A new plan?

[wincrasher]

I wasn't bashing you for being young. We were all young once and some of us remember what it was like.

You've made poor choices and guess who's suffering for it? Your child.

There is no shame in admitting that you are over your head. That's why I'm saying you should live with folks for awhile and better prepare to go out on your own again. If that is not an option for reasons other than pride, then maybe you could join up with another family for a time.

And yes, I'd put up with a shady job if it meant providing for my family. I'd certainly do that before depending on the charity of others.

Yes, what I've said is VERY harsh. Life certainly isn't fair, as you've learned.

[Scanner]

And yes, I'd put up with a shady job if it meant providing for my family. I'd certainly do that before depending on the charity of others.

I wouldn't.

Personally, I wouldn't mind giving charity (or subsidy) to a person who chose ethics over fraud. Let's say this person worked for a doctor frauding insurance companies and that person quit.

As a citizen, I'd rather pay food stamps vs. a person doing something shady that costs society more in the long run.

Just my opinion.

[skylovessea]

The budget posted is NOT good enough. You need to design a budget for worst case and list ALL expenses.

rent
utilities (list all seperately)
fuel for car
car payment
car registration (if $50 once per year, you need to set aside $5/month for this).
amount you spend per month on prepaid phone (if you buy 8 per year at $50 that is 8*50/12=$34/mo
baby items- you need to budget for that- know that diapers cost $60 for a package of 46, and you go through 1 pack per week, so cost is 60*52/12=$260/month
formula costs...

$9/hr times 40 hourse is $360/week pre tax which is $18k per year. If there is other income you should list it.

The tax refund is high- how much of that was child tax credit (I assume $1000), how much was EIC? how much was an education tax credit?

I would factor the child and education credits and adjust W-2 so you will not get such a high refund next year- $3600 is $300/mo. You need that money NOW.

The first step of any good plan will be details, not guesses. If you post to the forums, post the numbers here- in this thread- I do not read the blogs very often.

That IS our budget.
I listed rent.
When I say utilities, I mean electric. That's all we pay.
The car we have is paid for (my husband bought it directly from someone at work when he was fresh out of high school)
All insurance is paid by his parents.
We buy MAYBE $5 or $10 per month for the phone, if that. We generally base it on spare change we cash out. If there is no change, there are no minutes. Lately we just haven't used it.
Diapers are $9 for a pack of 42. (Not including sales and coupons.) But for now, we use leftover gift cards so that doesn't get included in our budget yet.
He drinks milk, which is covered by food stamps/WIC.

There is no other income. (Unless I clean someone's house, which happens on occasion. I have my services posted on CL but no business has come through in the past few months.)

None of it was CTC. Mostly EIC. No education credit because I wasn't in an eligible school last year. I was enrolled in a career institute.

[minnie1928]

I would factor the child and education credits and adjust W-2 so you will not get such a high refund next year- $3600 is $300/mo. You need that money NOW.

I remember this being discussed in one of your other posts. Have you filled out the W2 for your husband's new job yet? If not, have you figured out how he needs to fill it out? Just curious...

You posted what his hourly rate is...do you know what his net pay will be? After taxes, insurance, etc. do you know roughly how much he will be bringing home? That would be helpful for creating a base for your budget.

[skylovessea]

I wasn't bashing you for being young. We were all young once and some of us remember what it was like.

You've made poor choices and guess who's suffering for it? Your child.

There is no shame in admitting that you are over your head. That's why I'm saying you should live with folks for awhile and better prepare to go out on your own again. If that is not an option for reasons other than pride, then maybe you could join up with another family for a time.

And yes, I'd put up with a shady job if it meant providing for my family. I'd certainly do that before depending on the charity of others.

Yes, what I've said is VERY harsh. Life certainly isn't fair, as you've learned.

If your intentions weren't to bash me, you should have been kinder with your words. The things you said and the manner in which you said them were nothing but condescending and rude.

We can't live with his family because 1. they are states away in a small enough house for just them 2. I can't afford to just stop going to school here (it is affordable and I probably wouldn't get accepted into the school there because I have my GED due to homeschooling in high school) and 3. because even though you don't seem to believe it, we are fully capable of taking care of ourselves

We can't live with my parents because they are losing their house. We don't have any other family that can take us in.

I didn't make stupid choices and my son is not suffering from it. We are wonderful parents and we work our buns off to provide for him. He has it great, in my honest opinion. For you to try to tell me otherwise is awful. He has a roof over his head, plenty of food, and more than enough attention from friends and family.

We aren't in over our head, we have just hit a rough patch. We aren't living on the street. Many people are worse off. We aren't poor. I've seen poor. We are just a young, low income family trying to work our way up. I'm in school doing just that.

I'm not "depending on the charity of others". Yes, we have food stamps, but we aren't on welfare, TANF, living in a shelter, dining at the soup kitchen. We are getting one tiny bit of assistance to get us going again. This isn't forever. As I've said time and time again, this is a rough patch, and only that.

The only reason he quit is because he knows he has another job starting. Less than 2 weeks without work is nothing compared to what we've been through in the past few months.

It wasn't just harsh, it was hurtful. There is no reason to point out someone's mistakes and try to tell them that they can't handle it or they aren't capable of taking care of themselves. And again, there is NO REASON to tell me that my son is suffering because we have little money. I'm not some little ditz that just got "knocked up" because I was drunk at a party. This is what we wanted, and I'm sorry that you, among many other closed minded people, can't accept that.

(sorry again everyone for the rant but I find it unfair that some people have the nerve to be so rude. I don't know how many of you with kids would be okay with someone saying these things to you, but things like this strike me in the wrong way and I find it unacceptable.)

[skylovessea]

I remember this being discussed in one of your other posts. Have you filled out the W2 for your husband's new job yet? If not, have you figured out how he needs to fill it out? Just curious...

You posted what his hourly rate is...do you know what his net pay will be? After taxes, insurance, etc. do you know roughly how much he will be bringing home? That would be helpful for creating a base for your budget.

He hasn't filled it out yet. He is going to orientation on the 19th of this month. I'm assuming that's when he will do it.

Unfortunately, I don't. Someone suggested using a paycheck calculator to determine what will be taken out. It will just be taxes, the insurance they offer is awful and overpriced. We will be shopping for private insurance once we know what our budget allows.

Once I figure all that out I will definitely update here. You guys are so helpful!

[skylovessea]

I agree with Steve's comments above. However, this is a chat board where anyone and everyone can post their opinion. Some you will agree with and some you will not, that's the nature of the beast. Please don't get me wrong, I don't agree with what was said...but you have to be prepared that you might get answers like this on occasion.

Now, back to the original topic. I think you probably have a better head on your shoulders than a lot of 19 year olds. You are actually planning a future for your family! That's more than most!

I would create a detailed one year plan and a broader 5 year plan. If 1 year is too difficult, then maybe 6 months would be better. You want to create a plan that you can be successful with, regardless of the term. If you set up a plan that is sooo difficult to achieve, it will turn against you. You need to set yourself up for success! Once you've tasted that success it will fuel you to meet your next goal.

And contrary to what you think, you are a real adult with a real family with a real home. It really doesn't matter what others think, it's what you think about yourself that matters. I don't buy the latest things/clothes/toys/cars, but I could afford to. I have tshirts that I still wear that are 18 years old (and yes, they still look good). I don't feel the need to be "approved" by strangers. What makes me feel good is knowing that because of the choices my husband and I have made, we have the financial freedom to do the things that are important to us. The other stuff doesn't really matter.

I do understand that anyone can say what they want, but I find it unacceptable to be so harsh and rude about it. From a mother's perspective, it is very hurtful to see negative things posted about the way you are raising your family. Just my opinion.

I realize that I am a real adult with a real home and real car. I was a bit upset when I posted and realized afterward that it sounded very whiny. I apologize for that.

[jIM_Ohio]

That IS our budget.
I listed rent.
When I say utilities, I mean electric. That's all we pay.
The car we have is paid for (my husband bought it directly from someone at work when he was fresh out of high school)
All insurance is paid by his parents.
We buy MAYBE $5 or $10 per month for the phone, if that. We generally base it on spare change we cash out. If there is no change, there are no minutes. Lately we just haven't used it.
Diapers are $9 for a pack of 42. (Not including sales and coupons.) But for now, we use leftover gift cards so that doesn't get included in our budget yet.
He drinks milk, which is covered by food stamps/WIC.

There is no other income. (Unless I clean someone's house, which happens on occasion. I have my services posted on CL but no business has come through in the past few months.)

None of it was CTC. Mostly EIC. No education credit because I wasn't in an eligible school last year. I was enrolled in a career institute.

Nicole- why no child tax credit for 2008? That could be another $1000 in your pocket.

A budget needs to list estimated expenses (like the average electric bill). Do you have cable? How do you access the internet? These are line items which need to be accounted for- even if they are -zero- because if you want to independant, you will need to account for them sooner or later.

In addition you need to include the estimated costs for the things you use gift cards for- eventually those are going to run out.

If you do not include them, you will not truly have a handle on your finances. In addition if you own a house nothing gets paid by your landlord anymore. Get used to being detailed in your planning.

My budget includes these things:

Mortgage, 2nd mortgage, Homeowners Accociation, home security system, DH Gas for Car,DW Gas for Car, DW-Hair, Life insurance, Grocery, Phone, Trash-Rumpke, Electric, Water, Direct TV, Cell Phone, IRA DH, IRA-DW, Car Payment 1- Ridgeline, Car Payment 2- Accord, Car Insurance, diapers, formula, CASH- DH, CASH- DW, Student loan- DW

--
In addition make sure you itemize all income. Don't guess- you need to track everything to the nearest dollar and know where the money is going.

This way when you go to save 20%, you know what you are saving 20% of. You know how much 20% is, and can then account for this money at end of year.

[skylovessea]

I wouldn't.

Personally, I wouldn't mind giving charity (or subsidy) to a person who chose ethics over fraud. Let's say this person worked for a doctor frauding insurance companies and that person quit.

As a citizen, I'd rather pay food stamps vs. a person doing something shady that costs society more in the long run.

Just my opinion.

Thank you. I definitely believe that more people should have this mentality.

[skylovessea]

Nicole- why no child tax credit for 2008? That could be another $1000 in your pocket.

A budget needs to list estimated expenses (like the average electric bill). Do you have cable? How do you access the internet? These are line items which need to be accounted for- even if they are -zero- because if you want to independant, you will need to account for them sooner or later.

In addition you need to include the estimated costs for the things you use gift cards for- eventually those are going to run out.

If you do not include them, you will not truly have a handle on your finances. In addition if you own a house nothing gets paid by your landlord anymore. Get used to being detailed in your planning.



--
In addition make sure you itemize all income. Don't guess- you need to track everything to the nearest dollar and know where the money is going.

This way when you go to save 20%, you know what you are saving 20% of. You know how much 20% is, and can then account for this money at end of year.

I did the worksheet and it said we weren't eligible. I don't recall why, but I looked it over multiple times to be sure.

A friend lets us use his wireless, so we don't spend anything on that.

Basically, the gift cards are for diapers only. Approximately $30 per month.

I'm not sure of his exact income because I don't know how much comes out for taxes yet.

[jIM_Ohio]

I did the worksheet and it said we weren't eligible. I don't recall why, but I looked it over multiple times to be sure.

A friend lets us use his wireless, so we don't spend anything on that.

Basically, the gift cards are for diapers only. Approximately $30 per month.

I'm not sure of his exact income because I don't know how much comes out for taxes yet.

You can know if you decide to use the calculators I suggest. It really does not appear you are serious if you are not willing to be proactive.

PaycheckCity.com | Web-Based Paycheck Calculators

is the link

plug numbers in for weekly or bi-weekly pay
it will break down for you what will be coming in- between $315-$330 by my calculations depending on allowances you claim (1 or 3- I suggest at least 3). If you then plugged your estimated tax payments into a tax program, you could see your refund- then adjust the allowances to 5 or 7 to withhold until your refund is less than $120.

I would take your return to a tax professional or run it thru turbo tax online. You can get more money back with either the child tax credit or the additional child tax credit. Possibly up to another $1000 back.

[minnie1928]

I did the worksheet and it said we weren't eligible. I don't recall why, but I looked it over multiple times to be sure.

I know that you already filed your taxes, but did you do them by hand or did you use some type of tax prep software? If you did them by hand, I'd recommend that you use one of the free online tax prep programs ( I think you might qualify for the one on the irs.gov site) to double check your figures. I too think you should qualify for the tax credit. A thousand dollars sure would come in handy!

I looked at the irs.gov site for info on the credit -
"To claim the child tax credit, you must file Form 1040, Form 1040A, or Form 1040NR. You cannot claim the child tax credit on Form 1040EZ or Form 1040NR-EZ. You must provide the name and identification number (usually a social security number) on your tax return (or Form 8901) for each qualifying child."

What form did you use to file your taxes?

Just as an aside if you need to amend your taxes, it's not difficult. I did it for my parents last year and it was very easy.

Also, I didn't mean to suggest that you shouldn't defend yourself and/or your situation. I think you've handled things just fine and are working your way out of a tough situation.

[skylovessea]

I know that you already filed your taxes, but did you do them by hand or did you use some type of tax prep software? If you did them by hand, I'd recommend that you use one of the free online tax prep programs ( I think you might qualify for the one on the irs.gov site) to double check your figures. I too think you should qualify for the tax credit. A thousand dollars sure would come in handy!

I looked at the irs.gov site for info on the credit -
"To claim the child tax credit, you must file Form 1040, Form 1040A, or Form 1040NR. You cannot claim the child tax credit on Form 1040EZ or Form 1040NR-EZ. You must provide the name and identification number (usually a social security number) on your tax return (or Form 8901) for each qualifying child."

What form did you use to file your taxes?

Just as an aside if you need to amend your taxes, it's not difficult. I did it for my parents last year and it was very easy.

Also, I didn't mean to suggest that you shouldn't defend yourself and/or your situation. I think you've handled things just fine and are working your way out of a tough situation.

I did them by hand, and now looking back at them I am starting to worry that I may have messed it up a little.

Now I'm not sure what to do. I'm going to try to find what you were talking about on the IRS website. What happens if you file your taxes but they are incorrect?

We filed the 1040.

Don't worry. I know you didn't mean any harm. I just get very offended in that type of situation. I was still a little hot headed.

Now I'm going to be up all night trying to fix the tax situation. Ughhh! (lol, these things always happen to me)

[disneysteve]

Expenses:

Rent $410
Utilities $70
Gas (as needed, generally not a lot-we walk as much as possible)
Phone (prepaid, as needed)
Baby items (generally bought with gift cards from friends and family, or $20 monthly)

This can't be all of your expenses. For one thing, you haven't mentioned food. You do eat, don't you?

You have a car. You said his parents pay for insurance. Who pays for the oil changes and other maintenance and repairs? You are in some type of school. Who is paying for tuition, books, supplies, etc.? Does he have any expenses related to work? What about clothing? Babies outgrow stuff pretty quickly and adults need to replace things from time to time, too. How about household items - paper towels, toilet paper, detergent, shampoo, cleaning supplies, etc.? I think there are lots of things missing from this list.

If you haven't already done so, both you and your husband need to write down every penny you spend (regardless of where the money comes from) for 30 days to get a real idea of how much it costs you to live. Include all expenses, even if someone else is currently paying them or you are using gift cards to pay them. Be sure to include a pro-rated amount for expenses that you don't pay every month.

ETA: I know you get food stamps, but you still need to list what you spend on food as an expense. Then list the value of the food stamps as income.

[skylovessea]

This can't be all of your expenses. For one thing, you haven't mentioned food. You do eat, don't you?

You have a car. You said his parents pay for insurance. Who pays for the oil changes and other maintenance and repairs? You are in some type of school. Who is paying for tuition, books, supplies, etc.? Does he have any expenses related to work? What about clothing? Babies outgrow stuff pretty quickly and adults need to replace things from time to time, too. How about household items - paper towels, toilet paper, detergent, shampoo, cleaning supplies, etc.? I think there are lots of things missing from this list.

If you haven't already done so, both you and your husband need to write down every penny you spend (regardless of where the money comes from) for 30 days to get a real idea of how much it costs you to live. Include all expenses, even if someone else is currently paying them or you are using gift cards to pay them. Be sure to include a pro-rated amount for expenses that you don't pay every month.

All of our food is covered with food stamps.

We have clothes for our son coming out of our ears, haha. DH's parents send clothes on a regular basis, and my parents bought him some recently as well.

We don't really spend any money. When we moved in, we knew it would be a tough transition so we stocked up on our household supplies.

We started keeping track of all money spent a couple weeks ago but we haven't spent any money since then (other than the $5 I put in the car today)

I have a list of what our expenses will be once DH starts his new job listed in my Total Money Makeover book (which isn't with me at the moment). We have listed the things we will eventually have to start purchasing again (like you said, once the GCs run out.)