...Budgeting Questions

[mzlatisha]

New to the board.
I currently starting at another retail store as a supervisor making $12 per hr..
so thats around $1900 a month..plus i am trying to get promoted to asst mgr..which i think maybe be salary..or around $16 per hour.
I am 28 and I live in NY, i am still living with my parents ,and i really want to move out and get my own place.
I am currently looking at condos and co-ops to own...and i am cleaning up my credit as we speak.
I have no savings but from my old job i had a 401k it has around $3k in it.
I am going to have one here also where i work now in 3 months.
I also go to school online, I really want to own my own business.
If I could just be making like $2500 a month I could live on my own.
$1900 I dont know about. Is there a way I could budget it and work it out.
I really want to move by 2007.
I was thinking I should change from retail to maybe health care...only because I can make alot of money being a CNA or something at hospital.
at 28 I need to make more money...
any tips..

[TinyFish]

I think you are looking for more like career advice, so this might not count, but if you just need a bit more money, is there something you can do in your 'spare' time that would make you some money? Maybe pet sitting or walking, or child minding? Or do you know someone who works in a trade who could use an assistant on the weekends and holidays? You don't mention if you have any special skills that could make money. Tutoring, hair cutting for friends, tailoring for friends, helping with odd jobs, those can all help you make money. Someone else here can probably advise on career moves as well.

BTW, you don't mention if this budget includes savings. If at all possible, you should at least try to contribute to your 401K or an IRA each year. Not to mention having some emergency savings. But I'm sure others can give you good advice on that.

[TinyFish]

Also, let's see the budget you have worked out. People might have suggestions to pare it down. First off, I'd say, look to see if you can get a roomate to cut down on housing costs.

[mzlatisha]

Well I guess I need career advice too..but I want to save money too.
I really cannot see paying over $1000 in rent a month when I could buy something that would be my own.
I have paid off my car loan already. My credit score is somewhere in the 500's which is bad. So I am trying to get it up to 660 or better.
I always try to save' I guess I need to not be so easy about not saving money.
I know some friends of mine who have thousands in the bank and i dont even have $100 its weird.
I want to be successful and have something to show for it. I do not want to live paycheck to paycheck anymore.

[mzlatisha]

Originally Posted by TinyFish

Also, let's see the budget you have worked out. People might have suggestions to pare it down. First off, I'd say, look to see if you can get a roomate to cut down on housing costs.

oh my bf would stay with me.

[Diolla]

I wonder if you are being realistic? There are some holes in your plan from your post.

1-You have no savings but want to buy a condo. You will need savings for a down payment/closing costs, you don't really have $3000 in a 401(k) to spend because if you try to withdraw it you will pay a 10% penalty plus income taxes on it. Withdrawing or borrowing on a 401(k) is almost never a good idea.

2- Rent will be $1000 a month, how much would your payment be? Don't forget you will have maintenance and taxes and insurance on whatever you purchase. What about furniture? There is nothing wrong with renting, it is how most people start.

3-Do you have a budget now? How are you tring to get your credit score up? Paying your car loan was good but what credit building activities are you doing?

I think before we can give you good hints for your situation we need more information.

[meaghanchan]

I don't think that there's any way you can seriously think about buying a condo in your current financial situation. Even a year from now I don't really see it, even with the promotion. I would more seriously consider renting if you want to move out of your parents' house. I know you don't want to 'throw money away' on rent every month, but consider this:

1) 'throwing away' money on rent is no different than throwing away money on interest. Even if you were able to secure a loan with no downpayment and your current credit score, your payment would probably be at least or more than $1000 a month. Consider at the beginning of the loan, about 95% of that would just be going to interest. You're not giving it to a landlord, you're giving it to a bank- but it's gone either way.
2) Most condos have monthly maintenance fees of (in my area, at least) $400 or more per month.
3) I'm SURE that you can find something to rent under $1000 per month.

I live in an apartment I rent in NYC, and my monthly expenses are usually about $1200/month. I feel pretty confident that if you pared down your budget a little you could make it on $1900.

[autoxer]

Originally Posted by mzlatisha

If I could just be making like $2500 a month I could live on my own.

How did you figure this out?

Do you have any other debts or assets? Credit cards? School loans?

Originally Posted by mzlatisha

I know some friends of mine who have thousands in the bank and i dont even have $100 its weird. I want to be successful and have something to show for it. I do not want to live paycheck to paycheck anymore.

You just need a plan. First you need to analyze your spending to figure out exactly where all of your money is going. After tracking my spending for a month, writing down every little purchase, I totaled it all up and realized that the little stuff was costing me a lot of money. It doesn't feel like a lot, spending a dollar or two at a time, but adding it up at the end of the month was a shock.