Help my budget

[RayMetz100]

My wife is moving out this Sunday. Here's my new budget. Any recommendations?

1st
Ray Paycheck $2,947.41
Insurance Reimbursment from Son and Mom $60.00
Church giving -$150.00
Child Support -$385.00
House, 1st -$2,025.17
Pocket Money+Groceries, $120/wk -$260.00
Counseling -$45.00
1st of month balance/savings $142.24

15th
Ray Paycheck $2,947.42
Church giving -$150.00
Child Support -$385.00
Utility, Electricity, PUD -$77.00
Utility, Water + Sewer -$60.00
Utility, Gas, PSE -$52.00
Utility, Garbage -$42.00
House 2nd -$354.75
Gas, Ray -$340.00
Auto Insurance, MetLife -$109.00
Kids Clothes Camp savings -$100.00
Auto Savings, target $1000 -$50.00
Counseling -$45.00
HairOilClothesGifts -$70.00
Negative Cashflow Rental, Darrington -$140.00
Credit Card, American Express -$134.00
Credit Card, Citibank #1 -$132.00
Credit Card, Citibank #2 -$52.00
Pocket Money+Groceries, $120/wk -$260.00
ATT Wireless -$200.00
Savings, Kids, Chris+Kayla -$40.00
Savings, Kids, Shaun -$20.00
Vacation Savings, target $300 -$25.00
Internet, Comcast -$30.00
15th of month balance/savings $79.67

[EEinNJ]

It looks like you have a good handle on your expenses. But what is the bottom line?

My advice is to depersonalize your post quickly- with your name, your kids names, your marital status, rental info- you're setting yourself up for a problem!

[jIM_Ohio]

I see some debt payments

Negative Cashflow Rental, Darrington -$140.00
Credit Card, American Express -$134.00
Credit Card, Citibank #1 -$132.00
Credit Card, Citibank #2 -$52.00

and things which should make those go away fast

Savings, Kids, Chris+Kayla -$40.00
Savings, Kids, Shaun -$20.00
Vacation Savings, target $300 -$25.00

IMO you need to reduce your debt and deal with savings later.

If debt is costing you 10-15%, you will come out ahead by paying off debt in 6-12 months, then doubling the amount sent to savings in 12-24 months.

For example is it better to have a $140 debt payment for 3 years and save $40 for those 3 years, or is it better to payoff debt in 1 year, then save $180 for kid over 4 months? There is more in savings on the 5th month if you can send $180 to it.

[jpg7n16]

My wife is moving out this Sunday. Here's my new budget. Any recommendations?

Recommendation #1: Start with the largest expense, and move to the lowest when determining what can be reduced.

Are you feeding only yourself? Or a family still? I don't know if the food expense is out of line, though you should evaluate it.

This is what I'm getting:

Income: $5,954.83
$5,894.83 (paycheck)
$60 (monthly insurance reimbursement)

Expenses: $5,732.92
House............................................. ........$2,025.17 (1st) + 354.75 (2nd) = $2,379.92
Child Support........................................... ...$770
Pocket Money+Groceries, $120/wk..........$520
Gas, Ray............................................... ....$340.00
Church giving............................................ ..$300
ATT Wireless.......................................... .....$200.00
Negative Cashflow Rental, Darrington.......$140.00
Credit Card, American Express........$134.00
Credit Card, Citibank #1...............................$132.00
Auto Insurance, MetLife.............................$109.00
Kids Clothes Camp savings............................$100.00 (this should be separated into clothing/vacation)
Counseling........................................ ............$90
Utility, Electricity, PUD...................................$77.00
HairOilClothesGifts ...........................................$70.00
Utility, Water + Sewer.......................................$60.00
Utility, Gas, PSE..............................................$ 52.00
Credit Card, Citibank #2.....................................$52.00
Auto Savings, target $1000.................................$50.00
Utility, Garbage........................................... ......$42.00
Savings, Kids, Chris+Kayla..................................$40.0 0
Internet, Comcast........................................... ...$30.00
Vacation Savings, target $300.............................$25.00
Savings, Kids, Shaun........................................$20.0 0

Remaining: $221.91


Things that I note:
The items I have listed in blue are all key problem areas of your budget with a potential to be reduced.

The items I have listed in red are all associated with consumer debt (and I'd like to put your mortgage, and rental in red also)

The items in orange would be better used in eliminating your large debt burden. (Like Jim pointed out)

Using the negative cashflow from your property, your total amount of expenses/month related to debt is $2837.92 (your house payment is only around due to the debt owed on the home). W/o the 1st mortgage, it's still $812.75.


Action steps:
***Sell home, move into a cheaper place.***
Reconsider cell phone contract (may not be able to if need full plan for work, but likely can reduce)
Address the cashflow issue with the rental (lower debt owed, refi to lower payment, increase rent, sell property)
Stop discretionary savings, and put it toward debt elimination.


If at all possible, lower the home costs! This has potential to save you substantial money. With the cash that frees up, attack your consumer debt. When the debt is gone, you'll have a great amount of cashflow to save and give to your children like you'd really like to.