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Serious Budget Help!
My DH need some serious budget help, we've only got $400 left over at the end of the month! Here's a look:
rent: $950
utilities: $260
car payment: $416
car insurance: $65
gym: $22
cell: $350 (we are also doing a pmt plan for ipads thru Sprint which is why this is high)
loan: $94
internet/home phone/cable: $125
DH's website: $30
food/gas: $300
INCOME: $2700/month
I've got a few drastic ideas since we have a $1500 unplanned bill to pay very soon.
1. sell my Trailblazer and drive DH's 1999 Expedition with 200k miles
2. in laws are going to Florida for 3 months. We temporarily move there while they're gone allowing us to save serious cash then get a place when they come home.
DH cannot work outside the home right now due to seizures the past 6 months and his neurologist revoked his license. We need some serious, serious help. What would you do in our shoes? Please no mean comments, we're already upset enough. Thanks!
Re: Serious Budget Help!
1) I am not an expert on this, but can your H collect any sort of disability? Others on the board may know better how that works.
2) As long as you're not underwater, selling your car is a great idea. That's a huge payment to get rid of. If you'll profit, even better.
3) Sell the iPads, switch to dumb phones.
4) Cancel cable, and, if necessary, internet. I'd keep internet as long as you can for minimal at-home entertainment.
5) Cancel the gym-look into a $10/month chain if gym is extremely important to you
6) $300 for gas and food seems ambitious. If you can do it, power to you, but make sure that line item is realistic.
7) The inlaw plan is your call-personally we wouldn't ask for help unless we were in the negative because it would create big problems with our families, but your dynamic may be different.
8) Other ideas include an evening job for you, selling other household items on eBay and Craigslist, etc., but I think even just selling the car will be huge. Once your bill is taken care of, channel that money to start an e-fund and then build your retirement. $400 left already at the end of the month isn't that bad; I'd probably use that to start retirement contributions even with your current situation.
Good luck, and good health to your H.
Can you elaborate on the $94 loan payment? What kind of loan is it? What is the balance? Are you currently saving for retirement?
It seems like you have a lot of categories missing from your budget. Have you found that you consistently come out ahead by $400 or that you *should* come out $400 ahead but don't?
My suggestions are:
Cut the cell plan, ditch the ipads. Cut the gym, you can work out from home. IF you can come out even or ahead on your car, sell it and make sure to keep some money for repairs or maintenance for the older vehicle. If you can't break even on your car maybe look into selling the older vehicle (assuming it's paid for).
You should make sure you are keeping track of every penny you are spending (eating out, coffee stops, etc). Also, look at applying for disability for your H- I'm not sure what the requirements are, but it seems like he should be able to qualify.
I know it will be tough to "dig" out of this situation, but you can do it if you have your mind set to it. Best of luck!
Thanks for the update. That's good that you're keeping retirement a priority! Is there any way you could pick up extra tutoring clients? Maybe you could run a "new year's special" for your current clients' friends (and kick in a referral bonus?) Tutoring pay so well in my area, it's pretty much the best side job you can have.
Our fun money comes from the $400 and really it's just for movies or a weekend away at my sister's lake house. DH is on so many meds he can't drink anymore. We just try to save money wherever we can. DH is so worried to sell the Trailblazer as it's an '08 with 62k on it and is loaded. The Expedition needs 4 new tires and maybe a battery but that's it. He got it at a police auction 2 years ago in mint condition. The police dept. serviced it every 3k miles so I feel it would last awhile. Thank you all so much for your awesome advice, feel free to keep it coming!
Forgot to mention I'm waiting to hear back from the university as far as officially getting to get another teaching certification in the reading specialist area. I only need 3 credit hours to get a 10k raise for next year in my district:)
Yep, my job picks up the tab for school:) I'm just in a crappy spot right now and want to do everything I can to help us save money.
Hey! I agree with the PP who asked for more details on your loans...rates, terms, balances owed.
First off, you could probably stand to cut the iPads and the cable. Internet by itself is usually cheap (we get high-speed for $30 a month) and most networks now run their TV shows online anyway. Also see about going to less expensive phones and cut the land line.
I am curious about your rent. The general guidelines for housing costs are as follows:
In low to mid cost of living (COL) areas your housing costs should be about 25-28% of your income. In high COL areas, your housing should be about 30% of your income. It seems that your rental payment of $950 plus that $260 in utilities is high.
Are you able to move to a less expensive place that is still safe and provides accessibility to your work place and any medical places for your DH? If you cut the gym costs, you could aim to find an apartment community with a gym included on the property.
I think in your situation, the $416 for a car payment is very high. What about a trade-in for a reliable, well-made car that doesn't guzzle gas? Honda? Toyota? Nissan? These makes have fewer maintenance issues over time as compared with American makes. Plus, their sedans get great gas mileage.
I looked at Kelley Blue Book. For your SUV, in great condition with 62,000 miles, you may be able to trade it in for $15-17k. You can get a nearly new small car for that amount and SAVE the $416 per month in car payments. Plus, you will save on gas and on auto insurance. Even if you still had to pay a difference of $1-2k on a trade-in, you could make that back in 3-5 months not having to have this monthly car payment. Mathematically, I don't think it makes sense to keep the Trailblazer.
What is the breakdown of your utility bill? $260/month seems really high. Is that including gas for your cars as well?
@MrNibbles
What is the breakdown of your utility bill? $260/month seems really high. Is that including gas for your cars as well?
@MrNibbles
What is the breakdown of your utility bill? $260/month seems really high. Is that including gas for your cars as well?
@MrNibbles