Finances and reduction of income

[Thrif-t]

I don't think its enough money to uproot and not have any family support. Seems you can get a part time weekend job earning more per year.

That's just my opinion.

[disneysteve]

There is a $360 month health insurance stipend.

I don't think there is much opportunity for promotions at either place. I am the only employee at my current firm so there is no where to go. The prospective firm is small and has established personnel. Architecture doesn't present much opportunity for advance. After licensure you are either a partner or an architect. There is not much in between.

Cost of living is similar. Housing is more expensive at prospective job location.

We would have no family support. No one to watch our kids if something were to come up at minute.

It sounds like 7K isn't enough to justify that move. You're better off staying where you are and picking up extra work. You've already said that you think you can make an extra 12K where you are. If that's the case, the move wouldn't gain you anything.

[~bs]

It sounds like 7K isn't enough to justify that move. You're better off staying where you are and picking up extra work. You've already said that you think you can make an extra 12K where you are. If that's the case, the move wouldn't gain you anything.

both he and the wife should be picking up extra work. There's no magic that's going to make his numbers work otherwise. He should do a side part time job. And she should try to pick up a part time job as well, on the assumption that the reason she's not full time is because she's spending more time caring for the kids (picking them up from day care, etc). If this isn't the case, then she should work full time as well.

[LivingAlmostLarge]

Are you sure it wouldn't be cheaper for your wife to stay at home? If you get cheaper and more subsidized insurance then it wouldn't be $900/month. Plus less income = less taxes so you need to make less to cover paying less taxes. I'm too tired right now to go into depth but I suspect it might be worth it not working for your wife.

But at the same time if you increased your income it would make getting out of debt easier.

[~bs]

maybe im misunderstandign what they wrote, but wouldn't the insurance be the same since she's currently picking it up under her part time employer of $1100/month?

Unless they have some sort of offsetting factor like welfare that decreases as they make more income, it would be better to make more money regardless of the tax effect

[LivingAlmostLarge]

Okay I looked at the budget. You have a lot of fat in the budget. Second you would pay pretty much 0% federal income taxes if she stopped working saving you $1500/year. that's something.

Second, why do you need netflix, slingtv, and time warner? what is lexserve and nelnet?

How much is the nissan? You shouldn't have a car payment. What is your car insurance?

Third, how can you be spending in a low cost of living area $700/food? Is that just groceries or eating out? Seriously I spend that much in HCOLA so I'm floored. And I spend it on ridiculous food like steak, fish, shrimp, etc. Do you buy a ton of processed foods? I mean bare bones I can do $400/month for a family of 4 but we aren't happy because I buy cheap stuff and no luxuries like expensive cheese, fresh veggies, fruits, etc.

$150 is for car insurance? You should drive a beater and shop that around with other insurance companies. you pay as much as I do and we have a terrible driving record.

When we went a year without company insurance we dropped dental and paid OOP for the kids and skipped ourselves. DH and I did a check up in July 2015 and then when he got insurance in July 2016 we got another check up in August. Now we're back to 2x/year. But we paid $360 for our DK check up and cleaning at the 6 month point. For 2 kids we paid $180 each i believe. I would have paid less if I had shopped around but i went with someone everyone else went to in the new area we had moved to.

I also filled a ton of scripts at costco. i got a paper prescription and called each pharmacy and compared costs. During the year we had to pay OOP for one accident at the ER that required stitches.

Our insurance for a family of four was $650/month with $13k deductible. Pretty much everything we were carefully calling around and figuring out where to go for cheap.

Without working your wife should be maximizing every dollar. And you'll pay less taxes though there isn't much you are paying now and you might even get the Child Tax credit back. So you might as well.

[scfr]

There is a $360 month health insurance stipend.

I don't think there is much opportunity for promotions at either place. I am the only employee at my current firm so there is no where to go. The prospective firm is small and has established personnel. Architecture doesn't present much opportunity for advance. After licensure you are either a partner or an architect. There is not much in between.

Cost of living is similar. Housing is more expensive at prospective job location.

We would have no family support. No one to watch our kids if something were to come up at minute.

OK - It sounds like relocating for that particular job may not be worthwhile. And with a growing family, it may be too risky to think about opening up your own firm right now.
Are there any prospects for you to move in to a government job that would offer benefits such as medical insurance and possibly retirement? City planner, inspector, landscape architect, surveyor, something like that?

A general comment for you, that I know may sound harsh is: You have to decide whether you want to complain and feel sorry for yourself, or take the first step to improve your situation. I have been there and done that with the feeling sorry for myself. The moment that I took that first step in the right direction is one that I'll never forget.

[Radiohead1]

Okay I looked at the budget. You have a lot of fat in the budget. Second you would pay pretty much 0% federal income taxes if she stopped working saving you $1500/year. that's something.

Second, why do you need netflix, slingtv, and time warner? what is lexserve and nelnet?

How much is the nissan? You shouldn't have a car payment. What is your car insurance?

Third, how can you be spending in a low cost of living area $700/food? Is that just groceries or eating out? Seriously I spend that much in HCOLA so I'm floored. And I spend it on ridiculous food like steak, fish, shrimp, etc. Do you buy a ton of processed foods? I mean bare bones I can do $400/month for a family of 4 but we aren't happy because I buy cheap stuff and no luxuries like expensive cheese, fresh veggies, fruits, etc.

$150 is for car insurance? You should drive a beater and shop that around with other insurance companies. you pay as much as I do and we have a terrible driving record.

When we went a year without company insurance we dropped dental and paid OOP for the kids and skipped ourselves. DH and I did a check up in July 2015 and then when he got insurance in July 2016 we got another check up in August. Now we're back to 2x/year. But we paid $360 for our DK check up and cleaning at the 6 month point. For 2 kids we paid $180 each i believe. I would have paid less if I had shopped around but i went with someone everyone else went to in the new area we had moved to.

I also filled a ton of scripts at costco. i got a paper prescription and called each pharmacy and compared costs. During the year we had to pay OOP for one accident at the ER that required stitches.

Our insurance for a family of four was $650/month with $13k deductible. Pretty much everything we were carefully calling around and figuring out where to go for cheap.

Without working your wife should be maximizing every dollar. And you'll pay less taxes though there isn't much you are paying now and you might even get the Child Tax credit back. So you might as well.

We don't "need" sling. It's what I use to watch my alma mater's basketball games. It could go and I would just suffer thru, I guess. Netflix is for the kids. Time Warner is internet.

LexServ is our trash/sewer. Nelnet is student loans.

Nissan balance is $4k. We couldn't net enough to make it worth exchanging that car for a "beater." It probably falls under the parameters of a beater anyways.

$700 is just groceries, toiletries and pet food. We don't buy frivolous purchases. We shop primarily at Aldi and Sam's. We average $150 per week and then 1 trip a month for $100 at Sam's. We at out maybe once a month averaging $20 per trip (subway, zaxbys or a kids eat free type sit down restaurant).

$158 for car insurance and 2 life insurance policies.

Health insurance for us is 6 one hand half dozen the other. If we pay $650 in premiums and have a $13k deductible we are going to be paying $20k in healthcare costs because I have UC and am on remicade infusions. If we pay $1100 in premiums and have a $3k deductible we are going to be paying $16k (we paid $16,622 last year).

[Radiohead1]

OK - It sounds like relocating for that particular job may not be worthwhile. And with a growing family, it may be too risky to think about opening up your own firm right now.
Are there any prospects for you to move in to a government job that would offer benefits such as medical insurance and possibly retirement? City planner, inspector, landscape architect, surveyor, something like that?

A general comment for you, that I know may sound harsh is: You have to decide whether you want to complain and feel sorry for yourself, or take the first step to improve your situation. I have been there and done that with the feeling sorry for myself. The moment that I took that first step in the right direction is one that I'll never forget.

I have a applied to a job with the state with the department of tourism for a project architect position. Applications are due by February 11.

[disneysteve]

You have to decide whether you want to complain and feel sorry for yourself, or take the first step to improve your situation.

We don't "need" sling. It's what I use to watch my alma mater's basketball games. It could go and I would just suffer thru, I guess. Netflix is for the kids.

scfr's comment is right on the mark.

I think this conversation has gone about as far as it's going to. The next step is for YOU to decide it's time to stop denying the problem and start dealing with it. You have plenty of money available to knock out your debt and start building wealth. You're situation really isn't that bad. The only thing stopping you is you.

[Radiohead1]

scfr's comment is right on the mark.

I think this conversation has gone about as far as it's going to. The next step is for YOU to decide it's time to stop denying the problem and start dealing with it. You have plenty of money available to knock out your debt and start building wealth. You're situation really isn't that bad. The only thing stopping you is you.

I mean it's obvious that making more income is the only thing that's going to better our situation. Because like I posted in the other thread, net of taxes deducted from our paycheck and medical costs, we make $41k and our yearly obligations (no budgeting for discretionary categories like clothing and haircuts or planning for car repairs) is $39,664. That leaves $1300 ($108 a month) extra.

So no. In our current situation there is not "plenty of money to knock out debt and build wealth." That's a mathematical fact. I fail to see how that reflects on my attitude towards this situation.

[scfr]

I mean it's obvious that making more income is the only thing that's going to better our situation. Because like I posted in the other thread, net of taxes deducted from our paycheck and medical costs, we make $41k and our yearly obligations (no budgeting for discretionary categories like clothing and haircuts or planning for car repairs) is $39,664. That leaves $1300 ($108 a month) extra.

So no. In our current situation there is not "plenty of money to knock out debt and build wealth." That's a mathematical fact. I fail to see how that reflects on my attitude towards this situation.

Personally, I don't think it will be easy. But I think it's do-able. In addition to the efforts to increase income (great), where do you think you could start with a little trim to the spending budget? I know where I'd suggest you start, but what I would choose might not be what you would choose. If you want to hear my suggestions, I'm happy to share.

[disneysteve]

I mean it's obvious that making more income is the only thing that's going to better our situation.

In our current situation there is not "plenty of money to knock out debt and build wealth."

Sorry but the numbers you've posted say otherwise as I detailed in the other thread. You've got over $500/month that could be redirected to debt reduction and that is if you don't do anything to boost income. Bring in more money and your shovel to fill the hole you're in gets even bigger. Whether or not you choose to do it is entirely up to you.

Good luck.

[LivingAlmostLarge]

I agree with steve there is money to be found to start the snowball. And even working earning $500/month part-time will make a huge difference in the next 1-2 years. You have to decide what's important.

[Gailete]

maybe im misunderstandign what they wrote, but wouldn't the insurance be the same since she's currently picking it up under her part time employer of $1100/month?

Unless they have some sort of offsetting factor like welfare that decreases as they make more income, it would be better to make more money regardless of the tax effect

His wife is due to have a baby in April which means not easy to pick up part time work at this stage of a pregnancy, nor for the 1-2 months after. Part of the whole discussion is the cost of baby day care, vs. her pay plus she carries the health insurance. Basically she would be working only to pay for the daycare and the health insurance.

Anyhow they do have lots of options, bt sometimes hard to see the forest for the trees.