New home owner in need of budget revamp!

hoffse

PincessOf3 said:

Trade in is only 8,888.00. Can I return gifts via Amazon without having a reason? I am scared of getting a beater because I am buying a new car every two years and that costs me more than having a payment. I pay 5,000 for beaters and pay straight cash and they do not last long. I am not going to cut my credit card in case an emergency happens with my kids or my car. But I did put it in my safe so that I do not have it on me. 

Also, my job is salary so there is no room for overtime. A second job is a must!

Generally yes, as long as you do it in the 30-day return window.  Go to your account and look at your orders.  If they are eligible for return, there will be a really big button next to the item saying "return this item" or something like that.  You click the button and go through the steps to print out the return form.  Many (not all) returns are free on Amazon.

For flexible second jobs, does your city have uber or lyft?

julieanne912

I think doing Uber on the weeks where you don't have your kids is a great idea  A friend of mine who is a teacher does this on weekdays during the summer to earn some extra cash.  She only does it from about 4-8pm (so she's not out doing it after dark at her boyfriend's request).  She said she earned, after expenses, about $25/hour.  Most of her jobs were people just needing a ride home after happy hour or from work, or people needing to go to the airport, so no drunk jerks or anything like that like you might get later at night.  

So yeah even if you can earn an extra few hundred dollars a month, that would really put you in a much better spot.  

brij2006

What's the private party value of your car?  The trade in is always substantially less than what you can sell it for on Craigslist, private party.

If you truly feel that you are wanting to keep the car, then an extra job has to happen.  There isn't enough money left in your month to be able to keep it.  So the only other option is to get your income up.

The reason I say to cut up the credit card is that the temptation is still there if it's still around.  Hence the Christmas gifts and a balance on it.  We can all tell yourselves that we will only use it for emergencies, but then the water heater goes out in a week and we "must" buy a tankless one instead of one with a tank.  Then there's $1,000 charged to it, when if paying cash we would have purchased a $400 tank one because that's what we had the cash for.  Same with appliances.  You can find used ones for a very reasonable price, all day long on Craigslist and exchange sights.  But when using the credit card, it's easy to spend much more than that on a brand new one. 
Credit card is a behavior.  Many people use them responsibly as a tool with everyday purchases, but that is not your case.  That is why I'm saying to cut it up.  If you have already used it for purchases for your children because you felt guilty, then it is not something that should be utilized at this time.  It sounds like you're an "out of sight, out of mind" type of person.  There's absolutely nothing wrong with that.  I'm the same way.  If the temptation isn't there, then I won't utilize it.  So if the card isn't available to use, then I won't spend the money.

simplyelise

PincessOf3 said:

YIKES! I thought I was replying to everyone individually. But that wasn't the case!

We've all been there. The reply button is worthless. Hit "Quote" and then you can respond a the bottom of the quoted post. OR tag someone @someone to ask a question or reference them.

As for the car, look at your private sale value on KBB, not the trade in. A $15k car is just way too much for your current circumstance. And since you're already overextended on the house (which you can't change at this point), the car is the only big change you can make on the expense side of things. 

blondie42107

Shelter and food are the big things to focus on.  Luckily you have some flexibility with food costs.

In all honesty, we are simplifying Christmas because we want to. Our kids are only getting 4 things each and they are not very expensive things.  We are splurging on one item for each of them but that's because my H earned Amazon rewards at work (part of their "you're doing a great job" perk).  So outside of that they are each getting a pair of PJs, a book and one additional toy.  Family will get them gifts too.

Entertainment with kids can be tricky.  My kids are 5 and 3.  We go to the library a lot.  They have quite a few children's programs that we try to attend.  We also just go randomly on the weekends.  Kids love looking at books, playing with the toys, etc.  

My oldest has been to the movies a total of 3 times in his life.  My youngest once.  One of the theaters in our area does free movies on Sundays.  We went the other weekend - they showed The Polar Express.  They also do this in the spring/summer on Saturday mornings.  Not new movies but still the "experience."  We really focus on watching movies at home and they don't have to be "new" ones.  There are so many movies on Netflix and Hulu that my kids haven't seen.  So popcorn and a movie at home is easy.

We also do board games, go to the park (the snow doesn't allow for it in the winter), etc. 

I want to say that I think it's great that you saved up for a down payment to get a house for you and your kids.  That's great dedication and hard work.  I will say that your housing expenses are pretty high for your income but not much you can really do if you plan to stay put.  When your fiance moves in, can he pay you more for rent?  Will he be contributing to groceries, heat, electric?  Before my H and I were married, but we were engaged, and I moved in, I paid half the housing costs and we shared the grocery bill.  Not super romantic but we treated it like any other roommate situation.  It was cheaper than both of us living on our own.

Please stick on the board.  So many great ideas and lots of support here!

csuave

Good work on already starting to make some changes!

Since you know your water heater is going to go that will allow you to be proactive and research what to get and where to get it.  The research should help you be cost effective.  Much better to do that now than when it breaks and you have no hot water.

Nesties do you think a home warranty is something OP can or should look into knowing that one item will definitely go against it?  I'm not knowledgeable enough about them to say.

PincessOf3

blondie42107 said:

Shelter and food are the big things to focus on.  Luckily you have some flexibility with food costs.

In all honesty, we are simplifying Christmas because we want to. Our kids are only getting 4 things each and they are not very expensive things.  We are splurging on one item for each of them but that's because my H earned Amazon rewards at work (part of their "you're doing a great job" perk).  So outside of that they are each getting a pair of PJs, a book and one additional toy.  Family will get them gifts too.

Entertainment with kids can be tricky.  My kids are 5 and 3.  We go to the library a lot.  They have quite a few children's programs that we try to attend.  We also just go randomly on the weekends.  Kids love looking at books, playing with the toys, etc.  

My oldest has been to the movies a total of 3 times in his life.  My youngest once.  One of the theaters in our area does free movies on Sundays.  We went the other weekend - they showed The Polar Express.  They also do this in the spring/summer on Saturday mornings.  Not new movies but still the "experience."  We really focus on watching movies at home and they don't have to be "new" ones.  There are so many movies on Netflix and Hulu that my kids haven't seen.  So popcorn and a movie at home is easy.

We also do board games, go to the park (the snow doesn't allow for it in the winter), etc. 

I want to say that I think it's great that you saved up for a down payment to get a house for you and your kids.  That's great dedication and hard work.  I will say that your housing expenses are pretty high for your income but not much you can really do if you plan to stay put.  When your fiance moves in, can he pay you more for rent?  Will he be contributing to groceries, heat, electric?  Before my H and I were married, but we were engaged, and I moved in, I paid half the housing costs and we shared the grocery bill.  Not super romantic but we treated it like any other roommate situation.  It was cheaper than both of us living on our own.

Please stick on the board.  So many great ideas and lots of support here!

It snows here too! Which keeps costs down as far as going out lol. Yes he will be helping with other bills as well. WHAT!? I think your fiance (husband now) helping you is the epitome of romance. Nothing say's love like paying for your life together. 

Erikan73

Here are a few line items that I found for myself to be helpful with my budget. You won't need to spend the money every month. And it could add up over a few months, but when you need the funds, it's nice to have it saved up.

• Home Repair
• Household Items (covers the occasional new towels, curtains, new pots, other misc. things you end up needing around the home)
• Yard (this way when I want to get mulch, a new bush or flowers in the spring, I've got money saved up for that)
• Car Repairs (this way if something comes up, even just a basic oil change, I have money saved up for it already and don't have to put it on credit card). Even if you have or get a new car, you will always still need oil changes & tire rotational

short+sassy

csuave said:

Good work on already starting to make some changes!

Since you know your water heater is going to go that will allow you to be proactive and research what to get and where to get it.  The research should help you be cost effective.  Much better to do that now than when it breaks and you have no hot water.

Nesties do you think a home warranty is something OP can or should look into knowing that one item will definitely go against it?  I'm not knowledgeable enough about them to say.

Generally speaking, they aren't worth the paper they are written on.  I've researched them and decided against them.  My coworker had one.  He even used it to fix one of his appliances and it just wasn't worth it.

There is a service charge every time a repair person is called out.  Usually $75.  And if they have to come out multiple times for the SAME problem because it didn't get fixed the first time?  Too bad.  It's still a $75 charge every time they come out.

One caveat, perhaps consider a home warranty just for your HVAC.  That's crazy expensive to replace...but it may not save you too much for repairs as opposed to just paying for repairs yourself without a home warranty.

And, quite frankly, like @brij2006 pointed out, you can always buy appliances used for super cheap.  I've done it many times and highly recommend it.

Haha, let me clarify.  I haven't done it so many times because the appliances keep breaking, It's been a lot because I've had my own home and three rental units to stock.

I bought two sets of washers/dryers, one fridge, one dishwasher, and one stove over four years ago...all used...all still work just fine.  I just bought a fridge off CL for my new rental unit.  Two months old, still under warranty...only $250.

There are also used appliance stores that usually give a 30-90 day warranty.  Sometimes more.

julieanne912

csuave said:

Good work on already starting to make some changes!

Since you know your water heater is going to go that will allow you to be proactive and research what to get and where to get it.  The research should help you be cost effective.  Much better to do that now than when it breaks and you have no hot water.

Nesties do you think a home warranty is something OP can or should look into knowing that one item will definitely go against it?  I'm not knowledgeable enough about them to say.

It could possibly be beneficial.  However they still cost about $400/year, payable up front (or at closing if you can get the seller to pay for it, but that's not the case here), depending on area, so it may not be a great idea to buy one just to repair a water heater when/if it goes out.

Also on home warranties, you have to pay a service charge (usually $50-$100), and you are required to use one of their approved tradesmen.  Also, if the unit can be repaired vs replaced, they will do that, even if replacing is the better route to go.  On my first home I had a warranty, and the furnace went out.  I paid the service charge (I think it was $90) and it took the tradesman 3 days to come out. The furnace was 25ish years old, but since it could be repaired, they did that.  Well, 2 weeks later it went out again, this time something else was wrong.  So I paid my service charge again, and waited 3 more days, and they repaired it, again.  This ended up happening 4 times before eventually they repaired it enough to keep it working.   Thankfully, this was in CA so it wasn't super freezing (still in the 40s at night) and I was a single female, with no kids to keep warm (other than the furry variety), and my family room had a separate wall heater, so I just holed up in there and paid a ridiculous electric bill the next month because that wall heater was super expensive to use.  

OP, how do you know your water heater is on its way out?  I just ask because many home inspectors will say if a water heater is 8 years old or older, it is "past its useful life" which makes people think it'll just kick the bucket anytime.  My mom has a 30 year old water heater on her house.  Now, that's not to say you shouldn't plan ahead and start saving up for a new water heater, but you may still have some time left on it.  

csuave

@julieanne912 and @short+sassy thanks for the clarification on the home warranty.  Like I said, I don't know much about them but it popped into my head because 1. OP recently bought her house and 2. I visited a friend over the weekend at his new house and he was talking about how the seller provided one and he has already used it once and expects he will use it again within the year.  Sounds like it is not a good option for OP since it wasn't included in the sale of the house.

OP something else to think ahead about is Uber/Lyft.  If you think you might try it, then sign up sooner rather than later.  Once you sign up there is a waiting period for a background check so you may want to get that clock ticking.  It also may be worth doing some research.  H has learned that when he drives to a surge area it seems to go away when he gets there; I had read a blogger say that driving to surge isn't always a good strategy.  It can be good to know about some of this stuff in advance.  You may also be able to find information that indicates if one is better than the other.

short+sassy

Good point about the wait times and that it is like pulling teeth for them to replace something, @julieanne912.  My coworker had to wait at least a few days for each service call and once it was longer than one week.  I've also heard horror stories of it taking 2-3 weeks sometimes, just to get a repair person out there.

Although not a home warranty, I bought a brand new dishwasher on a good sale when I reconfigured the kitchen on a rental unit.  Didn't work from Day One.  So Home Depot had to arrange with the manufacturer to get one of their approved repair people out.  The city I live in and the surrounding suburbs have 500,000 people.  The manufacturer had exactly TWO repairmen for my entire area.  TWO.  It took three weeks to get my dishwasher working.  Two weeks for the first guy to even show up and then one week for him to come back with the replacement part.  And that was with both my husband and I calling for a status on an almost daily basis.

Anyway, I picture home warranty companies having a similar pathetic set-up like that. 

Erikan73

Something to think about UBER is that you will have to do general maintenance (oil changes & tire rotations) more often and repairs will come up faster as you are putting more mileage on your vehicle. Another huge thing about UBER, is that your regular personal auto policy won't cover you for that type of driving. You will need a commercial auto policy, and not even all commercial auto policy companies will touch Uber drivers. You have to carry higher limits then what you normally would have to on a personal auto policy. Before committing to Uber or something like that, read all the find print in regards to the insurance requirements and then check with your insurance company to see first if they will cover you and what your rates would be.  

simplyelise

Maybe babysitting is a better option? You've got evenings available every other week. And every other weekend too? 

As for Christmas, I like the idea on pinterest of "something they want, something they need, something to wear, something to read." Books and clothes can be super cheap second hand. Something they need can be as simple as hair ties or pencils or something. Then you are just down to one for real present for each kiddo. 

Xstatic3333

Welcome! PP have covered most everything but I wanted to throw out one more job suggestion-catering. I have several friends who work as catering staff and sign up for jobs as they fit their schedule. They usually clear a couple hundred bucks a night, which could really help in your scenario!

cbee817

Xstatic3333 said:

Welcome! PP have covered most everything but I wanted to throw out one more job suggestion-catering. I have several friends who work as catering staff and sign up for jobs as they fit their schedule. They usually clear a couple hundred bucks a night, which could really help in your scenario!

This is a great option- DH did it for years over the summer while in grad school for wedding receptions at a local venue.. he would clear at least $15/hr after tips.

short+sassy

cbee817 said:

Xstatic3333 said:

Welcome! PP have covered most everything but I wanted to throw out one more job suggestion-catering. I have several friends who work as catering staff and sign up for jobs as they fit their schedule. They usually clear a couple hundred bucks a night, which could really help in your scenario!

This is a great option- DH did it for years over the summer while in grad school for wedding receptions at a local venue.. he would clear at least $15/hr after tips.

Plus this is prime season for banquet halls and caterers.  Company holiday parties galore!

Another industry that has a big uptick during the holidays is conducting demos at grocery stores/warehouse clubs.  But this is work you will see all year.  I've found jobs like this on Craig's List and signing up with companies that specifically do this type of work.