Hi- New to forums..need help with personal finance!!

[Goldmansachs1977]

Hi,

I really enjoyed reading everyone's threads. I am new to the forums and am wondering if I can ask peoples advice for structuring my finances?

Here is my current situation:

I am employed at a mortgage company and I give people financial advice all day- however when it comes to myself, I have no plan.

I have like 400$ in a checking account and about 100$ in an ING Orange Savings.

Where does my money go? ....useless stuff...and its killing me.....literally...cigarettes, coffee's and worst of all lottery tickets.

Let me address each one of these:

Cigarettes: I have been smoking for 11 years (I'm 30 years old) and spend apprx 5.25$ a day on smoking. I am working on quitting this ....with the help of my doctor.

Coffee's: These are draining my money little by little...just as David Bach says in his book in regards to the "the Latte Factor". The problem is when I have cash in hand, say $20 , I put it right in my console,not in my wallet. This becomes instantly my lottery, coffee and cigarette money- and I make sure to spend it! I must buy at least 3 coffee's a day costing 2.26 each

Finally Lottery Tickets: This is my worst problem...It struck me how serious a problem the it is when the other day I went to the bank and withdrew 100$ in cash- and promised myself it would be my spending money for the week. However, I spent it all in one day on tickets hoping for the "big win"
I have won a lot in the past...but thats where the problem is....I won. So I want to keep winning...but the reality is it's not happening. I loose more than I win.

OK- so those are my biggest issues with money. My debt is structured as follows:

250$ Auto loan a month
126$ Auto Insuranace a month


Thats really all my bills...my parents pay for my gas and my cigarettes ( I hate to admit this, but I charge them on the gas card. They don;t like this and every month they yell at me.- understandably.

I earn nothing right now cause I am on commision and business sucks...so I am thinking one of two things has to happen....I have to get another job or a part time job to supplement my income in the interim until business picks up.

I am good at what I do, and I have made major changes in other areas of my life (health, emotions etc..) but this I want to fix now. Please ...your expertise is much needed...how would you handle this situation? Where would you start?

I have huge dreams, and I want to excel in this area....but I am kind of ignorant and undiscplined....THanks


Steve

[HeartCarved]

Originally Posted by Goldmansachs1977

Cigarettes: I have been smoking for 11 years (I'm 30 years old) and spend apprx 5.25$ a day on smoking. I am working on quitting this ....with the help of my doctor.

Please quit as soon as possible! Smoking is the worst thing you can do to your heath and from the sounds of it, your checkbook. $5.25 per day times 365 days per year is $1916.25. If you had been putting $1916.25 into a mutual fund earning 8% for the past 11 years (adjusting slightly for inflation), you would have about $32000 right now.

Coffee's: I must buy at least 3 coffee's a day costing 2.26 each

This is where you need to become more disciplined. Do you have a coffeemaker at home? I like to have one cup of coffee in the morning during my commute, but I make it at home and bring my own coffee mug. This is so much cheaper than being a slave to the coffee shops! You're spending about $32 per work week on coffee. Do you know how much coffee you could buy at the grocery store for $32???

Finally Lottery Tickets: This is my worst problem...It struck me how serious a problem the it is when the other day I went to the bank and withdrew 100$ in cash- and promised myself it would be my spending money for the week. However, I spent it all in one day on tickets hoping for the "big win"
I have won a lot in the past...but thats where the problem is....I won. So I want to keep winning...but the reality is it's not happening. I loose more than I win.

Someone, and I can't remember who, said that lottery is a tax on people who are bad at math. If you want more money, EARN it instead of trying to win it. You aren't going to win the big one, but you are going to throw your money away that could be put to better use.

Thats really all my bills...my parents pay for my gas and my cigarettes ( I hate to admit this, but I charge them on the gas card. They don;t like this and every month they yell at me.- understandably. I earn nothing right now cause I am on commision and business sucks...so I am thinking one of two things has to happen....

Steve, you're 30 years old. You need to supplement your income as soon as possible! There is no reason your parents should be paying for your gas and cigarettes. You stated you earn nothing right now. How is your car loan being paid? Do you live at home still?

I would start by writing down every single dollar you spend. Once you see it on paper, perhaps you'll be more motivated to save money however you can. You can do this, but you're going to really have to be strong and discipline yourself... perhaps find someone who you can be accountable to? Maybe your parents?

Good luck! You can do it if you really want to!

[Ima saver]

He is right, you need a budget. i started working and paying for my own personal stuff when I was about 12. You need to stop smoking and buying lottery tickets. Quit buying coffee and drink water instead.
When you get paid, put the money you were wasting on cigarettes and lottery tickets each week and add it into your ING account.

[Pupart]

Check out Debtors Anonymous in your area.
Maybe your parents can go too. They are enabling you .

[Ima saver]

I thought so too, but didn't want to say it. He really needs to save his money and move out.

[Goldmansachs1977]

Thanks!

[Ima saver]

You really should open a roth Ira and get it funded as much as you can. Right now, you can put $4000 a year in there for your retirement. Then you can withdraw it tax free.

[Tree0164]

Steve
If your 30 you need to grow-up finanically big time.

Others have given you good advice.

If your not making money at your job, it would probably be best to start looking at some other places.

Good luck and keep coming back here for motivation.

[LuxLiving]

Get a coffee maker and a thermos - make it at home and carry it with you.

[Scanner]

Commission jobs generally suck and only benefit the employer by getting them inexpensive help.

Just a hunch, but I think you are filling up your down-time with coffee, cigarettes, and lottery tickets because you aren't more busy.

I think the primary cure for everything is a career change.

[disneysteve]

Originally Posted by Tree0164

you need to grow-up finanically big time.

My thoughts exactly. OP, you are 30 years old, working full-time, but still living with your parents rent-free apparently. In fact, they even pay for gas and cigarettes.

There is a much bigger issue here than what you spend for coffee. Obviously we don't know anymore than what you've told us, but you really need to take control of your life. Stop gambling. Get professional help with this if you need to. Look up Gambler's Anonymous in your phone book or go to Gamblers Anonymous Official Home Page. Spending $100 on lottery tickets in one day sounds like a pretty serious problem to me.

Draw up a budget. Figure out how much you need to pay ALL of your bills including the ones your parents currently pay for you. Also speak with your parents and come to some agreement on how much you need to start paying to live in their house, eat their food, etc.

Finally, if your current job isn't paying you enough to meet those needs, then start looking for a new job. Maybe get a second part-time job for now until you find a permanent position.

[Goldmansachs1977]

Thanks. I have to admit I very embarrassed about my situation. I started yesterday implementing saving into my life (per your advice) and I applied to two other salary positions today. I am going to take charge now and step it up and start a plan and work the plan!

I will keep you updated as much a s i can


Steve

[tinapbeana]

Steve (another one? wow!):

My biggest statement to you would be about the job. If you're good at it and it's commission based, you should be seeing some money. If you're not, either you're not good at it (which you said you were), or there's something that's not quite right. Since I can only assume you would be truthful about your abilities what with having an anonymous handle and all, I would lean towards the other option: something is fishy about an employment opportunity where one works full time, is successful, and still isn't doing something right to actually get paid... Whatever it takes, I would certainly take a look at other employment right now.

Honestly, something making $10/hour right now would be amazing for your finances, based on the numbers you gave earlier. $1600 per month gross, let's estimate $1200 per month net (it's inaccurate, but a nice round number makes the math easier and if you make more than this you can save the difference). Not knowing where you live, it's hard to know if $10 per hour is realistic, but I'd like to think so (plus it makes the math so much easier!).

Since your expenses are so low right now you could likely work on a rule of thirds every month: 1/3 (or $400) for present expenses, 1/3 for past expenses (aka debt), 1/3 for the future. In your situation, the only debt you listed was a car payment, so $250 would come from the third of your income dedicated to debt. Stash the remainder of that third (or $150 per month).

Your auto insurance, gas, and other present expenses would come out of the 'present day' third. Being able to do this would mean you would HAVE to find a way to cut out the lotto tickets or the smokes or both (both would be best, but an addiction is an addiction and trying to quit both at once might result in you quitting neither).

The final third of this income is money for your future. Typically this would be money you set aside for retirement (and $400 per month is just over a monthly Roth IRA contribution).

Now, since you currently live at home and you currently don't have an emergency fund of any sort, I would take the extra $150 mentioned earlier and rather than saving it, get an emergency fund started (which is basically saving it, but with the knowledge that you can spend it if you have to, not just if you want to). I would also split the $400 of future money between retirement and a 'move into my own pad' fund, at least if your parents are OK with that.

[Tree0164]

Originally Posted by Goldmansachs1977

Thanks. I have to admit I very embarrassed about my situation. I started yesterday implementing saving into my life (per your advice) and I applied to two other salary positions today. I am going to take charge now and step it up and start a plan and work the plan!

I will keep you updated as much a s i can


Steve

Great Steve
Make up some goals where you would like to be in a 6 months to a year financially and professionally.

Keep us updated!!

[scfr]

Steve - You said you have made some major improvements in the emotional area of your life. I suggest you continue to work on that area, as it sounds like you may have some impulse control issues. Are you seeing a counselor? If impulse control is your particular weakness (and I'm not trying to pick on you because we all have our weaknesses), I think dealing with that will go along way to address your financial problems.
Good luck to you and please keep us posted!

[lgslgs]

How fair do you think it is to steal over $150 per month from your parents to buy smokes? Are they so well off that they can afford to throw that away? And do they deserve to have you make that decision for them?

Step one of your budget. Stop taking other people's money. Buy your own gas and smokes. Brew your own coffee and use the $200 a month you'll save to buy a cheap drip coffee maker, a thermos, and a can of Folgers.

You will never be responsible with your own money if you are in the habit of spending money that doesn't even belong to you. Stop feeling a bit guilty about it and fix that behavior now. Today. This minute.


Lynda

[lieweheksie]

Glad you're making the first move in asking for help
I agree with Tina about the job- I work commission only - I do pretty OK- in our company we normally give new people 3 months to find their feet- after that if you're not making money then it's not for you
You need to stop buying lottery tickets. You said you won before- how much and what happened to it- that make give you some insight into your $ issues now.
You also need to be honest with yourself and your money- pay for your own smokes. Be honest about how much you have, what you really spend, what you owe. Truth can be a scary place to be but it is the only place if you want things to start working
Good luck and hang in there