How do I begin? Where?

[Demiurge]

The title says it all. I need advice on how to begin the road to financial stability/security?

A little background info and some questions. ..

I'm in my late 20s, married and a stay at home mom. My husband is in construction. We have no debt but no real savings either(about 1200 in the bank). We are finally in a position to start seriously saving, for us that means about 1000 or more (as much as. 2500) a month. Due to the economy we've had a rough couple of years money wise (foreclosure and bankruptcy) and are finally coming out of it. Before evening went south we had a roth ira and 3 months in savings.

We are going to need to purchase another vehicle in the next 4 months or so. It will be a used one but I'm unsure if it should be bought in cash or on credit. We don't usually use credit,, I prefer debt free, but know we might someday need it.

I want us to be financially secure I don't ever want to be in a position that we lose it all again. So hit me with your best money and savings advice. And anything that might help

Thanks

[bjl584]

Pay cash if you can. But, we need to know how much money you have saved to answer that question. If you can pay cash for a car and still have 3 months of emergency fund left, then go for it. If not, then you need to finance. Just be sure to take out a loan with a payment that is no more than 10% of your monthly takehome with a term no more than 36 months.

Beyond that, we need more info. Please post up a detailed budget and financial profile so we can look at it.

[Demiurge]

Total take home: $4500 month (With extra overtime 5500 some months)

Rent:675month
Utilities:250month
Gas for cars: 400month (husband travels for work)
Food: $600month (for 6 people)
Car insurance: 150 (full coverage)
Mis: 500month
Tv/internet:100month
Cell phones with bells and whistles:180month

Total $2855

Like I said we've just started to come out of a really hard time. Do we're essentially starting over again from zero.

[humandraydel]

Like I said we've just started to come out of a really hard time. Do we're essentially starting over again from zero.

Well, starting over in your late 20's isn't too bad - especially with the amount you can save every month. Just be as diligent as you can, because as you know, those rainy days really do come.

If I were you I would save as much as possible - let's assume $1800 per month for a total of ~$11k over 6 months. I'd spend $5k on a car and keep the other $6k in savings. From there, the plan is simple....keep saving as much as you can, and at the end of the year I'd toss $5k into a Roth IRA.

[snafu]

More questions than answers...what is your credit score after foreclosure & bankruptcy? Have you reviewed that foreclosure as there has been evidence of error and questionable practices on the part of the financial institutions?
Are you anticipating a large tax rebate?
Where do you see yourselves in 5 years?
What insurance do you carry? Is it appropriate to your needs?
If you have 4 children, do you & DH have a will? Age of children
Do you need & use all the bells and whistles of your cell ph. to make $ 180. per mo. value for money?
Do you make a menu plan and use it?

[MelBell]

You could add some more income

I think it's good your learned the whole debt lesson early on.

I think you could also give yourself some breathing space by maybe working from home. There are all kinds of ways stay at home moms are making money these days. In fact, a lot of these women end up making their little etsy shops into big business. Do you have a skill or passion? This would bring in some more income so you can save faster, feel a little wiggle room, and save more for a cash car. I would recommend paying cash for the car if you can.

[FrugalDad123]

I am rooting for you! It sounds like your family is very lucky to have such a strong willed, disciplined and caring mother/wife. I'm glad to hear that you are now able to save. I hope that you and your family can maintain the positive thinking and continue to live as frugally as you were when times were tougher. Your kids are lucky to have you and they will learn the right things by example from you.

I like MelBell's idea. What is your passion? I hope that you can find a way to leverage your passion into a cashflow stream.