Critique My Meager Budget

Re: Critique My Meager Budget

• Sisugal member

  

  November 2013

  Groceries is high - meal plan and you should be able to do this for less.
  If you rarely drive - one tank of gas should last a month?  If so - then cut this in half
  House/personal supplies - that is high. You can buy Toothpaste, deoderant, shampoo, dish soap, and cleaning supplies at a dollar store  - this can be cut in half
  
  Have you considered having a roommate?
  Will your grad degree significantly change your income?
  If you get a raise at your job - add another 1% to your retirement. When you graduate increase this by another 1% and also fund a ROTH IRA.
  
  I would not sell your house at this point. (what is the interest rate on the mortgage?)
  

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• Sisugal member

  

  November 2013

  Groceries is high - meal plan and you should be able to do this for less.
  If you rarely drive - one tank of gas should last a month?  If so - then cut this in half
  House/personal supplies - that is high. You can buy Toothpaste, deoderant, shampoo, dish soap, and cleaning supplies at a dollar store  - this can be cut in half
  
  Have you considered having a roommate?
  Will your grad degree significantly change your income?
  If you get a raise at your job - add another 1% to your retirement. When you graduate increase this by another 1% and also fund a ROTH IRA.
  
  I would not sell your house at this point. (what is the interest rate on the mortgage?)
  

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• maple2 member

  

  November 2013

  When I total up your list of expenses, it comes to almost exactly what you are currently taking home each month.  Given that your list of expenses already includes some to go towards savings and retirement, that's pretty good.  If you are able to cut back on groceries, heat, gas, house/personal supplies and maybe gifts, I would put that extra $ towards building up your emergency savings.  Once that reaches a comfortable level (maybe $9-18,000 for 3-6 months worth of expenses), I would start putting more towards retirement and/or adding in some luxuries if you feel like you are living a bare bones existence on this budget.
  

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• deegrizzy member

  

  November 2013

  Thank you, Sisugal and maple2! I will do meal planning and yes, I can cut gas for the car almost in half since I should be able to make it on one tank of gas a month. I will work on cutting the house/personal stuff too... I'm sure I overspend there. I haven't considered a roommate, and although not ideal, I wouldn't mind having that extra income. My grad degree likely won't change my income immediately, but it will definitely help in obtaining a promotion at some point thereafter. I should get a modest raise next year and will add another 1% to retirement at that time. The interest rate on my mortgage is 4.875%. Thank you both for your advice!

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• CuriousKiddosMama mod

  

  November 2013

  Your mortgage would scare me if I was in your situation. That is high- do you live in a HCOL area? I agree with a PP about a roommate- they could help offset this cost for the time being until you have a bigger emergency fund.
  Also, since you basically supported your DH are you going to end up paying alimony in the divorce? That may affect this as well. Maybe get a roommate for the time being, and when you are done with grad school get a second part time job???
  Just my 2 cents. Sorry about what you are going through right now.
  

  

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• deegrizzy member

  

  November 2013

  Thanks, Vikingsfan. I live in the Philadelphia suburbs, perhaps somewhat HCOL. My mortgage is pretty comparable to others' here, plus the house is a good size (for a small family... not just one person). We basically agreed to a clean break and there are no plans for alimony. I will definitely consider the roommate suggestion.

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• hoffse member

  

  November 2013

  Vikingsfan 71713 said:

  Your mortgage would scare me if I was in your situation. That is high- do you live in a HCOL area? I agree with a PP about a roommate- they could help offset this cost for the time being until you have a bigger emergency fund.
  Also, since you basically supported your DH are you going to end up paying alimony in the divorce? That may affect this as well. Maybe get a roommate for the time being, and when you are done with grad school get a second part time job???
  Just my 2 cents. Sorry about what you are going through right now.
  

  I am wondering this as well.

  
  

  First of all, I'm sorry you're having to go through this.  That really sucks.

  
  

  If alimony isn't going to be a thing, I think you're doing pretty well.  My (few) nits would be:

  
  

  1) Groceries is high as PP mentioned.  H and I live apart while he's finishing school, and I know that when I'm just shopping for myself I typically spend about $40/week on groceries.  I actually tend to shop every other week and usually go to Costco at about $80/trip.  But it averages out.  I'm a lazy cook, so I buy pretty much whatever Costco has a coupon for that can be frozen.  This month it was tortellini.  I bought 4 bags and froze it.  And I bought their marinara sauce in bulk on sale.  Total cost was about $40, and it's at least a month's worth of dinner. Maybe even 6 weeks.  But I can eat pretty much the same thing for several weeks before I get really tired of it.

  
  

  2) Gas is also high if you rarely drive.  I just bought gas for less than $3/gallon for the first time in several years this past weekend.

  
  

  3) I wouldn't sell the house, though I would also consider a roommate.  That's a great way to lower your expenses while you're waiting for your income to increase.  Even if you rent below market, it will take the edge off this tight budget.

  
  

  4) Cell phone - a tad bit high.  I think walmart has a plan that's about $30-$40 month for talk, text, and data.  They're running a Black Friday deal on it as well

  
  

  5) I might consider combining your misc. car expense money into your emergency savings and just being willing to access it when you have a repair, etc. It shouldn't be that often because you rarely drive.  That will get your emergency savings up more quickly, which I do suspect you will need while this is happening.

  
  

  6) At your age, your retirement is pretty low.  Once your e-fund is comfortable, try to put any extra money you can into your Roth.  Ideally, you should be saving $5500/year in your Roth, or $458/month.  I know it's not easy, but do try to get that up once the dust settles a bit.

  
  

  7) Who is going to pay the attorney fees and court costs associated with the divorce?  This is also something to think about because they are not cheap.

  

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