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Forum: Financial Planning and Budgeting

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  #1  
January 2nd, 2007, 10:10 AM
Mega Super Mommy
Join Date: Dec 2006
Posts: 1,296
Income
Your income:485 weekly
Dh/SO's income: 1112 biweekly
Other income:

Living expenses
~Rent/Mort pymt: We prepayed a whole year $20,000
~Electric:150.00
~Water:160.00
~Cable:45.00
~Groceries:100.00 weekly
~Medical expenses (co-pays, prescriptions): 15 co pay at least once a month
~Car gas/transportation expense: 120 weekly
~Car maintenance: 150.00 every3-4 months
~Car insurance: 125 weekly
~Other insurance: 498.00 every 6 months
~Child care: 160 weekly
~Diapers: 120 monthly
~Other baby expense __240 formula monthly
~Eating out: 300.00 - 500.00 monthly
~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: 574.00
~Car payment #2: 451.00
~Student loan:
~Credit card #1: 500.00 limit 40.00- 100.00 minimum payment(what I like to pay every month) 19% intrest rate (We have very little credit)
~Credit card #2:


Goals: (examples: new car, baby, to be a SAHM, vacation, retirement, etc)
I want to save for:
1. New house the purchase price is @ 400,00 dollars
2. Money in savings for emergencies
3.Be a SAHM again
4.pay bills w/o worring about money for the next week
5.
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  #2  
January 2nd, 2007, 10:35 AM
~Jess~'s Avatar Platinum Supermommy
Join Date: Oct 2005
Location: Central California
Posts: 16,959
You're added to my list. Your car insurance is outrageous! Have you shopped around to make sure you're getting the best deal?

Have you tried generic formula? Chrystal swears by Parent's Choice. Formula is regulated by the FDA, so they are all required to have the same nutrients.

Is carpooling an option? Your gas expense seems rather steep as well.

Does the pre-paid mortgage also include your taxes & insurance. When will you have a payment again? I'm also curious as to why you did that rather than pay down/off an auto loan?

We also need the balances and rates on your auto loans as well as your mortgage.
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  #3  
January 2nd, 2007, 10:41 AM
BensMom's Avatar Ephesians 4:29
Join Date: Apr 2005
Location: The Lonestar State
Posts: 50,214
Ditto that... Ben's ped actually TOLD us to use parent's choice. It's the same as similac. He was allergic to enfamil (we think it was the palm oil in it).
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  #4  
January 2nd, 2007, 03:02 PM
nmiracles's Avatar Mega Super Mommy
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Location: Houston, Texas
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our pedi told us that the sam's brand is good too. saved us a bundle!
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  #5  
January 2nd, 2007, 07:39 PM
hmcart's Avatar Platinum Supermommy
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The first thing I noticed was the car insurance. That is def high. I agree with the other ladies. I would try generic formula and I personally use walmart brand diapers.
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  #6  
January 3rd, 2007, 06:44 AM
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Join Date: Dec 2006
Posts: 1,296
I am such a dork it is 125.00 monthly for my car insurance...
The reason why my formula expense is so high is b/c I use the premade that I just pour into a bottle for some reason Jake spits up his whole bottle if it is the powder formula no matter how long or good I shake it....does parents choice come premade?
also we prepaid a whole year rent b/c it was a lease option and the lady wanted it up front but we were smart and put it into an escrow account so that she can't blow it on stupid stuff...anyways we are not buying that house b/c the market has dropped and there are some really stupid rules like you can't have trucks etc. anyways rent in naples is no cheaper anywhere so we are going to try and buy while the market is down. I will right anything else you need to know just ask this is really a big help. thank you!

Forgot a few things....The rates on the cars are @ 4% each we owe 19,000 and 25,000
Our house is rented or lease if you will so she has to pay all taxes.
My husband works an hour away in port of the isles which is south and I work one exit north in bonita springs
so carpooling is def not an option I wish that it was! It def is a problem.
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  #7  
January 3rd, 2007, 06:48 AM
BensMom's Avatar Ephesians 4:29
Join Date: Apr 2005
Location: The Lonestar State
Posts: 50,214
If powder makes him spit up the whole bottle, you can try two options... (1) put a couple of drops of baby gas stuff in the bottle before shaking it (have you SEEN all the bubbles in those bottles?! That's what we did with Ben - worked like a charm! )... (2) If that doesn't work, ask your doctor about reflux and allergies. That shouldn't be happening.

On a funny note... if you shake up a bottle and then add the gas stuff, it'll hiss at you the way a carbonated drink does when you pour it. LOL!
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  #8  
January 3rd, 2007, 08:51 AM
~Jess~'s Avatar Platinum Supermommy
Join Date: Oct 2005
Location: Central California
Posts: 16,959
Quote:
I am such a dork it is 125.00 monthly for my car insurance...[/b]
Ahhh...that is MUCH more reasonable

Quote:
The reason why my formula expense is so high is b/c I use the premade that I just pour into a bottle for some reason Jake spits up his whole bottle if it is the powder formula no matter how long or good I shake it....does parents choice come premade?[/b]
Definitely try Chrystal's suggestion, that is a lot of money to spend on formula (nearly $3000 a year!!)

Quote:
also we prepaid a whole year rent b/c it was a lease option and the lady wanted it up front but we were smart and put it into an escrow account so that she can't blow it on stupid stuff...anyways we are not buying that house b/c the market has dropped and there are some really stupid rules like you can't have trucks etc. anyways rent in naples is no cheaper anywhere so we are going to try and buy while the market is down. I will right anything else you need to know just ask this is really a big help. thank you![/b]
That is rent? Ouch! That really hurt the pocketbook since it's an interest-free expense. I can't imagine she has many renters banging down the door to pay her a lump sum of $20k. If you plan to stay where you are, then def re-negotiate. She'll be hard pressed to find someone else who can do that.

Quote:
My husband works an hour away in port of the isles which is south and I work one exit north in bonita springs
so carpooling is def not an option I wish that it was! It def is a problem.[/b]
I actually meant co-workers to carpool with. My dh works an hour away and there are a lot of other guys here in town that commute there too, so there are lot's of ppl carpooling to save gas money. If he works for a large company, maybe he could put up a sign in the breakroom looking for someone to commute with? Even carpooling with 1 person would save a lot of money each month.
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  #9  
January 3rd, 2007, 09:10 AM
3Xblessed's Avatar Platinum Supermommy
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Location: Southern California
Posts: 2,745
another formula suggestion....get a big pitcher and make a days worth every morning (or night) and then pour from there for each bottle. This should allow the bubbles to settle out preventing the gas. You can keep made powdered formula in the fridge for 24 hours.
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  #10  
January 3rd, 2007, 09:42 AM
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thats what we did when my son had to have formula mixed heavier for more calories. we put it in the blender, and just kept the blender full of formula in the fridge. also using a blender helps get the powder completely mixed in. its the unmixed formula that causes gas and spitting. i agree with crystal, that it sounds like a reflux issue. my son has severe reflux issues so if you have any questions feel free to pm me
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  #11  
January 3rd, 2007, 12:54 PM
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Join Date: Dec 2006
Posts: 1,296
I actually meant co-workers to carpool with. My dh works an hour away and there are a lot of other guys here in town that commute there too, so there are lot's of ppl carpooling to save gas money. If he works for a large company, maybe he could put up a sign in the breakroom looking for someone to commute with? Even carpooling with 1 person would save a lot of money each month.
[/quote]


I wish It;s just me in the offfice here we are a small pool contractor and my DH is a superintendent on a residential site but all of thier sub contractors are from miami

also we are def not staying at the place we are at now but that is a pretty normal renting rate in naples most are higher for what we have and if you want cheaper you have to rent in a 1 or 2 bedroom tiny apt for like 1200-1700 a month if I pay that much i might as well have a house right? Also when we move my sister and her DB are going to be moving in with us and they will be paying 500 a month so that will be good but that is not untill april 1, 2007 (our lease ends march 31 ) so even if we have a moragage that will take care of 500 dollars a month but taht is also not forever.
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  #12  
January 3rd, 2007, 12:58 PM
~Jess~'s Avatar Platinum Supermommy
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So, beginning in Apr. your rent/mtg payment will be how much per month? $1700-$500 (from your sis)=$1200. Is that about right?
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  #13  
January 3rd, 2007, 01:02 PM
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Also I will try your advice on the formula Hopefully it works my dr said he does not have acid reflux but then again she could be wrong. I really want to thank you all for helping me out, I will try anything you suggest to help us out financially.

Quote:
So, beginning in Apr. your rent/mtg payment will be how much per month? $1700-$500 (from your sis)=$1200. Is that about right?[/b]

@2500 altogether w taxes and insurance this is for the house we want to purchase so about 2000 if you minus what my sis pays.holy cow that sucks!!!
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  #14  
January 3rd, 2007, 01:21 PM
~Jess~'s Avatar Platinum Supermommy
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Location: Central California
Posts: 16,959
Quote:
Also I will try your advice on the formula Hopefully it works my dr said he does not have acid reflux but then again she could be wrong. I really want to thank you all for helping me out, I will try anything you suggest to help us out financially.

Quote:
So, beginning in Apr. your rent/mtg payment will be how much per month? $1700-$500 (from your sis)=$1200. Is that about right?[/b]

@2500 altogether w taxes and insurance this is for the house we want to purchase so about 2000 if you minus what my sis pays.holy cow that sucks!!!
[/b]
We pay $2762 a month, which is the majority of dh's salary, so I totally understand!

Are you in Naples, ITALY?
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  #15  
January 3rd, 2007, 01:23 PM
Mega Super Mommy
Join Date: Dec 2006
Posts: 1,296
Quote:
Quote:
Also I will try your advice on the formula Hopefully it works my dr said he does not have acid reflux but then again she could be wrong. I really want to thank you all for helping me out, I will try anything you suggest to help us out financially.

Quote:
So, beginning in Apr. your rent/mtg payment will be how much per month? $1700-$500 (from your sis)=$1200. Is that about right?[/b]

@2500 altogether w taxes and insurance this is for the house we want to purchase so about 2000 if you minus what my sis pays.holy cow that sucks!!!
[/b]
We pay $2762 a month, which is the majority of dh's salary, so I totally understand!

Are you in Naples, ITALY?
[/b]

Nope Naples florida and I think that the sun has gone to everyones heads here!!! Luckily the market is a buyers market right now! Thats why we want to buy will the getting is good. Where do you live?
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  #16  
January 3rd, 2007, 01:28 PM
~Jess~'s Avatar Platinum Supermommy
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Location: Central California
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Good 'ol CA. Our housing market is finally deflating. Deff a buyers market here too.
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  #17  
January 3rd, 2007, 02:35 PM
~Jess~'s Avatar Platinum Supermommy
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Location: Central California
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Are both your kids in diapers? $120 a month is outrageous. When both my boys were in diapers, we spent around $75 including wipes and my lil one is bfed so went thru literally about 12 diapers a day!

Do you have a Costco near you? The Kirkland brand diapers are fantastic, better than huggies or pampers, and they are quite inexpensive. If not, then I strongly suggest switching to Parent's Choice from Walmart. You can get 80 size 3 diapers for $10. (I don't know how many are in the other size packs because my lil one is in size 3 )

How much do you (just you) spend in gas for getting to and from work?

If you were no longer working, would you be willing to move to the city where your dh works? How much would a house payment be there? What about rent?
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  #18  
January 3rd, 2007, 02:47 PM
~Jess~'s Avatar Platinum Supermommy
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Well, glancing at your budget as it is, your monthly expenses total nearly $4000 and that is without a house payment! Even if you make some major cuts, I don't see how you will be able to afford to buy a $400,000 house. I'm def gonna work on it and see what I can come up with. I probably won't be able to spend much time on it until the kids are in bed tonight.
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  #19  
January 11th, 2007, 10:04 PM
~Jess~'s Avatar Platinum Supermommy
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Whew...FINALLY, lol. I'm so sorry it's taken so long. I was really on a roll and then ds got sick and I got sick
*and yada yada yada. But I'm here now.

Your budget is very very tight. Bottom line is that you will not be able to be a SAHM and buy a home unless your dh starts making double what he makes now. You could explore WAH options, but you probably won't be able to make the money you make now, so your dh would still have to increase his budget quite a bit.

With you continuing to work

Let me go over your current budget-WITHOUT a house payment:

~Electric $150
~Water $160 (when you own a home, you may want to have a yard that requires very little watering to save money-this is very very high)
~<strike>Cable $45</strike> You can't afford it, plain & simple.
~Groceries: $400
~Medical expenses: $15
~Car gas: $480 (OUCH! See comment below about the car situation)
~Car maintenance: $50
~Car insurance: $125
~Other insurance: $83
~Child care: $640
~Diapers: $75 (switch to generic Parent's Choice-the Walmart brand-is a great quality for the price)
~Formula: $240/$150 (Hoping you can switch to powder)
~Family entertainment/eating out: <strike>$300-$500</strike> $40 ($10/wk)
~Spending/pocket money: $80 ($40/mo each)
~Misc spending: $100
Total: $2638/$2548 (if you switch to powder formula) ($2398 starting in June when your baby is a year old& doesn't need formula)
Total income: $4164
Left over for a house payment & car payments: $1526/1616 ($1766 starting in June)
Total car payments: $1025
Left over for house payment/rent: $501/$591 (741 in June)


So you see the problem here. You cannot afford the cars that you have and a housing expense too. What do you need? Well, you need a place to live, 1 reliable family car, and 1 commuter car that gets good gas mileage (think Geo Metro). You have to sell both your vehicles. There is no getting around it unless you or dh starts making more money, A LOT more money.

Assuming that you financed your cars on a 5-year term each, then car A was originally financed for around 31k and car B was originally financed for around $24500. I'm really hoping that you aren't upside-down on them. Let's say that you can sell them and walk away owing nothing. Then you need to buy 2 more vehicles. If you spend a total of $8000 (divided however you want: $6000/$2000 or $4000/$4000, etc), then you would have a payment of $150 at 5% over 5 years. Hopefully, you'll get something more fuel efficient and be able to save money on your monthly gas bill too. Your insurance should also decrease from having older vehicles to insure. That would leave $1376/$1466 ($1616 June+) for housing. The more you decide to spend on your cars, the less you have for a rent/mort payment and vice versa. If you're getting a tax return, you need to #1 pay off your credit card, and #2 you may want to use the rest to buy a car as well so that you could either afford a better vehicle or have a lower payment.

I know this isn't what you want to hear, I'm sorry.

Scenario #2, you become a SAHM once you no longer have a formula expense

Now, be aware, you will have a LOT of sacrifices to make if you want this option to work, including moving to the city where your dh works.

Budget without a house payment:

~Electric: $100 (you may even qualify for low-income electric)
~Water: $60
~Groceries/household expenses: $300 (this will take careful budgeting and extensive meal planning, check out frugal mommies board)
~You will also qualify for WIC on just dh's income, so that will help a lot with your grocery expenses.
~Medical expenses: $15
~Car gas: $150 (no longer commuting)
~Car insurance: $80 (insurance will decrease)
~Other insurance: $83
~Diapers: $0 you'll have to cloth diaper
~Family entertainment/eating out: $40
~Spending/pocket money: $20 ($10 a month each)
~Misc spending: $50
Total $898
Total income: $2300 (With you not working, you can change withholding on W4 to increase net pay in each paycheck. You will probably get even more than this, you may even qualify for EIC for extra money in each check)
Left over for car & housing expense: $1402+


With this scenario, you are down to a bare-bones budget. Yet, looking at it, it really doesn't look THAT much worse than the first budget, so it's definitely worth considering. Again, you would have to sell both cars, but with you not working, you could survive with 1 vehicle. That would decrease gas, car maintenance, & insurance expenses! If you could use your tax return to buy it, so much the better. You might even qualify for low-income housing on just his income. It's not as bad as it sounds. We have some VERY nice low-income apts around the corner from us (nice, safe neighborhood). They are out there, you just have to look.

I'm sure there's a lot more for me to add, I'll edit as I think of stuff.
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  #20  
January 12th, 2007, 05:45 AM
Mega Super Mommy
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Ok so I know the cars are a big burden but we are upside down on my DH's truck...But thw good news is he has only worked for six months and his salary was temp so he is getting a considerable raise so hopefully it will be enough to put us on track, with a house, I of course am going to keep woring as long as I have to(even though I don't wnat to) also my sis and her DB are going to pay us 500 a month plus one utility starting in April so that right there is one of our car payments and a little gas so that will be good. Thank you for your help I am going to show my DH everything and also he thought the envelope idea was a good one.
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