budget critique....

[irmanator]

I get 299 after taxes, fiance gets 206 after taxes. This is on a 40 hour week both have been getting overtime regularly. Teenager has pt job. Helps out w/out being asked. (buys milk if im out kind of thing)

week 1
mortgage $352

week 2
my car pmt 128
auto ins. 225 both cars

week 3
phone 30
dentist 50
lights and gas200
dish 26
cc 30 (min is 17)
sm loan 10
student loan 85

week 4
his car pmt 260

each week we pay 60 gas for cars and 80 groceries and toilet paper etc
over time goes toward extra on bills unless there is a awesome sale on groceries to stock up on.

[irmanator]

a few things i forgot to mention I have 3 teens age 17, 15, 13 (they are all odd this year lol) and do have health ins and 401k thou only 4% right now

[disneysteve]

Originally Posted by irmanator

I get 299 after taxes, fiance gets 206 after taxes.

Just to be clear, that is your weekly take-home, right? That comes out to just $26,260/year that you are living on for a family of 5.

The 2007 HHS poverty level for a family of 5 is $24,130, so you are over that, but not by much. Do you receive any type of public assistance? If not, have you checked if you qualify for any aid?

You list expenses of just $64 less every 4 weeks than your income. That is a razor thin budget. Do you have any savings or emergency fund? With 5 people, a home and 2 cars, unexpected things are bound to arise. How much longer do you have on each of the car loans? Certainly, paying off one or both will greatly help your situation.

I think it is great that you aren't including OT pay in your budget and directing it toward bills, but only if you have a good EF in place. If not, I'd start using that OT money to fund an EF of at least a couple thousand dollars.

Overall, it looks like you are managing well on what you have to work with, and still putting 4% away for retirement. Congrats! As I said, paying off a debt or two and you'll get some much needed breathing room.

[irmanator]

yes I am working on paying off the debts. I just recently "got smart" so I am working on getting them down but I feel frustrated sometimes. like I had the dentist paid off then my son had 3 cavities. this time I threatened him that if he had 1/2 a cavitie that he would live on a diet of veggies. I had a paid for car the the tranny went but I didn't have an emergency fund yet and it is easier to finance a car than a repair on a 10 year old car. sad but true. so I shopped and got the cheapest reliable car i could. I live in the sticks so no car or one car wouldnt work. I work odd hours so car pooling wasnt possible. the aa people say one day at a time i guess that works here too.

[irmanator]

oh yea 2 year left on his car loan and 4 on mine.

[InDebtInDC]

Originally Posted by disneysteve

Just to be clear, that is your weekly take-home, right? That comes out to just $26,260/year that you are living on for a family of 5.

The 2007 HHS poverty level for a family of 5 is $24,130, so you are over that, but not by much. Do you receive any type of public assistance? If not, have you checked if you qualify for any aid?

I would like to reiterate this point. I understand that you may feel like you can do it on your own, but respectfully, there is no shame at all to ask for help when you're trying your best and still need a bit of extra help.

There are people who exploit the system, but the system is really designed to help hardworking people who need some extra help.

Some food and housing aid may help your budget tremendously. Please look into those before your children turn 18 (It's easier to qualify for aid with children under 18).

Plus if you're on some form of public aid it may help your children qualify for need-based financial aid.

Good luck and keep up the good work.

[scfr]

irmanator - How do your tax returns look in a typical year? Do you get a refund each year? If so, have you considered adjusting your withholding so that you "give up" the refund but get more take home each month? With more take home pay, you could apply the extra to the debt each month and get it paid off more quickly.

I suspect you guys qualify for the Earned Income Credit on your tax returns. Are you claiming that credit? If not, you should! [If you haven't been claiming it, you may be able to go back and amend your tax returns from the past couple years, I think.] I believe there is a way you can have the EIC spread out over your regular paychecks, boosting your regular take home even more.

Perhaps your HR department at work or one of the more knowledgeable people here at Savings Advice could tell you how to do that?

[irmanator]

I don't want to re adjust my tax witholding right now, as in this year. When I get my big refund my daughter will be getting much needed braces. I don't want to do that on credit. health ins only pays 1000. My occaisonal over time messes up my ability to get help. I don't qualify right now I am working 50 hrs. week. I wont count on it for bills so i use it for extra groceries or bill pay down.

[disneysteve]

Originally Posted by irmanator

I don't want to re adjust my tax witholding right now, as in this year. When I get my big refund my daughter will be getting much needed braces. I don't want to do that on credit.

If you adjust your witholding, rather than getting that "big refund", you get more money in your paycheck every week that you can save up in an interest-bearing account for things like braces. Instead, you are choosing to let the government hold your money all year and pay you zero interest in return. Nobody said anything about buying on credit. Without the tax refund, you actually have more money, not less.

[PrincessPerky]

I am guessing with your income (educated guess, that was my income last year) you will still get a good deal back...the EIC gets you more than you sent in straight income tax (though not all you sent in SS and workers comp and all that)

[InDebtInDC]

Originally Posted by disneysteve

If you adjust your witholding, rather than getting that "big refund", you get more money in your paycheck every week that you can save up in an interest-bearing account for things like braces. Instead, you are choosing to let the government hold your money all year and pay you zero interest in return. Nobody said anything about buying on credit. Without the tax refund, you actually have more money, not less.

That's exactly right. You're losing money by giving the government free use of your taxes.

I would adjust your taxes so that you owe just a little bit (maybe several hundred bucks) at the end of the tax year. Getting a big refund is a big no-no.