Financial Austerity

[bjl584]

Another one - my very small hometown (about 2,000 people) was without a grocery store for about 4 years. About a year ago, someone bought and reopened the store. I don’t know if you’ve ever lived in a small town without a grocery store, but it sucks.

So, I really want to support the grocery store, which is the more expensive option. The town where I work has two cheaper grocery stores. They’re not really close to my office, it’s like an 8-10 minute drive across town to get to those stores from my office.

Thoughts on where I should buy my groceries?

We buy groceries in bulk.
If you have the ability to do that, then shop at the cheaper store less often.

Stock up on non perishables, and if you have an extra freezer or space, then stock up on meats when they go on sale and freeze them

[Magic Johnson]

There’s a Dollar General and a Family Dollar in the town where I live. I don’t buy food at either of those stores. There’s a Walmart and a Meijer (Michigan-based chain) in the town where I work. I tend to favor Meijer over Walmart for groceries. I hate Walmart, but I don’t refuse to shop there. Meijer is more expensive than Walmart, but less expensive than the small grocery store in the town where I live.

There’s a completely different Walmart in another town that I drive through on the way back from my girlfriend’s. My last big grocery shopping trip ($180 in groceries) was done at that Walmart.

[Magic Johnson]

I just did the “Tax Withholding Estimator”. My results say - Expected tax withholding of $4,180, and Anticipated tax obligation of $4,172, for a Projected refund of $8. So I guess I’m all set.

[ua_guy]

A lot of experts have chimed in, and I echo the kudos given to you for taking time to think through this stuff. You're doing it. It gets better from here.

The only thing I didn't see mentioned, and I can totally understand maybe not wanting to get too co-mingled yet, but life truly is cheaper when shared with someone else! It may not be time to move in with your girlfriend yet, but if you share an apartment, your rent drops by half...

My other hope for the world is that couples could settle divorces amicably. Not only are there hard feelings, unfairness, and a lot of mess to clean up, but both of you end up paying attorneys significant amounts of money because of it. It's lose/lose no matter what. Sorry you're going through that. I'm sure it's way past this point, but talking it out and dissolving the marriage with the love you originally had for each other is always better than the tit-for-tat retaliatory and angry stuff that seems to transpire!

[Magic Johnson]

A lot of experts have chimed in, and I echo the kudos given to you for taking time to think through this stuff. You're doing it. It gets better from here.

The only thing I didn't see mentioned, and I can totally understand maybe not wanting to get too co-mingled yet, but life truly is cheaper when shared with someone else! It may not be time to move in with your girlfriend yet, but if you share an apartment, your rent drops by half...

My other hope for the world is that couples could settle divorces amicably. Not only are there hard feelings, unfairness, and a lot of mess to clean up, but both of you end up paying attorneys significant amounts of money because of it. It's lose/lose no matter what. Sorry you're going through that. I'm sure it's way past this point, but talking it out and dissolving the marriage with the love you originally had for each other is always better than the tit-for-tat retaliatory and angry stuff that seems to transpire!

Yeah, we just started to talk about moving in together. We’ll see where things are late this summer or next fall. My lease at my apartment runs through the end of next October.

I really thought my divorce would be different than everyone else’s. It is not.

[disneysteve]

The first rule when you find yourself in a hole is to stop digging.

You're running a $500+ deficit every month, and that's without the upcoming legal fees which will make you even more negative.

You need to go through your budget with a fine tooth comb to find every bit of savings you can.

Stopping the retirement contributions is debatable, but at the very least, I wouldn't be putting in a dollar more than needed to get the full match.

Are you sure internet-only would be $30. Typically when you drop cable, they hike the price of the internet service. If you're correct and you could save $46/mo, get rid of cable. You don't need it. There is abundant free content online for you and your kids. $46/mo is 8% of your deficit.

Hopefully, your electric bill will be lower when heating season ends. Michigan summers are relatively mild, 70s and low 80s I believe, so not a big need for air conditioning. If your bill drops from $125 to maybe $80, that fills in another 8% of the hole (at least during the non-winter months).

What's the deal with gasoline? $340/month! How many miles do you drive? Around here, gas is about $3.40 so that would be 100 gallons. At 20 mpg, that's 2,000 miles/mo. You did mention your truck is a gas guzzler, so maybe you're getting lower mileage than that. Between that and the debt, replacing the truck might be worthwhile. Is there any reason you need a truck for your job or would a car suffice?

I'd shop around for a cheap cell phone plan. You might find that paying the $500 to break your contract is worth it if you can recoup that in 8-10 months. Also, that fee may be prorated so the closer you are to the end of the contract the lower the fee becomes. If that's the case, you could wait a few months until the break even point is shorter.

Reducing your renter's insurance coverage might be appropriate. Just be sure it provides enough coverage for your stuff. But you're right that even saving $10-15/mo helps the cause.

Groceries are always a prime target for savings. From what you've said, Walmart is likely your best bet. As others have suggested, if going there isn't super convenient, make sure to stock up on non-perishables when you do go. Focus on generics and store brands as much as possible. The less processed an item is, the cheaper (and healthier) it is so it's great that you're working on expanding your cooking skills. For perishable items, compare prices at whatever local options you have. You'd be surprised how quickly $0.25 or $0.50 differences can add up. You said the cheaper stores are only 8-10 minutes from your office, so that's convenient. I get wanting to support the local store but that's not really something you can afford to do right now. Make sure you check the weekly circulars too (usually available online or in the store's app if they don't get delivered to your home). They frequently run "loss leader" sales to get people in. A few weeks ago, I went to one store where I don't usually shop just to stock up on 3 items that were on sale. I saved $25.00 just buying a bunch of those items.

Even doing all of this (except for replacing the truck possibly), you're still not going to "find" $600/mo. You need to boost your income. It's great that your schedule is set so that you could pick up additional work. Sure some will go to child support (and taxes of course) but the rest will go in your pocket. Just making $15/hr for 8 hrs/wk gives you an extra $520/mo gross. After taxes and support, still probably half of your current monthly deficit.

[james.hendrickson]

The first rule when you find yourself in a hole is to stop digging.

You're running a $500+ deficit every month, and that's without the upcoming legal fees which will make you even more negative.

You need to go through your budget with a fine tooth comb to find every bit of savings you can.

Stopping the retirement contributions is debatable, but at the very least, I wouldn't be putting in a dollar more than needed to get the full match.

Are you sure internet-only would be $30. Typically when you drop cable, they hike the price of the internet service. If you're correct and you could save $46/mo, get rid of cable. You don't need it. There is abundant free content online for you and your kids. $46/mo is 8% of your deficit.

Hopefully, your electric bill will be lower when heating season ends. Michigan summers are relatively mild, 70s and low 80s I believe, so not a big need for air conditioning. If your bill drops from $125 to maybe $80, that fills in another 8% of the hole (at least during the non-winter months).

What's the deal with gasoline? $340/month! How many miles do you drive? Around here, gas is about $3.40 so that would be 100 gallons. At 20 mpg, that's 2,000 miles/mo. You did mention your truck is a gas guzzler, so maybe you're getting lower mileage than that. Between that and the debt, replacing the truck might be worthwhile. Is there any reason you need a truck for your job or would a car suffice?

I'd shop around for a cheap cell phone plan. You might find that paying the $500 to break your contract is worth it if you can recoup that in 8-10 months. Also, that fee may be prorated so the closer you are to the end of the contract the lower the fee becomes. If that's the case, you could wait a few months until the break even point is shorter.

Reducing your renter's insurance coverage might be appropriate. Just be sure it provides enough coverage for your stuff. But you're right that even saving $10-15/mo helps the cause.

Groceries are always a prime target for savings. From what you've said, Walmart is likely you're best bet. As others have suggested, if going there isn't super convenient, make sure to stock up on non-perishables when you do go. Focus on generics and store brands as much as possible. The less processed an item is, the cheaper (and healthier) it is so it's great that you're working on expanding your cooking skills. For perishable items, compare prices at whatever local options you have. You'd be surprised how quickly $0.25 or $0.50 differences can add up. You said the cheaper stores are only 8-10 minutes from your office, so that's convenient. I get wanting to support the local store but that's not really something you can afford to do right now. Make sure you check the weekly circulars too (usually available online or in the store's app if they don't get delivered to your home). They frequently run "loss leader" sales to get people in. A few weeks ago, I went to one store where I don't usually shop just to stock up on 3 items that were on sale. I saved $25.00 just buying a bunch of those items.

Even doing all of this (except for replacing the truck possibly), you're still not going to "find" $600/mo. You need to boost your income. It's great that your schedule is set so that you could pick up additional work. Sure some will go to child support (and taxes of course) but the rest will go in your pocket. Just making $15/hr for 8 hrs/wk gives you an extra $520/mo gross. After taxes and support, still probably half of your current monthly deficit.

This is the best advice I've heard all month.

[Magic Johnson]

The first rule when you find yourself in a hole is to stop digging.

You're running a $500+ deficit every month, and that's without the upcoming legal fees which will make you even more negative.

You need to go through your budget with a fine tooth comb to find every bit of savings you can.

Stopping the retirement contributions is debatable, but at the very least, I wouldn't be putting in a dollar more than needed to get the full match.

Are you sure internet-only would be $30. Typically when you drop cable, they hike the price of the internet service. If you're correct and you could save $46/mo, get rid of cable. You don't need it. There is abundant free content online for you and your kids. $46/mo is 8% of your deficit.

Hopefully, your electric bill will be lower when heating season ends. Michigan summers are relatively mild, 70s and low 80s I believe, so not a big need for air conditioning. If your bill drops from $125 to maybe $80, that fills in another 8% of the hole (at least during the non-winter months).

What's the deal with gasoline? $340/month! How many miles do you drive? Around here, gas is about $3.40 so that would be 100 gallons. At 20 mpg, that's 2,000 miles/mo. You did mention your truck is a gas guzzler, so maybe you're getting lower mileage than that. Between that and the debt, replacing the truck might be worthwhile. Is there any reason you need a truck for your job or would a car suffice?

I'd shop around for a cheap cell phone plan. You might find that paying the $500 to break your contract is worth it if you can recoup that in 8-10 months. Also, that fee may be prorated so the closer you are to the end of the contract the lower the fee becomes. If that's the case, you could wait a few months until the break even point is shorter.

Reducing your renter's insurance coverage might be appropriate. Just be sure it provides enough coverage for your stuff. But you're right that even saving $10-15/mo helps the cause.

Groceries are always a prime target for savings. From what you've said, Walmart is likely your best bet. As others have suggested, if going there isn't super convenient, make sure to stock up on non-perishables when you do go. Focus on generics and store brands as much as possible. The less processed an item is, the cheaper (and healthier) it is so it's great that you're working on expanding your cooking skills. For perishable items, compare prices at whatever local options you have. You'd be surprised how quickly $0.25 or $0.50 differences can add up. You said the cheaper stores are only 8-10 minutes from your office, so that's convenient. I get wanting to support the local store but that's not really something you can afford to do right now. Make sure you check the weekly circulars too (usually available online or in the store's app if they don't get delivered to your home). They frequently run "loss leader" sales to get people in. A few weeks ago, I went to one store where I don't usually shop just to stock up on 3 items that were on sale. I saved $25.00 just buying a bunch of those items.

Even doing all of this (except for replacing the truck possibly), you're still not going to "find" $600/mo. You need to boost your income. It's great that your schedule is set so that you could pick up additional work. Sure some will go to child support (and taxes of course) but the rest will go in your pocket. Just making $15/hr for 8 hrs/wk gives you an extra $520/mo gross. After taxes and support, still probably half of your current monthly deficit.

I'm not opposed to selling my pickup and buying something cheaper that gets better gas mileage. When we were married, I would buy hay for my kids' livestock, and it was necessary to have access to a pickup. Plus, I like having a large vehicle with four-wheel drive for when it snows heavily. I can get through pretty much any road conditions with my pickup.

Not trying to be dull - I just really can't get my head around how I can sell something I still owe money on. I don't own all of it. In fact, my credit union owns most of it. How do I do that?

As far as gas/miles driven goes. The built-in gas mileage estimator in my pickup estimates I get 15.2 miles per gallon. That's terrible. I drive 18.2 miles to work one-way, five days a week. My girlfriend's house is 47.3 miles away. I drove there most weekends in January. Maybe all weekends in January, except New Year's Eve weekend. But, then I drove her places around here that weekend that would have amounted to at least 50 miles. But other than work and my girlfriend's I don't drive much. I drive to my ex-wife's at least once per week (my parents also live out that way). That's six miles from where I live in town. But, yeah, gas is about $3.40 here, too.

I don't currently put in a dime more than full employer match on my retirement savings.

No, I'm not sure that internet-only would be $30, but that's sure how I took it when I called about it yesterday.

As far as stocking up on non-perishable bulk grocery items. I live in a very small apartment ($450/mo. rent). I have very little storage for food, and I'm not sure how I would stock up. Also, very little freezer space - just the top part of my refrigerator. There's a really nice bulk food store about 20 miles from my apartment. I could easily go there and stock up on some food. It's family-owned, and I would love to support it. I just don't know where I would put the stuff.

[LivingAlmostLarge]

do you need the pickup still? What about a really old pickup for hay and a newer smaller commuter car?

[Jluke]

Keep the truck. You need it to get to work in bad weather. Also have you looked at used car prices lately? Even beaters are probably going for 7-10k. Not worth it as you may end up paying more in repairs.

if your truck is worth 11,000 and you owe 6,000 then the dealer would give you 5000 towards the purchase of a vehicle. Made up numbers. Of course I don’t recommend replacing the truck.

credit card offers. Keep your eyes open for 0% or reduced rates.

grocery shopping. Download the store app if available. Look for coupons on there and also ways to earn points, if available. Our grocery store lets us redeem points for gas discounts or as grocery dollars. You have to work the system and buy sale items. No impulse purchases at the grocery store especially with inflated prices.

I would seriously consider stopping your retirement contributions for 6 months. See where that gets you. But try to do the employer match again as soon as possible. You need some breathing room right now and other than a second job that is your best bet.

when you leave the apartment do you lower the thermostat? Especially on weekends when you are not there.

Glad to see you set aside 1k for emergency fund.

hang in there and do your best to stay on track. It’s a huge life event and change.

I probably repeated what others have said but maybe that will help drive home some of the ideas.

[Magic Johnson]

do you need the pickup still? What about a really old pickup for hay and a newer smaller commuter car?

No, I don’t need a pickup still.

[Magic Johnson]

Keep the truck. You need it to get to work in bad weather. Also have you looked at used car prices lately? Even beaters are probably going for 7-10k. Not worth it as you may end up paying more in repairs.

if your truck is worth 11,000 and you owe 6,000 then the dealer would give you 5000 towards the purchase of a vehicle. Made up numbers. Of course I don’t recommend replacing the truck.

credit card offers. Keep your eyes open for 0% or reduced rates.

grocery shopping. Download the store app if available. Look for coupons on there and also ways to earn points, if available. Our grocery store lets us redeem points for gas discounts or as grocery dollars. You have to work the system and buy sale items. No impulse purchases at the grocery store especially with inflated prices.

I would seriously consider stopping your retirement contributions for 6 months. See where that gets you. But try to do the employer match again as soon as possible. You need some breathing room right now and other than a second job that is your best bet.

when you leave the apartment do you lower the thermostat? Especially on weekends when you are not there.

Glad to see you set aside 1k for emergency fund.

hang in there and do your best to stay on track. It’s a huge life event and change.

I probably repeated what others have said but maybe that will help drive home some of the ideas.

Yes, others have mentioned stopping my retirement contributions for a while, and I’m considering it. It’s just so fundamentally against everything I’ve come to believe about personal finance - it’s free money. It’s like saying - no employer, I don’t need your free money right now, I’m having a cash flow crunch. Like I said, I’m considering it.

My apartment has two registers and two thermostats. One in the main living area, and one in my bedroom. When I leave for work or the weekend, both are set at 60. When I’m home in the living area, I set that thermostat to 68, and turn it back down to 60 at bedtime. While I’m sleeping, my bedroom thermostat is set at 68.

I could probably set my bedroom thermostat to 65 while sleeping, and be comfortable under the covers. I could also set both thermostats down to 55 while I’m gone.

[ua_guy]

Yes, others have mentioned stopping my retirement contributions for a while, and I’m considering it. It’s just so fundamentally against everything I’ve come to believe about personal finance - it’s free money. It’s like saying - no employer, I don’t need your free money right now, I’m having a cash flow crunch. Like I said, I’m considering it.

My apartment has two registers and two thermostats. One in the main living area, and one in my bedroom. When I leave for work or the weekend, both are set at 60. When I’m home in the living area, I set that thermostat to 68, and turn it back down to 60 at bedtime. While I’m sleeping, my bedroom thermostat is set at 68.

I could probably set my bedroom thermostat to 65 while sleeping, and be comfortable under the covers. I could also set both thermostats down to 55 while I’m gone.

You are correct, it's contrary advice to stop saving for retirement. I didn't look at the numbers but obviously if you can swing your other goals AND contribute enough to get the match, that would be preferable. But it would be good to knock down the contribution as much as you can while you "right" your other situations, because surviving in the now is actually more important. Having an emergency fund prevents you from having to borrow or liquidate retirement funds, or go further into debt.

I learned something really awful in college, granted, I lived in a warmer climate (winter might see average low's in the high 30's). When I'd be gone for a day, or if I wasn't going to be home all day in my apartment, I'd shut off the heat. The minimally insulated walls with neighbors who were home, and being on the 2nd floor of a garden-style apartment meant at least 3 sides of my apartment were being heated minimally. Hot moves to cold. I prefer cool temps when I sleep and I'd sometimes sleep in sweats and a hooded sweatshirt and set the t-stat to about 60 overnight. How much did it actually save? I don't know, but that was pizza and beer money back then.

[disneysteve]

I learned something really awful in college, granted, I lived in a warmer climate (winter might see average low's in the high 30's). When I'd be gone for a day, or if I wasn't going to be home all day in my apartment, I'd shut off the heat. The minimally insulated walls with neighbors who were home, and being on the 2nd floor of a garden-style apartment meant at least 3 sides of my apartment were being heated minimally. Hot moves to cold. I prefer cool temps when I sleep and I'd sometimes sleep in sweats and a hooded sweatshirt and set the t-stat to about 60 overnight. How much did it actually save? I don't know, but that was pizza and beer money back then.

In my first apartment, I was on the ground floor but my apartment was over the boiler room. Lived there for 2 years and never once turned on the heat because the radiant heat coming from the basement kept my place toasty. I even had to open the windows a bit sometimes if it got too warm.

In my second apartment, I would keep the heat super low at night, close up my bedroom, and just run a small space heater in there rather than heating the whole apartment.

[sblatner]

I grew up in Mt. Pleasant when Magic was going to MSU. He came to Central Michigan once to play in a softball game. Before he hit it big!

As for retirement, you will be missing out on free money but it will help you pay down your credit card - less in retirement but paying less interest to the cc company.

Just another way to look at it. Otherwise lots of good advice here. I highly recommend a second job on those nights you are free.