My monthly expenses and income

[Jb1210a]

It was suggested that I start a thread on my income and expenses and allow others to critique me on where my money should go and what I should do to make it more manageable.

First off, I make 45k/year, not sure how much is in my paycheck yet, I'll get paid in 6 days.

Rent 714
Car 419
Day Care 350
Car Insurance 128
Sallie Mae Student Loan 117
Phone 106
Electric 85-95
Credit Card 50
Water 43
Internet 41
Gym 30
Computer Loan 15
Life Insurance 9
Netflix 8
Gas 35
Food
Entertainment
Car Fuel

I'm going to say I roughly spend 300 / month on food and 200 / month on car fuel, but with this new job, that may change.

Total: 2660/month

I'm really really close to living paycheck to paycheck if not fully living paycheck to paycheck. I want to get rid of my car for something cheaper, but I only have 9 payments left on it and I will be able to run that into the ground. Any advice or assistance will be greatly appreciated.

[mrpaseo]

You don't really tell us is you have any issues, what your goals are would help too.

[Jb1210a]

I'm looking to live more comfortable and to see if there are any ideas that people may have on what I can cut out that will make it substantial. IE I know that if I was able to kill the 400/month car payment, that it would be soooooo much easier, but I'd need to find a way to make that happen. Basically, I'm trying to rebuild my life after a nasty split where I was chewed up and spit out. I was in great financial shape before hand and I'd like to get there again sometime soon.

[mrpaseo]

Well, let me run through your bills real quick:

Rent 714: Average rent, would cost to much to move to a lower rent apt.

Car 419: 9 months left, is this a reliable vehicle? You could trade it in for a lesser vehicle that would be paid off but what is the long term issues? Meaning, would the new vehicle be as reliable as your current vehicle?

Day Care 350: Shop around, see if you can find cheaper Day care that provides the same level of care.

Car Insurance 128: Call a few different insurance companies, usually the first year insurance is at a reduced rate, you can do this once a year, swap your insurance company and keep paying the introductory rate. Takes a little labor but usually you can lower your insurance.

Sallie Mae Student Loan 117: Don't know much about college loans.

Phone 106: This seems excessive for a phone, I'm assuming you have a data package. Assess if you really need the data package and downgrade.

Electric 85-95: Turn out your lights, insulate your doors/windows? There are always ways to lower your electric, they all take a little labor. The only thing that NEEDS to stay on is the refrigerator and one clock.

Credit Card 50: What's the balance? Is this a minimum payment?

Water 43: Not much you can do about this unless you water your grass. If this is regular use, then we are stuck paying this amount.

Internet 41: Do you need it? Some say yes (Like myself). Though $41 does not seem like a lot these days.

Gym 30: Do you use the gym? If not, cancel it, if a little assess other ways to get your workout in, if yes, look for monthly barkins.

Computer Loan 15: $15 isn't that much, what's your balance?

Life Insurance 9: Looks like term, everyone should have life insurance when they are growing.

Netflix 8: I too have Netflix, a great source of cheap entertainment.

Gas 35: Again, not much we can do about this.

Food: There is a lot you can do here, again, they all take effort. Eating out less is the easiest way to cut your food bill.

Entertainment: What sort of entertainment?

Car Fuel: Carpool? Plan trips to save distance (Stop at the grocery store on your way home from work so you do not have to do a second trip on the weekend).


You did not mention emergency fund, do you have one? If not, start saving a little something per month. Even if $10 bucks... it will add up eventually.

[disneysteve]

We need to know what your take home pay is to evaluate the numbers. Without knowing exactly how much you earn, it's tough to know if your spending is in line or not so be sure to post that info.

That said, I'm guessing your take home is somewhere in the $2,800-3,000/month range. If that's the case, clearly the car is a problem. You bought too much car. Rule of thumb is to have a payment of no more than 10% of your monthly income for no more than 3 years. The good news is it will be paid off in 9 months and your situation will improve greatly. I probably wouldn't get rid of the car at this point when you are that close to the finish line. Just keep that car for many years and don't repeat the same mistake when it comes time to replace it.

You didn't include any savings info on your list. Are you contributing to an employer-sponsored retirement plan? Are you funding a Roth? Do you have an EF? What percentage of gross income is currently going to savings overall?

[Jb1210a]

I am contributing to a 401k at work where my contribution is 4% and my employer matches that, I used to have the money for an emergency fund and was regularly putting money away in a savings account, In another thread, people were talking about picking up shifts at a restaurant (which is what I plan to do) to minimize the impact of the car. I'm thinking of taking all the money I make there and applying it to the balance on my car, since the money I make at my job will cover everything else. Is that a smart idea?

[Jb1210a]

Originally Posted by mrpaseo

Car 419: 9 months left, is this a reliable vehicle? You could trade it in for a lesser vehicle that would be paid off but what is the long term issues? Meaning, would the new vehicle be as reliable as your current vehicle?

It's a nice car that with a little bit of work would be a VERY reliable car. Unfortunately with my previous predicament, I neglected it a fair amount and now I'm paying the price.

Originally Posted by mrpaseo

Day Care 350: Shop around, see if you can find cheaper Day care that provides the same level of care.

I did shop around for this price, unfortunately, Day Care in this area simply isn't cheap. Plus I need to deal with my ex as she is being very stubborn about this, she can afford it much less than I can, but she's lazy and this location is very central to where we live.

Originally Posted by mrpaseo

Car Insurance 128: Call a few different insurance companies, usually the first year insurance is at a reduced rate, you can do this once a year, swap your insurance company and keep paying the introductory rate. Takes a little labor but usually you can lower your insurance.

I've thought about doing this, I've been with Progressive since I was 16 years old, so I figured the old "Loyal Customer" adage would work to my advantage here.

Originally Posted by mrpaseo

Phone 106: This seems excessive for a phone, I'm assuming you have a data package. Assess if you really need the data package and downgrade.

Unfortunately, there's nothing I can do about this, I diligently saved for my iPhone and purchased it last year knowing full well that this would cost that much, you have to have a data plan with an iPhone. Plus, it's integral to my job duties and responsibilities.

Originally Posted by mrpaseo

Electric 85-95: Turn out your lights, insulate your doors/windows? There are always ways to lower your electric, they all take a little labor. The only thing that NEEDS to stay on is the refrigerator and one clock.

This is actually an amazing price for the Atlanta area. I used to have electric bills as high as 250 (when my ex and I were together), quite frankly, I'm tickled pink about this.

Originally Posted by mrpaseo

Credit Card 50: What's the balance? Is this a minimum payment?

Balance is about 1200 and this is above the minimum payment, I plan on knocking this down as fast as I can so that I can work on improving my credit score again.

Originally Posted by mrpaseo

Water 43: Not much you can do about this unless you water your grass. If this is regular use, then we are stuck paying this amount.

Fixed rate, my complex doesn't care how much water I use, it will always be 43.

Originally Posted by mrpaseo

Internet 41: Do you need it? Some say yes (Like myself). Though $41 does not seem like a lot these days.

I have no television or cable package so I figure that this is great for the alternatives. (My ex pays 250 a month or so...)

Originally Posted by mrpaseo

Gym 30: Do you use the gym? If not, cancel it, if a little assess other ways to get your workout in, if yes, look for monthly barkins.

I'm a gym rat so this is something I always do, I'm not familiar with the term barkins, could you educate me?

Originally Posted by mrpaseo

Computer Loan 15: $15 isn't that much, what's your balance?

I'm proud of this one, it was 1800 and now it's 300.

Originally Posted by mrpaseo

Food: There is a lot you can do here, again, they all take effort. Eating out less is the easiest way to cut your food bill.

I never eat out, so that won't help. I feel that I may be overestimating how much I spend on food, I do fairly well with couponing and I try my hardest to make sure I don't waste food, I'll keep track of how much I spend monthly so that I can better assess how much this will cost.

Originally Posted by mrpaseo

Car Fuel: Carpool? Plan trips to save distance (Stop at the grocery store on your way home from work so you do not have to do a second trip on the weekend).

I drove roughly 40 miles round trip, I SHOULD be able to get a week and a half out of my tank. I need to get new tires and fix a sensor in my car that may be really affecting my mileage, this number may be too high.

Originally Posted by mrpaseo

You did not mention emergency fund, do you have one? If not, start saving a little something per month. Even if $10 bucks... it will add up eventually.

I used to, unfortunately, I used it all for the apartment I had to move out of (what's worse is that my ex won't give me any money for that or the deposit I contributed to).

[tlscott1]

Not sure what else there is to reccommend? You seem to have a response for each suggestion. Personally, the only thing I would do is try to earn some money on the side. Since you are a gym rat, I assume you are in great shape! Have you ever though about become a personal fitness coach?

[Jb1210a]

Oh the thought has been there, the problem is that my new job is very travel intensive, I'm not against picking up an extra job on the side, it's just finding time when I'm on the road to be reliable enough to maintain a normal schedule. There may be some relief on the horizon as I spoke with my brother today who may be interested in moving in a month from now.

[snafu]

It's a tough haul but you must start an emergency fund, cut $10. from food or sums earned from extra shifts/PT work. You ex is ripping you off, apply some pressure for a daycare contribution...perhaps guilt might work! Ask daycare provider if they have any flexibility, even short term on their rate. Create a meal plan for a month based on loss leaders and take coffee & lunch from home. You will need to track even small expenses like laundry; shocking how fast they add up.

[afreshup]

Rent 714 - First off, are you married? Can you take in a roommate?

Car 419 - You only have 7 payments left, keep it, but I noticed that you are only paying $50 a month on your credit card, if you have a balance on your card, keep making the same payments to your credit card after you car is paid off until you get your card paid off ...

Day Care 350 - Day care sucks, I have 5 kids, do you have any relatives that are out of work? Maybet they can help for less money?

Car Insurance 128 - This can go down once your car is paid off ...

Sallie Mae Student Loan 117 - Pay this sucker on time no matter what ... sallie Mae is a cousin to Fannie Mae and Freddie Mac, Screw her over and good luck getting a date with the cousins ...

Phone 106 - Drop the smart phone or move to Vonage

Electric 85-95 - I splurge here ... so I won't be hypocritical

Credit Card 50 - This sounds like a minimum payment .... see the car pmt

Water 43 - what are you going to do?

Internet 41 I splurge here ... so I won't be hypocritical

Gym 30 - Im fat... I should probably splurge here too ...

Computer Loan 15 - Use your car payment when you pay your credit card down to buy a computer out-right


Life Insurance 9 - How did you get this so cheap ... that's right, I'm fat and old ... my bad :-)

Netflix 8 - Me too

Gas 35 - I drive a Vette ... so I won't be hypocritical


ust my 2 cents ...

[afreshup]

I'm new here ... I accidentally posted twice ...

[Jb1210a]

Originally Posted by disneysteve

We need to know what your take home pay is to evaluate the numbers. Without knowing exactly how much you earn, it's tough to know if your spending is in line or not so be sure to post that info.

That said, I'm guessing your take home is somewhere in the $2,800-3,000/month range.

I just found out today that I will be taking home 3000 per month. This is at the top of the spectrum, I was afraid that it was going to be much lower. I've also spoken to my brother about living with me and I've spoken to a restaurant about picking up shifts when I'm in the city to help supplement my income. It's going to take some time, but I really want to pay off my car and pay down my credit card so I can live a lot easier.

[Joan.of.the.Arch]

If your daycare expense is only $350 a month and you travel for your work, I take it you are not the custodial parent. Probably your budget will need to include further child support in the near future, so you have even more reason to follow a good budget.

I thought from one of your previous threads ( Situational Help )that your situation is somewhat dire, as you were saying that you had to choose between keeping your car running and affording food. If it really is that rough, I would guess that you need to cut back drastically. Sorry, but you might need to zap gym, Netflix, internet (if work doesn't require) and entertainment for a while. What is the period of your new lease? I would like to have seen you take just a room rather than a whole apartment, or at very least to have taken a very cheap rental for the near future. But perhaps if your brother moves in with you, that will give you some leeway.

I just noticed you think you spend about $300 a month for food without eating out. If so, I think you could get that down if you do not have special diet requirements. There are lots of threads on here about preparing meals inexpensively, and many websites with that focus.

You might benefit from taking a look at your tax withholding. If you tend to get large refunds, you are probably having too much tax withheld. Think about which parent will be able to claim your child as a dependent. It's late in the year to benefit much from a change in your tax withholding, but I suppose every little bit helps.

[Jb1210a]

We have an "Agreed" 50-50 custody split. Her mother actually doesn't ever want full custody, so to make it fair, we agreed to not include money changing hands unless the situation changes. Daycare is actually 700/month and her mother is much less capable of paying for daycare, but she doesn't want to drive the long distance to my sister's house. (It's a long story, I don't want to stir the pot anymore, she's going to crash hard from her decisions). Also, the reason I want with an apartment instead of just a room also resides in the fact that I have my daughter for 50% (actually more than 50% of the time). As a result, I don't really go out at all, I don't spend money on anything entertainment wise.

[BMEPhDinCO]

Sounds like it's pretty thought out...if you are bringing home close to $3k and you are spending close to $2,700, you should have $300 extra a month - for now I'd put all that into the EF AFTER paying the computer loan, since it's only $300 left - when the car is paid off, you should also have a 1 mo EF ready - that'll put you in a good position!

For the iPhone, I pay $78 a month with a GA number - see if your new job has a discount available, but even if not, I never paid more than $85 for it - with 200 msg a month.... where's that extra $20 for you? If it's a higher msg plan, get a free text app and cut that back.

I think that it's just time for you for the most part - in 1 year you should be in a better position, just don't add to your debt!

[Jb1210a]

That's fantastic advice. I really think the difference is the text plan when it comes down to it. I used to speak with my ex ALL the time so the unlimited messages was perfect, I do have gtalk on my phone, but it's so I can have a local GA number to enter my community through the gate.

[Frugal]

Your rent seems pretty reasonable to me, but then again, rents always depend upon area. We don't live in a huge city, but we were paying MUCH more for an apartment each month, and now also for a mortgage on our house now that we are homeowners.

[Jb1210a]

I'm from New England where a 2 bedroom cost us 1200, this is a VERY nice change, so 714 is really good as far as I'm concerned. If my brother moves in, I assume I'll get at the very least 400 more per month, which I assume will be best used towards paying my car and computer off. Agreed?

[Petunia 100]

Originally Posted by Jb1210a

I'm from New England where a 2 bedroom cost us 1200, this is a VERY nice change, so 714 is really good as far as I'm concerned. If my brother moves in, I assume I'll get at the very least 400 more per month, which I assume will be best used towards paying my car and computer off. Agreed?

In my opinion, having a savings account is a higher priority than speeding up debt repayments. You have a minor child relying on you, a new job, and no savings. One small unexpected expense could mean you won't be able to pay your bills on time.

Best of luck to you and your daughter in your new place.