7 year old boys. Their dad passed away and so it’s only me, but my parents and grandmother stepped up and help me raise them…so i don’t consider myself a “single mom” per se, because i truly have a village helping me.
I am working to finish my degree and get into law school, i work one day a week for my family’s business, and the rest of my time is spent being a hands on parent to my children.

i haven’t been able to save anything thus far, [like, I have no savings whatsoever]. Plus i’m in pretty significant debt [$51k], and still seemingly scraping by…and it’s scary and embarrassing...

I spent big chunk of the past 6 months’ income on moving 2000 miles back to my hometown, putting down a deposit and 1st month’s rent on a house, and purchasing beds and other big furniture, as well as the linens and housewares, down to new underwear and socks for everyone.
I also had to buy a new (to me) car — all of these seemed to be at one time, so it was a lot but i have nothing left essentially and it’s worrisome.

The chaos has now settled down and it’s time for me to get serious about it.

I want to pay off old debt, improve my [very bad] credit, open a credit card with reasonable interest rate and decent rewards program, and maybe start investing the excess $$ each month. But a big dream of mine is to hopefully be able to buy a house one day (i currently rent). I don’t know where to start for any of this…

Here’s a breakdown of my bills and the closest thing i have to an actual budget…

Income: $9,220.00

Rent: $1850
Water: $55
Power: $130
WiFi: $95
Gas: $150
Car payment: $700
Insurance: $125
Appliance payment: $150
Kids’ sports/camps: $550
Groceries: $1000
School costs: $75
Kids clothes: $100
Dr/medical: $75
Set aside for bdays/holidays/etc: $50

Expenses, monthly: $5,105
Leftover $, monthly: $4,115

Also, for context as to why I’m so ashamed…I have about $51k in total debt:
- $25k is my vehicle
- $20k in student loans (i don’t currently owe on these yet though and some are being forgiven so I’ll only have to pay 50% of that, most likely…)
- $6k in collections (i know, pls be kind…) (old ATT bill, old credit cards for $300-400 each, and a few hospital bills.)

Can anyone point me in the right direction on where to start learning or how to make the most of this extra $?
My goal is to get out of my bad habits, get out of poverty, while building a savings account to help give my kids a leg up in the world.
I like to think I’m smart, but i never had any extra money growing up and as an adult I’ve always lived paycheck-to-3-days-before-my-paycheck.

I use Schwab bank for my checking account, and i know there are some investing options with them as well. But i don’t know anything about stocks or other accounts they offer, besides my basic checking account.

Sorry this is all over, I’m anxious…so please be kind to me, this has been really embarrassing for me to acknowledge.