Budget Help

SmurfyLite · August 2013

Hi ladies,

Brand new. Just signed up because I have been reading through this board and think there are some really wise money managers, and would like some input on my budget if you are willing. It is my husband, myself, and our toddler.

After tax income per month: $3812

Canadian, so no health insurance premiums.

Insurance= 334/month

Car payment= $350/month

Day care= $360/month

Gas= $640/month (we both work far from home, can't relocate without other COL areas going WAY up)

Phone= $130/month (two iphones with data, as we only use internet on our phones to save an internet bill, no home phone)

Hydro- $175/month

Rent= $1134/month

Groceries= On weeks we get the higher paycheque- $184, weeks we get the lower pay cheque $70. So alternating.

Diapers/wipes/clothing for LO= $100/month

Visa= We owe about $600, pay $30/month which is only about $5 above minimum, but as you can see things are tight.

Student loan= $66. Again, minimum.

Schooling= I put aside this money, so I can pay for 1 course/semester ahead without further student loans, getting my education done part time. $75/month.

So this leaves only around $50/month to go towards emergency savings. I just feel so strapped and so confined, and don't know where we can cut stuff from. Any input would be greatly appreciated, if you require other info to give better insight, I'm an open book.

Tia

SmurfyLite · August 2013

Sorry, can't figure out how to edit, but should have included that we also recieve a child tax benefit of $100/month which is what we use for diapers and wipes and whatnot. so that needs to be factored in, otherwise it looks like we're in full negative.

brij2006 · August 2013

My biggest recommendation would be to try and find a cheaper place to live. The rule of thumb is to keep your rent/mortgage and all utilities under 25% of your income. Which would be $935/month for you. Currently you're at about 34%.

Then get rid of the Iphones with data. It isn't necessary, and will help your budget quite a bit.
You can also get 2nd jobs, which can help out in a lot of ways. Even if it's waitressing or bartending on the weekends, going into direct sales, or picking up some extra shifts at work. Strictly put that money toward your credit card until it is paid off.
Also shop around on your insurance premiums. Not sure what the rates are in Canada, but that's quite a bit for a monthly amount (assuming on 2 cars).

Mom987 · August 2013

Can you refinance your car payment with a credit union? I agree with shopping around for car insurance as well as trying to keep your housing at 25% of income. Since you don't have internet at home, I do think the data is important, but maybe for ONE phone instead of both? If you added internet at home with WiFi, you could drop your data, so overall that might come out cheaper.

SmurfyLite · August 2013

The car payment, we recently tried refinancing and they refused. The car insurance, we shopped and shopped, and this is the cheapest. The includes two vehicles and renters insurance. I HATE paying that bill each month. It is the bain of my existence.

As for moving, I think we live in a high cost of living area. The only real scale down option we have is to move from a town house in a nicer area of town to a highrise in a scary area of town, and even then the rent would be $950+ utilities. So we may save about $100/month, but I'm not sure if loosing our security is worth that much.

The phones, I just got them down from $250.month by signing a new contract at $130 with the hardware upgrade, but I'm planning on calling the company and seeing about cutting it further.

I'm not sure if there is a way to cut groceries. Is $508/month reasonable for a family of 3?

brij2006 · August 2013

SmurfyLite said:

I'm not sure if there is a way to cut groceries. Is $508/month reasonable for a family of 3?

It isn't terrible, but it could be better. Meal planning helps out a lot, and use coupons whenever you can.

Anything you do cut back on or make extra, apply toward the credit card.

SmurfyLite · August 2013

Any couponing sites you would suggest? I've never done that before. That's an exciting option:) Thankyou!

Mom987 · August 2013

I think $508 is very high for food. But we don't buy much.

CuriousKiddosMama · August 2013

I would look at cutting groceries. I'm not sure of the availability of coupons in Canada, but maybe start couponing for stuff you need, and trying to in general eat cheaper (cheaper cuts of meat, a meatless meal once a week like spaghetti, going to several stores to get the best deals possible that week and meal planning based on the sale ads). I also agree with PP about seeing if you can cut the phone bill, and getting a second job. Even a night a week or so, getting a couple hundred extra a month can really help move the needle for you.
Also, what are you going to school for, how much longer do you have, and what is your income potential then? Can you cut A LOT right now, knowing that when you are done, you will have a little or a lot more freedom?
For diapers- do you have CVS drug stores? They are a great way to buy diapers- with coupons and rewards bucks, they have packs of diapers for $3.50 this week! That would be one way to cut that bill. They do that about every 3-4 weeks.

Mom987 · August 2013

Since you have a child, is there any kind of babysitting you can do with him/her? Watch another kid in the evenings or weekend?

SmurfyLite · August 2013

We currently shop mostly at costco and walmart. I buy meats on sale and freeze them from costco and buy our produce there as well (we go through a lot of that). Buy in bulk as much as possible, on sale as much as possible, and then just do a quick shop for the little things to tie the meals together at walmart. H and I have been discussing sitting down and full out menu planning for each meal. Hopefully that will trim the costs a little. We also buy LOs diapers and wipes there. its about $40 for 200 diapers and $19 for I believe 8 full sized packs of wipes. I've been considering trying target brand as it's a little cheaper/diaper, but LO has very sensitive skin so I'm nervous to switch him.

I'm going to school for law clerk. I have two years left, finishing June 2015, and it will increase my earning potential by aprox $10,000/year to start.

vlagrl29 · August 2013

I think 500 is normal for groceries for 3. We spent $450-500 each month and use coupons. We only eat out once a week so we need the groceries

dplett · August 2013

As a fellow Canadian I think that is quite reasonable for groceries (particularly if it includes other household supplies like paper towel, toilet paper etc.) There are way less and lower value coupons in Canada than the U.S. and our grocery costs tend to be a little higher. Anything dairy is very significantly higher so I think you are doing pretty good.
Also, depending on which province you live you might not have a choice on car insurance. I live in Manitoba and we only have Manitoba Public Insurance to choose from. It's provincially regulated.

CanadianGurl · August 2013

Is going down to one vehicle and carpooling with husband to work an option? Have you tried cloth diapers? (try used ones on kijiji). You might be able to shave a bit off your groceries. There's not really anywhere to cut down. You said you already receive the UCCB of $100/month, but have you tried applying for the CCTB? Otherwise, I think the only remedy is to bring in more income. Some things you can do with baby is a rural newspaper delivery (journal or the Sun maybe? Baby can sleep in car seat while you drive the early morning delivery route, handing out the papers into the mailboxes through the window), flyer route, weekend childcare in your home (lots of people working shift work are looking for weekend care when their daycare is closed). Also, a temporary fix could be selling things you dont use on Kijiji. Or to rent out a room in your home, if there is one. Or to rent a whole house and sublet just the basement and live on the main floor, if that is an option.

Budget Help

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