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  #1  
December 19th, 2006, 10:07 AM
cutestuff1975's Avatar Veteran
Join Date: Aug 2006
Posts: 187
Quote:
We'd love to help you out. Please copy & paste this form into a new thread & fill it out. If you don't know the exact amount, feel free to estimate. We'll use the info to work out a budget & debt payoff/savings plan for you.

Income
Your income: $1750 mo
Dh/SO's income: $3600 mo
Other income: n/a

Living expenses
~Rent/Mort pymt: $1360
~Electric: $150 (average over 12 mo)
~Home gas: $50 (average over 12 mo)
~Water: $45
~Cable: $40
~Gardener: n/a
~Internet: n/a
~Home phone: $25
~Cell phone: $110
~Groceries: $400-500
~Other household items:
~Medical expenses (co-pays, prescriptions): $50 p/ mo
~Car gas/transportation expense: $200 mo
~Car maintenance: $100
~Car insurance: $250 p/ mo
~Other insurance:
~Child care: $560
~Diapers: $0 right now
~Other baby expense ___________:
~Preschool/schooling:
~Pets:
~Eating out: $250 p/ mo
~Entertainment:
~Spending/pocket money:
~Misc spending:
~Other ____________:
~Other ____________:

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: $650
~Car payment #2: $400
~Student loan:
~Credit card #1: $300 @ $50 p/ mo (interest ?)
~Credit card #2: $300 @ $50 p/ mo (interest ?)
~Credit card #3: $250 @ $50 p/ mo (interest ?)
~Credit card #4:
~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)
I want to save for:

1. After baby comes I will be a p/t SAHM, I will work 3 nights a week, totally about $250 a week in income. Daycare will go down to $320 a month.
2. Need a retirement plan that is lucrative
3.
4.
5.[/b]
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  #2  
December 19th, 2006, 11:18 AM
BensMom's Avatar Ephesians 4:29
Join Date: Apr 2005
Location: The Lonestar State
Posts: 50,214
Welcome! We'll add you to the list. We're working on about 10-15 people before yours right now, so it'll be January before we finish. zacksmama will work on your budget first, then I'll take what's leftover to work on your debt/savings. We work on them in the order we get them, but obviously the easier ones get finished faster than the harder ones. Also, if we have questions, we'll move on to the next person while we're waiting on an answer. You could be bumped to the top in no time that way. Just depends. We'll be in and out over the next week or so for holiday travel, so don't panic if you don't hear from us right away.
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  #3  
December 19th, 2006, 12:10 PM
~Jess~'s Avatar Platinum Supermommy
Join Date: Oct 2005
Location: Central California
Posts: 16,959
gotcha on my list.

couple quick questions tho:
~$100 a month in car maintenance seems excessive for new vehicles. Is that just averaging out the years expenses or are you having to make repairs?

~I'm assuming that you're pregnant and already have 1 child. When is your baby due?

~How much will your childcare expenses increase with the addition of another child?

~Will you be bfeeding or cloth diapering to save money?

~Do you already have everything you'll need for the baby or do you need misc baby expenses factored into your budget?

~We'll also need the balances & rates for your auto loans and mortgage. Values for your home & cars are beneficial for us to know as well.

~Do you have any savings?
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  #4  
December 26th, 2006, 11:08 AM
cutestuff1975's Avatar Veteran
Join Date: Aug 2006
Posts: 187
Quote:
gotcha on my list.

couple quick questions tho:
~$100 a month in car maintenance seems excessive for new vehicles. Is that just averaging out the years expenses or are you having to make repairs? I am trying to average...So that when unexpected expenses come up, we do not have to fret.

~I'm assuming that you're pregnant and already have 1 child. When is your baby due? I am due the end of March

~How much will your childcare expenses increase with the addition of another child? Actually the childcare will be going down, I will only be going back to work for 2 weeks (to give my notice) then I will be finding a new job working p/t in the evenings. So we will be only paying $320 instead

~Will you be bfeeding or cloth diapering to save money? No

~Do you already have everything you'll need for the baby or do you need misc baby expenses factored into your budget? I am having another boy, and the only thing I need is a few clothes and a high chair, that I am sure will be given to me at my babyshoer

~We'll also need the balances & rates for your auto loans and mortgage. Values for your home & cars are beneficial for us to know as well.
We rent, so we do not have a home loan. The interest rate on the $400 a month truck payment is 18% (balance $9500) and on the $700 it is 11% (balance $30,000 )

~Do you have any savings? The savings we HAD was used as a downpayment for the $30,000 truck.....[/b]
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  #5  
December 28th, 2006, 09:09 PM
~Jess~'s Avatar Platinum Supermommy
Join Date: Oct 2005
Location: Central California
Posts: 16,959
How much time are you taking off of work in March when baby comes? Will you be getting any pay during that time?
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  #6  
December 31st, 2006, 03:57 PM
~Jess~'s Avatar Platinum Supermommy
Join Date: Oct 2005
Location: Central California
Posts: 16,959
Hmmmm...Looking over your budget, I think it may make sense for you not to go back to work at all. If you are going back to work because you WANT to work, then that's totally understandable, but if you would rather be a SAHM, then you would probably break even financially.

Here's why:

Expenses while you're working:
~child care: $320
~gas to & from work: $50 (approx)
~increased car insurance premium from driving to & from work: $50 (approx)
~additional car maintenance from being driven more often: $20
~disposable diapers: $40 (approx)
~formula: $100 ??? I bfeed so I'm not sure how much formula runs each month.
~cell phone: $40
~eating out from being too tired to cook: $150
~higher grocery bill due to lack of meal planning/sale shopping/coupon clipping: $120
Total working expenses: $890

Net income each month: $110


Again, if you enjoy working and getting out of the house, by all means, continue working. However, if you're working because you feel like you need the additional income, you don't. This does assume that you would bfeed, cloth diaper, and meal plan if you became a SAHM.

More coming, but baby just woke up...
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  #7  
January 1st, 2007, 09:40 PM
~Jess~'s Avatar Platinum Supermommy
Join Date: Oct 2005
Location: Central California
Posts: 16,959
Okay, your total expenses right now total $4890 and your income is $5350. That leaves $460 left over each month without making any changes. Why are you carrying credit card balances? Your total credit card debt is only $850! Stop using them!!!! Cut them up & close them. They are too tempting for you.

Okay, now to get down to business, you have some cuts that need to be made. As I stated above, your e
expenses total $4890 and your income is about to drop to $3600 a month. So here we go:

For the next 2-3 months:

~Rent/Mort pymt: $1360
~Electric: $150 (average over 12 mo)
~Home gas: $50 (average over 12 mo)
~Water: $45
~<strike>Cable: $40</strike> Cancel it.
~Home phone: $25
~Cell phone: <strike>$110</strike> Cancel it.
~Groceries: $400-stick to this. Check out the frugal mommies board (2 above this one) for tips
~Medical expenses (co-pays, prescriptions): $50 p/ mo
~Car gas/transportation expense: $200
~Car maintenance: <strike>$100</strike> $25 Create an emergency fund that any repairs can come out of.
~Car insurance: $250
~Child care: $560
~Eating out/entertainment: <strike>$250 p/ mo</strike> $100 ($25/wk)
~Spending/pocket money: $160 ($20/wk each)
~Misc spending: $100 For unexpected expenses like birthday party invite, having to buy stamps or re-order checks, etc.
Total: $3475
Total income: $5350
Left over for payoff & savings plan: $1875


This should fund your emergency savings account and pay off all of your credit cards in the very first month.


Once you stop working/drop to part-time, you'll need to make even more cuts:

Living expenses
~Rent/Mort pymt: $1360
~Electric: $150 (average over 12 mo)
~Home gas: $50 (average over 12 mo)
~Water: $45
~<strike>Cable: $40</strike> Cancel it.
~Home phone: $25
~Cell phone: <strike>$110</strike> Cancel it.
~Groceries: $350-stick to this. Check out the frugal mommies board (2 above this one) for tips
~Medical expenses (co-pays, prescriptions): $50 p/ mo
~Car gas/transportation expense: <strike>$200</strike> $150 mo This will decrease with you not working.
~Car maintenance: <strike>$100</strike> $25 Create an emergency fund that any repairs can come out of.
~Car insurance: <strike>$250</strike> $200p/ mo Call your insurance co and change your coverage on 1 vehicle to low mileage once you stop working.
~<strike>Child care: $560</strike>
~Diapers: $25 Buy generic if you don't plan on cloth diapering. Start stocking up now.
~Eating out/entertainment: <strike>$250 p/ mo</strike> $60 ($15/wk)
~Spending/pocket money: $80 ($40/mo each)
~Misc spending: $50 For unexpected expenses like birthday party invite, having to buy stamps or re-order checks, etc.
Total: $2620
Total income: $3600
Left over for payoff & savings plan: $980
Total minimum payments: $1050

Monthly deficit: $70

This, of course, is assuming that the credit cards are paid off in the next couple of months-which shouldn't be the slightest problem. It also assumes that you'll bfeed. This really gets you down to the basics tho and you're still short. I know that you don't want to hear this, but you can't afford those vehicles. One of them has to go. You need to downgrade. Unfortunately, at those rates, you are probably upside down on both of them. BUT, you would still be better off financing your loss onto a reliable, reasonably priced vehicle, than continuing with those payments. I mean, honestly, do you really want to spend $40k on a truck when you don't even own a home? And your other vehicle is at 18%!!!!! I don't even want to think about how much you'll end up paying for that one! I'm guessing you've had it for a while tho since your balance is down to $9500.

Bottom line, either downgrade your car or downgrade your home. I'm guessing that if you worked full-time the childcare would eat up your paycheck, so that's not much of an option either. If you could find a work schedule that allowed your dh to be with the children while you worked so that you didn't have childcare, then you should be able to keep both cars, but is it worth it? That's up to you to decide. I'm weird like that tho, It would be worth it to me to drive a beater and live very frugally if it meant that I could be a SAHM to my babies, but I know that's not how everyone feels.

No matter what you decide, you will need to stick to your budget, so I strongly suggest envelope budgeting. It has worked wonders with our finances. CLICK HERE It's post #3.

Maybe Chrystal will have some more suggestions for you. GL!

If you have any questions, comments, or concerns, please ask. We'd love to help in any way that we can. I apologize if I've made you angry.
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  #8  
January 12th, 2007, 01:13 PM
BensMom's Avatar Ephesians 4:29
Join Date: Apr 2005
Location: The Lonestar State
Posts: 50,214
Bump... I'm getting started on this now. I'll let you know if I have any questions. Let me know if you have any as well.

Edit... found a couple of questions: did you find out the % on your credit cards, and is the minimum payment actually $50 on all three, or is that what you choose to pay. Seems odd that they'd all have the same payment, and the payment seems high. They'll be paid off faster if the minimum payments are lower on one or two of them.
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  #9  
January 16th, 2007, 01:39 PM
cutestuff1975's Avatar Veteran
Join Date: Aug 2006
Posts: 187
Quote:
Bump... I'm getting started on this now. I'll let you know if I have any questions. Let me know if you have any as well.

Edit... found a couple of questions: did you find out the % on your credit cards, and is the minimum payment actually $50 on all three, or is that what you choose to pay. Seems odd that they'd all have the same payment, and the payment seems high. They'll be paid off faster if the minimum payments are lower on one or two of them.[/b]

I choose to pay $50 a month. The % rate is high, the reason we have them is to help our credit. I believe they are probably all about 20%. Two of them are mine, I have worse credit and both of the cars are in his name so I was looking for a way to increase my credit score, since he had both of the vehicles.
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  #10  
January 16th, 2007, 01:55 PM
cutestuff1975's Avatar Veteran
Join Date: Aug 2006
Posts: 187
Quote:
Okay, your total expenses right now total $4890 and your income is $5350. That leaves $460 left over each month without making any changes. Why are you carrying credit card balances? Your total credit card debt is only $850! Stop using them!!!! Cut them up & close them. They are too tempting for you.

Okay, now to get down to business, you have some cuts that need to be made. As I stated above, your e
expenses total $4890 and your income is about to drop to $3600 a month. So here we go:

For the next 2-3 months:

~Rent/Mort pymt: $1360
~Electric: $150 (average over 12 mo)
~Home gas: $50 (average over 12 mo)
~Water: $45
~<strike>Cable: $40</strike> Cancel it.
~Home phone: $25
~Cell phone: <strike>$110</strike> Cancel it.
~Groceries: $400-stick to this. Check out the frugal mommies board (2 above this one) for tips
~Medical expenses (co-pays, prescriptions): $50 p/ mo
~Car gas/transportation expense: $200
~Car maintenance: <strike>$100</strike> $25 Create an emergency fund that any repairs can come out of.
~Car insurance: $250
~Child care: $560
~Eating out/entertainment: <strike>$250 p/ mo</strike> $100 ($25/wk)
~Spending/pocket money: $160 ($20/wk each)
~Misc spending: $100 For unexpected expenses like birthday party invite, having to buy stamps or re-order checks, etc.
Total: $3475
Total income: $5350
Left over for payoff & savings plan: $1875


This should fund your emergency savings account and pay off all of your credit cards in the very first month.


Once you stop working/drop to part-time, you'll need to make even more cuts:

Living expenses
~Rent/Mort pymt: $1360
~Electric: $150 (average over 12 mo)
~Home gas: $50 (average over 12 mo)
~Water: $45
~<strike>Cable: $40</strike> Cancel it.
~Home phone: $25
~Cell phone: <strike>$110</strike> Cancel it.
~Groceries: $350-stick to this. Check out the frugal mommies board (2 above this one) for tips
~Medical expenses (co-pays, prescriptions): $50 p/ mo
~Car gas/transportation expense: <strike>$200</strike> $150 mo This will decrease with you not working.
~Car maintenance: <strike>$100</strike> $25 Create an emergency fund that any repairs can come out of.
~Car insurance: <strike>$250</strike> $200p/ mo Call your insurance co and change your coverage on 1 vehicle to low mileage once you stop working.
~<strike>Child care: $560</strike>
~Diapers: $25 Buy generic if you don't plan on cloth diapering. Start stocking up now.
~Eating out/entertainment: <strike>$250 p/ mo</strike> $60 ($15/wk)
~Spending/pocket money: $80 ($40/mo each)
~Misc spending: $50 For unexpected expenses like birthday party invite, having to buy stamps or re-order checks, etc.
Total: $2620
Total income: $3600
Left over for payoff & savings plan: $980
Total minimum payments: $1050

Monthly deficit: $70

This, of course, is assuming that the credit cards are paid off in the next couple of months-which shouldn't be the slightest problem. It also assumes that you'll bfeed. This really gets you down to the basics tho and you're still short. I know that you don't want to hear this, but you can't afford those vehicles. One of them has to go. You need to downgrade. Unfortunately, at those rates, you are probably upside down on both of them. BUT, you would still be better off financing your loss onto a reliable, reasonably priced vehicle, than continuing with those payments. I mean, honestly, do you really want to spend $40k on a truck when you don't even own a home? And your other vehicle is at 18%!!!!! I don't even want to think about how much you'll end up paying for that one! I'm guessing you've had it for a while tho since your balance is down to $9500.

Bottom line, either downgrade your car or downgrade your home. I'm guessing that if you worked full-time the childcare would eat up your paycheck, so that's not much of an option either. If you could find a work schedule that allowed your dh to be with the children while you worked so that you didn't have childcare, then you should be able to keep both cars, but is it worth it? That's up to you to decide. I'm weird like that tho, It would be worth it to me to drive a beater and live very frugally if it meant that I could be a SAHM to my babies, but I know that's not how everyone feels.

No matter what you decide, you will need to stick to your budget, so I strongly suggest envelope budgeting. It has worked wonders with our finances. CLICK HERE It's post #3.

Maybe Chrystal will have some more suggestions for you. GL!

If you have any questions, comments, or concerns, please ask. We'd love to help in any way that we can. I apologize if I've made you angry.[/b]


YOU ARE FUNNY........You wouldn't make me angry, it's just nice when someone points out to you how crappy you are with your finances....LOL

We don't own a home because of our credit. For some reason my BF thinks he deserves the best too (that would be why we have a $30,000 truck and not a savings So I just really wanted some help so I can present him with an idea of how we need to save if we want a future.

Also, the daycare situation. My son has been in daycare since September and has learned so much, once the new baby is born my oldest will go to daycare still p/t and that is why the amount changes. I will work nights and only 3 nights a week and it will be approx 250 a week extra so $1000 a month, usually more but that is average.

Thanks for your time.
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  #11  
January 19th, 2007, 11:21 AM
BensMom's Avatar Ephesians 4:29
Join Date: Apr 2005
Location: The Lonestar State
Posts: 50,214
Ok, so I'm going to work this plan as if you have your current income until the end of Feb (in case you have your baby at 36 weeks rather than 40... just to be on the safe side), and then I'll figure your new income from March. Since you'll be making appx $1000/mo and still paying for p/t daycare, your numbers look more like this (which is what I'll use for the plan I'm working on):

Before baby:
Total expenses: $3475
Total income: $5350
Left over for payoff & savings plan: $1875

After baby:
Total expenses: $2940 (added daycare)
Total income: $4600 (added $1k/mo)
Left over for payoff & savings plan: $1660

I'm running two different scenarios for you to consider... one is where you keep the 30,000 car, and the other is where you trade it in to get something with a 300 payment rather than 650.

If you see this before I finish, I need a little more information about the 650 car payment... can you tell me the make/model of the vehicle, what condition it's in, how long you've already been paying on it, the original purchase price, and what your down payment was. (If you don't know the original sticker price and down payment, just tell me how much you originally financed after the down payment.) From that, I'll figure up what the truck is worth vs. what you owe so you'll have an idea how much you can afford when/if you trade it in. I'll also need you to either post or pm your zip code for me so I can get a more accurate value. If you're 100% sure you won't be trading it in, don't worry about gathering up all of this information, however, it makes soooooo much more sense to pay $300/mo for your car and put the other $350/mo into savings. By putting that $350/mo into a 5% money market account for the next 5 years while you're paying off the trade-in, you'll have $24,000 in savings!!! You could buy a nice new car outright for that much!
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  #12  
January 19th, 2007, 03:12 PM
BensMom's Avatar Ephesians 4:29
Join Date: Apr 2005
Location: The Lonestar State
Posts: 50,214
Ok, here it is... if you want me to help you figure out the price of a new car, let me know.

CURRENT

The way you're currently paying your debts, it'll take you 5 years and $11,000 in interest to get out of debt.

OPTION 1 - Keep the $650 car payment.

This way, you'll be debt free in half the time with $5800 in interest.

Month 1 - Pay off two of the credit cards ($550), pay $225 on the 3rd card, and the minimums on the cars.
Month 2 - Pay off the cc, pay the minimums on the cars, and put $550 into savings for emergencies.
Month 3 - Put $610 into emergency savings, and pay the minimums on the cars (you now have just over $1000 for emergencies).

Starting in month 4, pay $650 on the larger car debt and $1010 on the smaller one. It'll take 10 months to pay that one off. Afterwards, put the entire $1660 left from your budget into the larger car debt. It'll take another 17 mos to pay that one off.

OPTION 2 - Trade in the $650/mo car for a $300/mo car.

This will only take you a year and a half and appx $2200 in interest to get out of debt!

Month 1 - Pay off all 3 cc's, put $300 into savings, and pay the min's on the cars.
Month 2 - Min's on the cars and $960 in savings

Starting in month 3, pay the $300 minimum on the new car and $1360 on the other one. It'll take 7 more mos to pay that off. Then put the entire $1660 toward the new car for a total of 17 mos... which is summer 2008.

FYI... after the cars are paid off, I'd suggest putting $660 back into your budget for a nicer home ($2020/mo ... Jess can figure out the taxes and stuff on a mortgage in your area if you'd like - even with bad credit). Put the other $1000/mo into retirement savings. If you save $1000/mo for 40 years at 6%, you'll have $1.5 million. You can definitely do better than 6%. I'm just being conservative. 8% would be $2.4 million. 10% would be $3.8 million.
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