Budget for Critique

[Radiance]

Please see attached my latest budget version for critique.
As I am right now, I am 214 in red per month.
I have a potential room renter for Octuber for $600 a month

Please be gentle, this is my first attempt ever to control my finances.
I live alone with my baby of 16 months.

Some things to consider:

The family support category can not be taken away, my parents had to temporarely move to the city, my mom is hospitalized waiting to get stable enough for surgery, my dad has been disabled for months now, the money I send is their only income for living (basically food) and medical expenses.

Due to finances again, I am not elegible for child support or alimony, if anything my son's dad could apply to get alimony from me. Which I know he wouldn't do.

[Broken Arrow]

Hmm, I don't see the attached file you speak of....

Is there a way you can just list them right here in the thread?

[Radiance]

hmm, true, let me try

[Broken Arrow]

Ooops! Ok, I see the attachment now. Would you rather keep it as an attachment, or would be OK to list them in the thread as well? Listing it would be easier for everyone....

[Radiance]

Too bad tabs don't stick, hope this is legible

Gross 7400
Net 5848

Housing
Mortgage 1550
Taxes 290
Home Insurance 92
HOA 287
Total housing 2219

Utilities
Water 65
Electricity 100
Phone/Internet 65
Cable 40
Cell Phone 81
Total Utilities 351

Savings and Investments
Savings/Emergency 300
401k 0
IRA 0
Pre-paid college 0
Total Savings 300

Food
Groceries 400
Lunches 50
Total Food 450

Transportation
Car Payment 293
Car Insurance 100
Gas 150
Tolls 35
AAA membership 6
Car Maintenance 100
Total Transportation 684

Baby
School/Day Care 849
Baby Toys 20
Baby Clothing 30
Baby non-Food 80
Total Baby 979

Family Necessities
Personal Care 40
Clothing 20
Household 50
Total Family Nec. 110

Medical
Medical 100
Vitamins 41
Contact Lenses 5
Total Medical 146

Debt
Signature-14% 360
Visa-14% 20
Amex-24% 30
Total Debt 410

Family Support
Parents Support 300
International Calls 21
Total Family Support 321

Discretionary-Other
Entertainment 60
Sponsored child 32
Total Other 92

[Broken Arrow]

Ok, nice formatting. Thanks.

[disneysteve]

I am 214 in red per month.

First off, I congratulate you for having such a detailed record of your spending. Lots of people could take a lesson from that.

The most important point is what I quoted above. You are not the US Government. You can not run your household at a deficit. You MUST cut a minimum of $214/month from your spending. Ideally, you need to cut a lot more than that because you need to build your savings/EF.

What would I cut? Just going down the list, I'd look at these items:

Phone/Internet and Cell Phone - Do you need a land line and a cell phone?
Cable - Cancel this. You can't afford it.

Food - $450/month for you and a toddler is way too much. There are lots of threads here on lowering the grocery budget. You can probably cut the entire $214/month out of this item alone.

Car Payment - This may or may not be fixable. How much do you owe and what is the car worth? How many payments remain? It will help a lot when the car is paid off.

Baby Toys - $20/month is a lot. Your kid is 16 months old. What does she need? I know kids like new things, but it only has to be new to them. Go to Goodwill or yard sales and find good used toys for 10% of what they cost new.

Baby Clothes - While you're at Goodwill and the yard sales, buy her "new" clothes, too.

Vitamins - You're spending $41/month for pills that have little to no evidence showing that they actually do anything beneficial for your health.

Sponsored child - Charity begins at home. Once you are financially stable, then you can go out and help others who are less fortunate. Right now, you need your dollars more than others do.

[Radiance]

Thanks, that is ok

I realize something else now: I've been using credit like it is savings.
"Hey, I have 2000 available credit, I have 2000". That is not true, of course.
I realize that now.

I am struggling with facing the need to cut down. I am afraid I will be way too depressed by cutting cable, or toys for example. But I need to search more deeply into the real reasons why I hesitate so much.

I entered 400 for groceries as you can see and I am struggling a little with that.
What is helping is holding on buying until the fridge and pantry are almost empty. Pasta and pears? That was dinner last night.

I went for milk, which is an essential, but I got in, bought the milk and didn't look to the sides, got out of there with my $7 receipt and that was it.

I keep on fine tuning

[DebbieL]

Hi. There are some categories I could see being reduced or eliminated, if it helps:

Cell phone (not sure if this can be reduced, but if possible, I would)
Baby toys - kids are just as happy playing with cardboard box or Tupperware containers – your kid has enough toys
Baby clothes – I would try consignment store if you really need more clothes for him
Baby non-food (not sure what you mean here)

Vitamins – I know some people like them, but I’m as healthy as could be from just eating properly. I haven’t taken a vitimin in many years. If you want a children’s multivitamin for baby, I’m sure it could be had for much less money than that.

Sponsored child – while it is admirable that you want to help, you can’t afford it right now.

PS – Yes, I think you should get a renter. It seems like it would take some of the financial strain off you for now.

[Radiance]

Steve, I had posted before I saw your response.
I am going through emotions more than anything else on my quest to cut down

- Cancel cable, my son loves to watch educational programs like "between the lions" and "Sesame street. ok, I guess I can borrow some tapes at the library each week? After all I only allow him 1 hour during the week and 2 hours during the weekend. It helps me when he watches 30 min in the morning while I get him and myself ready.

- I am not willing to let go of the cell right now, I had a car accident and I used it to call 911. I also use it when I am stuck in traffic and I need my ex toe to pick up my son before they start chargirg me. I can, however reduce my plan by $20. I need the home phone so the alarm works, I have no providers that support VoIP and my alarm is included on my HOA.

- Eat out, I can cancel this, actually, done, until I am in the blue

- Groceries, I alrady reduced from the original 600, work in progress

- Toys, I need to get familiar with thrifty stores.

- Clothing, same as above, or at least I can reduce budget from 30 to 20

- Personal care, I can reduce this from 40 to 20, I am low maintenance

- Clothing - I can suspend cloth buying for 6 months

-Contact Lenses, I can use my frames for 6 months

With all those actions, it I stick to budget, I would go from negative 214 to positive 406

- Sponsor child, I feel super guilty from cutting her down. This is a tough one for me, some praying will be required. I almost think I could just cut more on food for me.

I am not yet confident to execut this plan... shaky, really

[Radiance]

Baby non-food = diapers, wipes, cream (bottom supplies) ;-)

[MonkeyMama]

Your budget has many similarities to mine. OF course, I had way less income and expenses when my first child was born, but we ran it pretty tight for a couple of years. Is expected with a child and a single income. Overall, I think your income is good and you are in somewhat of a temporary spot.

Things I would immediately cut:

cable, cell, charity. You have no business with these things in your financial situation. You can get a prepaid cell (I understand the emergency/safety aspect) for pennies - ask BRoken Arrow about his setup. Cable and charity are pure luxury. I'd also consider dropping the internet (can you use internet at work? Library?)

I give you a little leeway on the groceries as a single mom, BUT you simply can't afford to spend so much. We spend about as much for 4 people, in a pricey area. I would look into cooking more. It's an art that takes time to hone. But get quick, simple recipes are the way to go (no buying prepackaged items, etc.). I admit it is easier for us to buy in bulk. But I'd get used to eating a lot of leftovers - it's far cheaper.

When your child is 2 or 3, shop around day cares. They get more affordable with age - more options. I would expect you can get that cost down a bit in a year's time.

Beyond that, nothing much sticks out but the debt. $700/month to debt and car payments - ouch. I'd work hard on getting that down to $0.

[mom-from-missouri]

Baby non-food = diapers, wipes, cream (bottom supplies) ;-)

Can you switch to cotton diapers?? At least while you are at home? I'd use the unfolded type, which you can fold as he grows and then reuse as dish towls later:>

You can buy them at thrift stores or garage sales. It also helps toilet training go faster when they are in cotton, as they don't like that "wet" feeling.

[mom-from-missouri]

Another thought--can you perhaps increase your income? Perhaps watch another child on weekends or evenings?

[Joan.of.the.Arch]

I feel kinda mean even doing this. I have lived with little including while having a toddler. The expectations of even two decades ago were so much different. People were puzzled when I did not have a land line then, but there was no pressure to also have a cell phone. Shoot, it was a a bit of a big deal even to have a pager, which sometimes I did for work. I had to go to a phone outside the apartment to call in to respond to the pager. So anyway, I just saying that I know it is easy for me to say what I would do, but harder to actually do it.

Here is the money I think I would not spend if I were on the verge of losing my house:

Cable 40
Cell phone 81
Food 250
Baby toys 20
baby clothing 20
Personal care 20 (maybe more)
clothing 15
household 40 (maybe more)
Vitamins 41 (unless definitely medically recommended)
contact lenses 5 (if I have glasses instead)
entertainment 40 (and what I did spend for entertainment would now be spent differently--like in making toys for baby, for example.)
sponsored child 32

TOTAL $ about $600 (sorry I keep adding it up and getting something different. So sloppy with the calculator)

In addition, I would try, try, try to do with out AC. I know it would be really hard in Florida. I grew up in the Mississippi delta myself, so I know how miserable summer can be. But I'd try. Maybe I might leave the house sometimes and go to a public air-conditioned place instead. I might spend the day wearing wet clothes sitting in front of a box fan. I might head for a swimming pool every weekend and evening if there were a free one.

Probably such severe cutbacks do not need to be forever. Things will turn around. You'll make more money and your baby will be in school, not day care.
Radiance, your honesty and willingness to try (as evidenced in this post and others) has really touched me. I think I like you. I think you can do it. I hope you will not let cutting back make you feel cheated, defeated, incapable, or miserable. It can make you feel capable, strong, smart, clever, and resourceful. Look toward that.