Beating Yourself Up Over Money? Here Is How to Fix It (According to Reddit)

Have you ever looked at your bank account and felt a knot in your stomach? maybe you looked at a student loan bill and realized it was way bigger than you thought. If you have felt this way, you are not alone. It is a scary feeling. It can make you feel like you are way behind everyone else.

Recently, a young man went on Reddit to share this exact feeling. He was stressed out, sad, and beating himself up over his money mistakes. But instead of laughing at him, the internet gave him some amazing advice. It was tough love, but it was honest.

This blog post is going to break down that conversation. We will look at what he did wrong, what he wants to do, and the smart steps Reddit told him to take. If you are struggling with debt or low income, this guide is for you. Let’s stop beating ourselves up and start fixing the problem.

The Story: “I Am Beating Myself Up”

Let’s meet the person who started this conversation. On Reddit, we will call him “The Original Poster” or “OP.” He is a 26-year-old guy who feels like he messed up his money situation in his early 20s.

Here is his situation:

• He has debt: He owes about $7,200 in school loans. The scary part is the interest rate is 15%. That is very high. He also owes about $3,000 to a lawyer.
• He has a low income: He just started a part-time job at a warehouse. He does not even know exactly how much money he will make each month yet.
• He has big dreams: Even though he has debt and low income, he wants to do everything at once. He wants to crush his debt. He wants to save up 10 months of emergency money. He wants to invest for “passive income.” And he wants to travel the world.

He felt overwhelmed. He said the debt was “eating him alive.” He realized he had barely paid off any of his loans in two years. He asked Reddit for a plan to do all his big goals at the same time.

Lesson 1: The “Passive Income” Trap

One of the first things Reddit users noticed was OP’s goal to get “passive income.” You might have seen videos on TikTok or YouTube about this. People say you can make money while you sleep without doing any work.

The Reddit experts shut this down fast. One commenter said that for most people, “passive income” is just a marketing trick. It is a phrase used to sell you classes or get you into scams.

Here is the reality:

To make money without working, you need to already have a lot of money. For example, if you want to make $1,000 a month from a bank account, you might need to have $250,000 saved up first!

If you are broke or in debt, you should not worry about passive income. You need active income. That means working a job. The best investment you can make right now is in yourself. Learn a new skill. Get a trade. Get a full-time job.

One wise commenter told OP that his part-time warehouse job was the real problem. It is hard to pay off debt when your paycheck is tiny. The best way to fix your money problems is to get a bigger shovel. In this case, your income is the shovel. You need a big shovel to dig yourself out of the hole of debt.

Lesson 2: You Can’t Do Everything at Once

The OP wanted to do five huge things at the same time:

1. Pay off debt.
2. Save an emergency fund.
3. Save $10,000 extra.
4. Invest.
5. Travel the world.

A very helpful commenter explained why this is a bad idea. When you try to do everything, you end up doing nothing. You get overwhelmed. Your brain shuts down.

Instead, you need to do things in phases. Think of it like a video game. You have to beat Level 1 before you can go to Level 2.

Here is the game plan Reddit suggested:

• Phase 1: Safety First. Save a tiny bit of money, maybe $500 or $1,000. This is just so you don’t have to borrow more money if your car breaks down.
• Phase 2: Crush the Debt. Throw every extra dollar at the debt. Stop eating out. Stop buying video games. No vacations. The OP has a loan with 15% interest. That is an emergency! Every day he waits, he loses more money. He needs to pay this off fast.
• Phase 3: The Big Savings. Once the debt is gone, then he can save that big emergency fund (3 to 6 months of expenses).
• Phase 4: Investing and Fun. After the savings are safe, then he can start investing and saving for travel.

One commenter put it simply: “The thinking about travel and passive income is what got you here.” You have to be a responsible adult first. The fun rewards come later.

Lesson 3: Don’t Be Mean to Yourself

This is the most important part. The OP said he was “beating himself up.” He felt stupid for letting his debt sit there for two years.

But Reddit was actually very kind about this part. One person shared a quote from Arnold Schwarzenegger. It was about going to the gym. If you miss a workout, don’t beat yourself up. Just go to the gym today.

The same is true for money. You cannot change the past. You cannot change the money you spent two years ago. You can only change what you do with your next paycheck.

Another commenter pointed out that many people in their 20s don’t know anything about money. Schools don’t teach it. Parents often don’t talk about it. So, if you are learning this “the hard way” at age 26, you are actually doing okay! You are starting the chapter that many people ignore until they are 40 or 50.

Actionable Tip:

Write down your numbers. Don’t hide from them.

• List your debts.
• List your income.
• List your bills.

Seeing it on paper makes it less scary. It turns a “monster” into a math problem. And math problems can be solved.

Lesson 4: The Math of High Interest

Let’s talk about that 15% interest rate. Why did everyone freak out about that?

Imagine you borrow $100 from a friend.

• 0% interest: You pay back $100.
• 5% interest: You pay back $105.
• 15% interest: You pay back $115.

That doesn’t sound too bad on $100. But on $7,000? It adds up fast. If OP only makes minimum payments, he will end up paying thousands of dollars extra just for the privilege of borrowing the money.

One commenter suggested looking for a “personal loan” or “refinancing.” This means you go to a different bank and say, “Hey, can you pay off my 15% loan? I will pay you back at 10% interest instead.” This can save a lot of money.

But the best way to beat interest is to pay the loan off early. If you pay it off tomorrow, you pay zero extra interest. If you take 10 years, you pay a fortune. This is why Reddit told OP to stop thinking about travel. Traveling while you have 15% debt is like trying to fill a bucket that has a huge hole in the bottom. Fix the hole first!

Conclusion: What We Learned

The internet can be a rough place, but sometimes it gives great advice. This Reddit thread taught us that “beating yourself up” is a waste of time. It doesn’t pay the bills.

Here is the deal:

1. Forgive yourself. You made mistakes. That is okay. Start fresh today.
2. Focus on one thing. Do not try to save, invest, and travel all at once. Kill the debt first.
3. Get a bigger shovel. Part-time work might not be enough. You might need a second job or a better career to clean up a mess quickly.
4. Ignore “get rich quick” schemes. Passive income is for rich people. Active income (working hard) is for people building wealth.

If you are in a hole, stop digging. Put down the shovel of spending, and pick up the ladder of work. You can climb out. It might take a year or two, but the feeling of being debt-free is better than any vacation.

What is your take on this? Have you ever felt overwhelmed by debt? Let me know in the comments below!

Frequently Asked Questions (FAQs)

1. Is passive income a scam?

Not exactly, but it is often sold as a scam to beginners. True passive income usually comes from owning real estate or having lots of stocks. To get those, you need money first. If someone tries to sell you a course on how to make easy money, be very careful. It is usually better to focus on a normal job or learning a trade.

2. Should I travel if I have debt?

Most experts say no. If you have “bad debt” (like credit cards or high-interest loans), you should pay that off before taking big trips. If you travel using a credit card, you are paying interest on your vacation long after the vacation is over. That makes the trip much more expensive.

3. How do I start budgeting if I have low income?

Start by tracking every penny. Use a free app or a simple notebook. Write down what comes in and what goes out. When your income is low, you have to be very strict. Look for ways to cut costs, like cooking at home instead of eating out. But remember, there is a limit to how much you can cut. Eventually, you need to focus on earning more money.

4. Is 26 too old to fix my finances?

No way! 26 is very young. If you fix your money habits now, you have decades to let your money grow. Many people don’t wake up to their financial mess until they are 40 or 50. Starting at 26 gives you a huge advantage. Don’t give up!

5. What is an emergency fund?

An emergency fund is money you save in a bank account that you do not touch unless it is a true emergency. An emergency is a broken car, a lost job, or a medical bill. It is not for a new video game or a concert. Most people try to save $1,000 first, and then build up to 3 to 6 months of living expenses.