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I need help with my very new budget, we are making less money than last year but we continued to spend money like nothing changed. Now I want all debt gone. and i'm realizing how little we have left over at the end of each month. I am having a hard time getting my husband on board since he doesn't do anything with our finances (because he is an "it will all work out in the end" kind of guy who doesn't plan for anything ) this a a very new budget and i'm open to ideas. there are 3 of us, myself my husband and our 2 year old
Income- Your income: 1800.00 will be increasing in 3-4 months because I will get more hours at work.
Dh/SO's income: 2800.00
~Rent/Mort pymt: 1000.00, 4.875% 126,000 (we are planning to refinance to a 15 year and it will raise our payment by $60 interest will be 3.9%)
~Electric: 120-200 varies greatly
~Home gas:included in electric
city fees (garbage, sewer, road maintenance) 60
~Cable:150.00 and internet
~Gardener:free that's me
~Cell phone:240.00 will be 120 in a few months. I am paying for my dad and my brothers phone, they pay me every 6 months and we used the money to replace some windows in our house instead of taking out a loan.
~Groceries:$600.00 including clothing, toiletries, cleaning products basically anything at target
~Other household items:
~Medical expenses (co-pays, prescriptions): already taken out of my paycheck
~Car gas/transportation expense: $375
~Car insurance 90
~Child care: $30.00 out of pocket the rest is already taken out of my paycheck
~Diapersotty trained yay
~Other baby expense: none
~beer money at hockey games $75 (I hate this one) and he usually goes over
~misc. home maintenace: 50
Debts-Please list minimum payment, amt you usually pay, balance, interest rate. If you are past due or have special financing (0% interest), please indicate that as well.
~Car payment #1:$450, 2.99%, $21,800
~Car payment #2:$382, 2.99%, $10792
~Student loan: $125, 6%, $6100
~student loan: $49, 6%, $2200. I pay $200 on this one
~student loan: $50, 2.88%, $4100
~student loan: $117, 4.5%, $6500
~student loan: $125, 6.8%, 4300
~Credit card #5:
~Credit card #6:
~Other debt #1 ____________:
~Other debt #2 ____________:
~Other debt #3 ____________:
Goals: (examples: new car, baby, to be a SAHM, vacation, retirement, etc)
1. have another baby
2.pay off all debt and build a new house and start an in home daycare
Personally, I'd recommend you get rid of both of the cars and either pay out of pocket to get used ones (if you have it), or finance used ones. $832 in car payments alone is ridiculous.
Can you downgrade (or get rid of) your cable/internet package? I realize you can't get RID of the net, but can you downgrade to a lower speed and either downgrade or get rid of your cable?
Also, $120 for a cell phone seems high. Are you able to decrease this at all?
And, you don't mention any type of life insurance. If you don't have it, I'd HIGHLY suggest you do, especially with having a child. You also do not mention any type of education fund for your 2 year old?
Also, you may want to look at what you drive and see about getting a more fuel efficient car. Not sure how far you both drive daily, but $375 seems a little high for fuel.
I think your biggest issue is your cars. To be very blunt, you cannot afford the vehicles you have. My best recommendation would to be to sell them private party and pay off those 2 loans, and either finance for something used that will give you FAR lower payments, or use money you already have to purchase out right. I'm not one that encourages loans on vehicles.
Also $600 in groceries seems high too. Can you change stores for groceries? Target is usually pretty expensive. I shop at Walmart and Costco and price match at Walmart and am usually at $450-500 per month, but this includes a family of 3 (myself, my husband, and our 11 year old), with buying things for school food (pre-packaged for some things and that's a little more expensive), as well as having 2 large breed dogs and 2 cats (I include food for all of them, cat litter, any treats, etc in this amount). So, maybe couponing, price matching, looking at ads, etc would help you.
Hope that helps you some! Good luck! Nothing is better than getting rid of all of the loans and all of the credit cards and debt
thanks for the advice, I agree our vehicles are taking up way too much of our income. My husband's pickup was a lease and then he bought it out so we have been paying on it for soooo long. My vehicle was purchased when we had a lot more money coming in. they are both 4 wheel drive vehicles which is a must since we live in North Dakota. which is why we spend so much in gas. we will probably be more at like $250 in gas this month we have reallly been trying to watch where we go and if it is necessary. considering that's down from $450a month i'm excited about that.
I talked with my husband and he looked at the numbers and realized we need to start spending less (especially at the hockey games!!!)
target and walmart here are comparable in prices for most things. way less than grocery stores here. there are still a few things I grab at walmart because they are cheaper. the last few months my target runs have been more like $500 per month and I'm going to try to take that down in the $400's this next month.
getting life insurance has been on my to do list for so long and I really need to get going. i'm slightly ashamed that it's been almost 3 years and I still haven't gotten it done.
cable and internet is our entertainment so I just don't know if I can part with that one. but I will look at other packages
I will be getting a raise in february and I know that I will get more hours at work. I just really want to get our spending under control
Life insurance is easy to get and typically very cheap. We have $500K policies for my husband and I EACH, plus a $10K rider policy for our son and we only spend $25 per month for all 3 policies.
Well, you can ditch cable and use free things like Hulu, or cheaper thigns like Netflix. I know a ton of people that have dropped cable/satellite and save a good $80-$100 per month doing it and yet they still watch shows on the computer via the network sites or via Hulu and/or Netflix.
The cars you could easily get a better deal. I had an SUV 4 wheel drive and where I did not finance it, if I had, it would have only been $250 per month. So, maybe sell the truck private party and find a used truck that is cheaper. You could easily get your car payment down to half of what you pay.
I would also recommend that once you pay off your vehicles you NEVER EVER buy new or finance a vehicel again. Biggest rip off EVER.
And really check out your Walmart and Target. I've lived in 3 states and Target was always a decent amount more expensive (they also do not price match which Walmart does). Check your ads weekly and price match advertised items that are on your list, buy fruits/veggies based on what's on sale, always take a list and if iti sn't on the list it doens't get purchased.
Also, make sure you do a monthly budget written out EVERY SINGLE TIME and then track your spending to make sure you're sticking to it.
The extrememly high car payments and groceries are what stick out to me! I second the idea to sell 1 (preferably both) privately and get ones that cost far less!
Groceries shouldn't be that much for 3 of you. In 2012 I averaged $455/month for groceries, toiletries, cleaning supplies, etc for my family of 5. So it's definitely possible for you to be in the $300-400 range!
I would also suggest writing down every single penny that you spend. I'd bet that you probably spend more than you think you are on eating out, entertainment, etc.