Quote:
|
Originally Posted by Brenda345
Hi, my name is Brenda and I'm a divorced single mother of 3. What I need help with is my budget. I probably could cut back on a few things(at least until I get my finaces straightened out). I make about 65k a year. I live in Atlanta. Recently I spent too much money at one time.
Things I have to pay for on my credit card:
1. Week long vacation Jamacia 4 people-$2000(It's too late to cut back!) I normally could afford this but I had some unexpected bills. 
2. Kids new clothes and school supplies-$500
3.Air conditioning repair-$200
4. Shoes-$316 My daughter bought them. ONE PAIR!!! I am really mad at her. She got them off ebay so we had to pay for them. 
Those things are things I can't cut back on. It is too late. Don't think I just went out with my credit cards and just bought wants. I planed for some of the things then others were unexpected.This is a list of things I have to buy monthly:
Gas:$100
Groceries:average$275
Mortgage:$900
Telephone:$35
Cell Phone(x2):$175
Internet:$35(need for work)
Trash Service:$15/month
Water:$46
Electricity:$60
Cable:$50
I drive but I'm done paying for my car
If you could please help me that would be great!  |
What's done is done, here is how you work out of it.
I second re-selling the shoes. Change the password. Cancel all cc's, maybe open a new one and hide the numbers for emergency (although we get along fine with 0 cc's). You've done well by paying off your car and keeping it to drive, no car payments gives you some breathing room.
65k a year at the 25% tax bracket (not sure what yours is, my dh makes around that and this is what's taken out of his paycheck) leaves you a bit over 4k a month. Your expenses run about just under $1700 right now. Good suggestions already for cutting down expenses, so I won't repeat them. I would consider upping your grocery budget if it means helping you cut out your eating out, it's eating away your income severely.
Say you spent $500 on groceries and limit eating out to 2-4 times a month only. For starters, you can always work that down later. Your expenses just went to about $2,000 a month, leaving $2000 to work with.
Okay, say you have $2000 to work with, I'd set aside a small emergency fund first, to catch those things that you used to put on a credit card. After that I would start working to pay off what you owe. I'm not sure if all of this was put on the same credit card or seperate ones. Say they are on seperate ones, start working one at a time (some pay smallest to largest, some pay higher interest to smaller interst, whichever works best for you).
I've had good luck with paying smallest to largest, so lets just use that for an example. First month put away, say, $1000 for an emergency fund. And DO NOT touch it unless is it an actual emergency! Then with the left over $1000 pay off the airconditioning repair ($1000 - $200 = $800), then the shoes (hopefully you can resell it, but for example's sake I'll leave it in), ($800 - $ $316 = $484), then kids clothes and school supplies ($500 - $484 = -$16).
The next month, with your $2000 leftover after expenses you keep working down the list: Kids clothes and school supplies ($16 - $16 = $1984) and then on to the trip ($2000 - $1984 = $16). The next month you use only $16 to finish it up.
Works the same way if you have all of it on one cc: small emergency fund first and then $3016. First month, $1000 emergency fund, the other $1000 on the cc, leaving $2016. The second month pay $2000 leaving $16 for the third month.
You are done with $1984 to spare on the third month!!! I've known people waaaaayyyy worse off with tons more debt working the plan just like above. Compared to some you are in great shape! Good income, not a ton of debt, like 3 grand. I don't see a biggy problem here.
