Help starting a budget

**kork13** · 09-19-2011, 05:04 PM

A few stand-outs:
a) You said "some" of your income/expenses... Do you have more of either than you list here? As you have it listed, you seem to only have about $150 of slip every month. You should try to increase that margin, whether by increasing your income or reducing your expenses (or both).
b) Debt... Seems you're working on getting that taken care of. How much (total) debt do you have right now, and at what rates? I mostly ask to get an idea of how soon it can be paid off.
c) Savings... Do you have any? Are you saving at all, whether for retirement, emergencies, or anything else? Personally, once you have your spending under control (i.e., you shouldn't need debt to make routine purchases), a budget should really just be more of a savings plan. Just starting out, try saving 5-10% of your income, and build it up from there. But savings MUST be a line-item in your budget, otherwise it won't happen -- you can't simply "save what's left"... SAVE FIRST, then spend what's left. Once we have a better idea of your full picture, we can talk about the specifics of HOW you should be saving.
d) Auto... $350/mo for gas, $276/mo car loan. Means to me about $10k-$15k financed on a gas guzzler (or two). What can be done to reduce this? How much is left on the loan, and at what rate? What is the value of your car(s)?

BOTTOM LINE: Reducing your debt and auto expenses are by far the easiest and most significant things you can change in order to increase your monthly margin and thereby increase (or start) your monthly savings.

**dczech09** · 09-19-2011, 07:10 PM

My immediate concerns are the car loan and revolving credit.

That $276 per month for the car is 12% of your income. I would venture a guess that your car loan is roughly valued at $15,000 or so, which means that it is over 50% of your annual income. Plain and simple, you have too much car. Can you possibly sell it for more than what is owed and buy something more affordable?

The $350 per month gas does not necessarily concern me unless you have a gas guzzler that you are driving.

What is the revolving credit and why is it that it makes up $200 per month of outflow? I am assuming that is a credit card. If that is the case, you must have had some spending issues in the past. Is this still an issue?

The real question about credit card debt is not "how do I pay it off?" The real question is "how did I get this much debt?"

**1+1=?** · 09-20-2011, 07:07 AM

I will post later with total debt and rates. I just purchased a new vehicle. I owe 14,500 on it. I drive 85 miles round trip everyday for my job. Both of my vehicles get 30+ mpg. I made the decision to sell my 3/4 ton truck which got 11 mpg( going down hill, in neutral, with the engine off) I couldn't justify $200/wk on fuel.

My inc

**1+1=?** · 09-20-2011, 07:12 AM

I will post later with total debt and rates. I just purchased a new vehicle. I owe 14,500 on it. I drive 85 miles round trip everyday for my job. Both of my vehicles get 30+ mpg. I made the decision to sell my 3/4 ton truck which got 11 mpg( going down hill, in neutral, with the engine off) I couldn't justify $200/wk on fuel.

My income is variable. My wife is in her last semester of college as a full time student so her income varies, and mine varies due to overtime, ect.

The revolving credit consists of a wedding ring payment, a laptop purchase (old one died and wife needed a new one for college, and a department store line. The ring and department store will be paid off this month.

I appreciate your input!

**Gary Barzel** · 09-20-2011, 08:37 AM

Have a look at some of the budgeting sites, they help you manage your finances and budget accordingly. It also works with your bank accounts so it sees what you bring in every month and what you are spending it on, so as to help you not overspend based on your monthly income.

**mrpaseo** · 10-01-2011, 12:30 PM

Do you have Excel? One of the simplest budgets is developed on Excel. Also, future financial goals should be included in your budget.

Help starting a budget