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How can I optimize my budget?

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  • marie132
    started a topic How can I optimize my budget?

    How can I optimize my budget?

    Hi guys,

    I was wondering, how can I optimize my budget?

    I currently have a home loan for roof repairs (2.5 years left) and mortgage (12 years left). With a baby on the way, daycare is soon going to cost the same price as the roof payment, but since the interest rate of the roof loan brings the total cost of the loan to an extra 5k, I wonder if I should try to pay off my mortgage first (total cost of mortgage on top of borrowed capital: 50k)

    Anyway, regardless of that issue, do you think my budget is optimized?

    Thanks!!
    Attached Files

  • OldJew11
    replied
    Did you go to a consultant?

    Leave a comment:


  • Gianni Rossini
    replied
    A little late, but I have just started using the Mint application to manage my budget and I have to say that it is really useful and efficient. Thanks for the suggestion

    Leave a comment:


  • Rocco1235
    replied
    Originally posted by marie132 View Post
    Hi guys,

    I was wondering, how can I optimize my budget?

    I currently have a home loan for roof repairs (2.5 years left) and mortgage (12 years left). With a baby on the way, daycare is soon going to cost the same price as the roof payment, but since the interest rate of the roof loan brings the total cost of the loan to an extra 5k, I wonder if I should try to pay off my mortgage first (total cost of mortgage on top of borrowed capital: 50k)

    Anyway, regardless of that issue, do you think my budget is optimized?

    Thanks!!
    There are plenty of apps that are really helpful in terms of budgeting. I use mint for my budgeting needs, but if you just google some budgeting websites/apps I'm sure you can find one to help you specifically.

    Leave a comment:


  • Gailete
    replied
    Sounds like you are doing well with your budget. Is it all on you or do you have a partner picking up or able to pick up any costs if say, you paid off the roof now, and then something came up that you couldn't core out of your savings?

    You seem to be in the prime age group where people seem to spend a whole lot on their kids, or will you be shopping thrifts, etc. for clothing etc.? I just priced formula today and boy is it expensive! $158 for 6 cans of powder that makes about 20 bottles each. If you aren't going to be nursing, have you incorporated things like formula into your grocery budget as well as diapers since most daycares won't allow cloth diapers, unless things have really changed! Those two things, I don't know how any family can afford. Then baby wipes, and the list just gets longer. Sorry I'm in baby mode now. My first grandchild is on its way in October. I've been helping as I can for my son and DIL get ready for the little princess.

    Leave a comment:


  • marie132
    replied
    Thanks, that sounds like a great idea! If I do this I can pay the mortgage off in 6 instead of 12 years!

    Leave a comment:


  • myrdale
    replied
    After the baby is born, and once everything has settled down, assuming your emergency fund is in place, I would consider reducing the savings category from 30% down to 0-10%. Throw everything at the roof, then the mortgage. Maintain your EF at the current level, so there may be a couple of months here or there you have to bump the savings up. Overall that is my thoughts.

    Leave a comment:


  • Jluke
    replied
    Have you shopped around for Home and auto insurance recently?

    Do you have term life insurance - can’t remember if that was mentioned?

    Do you have cable AND Netflix AND amazon?

    Cell phone bill?

    Your numbers aren’t broken down enough to nitpick a budget. Too general of categories. And the thumbnail picture isn’t really working for me

    Leave a comment:


  • marie132
    replied
    So no advice for me?

    Leave a comment:


  • marie132
    replied
    I don't know, just wondering what I can do better.
    If it was your budget, would you do anything differently?

    Before I bought a house my expenses were around 1600 per month on a 6k salary. I was able to save over 2/3 of my income XD. Starting to miss that time of my life lol.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by marie132 View Post
    Is there anything else I can do to optimize my budget?
    Can you clarify what you mean by "optimize"?

    Without studying your numbers in any more detail, I think someone who is saving 31% of income is doing quite well already.

    Leave a comment:


  • marie132
    replied
    In that case roughly 25k is about right.
    Is there anything else I can do to optimize my budget?
    (I had more savings but used that to pay the workers who came to fix up the house before the baby is born so I can rebuild savings after that without worrying too much I think)

    Leave a comment:


  • disneysteve
    replied
    Originally posted by marie132 View Post
    What would you consider a decent EF at this stage?
    6 months of basic unavoidable expenses (does not include stuff like Netflix, vacations, dining out, etc.).

    Leave a comment:


  • Jluke
    replied
    Originally posted by marie132 View Post
    What would you consider a decent EF at this stage?
    If I pay the roof off right now, I am left with roughly 7k in savings, which makes me a bit nervous. What do you think?
    25k would be a good EF. which if I am following your math is what you currently have.

    some say 3-6 months of expenses if you want general terms...

    Since there is a baby on the way, all debt payoffs should be off the table until a few months after baby arrives.

    Leave a comment:


  • marie132
    replied
    What would you consider a decent EF at this stage?
    If I pay the roof off right now, I am left with roughly 7k in savings, which makes me a bit nervous. What do you think?

    Leave a comment:

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