I want to change my financial situation.

[S211]

I am 25 years old, married with 2 young children. I am tired of not having anything to fall back on and living paycheck to paycheck.
Right now I am earning on average 4500-4800 per month. I have the following monthly bills

Rent 875
Utilities 400
Cell phone 200
Gas 600
Insurance 100
Tv payment 200

Following debts
Student loans 30,000
Credit cards 4,000

Several medical bills in collections along with the above debts those total about 3,000
I take home after taxes usually 1000-1150 weekly.
I need help. I can't live like this. I have no savings no back up plan. Something has to happen or I will never be able to support my family through life.

[disneysteve]

Cell phone 200
Gas 600
Tv payment 200

We have 5 people on our family cell phone plan, 3 of whom have iPhones. Our monthly bill is less than yours. Something's wrong there.

Assuming you get 25mpg and gas is $3.75/gallon, that means you are driving about 4,000 miles/month. Is that accurate? If so, have you considered moving closer to where you work? What you save in gas might be worth it.

$200 for TV is insane, even if that includes internet. Basic cable is usually less than $15. Another $30 or so for internet so maybe $50/month tops for basic service.

Fix the TV and the cell bills and you'll free up a couple hundred dollars per month that you can use to attack your debt.

It would also be helpful to list your entire budget including the debt payments so we can get a more complete idea of where your money is going.

[skydivingchic]

Looks like the first thing you need to do is spend a month or two writing down every penny you spend. You don't have a real, complete budget. There are lots of things missing here - groceries, car maintenance, medical stuff (copays, prescriptions, etc), etc. You've also listed everything in nice, round numbers which also points to not knowing the real budget.

Disneysteve had good points on a few places to start looking to cut. Also, the utilities looks pretty high to me - what all does this include?

Give us a real budget including minimum payments on debt and interest rates as well as all the stuff you spend money on and we can help.

Are you saving for retirement? Is there a company match available for either you or your spouse? Do you typically get a tax refund and if so, how much?

[bjl584]

A quick glance at the financial picture that you posted would suggest that you are overspending in more than one area. Can you post a more detailed picture of what's going on with your situation financially speaking? It will be easier to give advice with a more complete picture of your situation.

[jpg7n16]

Right now I am earning on average 4500-4800 per month. I have the following monthly bills

Rent 875
Utilities 400
Cell phone 200
Gas 600
Insurance 100
Tv payment 200

Subtotal: $2,375

Where does the other $2,125-2,425 go each month?

[bjl584]

Subtotal: $2,375

Where does the other $2,125-2,425 go each month?

OP didn't include his monthly payments on his student loans, credit cards, or medical bills. PLus, there is probably a lot of info that is missing. Hopefully he comes back and posts some follow up info for us.

[dawnwes]

Agreeing that we aren't seeing everything.

Cut the TV. Get a good antenna for free TV. Watch the rest online.
$200 for utilities is high. What does that cover?
$200 for cell phones is high.
$600 for gas is outrageous even with today's gas prices. Is there any public transportation available?

Your salary is such that nothing should be in collections. Something isn't adding up.

[jpg7n16]

OP didn't include his monthly payments on his student loans, credit cards, or medical bills. PLus, there is probably a lot of info that is missing.

that was kinda my point another notable absent is food

[bjl584]

that was kinda my point another notable absent is food

Yes. And, I have trouble believing that he spends $600 a month in gas unless he drives a Hummer in reverse everywhere that he goes.

[altmanzscoreplus]

Ref:I want to change my financial situation

A quick glance at the financial picture that you posted would suggest that you are overspending in more than one area. Can you post a more detailed picture of what's going on with your situation financially speaking? It will be easier to give advice with a more complete picture of your situation.

I agree. There should be expenditure and saving scheme as par your income/earning so that there would be less chances of your financial status become worse.

[jla85]

don't forget taxes

Also relevant to update, are you making the 4500-4800 gross or net? Taxes will make a difference. A previous poster made a great point about a few months of budgeting. Perhaps printing a viable budget sheet and sticking it to the fridge to remind you. The first place I'd start of with is setting goals. Then I'd make my budget: looking at what things I can reduce or eliminate (many great suggestions have been posted already). In doing this you also have to consider what's really important...if it has been or will be sitting in your closet for six months do you really need to buy the item. Having a family discussion as well. I'm sure with a young family there are expenses that come up that may not fall into your plan so having everyone be on the same page is important so that you achieve your goals together. Finally, I would also spend some time learning about creating different streams of income. There are many viable options that you can do while still working your day job that may help ease the burden. Easier said then done but I strongly believe that generating passive streams of income is vital to financial success. There are all kinds of books and resources that may assist in picking an option. One thing that worked for me and I'll pass along I often pick up the Small Business Opportunities magazine at walmart I believe they have an online presence as well. This resource lists ideas for businesses that may peak your interest to generate more income.

[dojo]

As already advised, create a spending journal and update it for 1-2 months with EVERYTHING you spend money on. Some of the expenses you account for are already pretty big, you should consider alternatives or cutting the costs anyway you can. It's great you decided to keep an eye on these and make a change, with some more careful spending and some changes in the way you spend money, you should be able to soon save money and not worry about money this much anymore.

[johnsparks]

The four T's

Use the four T's as an outline to provide some clarity

Track- what cannot be measured cannot be improved. Make it a habit to get a reciept for every expenditure no matter how small.

Target- Set some financial goals and write them down.

Trim- Find the areas your overspending in and redirect the money towards your financial goals.

Train- Continue to educate yourself. Forums like this are a good place to start. The local library also has a wealth of information. If you have someone you know and can trust who is financially secure pick their brain.

[Auditum]

Try to reduce your expenses. Try to write every cent of your expenses one month and after it - check where your money were spent and what part can be decreased. The next month - write again, and check how much you saved and where you can decrease your expenses even more.