Looking for some advice

**orangina** · 09-24-2006, 07:14 PM

Re: Looking for some advice

I am guessing you probably want me to go through my financial past a little bit.

I am not sure if I mentioned before but I am 27 years old and have been discharged from bankruptcy for 2+ years. I am slowly rebuilding my credit and have made some poor choices during this process and as a result I have a car loan to pay for and a high interest personal loan.
I really want to be as debt free as possible. I am into month two of the envelope system and this month is a bit more of a struggle than the previous month.
Any other questions - just ask.

Thanks

L

**greedy4chips** · 09-24-2006, 09:50 PM

Re: Looking for some advice

Unfortunately house sitting is not a full time job, so you have to have some place to keep your things and a place to call home. I would find the cheapest place I could to call home and enjoy my time spent watching other people's homes.

Without better details about income, debts, location, and goals in life I don't think anyone can help you much more...sorry.

**LuxLiving** · 09-25-2006, 06:47 AM

Re: Looking for some advice

yes, I'd think you'd want something more stable than storage for your stuff - it would seem like a lot of effort to keep moving it about. I'd find a very small apartment or as you say a room to rent and keep my 'stuff' level to a minimum while working these jobs and slashing away as much as you can towards those debts! Good luck to you!

Why is month two more difficult? Expenses up? or is it the discipline that's getting to you?

**orangina** · 09-25-2006, 07:40 AM

Re: Looking for some advice

Thanks for the advice.
Month two is more difficult because of the discipline. But I am not going to give up - I know these things take time.

**orangina** · 09-25-2006, 07:44 AM

Re: Looking for some advice

Originally posted by greedy4chips

Unfortunately house sitting is not a full time job, so you have to have some place to keep your things and a place to call home. I would find the cheapest place I could to call home and enjoy my time spent watching other people's homes.

Without better details about income, debts, location, and goals in life I don't think anyone can help you much more...sorry.

My income from my full-time job is about 38,000 a year. Before taxes of course.
My debt with my car and personal loan is about $500.

I live in Edmonton, Alberta, Canada.
I know that I would love to own my own house oneday.
I also feel like I need to do more living- travel.......stuff like that.
I want to learn to live below my means.

Thanks!

**orangina** · 09-25-2006, 04:21 PM

Re: Looking for some advice

Originally posted by LuxLiving

yes, I'd think you'd want something more stable than storage for your stuff - it would seem like a lot of effort to keep moving it about. I'd find a very small apartment or as you say a room to rent and keep my 'stuff' level to a minimum while working these jobs and slashing away as much as you can towards those debts! Good luck to you!

Why is month two more difficult? Expenses up? or is it the discipline that's getting to you?

so would this mean selling some of my furniture if I wanted?

**mbhunter** · 09-25-2006, 07:59 PM

Re: Looking for some advice

Orangina thanks for asking for advice here. Keep up the good work -- it takes a lot of guts to ask for help like this.

Another thing to do is track your spending. Every penny, for a month. That way you can see where the big leaks in your spending are and either look for less expensive alternatives or evaluate whether you need them at all.

And continue reading and learning about personal finance and frugal living.

**LuxLiving** · 09-26-2006, 05:51 AM

Re: Looking for some advice

Of course orangina selling your furniture is up to you. Replacing it can be costly, but so can storing it! Only you can decide which is best for you.

Is 500.00 the total of your debts? Or is it 500.00 a month that you pay toward them???

Either way on 38,000.00 a year you should clearly be able to make it!

**orangina** · 09-26-2006, 10:41 AM

Re: Looking for some advice

$500 per month.
I just feel so lost in what to do.

Like goals. What if decide I want to go back to school?

ARGH

**rickatheslicka** · 09-26-2006, 11:01 AM

Re: Looking for some advice

We had some friends that got rid of almost all of their stuff to do a cross country move. I was envious of how light they could travel and how they would get to start fresh. (I have since seriously decluttered my home, but I still have a long way to go.)

You might find it very freeing to get rid of much of your "stuff" - plus then you could move into a dorm (gasp!) if you go back to school, or up and go wherever you want for travel or work or to live. Just seems like you would have more options... but I agree with LuxLiving that only you can make that call.

At any rate, I agree with you that rent is a good place to cut expenses, especially if you don't spend much time in your place. But like others have said, why not compromise on a really cheap place (like a furnished room)?

$38,000 comes out to ~3150 a month, before taxes. So $500 toward debt does seem manageable, are you wanting to pay off more each month? Or maybe you have other expenses (medical, etc)? And maybe you need to "find the leaks" like others have said.

You have goals, now you just need to translate them into specific monetary amounts. You want to travel, let's say a trip cost $1200, then specifically you need to save $100 a month for a year or $50 a month for 2 years. Having an actual number and a definite goal (Hawaii?) is crucial (and more fun!). Maybe pick up some brochures or check out some websites, whatever you decide your goals are, use them to stay motivated.

Stay positive, and try to keep looking forward (instead of back, you can't change the past, but you can change today and tomorrow).

I'm sure if you posted some specifics about why your budget is so tight, the people on the forum will have some great advice.

Best wishes!

**orangina** · 09-26-2006, 11:37 AM

Re: Looking for some advice

Okay here is a breakdown of my budget

Rent - $545
Car - $246
Insurance - $108
loan - $203
tithe - $320
Internet - $33
Power - $25
Cell phone - $55
Groceries - $ 160
Gas - $120

The remainder I try to divide into other categories - entertainment, gifts, toiletries etc.

**rickatheslicka** · 09-26-2006, 11:44 AM

Re: Looking for some advice

Looks like rent is your major expense, besides all of the car stuff (payment, insurance, gas). Might be a good place to make some cuts.

Insurance - $108 - is this just car insurance? Maybe you can increase your deductible to lower your monthly premium. Are you really going to report something under $1000?

Tithe- is that taxes? I don't know much about Canada, but if you get a refund each year, consider changing how much you have withheld each paycheck - YOU should earn the interest on the refund, not the gov.

Gas - $120 - Ouch!!! Can you do anything about this? Take the bus? Sell your car and get one with better gas mileage? Do your errands in a more efficient way?

Otherwise, it looks like you do pretty well. Hope that helps!

**orangina** · 09-26-2006, 12:05 PM

Re: Looking for some advice

car and apartment insurance
My car is not paid for - shouldn't I be keeping the deductible on it lower?
Tithe is charity. 10%
(not everyone understands this)

I can't exactly sell my car because I bought it out of BK (bad idea)
So I wouldn't be able to get the amount it is for the loan I have.

I am averaging gas - for a month.
I could take the bus. Not convenient for me.
I could ride my bike and walk- I am lazy...............
I find that because I am always housesitting - it is convenient for me to drive.

**rickatheslicka** · 09-26-2006, 03:53 PM

Re: Looking for some advice

Regardless of whether or not your car is paid for, you should figure out how much you could afford to pay for if you got in an accident and set your deductible accordingly.

If you don't yet have any emergency fund, maybe you should not have a $1000 deductible.

But if you were in a car accident, and the damage was less than $1000, would you really file a claim and risk your rates going up, or would you be able to scrape up the money?

You might price it out with a $250 deductible vs a $1000 deductible, and if the benefits outweigh the risks, then go for it.

Too bad you can't sell the car... You'll just have to find creative ways to save money... maybe the others on the forum will have some ideas...

Looking for some advice