Need Help - Getting Back on Track

**Eagle** · 09-01-2015, 12:56 PM

Wow sorry to hear about the back injury and job loss.

However, seems like you're doing better! I don't think making $117,000 a year is failing.

List your debts smallest to largest then knock them out. How much is your monthly take home pay or net income?

Are you on www.mint.com and tracking your expenses? Do you have a budget? A spreadsheet would work or an app like YNAB ( www.YouNeedABudget.com )

It looks like you missed some categories such as cell phone, entertainment, eating out, Netflix/Hulu, water bill, car insurance, health insurance, etc.

Hang in there! We're here to help.

**LegHead1** · 09-01-2015, 01:00 PM

Thanks

Thank you!

I am trying to establish a budget, but I did this whole use a credit card for monthly stuff and pay it off in full to get miles, and I cant seem to stop....

A lot of it went to drinking because I was unable to do anything and was in so much pain, but worked through that. Yes, I was fortunate to get a job, and one i like better and am much happier at, so thats a win!!

I guess i just compare myself - I feel every other 32 year old has more saved/makes more/owns a home/is married and I have just messed up.

I was using mint for a while but it was overwhelming and I kept having to re-sync accounts.

**phantom** · 09-02-2015, 05:00 AM

You're not doing bad at all. I'm 33, and you have more in your 401k than I have in my retirement accounts, and you make more than I do. It's a little hard to compare since you live in a higher cost of living area than I do, but I still think you're doing fine.

Don't beat yourself up over things that are out of your control. It's probably not your fault that you haven't found anyone to marry yet, and it's definitely not your fault that medical issues set you back a bit. There's also nothing wrong with not having a house when you live in an area where houses are really expensive.

I think getting rid of your credit card debt and your tax debt and upping your savings by the end of the year is a great goal, and totally within your reach. Go for it!

I think Eagle is right that budgeting or at least better tracking of your spending would really help you. It's hard to know how you can adjust your spending when you don't know where your money is going. If you don't like Mint, try another tool to see if something else works better. If you can explain a little more about what gave you trouble with Mint, it might be easier to suggest an alternative solution. As long as you're using a tracking tool, you should be able to keep using your credit card and still stick to a budget. But, you should also consider cutting up your credit card till you can fix some of your habits. A year without airline miles is a small price to pay for better control over your spending.

**feh** · 09-02-2015, 05:14 AM

Given your income and expenses, you should never carry a CC balance. Pay them off, and make sure they're paid in full each month in the future.

I suggest you start using mint again and get a handle on where your money is going. If you're concerned about saving for your future (retirement, house, family), you need to make a budget and stick to it.

Also - stop leasing cars. That's like flushing money down the toilet.

**rennigade** · 09-02-2015, 07:11 AM

Gym at $110/month. Thats way too high. IM guessing you frequent a gym that offers a lot of bells and whistles you do not use? You could easily cut that down to $40-$50/month.

Pay off your credit cards...you make a lot of money. Do not carry a balance on them.

**snafu** · 09-02-2015, 08:12 AM

Glad you've recovered from back injury and wonderful to have new employment that you like at a better annual rate. Kudos for maintaining high savings and participating in your employer's retirement program. Are you capturing all employer contribution? I wonder how willing you are to make changes that would ultimately improve value for money. It's likely beneficial to create a written list of goals to take you through the next 3 years.

CC for mileage points suggest vacation is an important, unlisted goal. How much time do you spend at the gym? What specific facilities do you use? What benefits are anticipated? Is that a major feature to support your social life? What does TV add to your life? $ 300. a month food is high, is it derived from lunch out and bar tab?

If you are paying off CC balance every month, I suggest seeking a 'cash back' card, paying attention to days offering 5% for gas or groceries etc; auto lease payments, utilities. To free up money for socializing, I'd eat a substantial, health focussed breakfast at home and pack lunch from home. Where do you want to meet new friends with potential to develop a major relationship?

In your shoes, I'd take $560. from savings to clear income tax, they charge interest and it's not the place to mess around. Do you know your FICO [credit] score? Hopefully CC #2 medical charges are on 0% interest . Are you taking every medical deduction you're entitled to? [mileage, parking, co pays, incidentals [bandaids, Tylenol]

**pflyers85** · 09-02-2015, 08:51 AM

What are you looking to do when the lease on your car is up in 10 months? Best case would be you give it back and use some of your cash to buy something cheap until you get all your debt cleaned up. Given your income the amount of debt you have is not extreme by any stretch.

Don't be so hard on yourself, you aren't failing at all. You seem to have your priorities in order and want to nip this thing in the bud. As long as you get on a written budget and devote more of your income to paying down debts you should have this cleaned up quickly even with only modest changes to your current expenditures.

**LegHead1** · 09-03-2015, 09:38 AM

Thank you

Thanks for the great replies, lots of good advice.

Some answers to the questions:

Car lease: I didn't have a car since I was in the city, and found myself renting one almost every month, so I got a 2 year lease on a FIAT with $0 down, not that bad. I actually use a service called Getaround now, just started! I basically rent my car to members, and Getaround guarantees me $1,000/month, and they provide a parking spot as well, so hoping the extra income from this will help. Depending on the success rate of this, I will either keep the car and keep doing this or get rid of it at the end of the lease in June.

I am AirBNB'ing my apartment for the Super Bowl, which will give me about $2000. Obviously there will be taxes, so I am preparing for that.

Taxes - this bill I got was from 2011, not sure what the error was - all I received was a bill - any suggestions on how to find out more?

Thanks for all the advice - i get overwhelmed sometimes, but glad to hear its not as bad as it seems.

Will cut up my cc and get back on Mint, I think the budget is smart.

**LegHead1** · 09-03-2015, 10:03 AM

More answers

Gym - actually 2 gyms, one is just a basic gym, the other is boxing which I have been doing for 10 years, my passion, ok with paying for this, i got 4-5 times a week (well, before the injury) was just given approval by my PT to go back.

My work does not match 401k, as we are a startup.

However - they provide food so breakfast/lunch is covered. Been making a PBJ and taking home for dinner.

**phantom** · 09-03-2015, 10:23 AM

Originally posted by LegHead1 View Post

Car lease: I didn't have a car since I was in the city, and found myself renting one almost every month, so I got a 2 year lease on a FIAT with $0 down, not that bad. I actually use a service called Getaround now, just started! I basically rent my car to members, and Getaround guarantees me $1,000/month, and they provide a parking spot as well, so hoping the extra income from this will help. Depending on the success rate of this, I will either keep the car and keep doing this or get rid of it at the end of the lease in June.

This sounds questionable to me. Did you double check that your lease allows you to rent out your car to other people? I would think a lot leases would come with rules that prohibit people from essentially sub-leasing their cars to other people. I would also be concerned about doing this and staying under your milage limits.

**corn18** · 09-03-2015, 12:17 PM

Originally posted by phantom View Post

This sounds questionable to me. Did you double check that your lease allows you to rent out your car to other people? I would think a lot leases would come with rules that prohibit people from essentially sub-leasing their cars to other people. I would also be concerned about doing this and staying under your milage limits.

Looks like Fiat and Getaround are partnered:

Local Car Rental and Carsharing

https://www.getaround.com/fiat

Rent a car in an instant, open the car with the Getaround app, #1 for carsharing! 24/7. 200mi/day and insurance included.

**Eagle** · 09-03-2015, 01:37 PM

Originally posted by LegHead1 View Post

Thanks for the great replies, lots of good advice.

Some answers to the questions:

Car lease: I didn't have a car since I was in the city, and found myself renting one almost every month, so I got a 2 year lease on a FIAT with $0 down, not that bad. I actually use a service called Getaround now, just started! I basically rent my car to members, and Getaround guarantees me $1,000/month, and they provide a parking spot as well, so hoping the extra income from this will help. Depending on the success rate of this, I will either keep the car and keep doing this or get rid of it at the end of the lease in June.

I am AirBNB'ing my apartment for the Super Bowl, which will give me about $2000. Obviously there will be taxes, so I am preparing for that.

Taxes - this bill I got was from 2011, not sure what the error was - all I received was a bill - any suggestions on how to find out more?

Thanks for all the advice - i get overwhelmed sometimes, but glad to hear its not as bad as it seems.

Will cut up my cc and get back on Mint, I think the budget is smart.

Originally posted by Eagle View Post

Wow sorry to hear about the back injury and job loss.

However, seems like you're doing better! I don't think making $117,000 a year is failing.

List your debts smallest to largest then knock them out. How much is your monthly take home pay or net income?

Are you on www.mint.com and tracking your expenses? Do you have a budget? A spreadsheet would work or an app like YNAB ( www.YouNeedABudget.com )

It looks like you missed some categories such as cell phone, entertainment, eating out, Netflix/Hulu, water bill, car insurance, health insurance, etc.

@Leghead1
That's awesome that you get to eat at work. Too bad they don't offer a 401k. The extra $1000 for the car sounds nice. For perspective I'm 33 and have about the same as what you have in my 401k.

Let me try again though. For us to get a better picture of your finances...

1. How much is your monthly take home pay or net income? $5500-6500 a month?

2. List your debts smallest to largest. Pay off the smallest first. Then the 2nd smallest... and so on.

Tax (audit): $560
CC1: $1,020
CC2: $4,500
Student loan: $7,000 @ 3%, $285/month
Car Lease: $360/month, 10 month remain
No other debt?

As far as a car lease check this article out: http://www.moneyunder30.com/why-you-...er-lease-a-car

3. How much are you spending a month on the categories above?

**LegHead1** · 09-03-2015, 03:30 PM

I get about $2,800 bi monthly (no 401k). To clarify, they offer a 401k, no matching. This year I put about 8k in but stopped to focus on the debt piece, but will get back on as soon as possible. - This sparks another question, since there is not matching, should I continue this or move focus to a Roth IRA? Ideally I would like to do both once I am back on track.

Looking back, the car lease was not the smartest route, but hopefully the Getaround can offer me some sort of ROI.

Debt - nothing else than what I have listed. I do have a watch brand new, never opened, retails for $3500 - does anyone have a suggestion as to where I can sell it? Proposed to a GF long long time ago, couldn't take the ring back when things didnt work out, so got the watch as an exchange. Tried to sell on ebay but kept finding people trying to rip me off.

Thanks again for all the help! Love this site!

**FLA** · 09-03-2015, 04:34 PM

I had to laugh, they don't match your 410k but you get unlimited PBandJs. I worked for a hospital system and like everyone else the benefits got worse every year, I can totally see them offering this where I worked, only the PBandJs would never be unlimited, lol.

Need Help - Getting Back on Track