I am a 41 year-old single Dad who is broke...help!

[JoeP]

As far as cheap internet, why not go this route: get a no-contract data plan such as one through AT&T, and buy a phone off CL. You can then have phone with unlimited talk/text, 2.5GB of data, for about $60/mo. Then just watch how much data you use. This may require you to change your internet habits, but at least you will have access when you need it. You can even make most phones into hotspots so you can use a laptop or PC for better screen size and usability.

[Weird Tolkienish Figure]

Hi...

I am a single (divorced dad) with one child.

I live paycheck to paycheck and have virtually nothing in savings or retirement.

Basically, I am screwed.

I take home (after taxes) $36,140, which is roughly $2780/month.

I need advice on how to save...because I am ALWAYS broke.

Here are my monthly bills:

$950 rent
$440 child support
$150 Verizon iPhone
$220 Comcast Xfinity
$84 GEICO insurance
$140 school loan (24k total remains)
$60 gas
$200 groceries (sometimes Trader Joes, sometimes Aldi)
$50 electricity
$25 dry cleaning

TOTAL=$2319

That leaves approx. $461/month that quite honestly I cannot account for...various expenses, but to actually articulate them is difficult to be perfectly honest.

So does anyone have any tips on how to save and save for retirement? ANY advice is appreciated.

Thank you.

You're paying almost $400 a month for smartphone and cable?

WTF?

[autoxer]

OK. I will start building the "rainy day fund". I am also confused/worried about my actual "retirement" savings (or lack thereof). I am putting the max allowed (3%?) into the 403(b) plan (I am a teacher at a Catholic school, and the school matches...so it is like 6%).

I picked a pretty "aggressive" portfolio, because I need growth right now versus income. I know it's a bit risky, but I am desperate.

3% max doesn't sound right. The max that the IRS allows as a salary deferral is $17,500.

If there is a max for whatever reason, there are other places that you can use that are good for retirement saving, like an IRA. Once you get your emergency fund built up to a more comfortable level, you can consider opening a Traditional IRA for additional retirement planning.

WTF?

Do you always sign your name with a question mark?

[Petunia 100]

OK. I will start building the "rainy day fund". I am also confused/worried about my actual "retirement" savings (or lack thereof). I am putting the max allowed (3%?) into the 403(b) plan (I am a teacher at a Catholic school, and the school matches...so it is like 6%).

I picked a pretty "aggressive" portfolio, because I need growth right now versus income. I know it's a bit risky, but I am desperate.

I will check Century Link internet...I was going to use my iPhone as a WIFI device, but it is $30/month....that would bump my cell phone plan to $180/month.

If I go to Smart Talk for my cell phone provider, I will pay $30-40/month...Century Link internet is $25/month...so I come out WAAAAY ahead!

Hey, this savings stuff is easy....if you use your head!

THANK YOU for all of the responses...they have been EXTREMELY helpful!!!!!!!

I will be posting here frequently.

It makes a great deal of sense to invest aggressively at this point. Is it a managed fund you have chosen? Such as a lifestrategy or target retirement fund?

The max this year for a 403b is 17.5k for those under age 50. You are contributing enough to get the full match. That's good, because you don't want to pass up free money.

After you have trimmed your expenses and gotten a chunk of money in a savings account, consider bumping up your 403b some.

Don't panic, you still have time to accumulate some money. You want to just keep moving towards saving more.

Best of luck to you.

[snafu]

I wonder if you'd be willing to use a [free] cell phone app to track every dollar spent for a whole month to see where that $ 461. dribbles away. If you have a look at a few threads, you'll notice we advocate for an Emergency Fund for unexpected bumps that easily drives people to debt. It's important to quickly build to $ 1,000. You can add to that base monthly, more slowly to ideally have 3 months liquid funds that is sufficient to pay basic costs like rent, utilities, food and minimum on SLs. What interest rates are you being charged?

Sometimes there are small items that add up to a significant sum over the period of a year. For example, since the debacle 2008-2009, banks now charge for services that were once free or tiny amounts. How much were you charged in bank fees in August? Multiply that sum by 12 for close to annual rate.

What is the line item for entertainment? Can you identify no cost, low cost entertainment for you and the children? How do you budget for birthdays, Christmas [14 weeks/4 paydays] and special event gifts? Is disability insurance part of your employee benefit package? Do you have adequate life insurance? Sorry, I'm not meaning to add to your expenses.

Finally, would you be willing to consider taking on part time work like tutoring to boost income?

[ROC73]

I wonder if you'd be willing to use a [free] cell phone app to track every dollar spent for a whole month to see where that $ 461. dribbles away. If you have a look at a few threads, you'll notice we advocate for an Emergency Fund for unexpected bumps that easily drives people to debt. It's important to quickly build to $ 1,000. You can add to that base monthly, more slowly to ideally have 3 months liquid funds that is sufficient to pay basic costs like rent, utilities, food and minimum on SLs. What interest rates are you being charged?

Sometimes there are small items that add up to a significant sum over the period of a year. For example, since the debacle 2008-2009, banks now charge for services that were once free or tiny amounts. How much were you charged in bank fees in August? Multiply that sum by 12 for close to annual rate.

What is the line item for entertainment? Can you identify no cost, low cost entertainment for you and the children? How do you budget for birthdays, Christmas [14 weeks/4 paydays] and special event gifts? Is disability insurance part of your employee benefit package? Do you have adequate life insurance? Sorry, I'm not meaning to add to your expenses.

Finally, would you be willing to consider taking on part time work like tutoring to boost income?

I do part time Summer School where I earn $2200...I've usually blown that money on taking trips, etc.

My SL is at a 7% interest rate.

[scfr]

A few additional categories where you are likely spending money are:

• Eating Out
• Medical / Dental / Vision (co-pays, etc.)
• Personal Care (haircuts, toiletries, etc)
• Clothing
• Gifts

My suggestion is to keep contributing to your retirement plan up to the company match and build up a small emergency fund. Then, start attacking the student loan debt. Make a schedule for early payoff. Once that's paid off, you can ramp up your retirement savings.

As far as cutting expenses (that's how you'll come up with the money to pay off that student loan), good job on the steps you've taken so far. In what other areas are you willing to cut back? You are the only one who knows where you are willing to sacrifice and where you aren't. Are you willing to carpool to work to cut your gasoline cost? Launder & iron your own shirts to cut the dry cleaning bill? Cut your own hair? Take the kids to the library instead of to a movie? Etc. Etc.

Good luck. Keep asking questions.

P.S. - Would I be totally wrong if I guessed that your wife handled most of the finances when you were married?

[scfr]

Have you called Geico to ask if there are any discounts you are eligible for but aren't already taking advantage of? The discounts vary by state. I get a 10% discount from Geico for taking an on-line defensive driving course (have to pay for the course but it is good for 3 years).

[autoxer]

My SL is at a 7% interest rate.

If you are only paying $140 on a $24k loan @ 7% interest, it looks like the entire payment would go towards the interest. $24k x .07 / 12 = $140. At that rate, it will never get paid off.

I know you are juggling a lot of different things right now, but you might want to think about how long to keep this loan, or how quickly you can pay it off.

Paying $200/month it would take 17 years.
Paying $250/month it would take 12 years.
Paying $300/month it would take 9 years.
Paying $350/month it would take 7 years.
Paying $400/month it would take 6 years.

[ROC73]

If you are only paying $140 on a $24k loan @ 7% interest, it looks like the entire payment would go towards the interest. $24k x .07 / 12 = $140. At that rate, it will never get paid off.

I know you are juggling a lot of different things right now, but you might want to think about how long to keep this loan, or how quickly you can pay it off.

Paying $200/month it would take 17 years.
Paying $250/month it would take 12 years.
Paying $300/month it would take 9 years.
Paying $350/month it would take 7 years.
Paying $400/month it would take 6 years.

Wow...good to see it broken down.

Yes, my wife used to manage the $$...I am terrible at it (obviously).

[ROC73]

By the way, I am SO impressed with how many people have responded and have offered good advice....THANK YOU SO MUCH!!!!

I am reading about STRAIGHT TALK pre-paid cell service, and the reviews are TERRIBLE.

I'd LOVE to keep my Verizon plan but $150/month is a lot.....??

[JulieAlbright]

$150 is a lot

I have Republic Wireless and pay around $13 a month, but I have no data plan. I just use WiFi for my data needs, but since you just cancelled cable and internet at your house, that might not be the best option for you at the moment.

Cell phone is really dependent how much you use in voice, text and data AND what networks give you good coverage. So what works great for one person might not be a good fit for you There is an internet forum devoted solely to Cell Plans. Howard Forums. Go there and research to your heart's content.

You might also check out Page Plus (runs on Verizon towers and you might be able to keep your old Verizon phone), Ting, Cricket (I think they're a subsidiary of AT&T?). I also, I hear a lot of people say nice things about the Virgin Mobile pre-paid plans.

[ROC73]

$150 is a lot

I have Republic Wireless and pay around $13 a month, but I have no data plan. I just use WiFi for my data needs, but since you just cancelled cable and internet at your house, that might not be the best option for you at the moment.

Cell phone is really dependent how much you use in voice, text and data AND what networks give you good coverage. So what works great for one person might not be a good fit for you There is an internet forum devoted solely to Cell Plans. Howard Forums. Go there and research to your heart's content.

You might also check out Page Plus (runs on Verizon towers and you might be able to keep your old Verizon phone), Ting, Cricket (I think they're a subsidiary of AT&T?). I also, I hear a lot of people say nice things about the Virgin Mobile pre-paid plans.

Yeah, getting rid of cable and internet saves me about $200/month, but the Verizon phone offers me reliable phone service (I do not have a landline) and UNLIMITED data and unlimited talk and unlimited text....sure, they are luxury items, but I have heard HORROR stories about Straight Talk pre-paid. I will check out the other services. I wish I could get the $150 lower...I already canceled "insurance" for $9.99/month and Caller ID for $2.99/month, so now it is down to $137/month...

[JulieAlbright]

Well how much data do you actually use though?

I used to have a PagePlus phone for my Mom and I purchased through KittyWireless. Just a brief scan of their plans and it looks like

Unlimited Talk, Text and 1GB is $40 a month
Unlimited Talk, Text and 3GB is $55
Unlimited Talk, Text and 5GB is $70

http://www.kittywireless.com/pageplus/pageplusplans.html

And as I said, you might be able to use your existing phone.

The thing about these prepaid plans, no contract. If you try it for a month and it doesn't work out well, then go try another one.

[scfr]

I already canceled "insurance" for $9.99/month and Caller ID for $2.99/month, so now it is down to $137/month...

Good! I had no idea those cost so much (have never had either). It sounds like you are scrutinizing your bills and asking how much you really want and/or need each line item. Keep it up.