A Registered Nurse, a Pile of Debt, and the Moment I Had Enough

My Story:

I was a registered nurse. The kind of job people tell you to be proud of. Steady income. Benefits. Security.

But what people didn’t see was the reality behind the scrubs.

I was drowning in debt—student loans that felt impossible to pay off, credit cards maxed out just to survive nursing school, and a credit score so low I stopped checking it altogether. To make things worse, I was going through it alone.

I didn’t come from money. My parents couldn’t help with tuition, and I signed loan paperwork I barely understood because I believed education was the way out.

My school’s financial department made it sound simple: “You can easily pay off the loans with your nursing pay.” What they didn’t mention were interest rates, cost of living, or what happens when you’re starting from zero. 

Looking back, I made the mistake of choosing private school loans without thinking it through. I saw nursing as fail-proof and thought a degree was a guarantee, not just a starting point with limitations.

But here’s what nobody tells you:

When you take out tens of thousands of dollars in student loans without a financial cushion or family support, even a “good job” might not save you.

I asked for forbearance twice and got temporary deferment. But life was busy, stressful—12-hour shifts, exhaustion, just trying to survive. I forgot when the pause on deferment ended, and a few payments slipped.

Just like that, my credit was wrecked. I was pretending everything was fine while being terrified every time I thought about money.

Even as a registered nurse, I was missing loan payments. I still remember checking my bank account one night after payday. Rent was paid. Groceries bought. Minimums sent.

I had $43.17 left in my account. That was it.

That was the moment. The one that hit me real hard.

The Breaking Point That Changed Everything

The financial stress started affecting my work performance, and I was eventually diagnosed with clinical depression.

When I told my family I was quitting nursing to work for myself, they were terrified. Some begged me to reconsider. Others stayed silent—but their silence spoke volumes.

I felt cornered. I knew that if I kept going the same way, I’d never break free. The situation felt like quicksand.

So I made the boldest move of my life: I walked away from traditional employment and chose self-employment. Not because I was fearless, but because I was desperate for a way forward.

I don’t regret it. Most importantly, my mental health improved dramatically.

But here’s the thing about taking control of your financial life—you need more than just courage. You need a system. And that’s where I discovered something that changed everything.

The Popular 50/30/20 Rule (And Why It Wasn’t Enough for Me)

You may have heard of the 50/30/20 budgeting rule. It was made popular by U.S. Senator Elizabeth Warren in her book All Your Worth.

Here’s the breakdown:

• 50% of your income goes to needs (housing, food, utilities)
• 30% to wants (entertainment, self-care, non-essentials)
• 20% to savings and debt repayment

It’s a solid plan for a lot of people—especially if you’ve got steady paychecks and your debt isn’t dragging you underwater.

But for people like me—people who’ve already slipped underwater and are fighting to breathe—20% just doesn’t cut it.

My Debt-First Philosophy: The 50/20/30 Rule

So I made a simple adjustment: I swapped the percentages for wants and debt repayment.

• 50% Needs
• 20% Wants  
• 30% Debt repayment + savings

It might not seem revolutionary, but it was for me. That extra 10%  going toward rebuilding gave me just enough momentum to finally move the needle.

Because when you’re behind on everything, your emergency fund is at $0, and you’re scared to check your credit score… 20% isn’t going to save you.

But 30% or 40%? That’s the comeback zone.

Why This Works (Especially When You’re Self-Employed)

When you’re working for yourself, money can feel unpredictable. Some months are good, some are not. You might have multiple income streams, project-based work, sales, or varying business revenue.

That’s why this percentage-based method works so well:

• It flexes with whatever you bring in
• It helps you build structure in chaos
• And most importantly, it puts your recovery first

I apply the rule after taxes and only on the income I actually “pay myself.” That way, I’m never pretending I have more than I do.

Step-by-Step: How to Calculate Your 50/20/30 Budget

Step 1: Know Your Real Take-Home

If you’re self-employed like me, this gets tricky. Don’t budget off your gross business income. Instead:

• Set aside 25-30% for taxes first
• Pay yourself a consistent amount monthly
• Budget based on what actually hits your personal account

Step 2: Calculate Your Percentages

Let’s say you pay yourself $3,000/month after taxes:

• Needs: $1,500 (50%)
• Wants: $600 (20%) 
• Debt + Savings: $900 (30%)

Step 3: List Everything in Each Category

Needs ($1,500):

• Rent or mortgage
• Groceries
• Utilities, transportation, insurance
• Debt payments

Wants ($600):

• Occasional takeout
• Subscriptions
• Personal care
• A little breathing room for joy

Debt + Savings ($900):

• Extra credit card payments
• Emergency fund
• Student loan payments above minimums
• Tax savings or sinking funds

A Real Example from My Self-Employed Journey

Here’s how I handled a month at the beginning of this year where I brought in $4,200 from one of my income streams:

First, I set aside taxes: $1,260 (30%) goes straight to a tax savings account.

That leaves me with $2,940 to actually budget with.

Now I apply the 50/20/30 rule:

Needs ($1,470 – 50%):

• Rent: $850
• Groceries: $280
• Phone, utilities, car insurance: $340

Wants ($588 – 20%):

• Netflix, Spotify: $25
• Coffee dates with friends: $60
• New books or supplies: $40
• Cushion for small treats: $463

Debt + Savings ($882 – 30%):

• Extra credit card payment: $400
• Emergency fund: $200
• Student loan extra payment: $282

Some months I make more, some less. The percentage framework gives me a starting point to work from, and over time, you get better at smoothing out the ups and downs and develop your own methods for handling the fluctuations.

This approach means that even in a $2,000 month, I’m still putting $600 toward debt and savings. Even in a $5,000 month, I’m not lifestyle-creeping—I’m just accelerating my payoff timeline.

Think of debt like training for a marathon. Every payment you make—every extra $10, $50, and $100 you throw at it—that’s building your endurance and financial strength.

You won’t cross the finish line in one sprint. But every time you stick to your plan, every time you choose the long-term goal over instant gratification—you’re getting stronger and building the confidence that comes with knowing you can do hard things.

Some days I feel on top of it. Other days I feel like I’m still in the early miles. But I never feel powerless anymore.

How This Budget Helped Me Rebuild My Credit

My credit was… honestly, awful. I’d missed payments. Defaulted on a private loan. My utilization was through the roof.

With this budgeting system:

• I automated payments so I’d never miss again
• I prioritized paying down high-interest balances (always try to pay off the remaining balance, it helps)
• I built a basic emergency fund so I could stop using credit for surprises

And slowly, my credit utilization dropped.

Today, my score has jumped over 100 points. I’ve stopped being scared of checking it.

That’s not just numbers—it’s peace of mind.

Common Mistakes I Made (So You Don’t Have To)

Budgeting off gross income

Always budget based on what hits your bank after taxes. If you’re self-employed, set aside 25–30% for taxes first.

Mixing business and personal

Keep your business income in a separate account. “Pay yourself” a set amount each month. Budget from there.

Trying to go zero on fun

I tried living off rice, bills, and shame. It didn’t last. The “wants” category isn’t about indulgence—it’s about mental health.

Tips for Budgeting with Irregular Income

Budget using your lowest earning month as your baseline

This keeps you realistic and prevents overspending during good months.

Build an “income buffer” fund from higher months

When you have a great month, don’t lifestyle creep. Save the extra to smooth out the lean times.

Stick to percentages, not fixed dollar amounts

If you make $2,000 one month and $4,000 the next, your percentages stay the same but your actual spending adjusts accordingly.

Review and adjust monthly—but keep the rule steady

Life happens. Your income changes. But the framework stays consistent.

You’re Not Broken. You’re Just Building Your Way Out.

If you’ve ever sat in your car after checking your bank account, feeling overwhelmed…

If you’ve ever dodged calls because you couldn’t handle another bill collector…

If you’ve ever felt like you were failing, even while working incredibly hard—

You’re not alone. And you’re definitely not broken.

You just need a system built for the comeback.

That’s what this budget rule became for me. It didn’t fix everything overnight, but it gave me a clear path forward and helped me start taking my power back.

Final Thoughts: Keep Climbing

If my story sounds familiar, you’re not alone. Millions of people across the US are living paycheck to paycheck, even with “good jobs.” The financial stress feels overwhelming, and the traditional advice doesn’t seem to fit when you’re already behind.

But here’s what I’ve learned:there is a way out. 

It just requires tackling it strategically, with persistence, perseverance, and patience. The rewards are real, but they take time to build.

No budgeting system can fix what you won’t face. But when you do face it—honestly, without shame—things start to shift.

This journey isn’t just about money. It’s about mental health, relationships, and peace of mind. Financial stress affects everything.

The way forward starts with looking at your situation clearly and deciding: I’m going to do something about this.

I’m still working on it. And if you are too, then you understand this journey.

I’m not writing from a place of having “made it”—I’m writing from a few steps ahead on the same path you might be walking.

Let’s keep going together. No shame, no pretending, just steady progress forward.

If you’re ready to take control of your financial story, you’re already further along than you think. The hardest part is deciding you won’t accept staying stuck.

I’m still on this journey, and I won’t pretend it’s easy. But I can tell you this: every month gets a little easier, every payment builds a little more confidence, and that suffocating weight of debt gets lighter.

For those who stay committed and keep pushing forward—freedom is waiting on the other side. And you’re closer to it than you realize.