My budget, and how to make extra $$ ?

KTdidit · June 2014

I've posted my budget here before and gotten some really good feedback on it, so I figure I'll do it again and see if I missed anything. Since DS2 was born and I went back to work double daycare costs have hurt us more than I expected. Our savings is down to almost nothing and I don't know what else we can do. DH is working as much overtime as he can, and I've looked for PT jobs but with my commute a night gig won't work (U don't get home til 7pm). And since I don't get to see my kids much during the week, I REALLY don't want to be away from them on the weekends too. We are planning on moving into my grandmother's house (owned by my mom) and putting our house on the market next month, but we need to do some work to the basement and I don't know where the money for that will come from. If we don't fix it, the only financing options buyers will have is cash or a reno loan. It's going to be hard enough to find a buyer as it is, out house is TINY and we don't have anything to come to the table with. So we need to make sure we can sell for what we owe, plus the realtor fees. I'm feeling very overwhelmed and underwater here and I just can't figure out what to do. Ok, so here's our budget. Our car payments are killing us, mine will be paid off in a year. DH's is only a year old.

Income (no overtime) 5,200

mortgage 830

utilities 250

Comcast 100

netflix 8

cell phones 180

daycare for 2 kids 1,035

groceries/pet food/paper goods 450

total household -2,853

car payments (2 cars) 800

insurance 200

gas/train/tolls 500

maintenance 50

total vehicles -1,550

personal loans 250

credit cards (3, minimum pmts) 230

student loan 70

DH accident repayment 100

total debt -650

entertainment/dining out/random -100

remaining $47

HELP!!!

hoffse · June 2014

I agree with everything April just said.

Your transportation costs are huge. If you have access to trains, then I would seriously look into becoming a 1-car household. Sell your H's car, since yours is nearly paid off.

Your car insurance is also really high. Can you get it down at all? H and I pay about $73/month for two vehicles - one of which is brand new.

I would go to internet-only for your entertainment costs. That should run you less than $50/month.

Your cell phones are way too high. Go to straight talk for like $35-$40/month per phone. Other carriers have similar plans that are just as cheap.

KTdidit · June 2014

AprilH81 said:

First, whoever makes the lower salary, does that income more than cover the cost of daycare? It might be smarter to not work and cut the daycare expense out altogether...

DH makes less than me but only but a few hundred $. We basically bring in 1/2 monthly income each.

Cut the cable, trade in your husbands car for something less expensive (but still safe) that has a lower payment. When your car is paid off DO NOT get a new(er) one.

We are cutting cable when we move next month and keeping internet only for when I have to WFH. I do not plan to get a new car, I will talk to him about trading in his car.

Check around for cheaper insurance rates...

DH has to have SR22 from his accident last year, which is the $100/mo repayment. So that is why it is so high.

Cut your grocery budget, try to get it down to $400 a month, then once you get that try $350.

Grocery budget includes formula, so actual expense is more like $250 for food, $150 for formula.

I'm not sure where you are, but you spend $500 on trains, tolls and gas, and you have two cars. Can you operate with one family vehicle?

One car isn't possible, DH leaves too early in the morning before daycare is open. My train ticket is $175, then about $60 for gas. DH drives the toll road and uses A LOT of gas for his work commute. Public transportation isn't an option for him.

ETA: Also, is there any way to get less expensive phone plans without breaking your contract?

I lowered it to the smallest data plan already, we have to have some kind of data plan because we have smart phones.

hoffse · June 2014

Could you save yourself the $175 train ticket by driving? I understand that schedules are what they are, but it seems really unfortunate that you have to own two cars if you also pay for public transportation.

Also - I see from your ticker that your oldest is 4. How many years of daycare does he have left?

KTdidit · June 2014

hoffse said:

Could you save yourself the $175 train ticket by driving? I understand that schedules are what they are, but it seems really unfortunate that you have to own two cars if you also pay for public transportation.

Also - I see from your ticker that your oldest is 4. How many years of daycare does he have left?

**stuck in the box!**

I work downtown Chicago so parking is way more expensive than the train.

DS1 just turned 4 last Monday, so he will start Kindergarten in August 2015. He will still have to go to the daycare for before/after school care but it will be lower. I'm not sure how much lower though.

KTdidit · June 2014

AprilH81 said:

Can you carpool with a neighbor/friend/someone to get to/from the train station?

No one I know takes the train :-<

strickland8052 · June 2014

I agree with the previous posters. If you feel that you absolutely MUST have a smart phone, shop around for other plans. Also, ask around at work and your H's job to see if they might reimburse you for your phone plan OR if a particular service provider offers a discount through your employer. We originally paid $180 for two smart phones with Verizon; now we pay $90 for T Mobile with an employer discount.. huge difference!

We weren't quite ready to make this step, but I also found service through a company called Republic Wireless for like $10 a month per smart phone (and it is Sprint coverage).

Also shop around for car insurance. See if you get discounts with whoever does your home owner's insurance...

ta78 · June 2014

First he probably shouldn't have bought a new car with such a high payment when you were about to have a baby. Does it at least get good gas mileage? I would look into trading it in and paying cash for something or even just half the payment right now. Assuming you each have a $400 payment.

The only glaring thing I see is your transportation costs. There is nothing you can do here? You spend $60 in gas just to get to the train? Is there nothing closer to home? Is your grandmothers house any closer to your work?

How much do you have left on your debts? Getting those paid off will free up a lot of money. Do not use your credit card anymore. Eat sandwiches for the rest of the month.

vlagrl29 · June 2014

get rid of comcast and sell 1 car . Your transportation cost is way too high.

Xstatic3333 · June 2014

I mostly agree with PP's. You need to sell your H's car for something safe and reliable ASAP. If possible, have it be something you can pay cash for, though I know your savings are low. He could take the newer car for his longer commute, and then you could take an older car for the shorter drives. This should also save on your auto insurance.

Though your daycare cost sounds not too bad for metro Chicago to me, have you looked into family care providers? In my area they are about 20-30% cheaper than centers, and many have years of experience.

Cut cable now and get those phone plans down-180 for the lowest data is crazy. We have 160 for lots of data (bad habit, I know).

Erikan73 · June 2014

Not sure if any of these are options, but going to put them out there.

Can you work 4 ten hour days to help save on commuting costs?
Can you work from home 1-2 days a week (still sending kids to child care so you can focus on work) which again would help you save on commuting cost.
If you were able to go part time, would you be able to save on child care costs like just doing half days for child care?
If you worked a part time job in the evenings, quitting your current job, so that you wouldn't need child care, would that help to make things easier

Sisugal · June 2014

STOP USING THE CREDIT CARD OR PERSONAL LOANS!
Get rid of the smart phones - unless needed for work. These are a luxury you cannot afford. You can get cheap pay as you go phones (Track Phone etc with phone card) - stick with talk only - no texting etc.
Sell one car - and buy a used fuel efficient vehicle.
There are still many items missing from your budget (clothing, personal care, medical co-pays/deductibles, clothing, gifts, etc) Track ALL your spending to the dollar.
Have you considered trying to get better paying jobs?

ta78 · June 2014

Lowest verizon data package is $130 for 2 phones. Do you have to have a smart phone for work or is it just something you want?

Sisugal · June 2014

What exactly does your house need for repairs before selling? Have you talked with a realtor about the house situation? FHA may limit financing for your house, but what about conventional loans? Most conventional loans accept houses that need repairs as long as they are not safety issues.

Sisugal · June 2014

Can you rent the house for more than the mortgage+insurance+taxes?

KTdidit · June 2014

AprilH81 said:

I hesitate to post this since I don't know you personally, but it sounds like you are making a lot of excuses as to why you can't follow through with our suggestions.

Why can't you cut cable NOW (not just wait until you move)?

Can you look for neighborhood groups that offer car-pooling? I know a lot of major cities offer these services...

Can you find a quality day care provider that would be less expensive? Have you priced out a Nanny (unlikely to find one for less than day care but worth a shot). A nanny would also allow you possibly work up new work schedules that would allow you to eliminate one car.

Can you switch to off-brand formula?

I'm not trying to make excuses. Cable and phones are really the only things I can see that I can change. And honestly yes I can call today and cut them off, it's a little nervewracking thinking of having no tv. (wow makes me sound like I have a tv addiction!) I can talk to DH about trading in his car but we've discussed that before and he basically told me no its not happening. Daycare is the cheapest in our area...its only $130/wk/kid and a nanny is way more expensive. I live in a small town in Indiana and commute to the city, I've looked into it and haven't found anything that goes from my area. Or anywhere even close.

@ta78 we bought that car Jan 2013, we weren't expecting at the time. Neither of our credit was very good and we had no $ to put down so we went with the best financing deal we could. The accident was on a weekend and we had limited time to buy something so he could get to work on Monday.

@vlagrl29 we can't go down to a one car household. Our schedules don't allow it.

brij2006 · June 2014

It looks like your budget needs some dramatic adjustments in order to get into a better situation. It means making a lot of sacrifices, not keeping up with the Jones', and working a 2nd job in order to make it better.

Here's some suggestions:

- Buy and read Dave Ramsey's "Total Money Makeover"

- Cut up the credit cards and never ever use them again.

- Sell the smartphones, buy a dumb phone, and get on a much cheaper cell phone plan.

- Cancel cable now.

- Sell both of your vehicles and buy ones with cash. You said that yours will be paid off in a year. So I would assume there is some equity in it. Sell the car, sell your H's car, and split that equity in half to buy 2 vehicles in cash.

- Shop car insurance. You live in Illinois, and Progressive does not charge for an SR22 filing in the state of Illinois. Although I recommend doing a Google search for an Independent Agent that sells Progressive, rather than going online. (Also keep in mind that 2 vehicles with liability only on them will be much, much cheaper than full coverage. Especially since he has a driving record.)

- Get a 2nd job working weekends. I know you don't really want to, but remind yourself that this is a means to an end. It isn't permanent.

- Apply all of your H's overtime money toward building a $1k emergency fund first, then apply it toward the next smallest debt.

I'm just making random assumptions here, but I'm going to assume that there is a decent chunk of CC debt and personal loan debt. If the only amount being paid on those right now are minimums, then it is going to take a long time to get them paid off. My biggest recommendation would be to work like crazy, sell things you no longer need, and get yourself out of debt. Your budget would be a lot more comfortable without any payments each month, and the daycare cost wouldn't feel like as much of a burden.

KTdidit · June 2014

Sisugal said:

STOP USING THE CREDIT CARD OR PERSONAL LOANS!
Get rid of the smart phones - unless needed for work. These are a luxury you cannot afford. You can get cheap pay as you go phones (Track Phone etc with phone card) - stick with talk only - no texting etc.
Sell one car - and buy a used fuel efficient vehicle.
There are still many items missing from your budget (clothing, personal care, medical co-pays/deductibles, clothing, gifts, etc) Track ALL your spending to the dollar.
Have you considered trying to get better paying jobs?

we both make $50k+ a year, the personal loans were from last year to pay for the portion of our wedding that DH's mother said she would cover and then backed out of last minute. Personal care item are included in our grocery line item, we haven't bought new clothes in god knows how long, and any gifts and random stuff comes from the last $100 line item. I've put our credit cards away and we haven't used them in over 6 months, its hard not to when the bank account is low but we've been pretty good. about it

KTdidit · June 2014

Sisugal said:

What exactly does your house need for repairs before selling? Have you talked with a realtor about the house situation? FHA may limit financing for your house, but what about conventional loans? Most conventional loans accept houses that need repairs as long as they are not safety issues.

our basement leaks, the realtor I've been working with said if we don't get it fixed it leaks enough that a buyer can't get a conventional loan either. We could rent it out for about $150 over the mortgage amount but renting makes me nervous and I'd rather be rid of it if at all possible.

ta78 · June 2014

The only thing I can see is to live bare bones until you get your debt paid off. Sell anything you don't need and look into getting a weekend job for at least the time being.

I know your husband doesn't want to sell his car, are you guys on the same page with your finances? He is going to have to give somewhere, if not the car then cable or dumb phones or no dining out/entertainment.

strickland8052 · June 2014

Just looked at this again, and you are spending one person's entire salary on transportation and child care. Based on that, it almost seems like y'all might be better off if one of you did quit your job. You could go to a one car household (which would also cut your car insurance and that ridiculous train fee), plus you could cut the day care. Then the person staying at home might be able to pick up some extra money with a night part time job OR a full time nanny. Whatever you do, you have got to find some way to get those transportation costs down. When it reaches a point like that, it is almost not worth going to work because it costs too much to get there!

KTdidit · June 2014

I guess my next question for everyone is how do you get your H on board with drastic changes like that? I'm all for getting rid of the smart phones and trading his car in but he's not.

brij2006 · June 2014

After reading some of your other responses, it sounds like you and your H need a plan in place and to be on the same page with financials. Trust me, I know it's hard to do and it is a difficult discussion to have. Especially when you're talking about selling a newer vehicle that one of you values, but something needs to be changed.

If you both have poor credit along with the CC debt and personal loans, then it sounds like some decisions have been made in the past that have caused this to happen. It's time to make different decisions, and taking some drastic steps to better your financial future. It will mean making many sacrifices like not having TV, selling a car, working weekends for the next 2 years, and getting rid of a smart phone. But in the end you will feel a lot better about your financial stress, and won't need to worry about being in situations to make poor choices.

brij2006 · June 2014

KTdidit said:

I guess my next question for everyone is how do you get your H on board with drastic changes like that? I'm all for getting rid of the smart phones and trading his car in but he's not.

Honestly, my husband listened to Dave Ramsey's Total Money Makeover while making his hour commute too and from work. He was 100% against getting out of debt, living on a strict written budget, and having a plan for our money. We didn't live paycheck to paycheck and had money in savings, but we had looming debt payments that always made me feel uncomfortable when larger expenses arose.

Dave Ramsey also has a class called Financial Peace University that are all over the country at churches and schools. You can look those up, sign up, and tell him that you want him to go with you to help give support. It's all about the mindset, and getting it set differently. Getting him to understand that you don't need certain luxuries.

Quite honestly though, the only way I got my H on board was when he listened to someone else tell him like it is (Dave Ramsey definitely doesn't hold back). If I had told him all of this same stuff, he would've thought I was being the crazy money warden and wouldn't have been on board.

ta78 · June 2014

I would track your actual spending the last few months and compare with your budget and show your H how tight money is. Talk about your goals, things you would like to be able to do. Plans for the future?

It isn't always easy to get the other on board, but he needs to at least listen to your worries.

KTdidit · June 2014

ta78 said:

I would track your actual spending the last few months and compare with your budget and show your H how tight money is. Talk about your goals, things you would like to be able to do. Plans for the future?

It isn't always easy to get the other on board, but he needs to at least listen to your worries.

I've done this, I've shown DH the spreadsheet with all of our spending. He's in denial. I have to be the mean one to tell him yes we are grocery shopping, no groceries do not include a bottle of Belvedere or steak. I'm basically on my own here so decisions like what to do with his car are out of the question. He's ok with cutting off cable but not ok with getting rid of his smart phone. He works overtime as much as possible to help bring more money in and basically anything else is up to me to figure out.

Xstatic3333 · June 2014

KTdidit said:

ta78 said:

I would track your actual spending the last few months and compare with your budget and show your H how tight money is. Talk about your goals, things you would like to be able to do. Plans for the future?

It isn't always easy to get the other on board, but he needs to at least listen to your worries.

I've done this, I've shown DH the spreadsheet with all of our spending. He's in denial. I have to be the mean one to tell him yes we are grocery shopping, no groceries do not include a bottle of Belvedere or steak. I'm basically on my own here so decisions like what to do with his car are out of the question. He's ok with cutting off cable but not ok with getting rid of his smart phone. He works overtime as much as possible to help bring more money in and basically anything else is up to me to figure out.

I'm sorry your H is not on the same page. Honestly, I had to get a bit firm with mine. I explained to him how I am not happy when we are living on the edge of our finances. That helped a lot, although honestly my H is a lot less stubborn than many people. I think PPs suggestions of reading the books or going to a class together are great too. It seems pretty clear to me that you need to convince him to offload the car. You shouldn't have to feel like you're alone in this.

KTdidit · June 2014

AprilH81 said:

Can you show him the numbers and ask him where he things you guys should cut back? There are only so many things you guys can do without both of you getting jobs that pay more money.

I have, and it turns into the blame game. He spends too much on cigarettes and energy drinks. I was in a wedding last month and spent money on a dress, the bachelorette party, hotel for the wedding. So he's given an "allowance" on a SPEEDWAY gas card each pay period that he needs to make last for that stuff plus gas. That's his "spending money" so he doesn't have to ask me for the debit card all the time (he doesn't have one). Before DS2 was born it was fine, he got his allowance and I made the rest of it work. Now it doesn't work

hoffse · June 2014

You need to have a come to Jesus meeting with him. Sorry, but no other way to say it.

I had one with H years ago. It involved quite a bit of yelling, but eventually we came to an agreement about money that we've been able to stick with. Over time our spending habits have lined up, and we rarely fight about money anymore. H still has a bad habit of assuming we can afford some things that we really can't - but at least he's not spending it based on those faulty assumptions. He's learned to run it by me first.

I will say that I also make it very clear to H when money or unaffordable "wants" are stressing me out, and he's very quick to do what he can to alleviate the situation for me. The last thing he wants to do is stress my out by spending money we don't have.

Fact of the matter is money is a finite resource. You guys simply don't have enough of it to live the lives you do. PP's are correct when they mentioned that one of you is working just to pay for daycare and transportation costs. One of you might as well stay home, save yourselves that cost, and you'd still be in a similar financial place as you are now.

brij2006 · June 2014

KTdidit said:

AprilH81 said:

Can you show him the numbers and ask him where he things you guys should cut back? There are only so many things you guys can do without both of you getting jobs that pay more money.

I have, and it turns into the blame game. He spends too much on cigarettes and energy drinks. I was in a wedding last month and spent money on a dress, the bachelorette party, hotel for the wedding. So he's given an "allowance" on a SPEEDWAY gas card each pay period that he needs to make last for that stuff plus gas. That's his "spending money" so he doesn't have to ask me for the debit card all the time (he doesn't have one). Before DS2 was born it was fine, he got his allowance and I made the rest of it work. Now it doesn't work

One big thing in this regard is that he probably feels like he's being treated as a child with an allowance. So that's why he feels that the car is big for him, because it's his only "splurge." When in all reality this needs to be a team effort, joint budget, and joint discussion.

My H was very similar to this, and it would always turn into the blame game and "I spend, you spend." It detrimented our finances and had us working against each other because we felt like the other person was spending money while one was pinching pennies.

Sit down and put together a true budget from last month. Look at your bank statements and see exactly how much was spent on everything. Where every single penny went, and have him help you with this. Tell him that you want to figure out what is going on with the family financials and need his help. Sometimes men are better at helping with these types of things rather than taking charge of it or being told what to do.
Then figure out exactly what everything went. Including how much is spent in cigarettes for him and the wedding or random things for you. Nothing goes unaccounted.
Have you both look over what was spent and discuss where you feel needs cut. It means getting on a written budget and having you both know exactly what all is going on with the finances. Work together on figuring out how much you spend in each category and budget down to $0 every month. Every dollar has a name and a purpose. It also helps us to sit down and reconcile the budget around the 15th of every month. Then we can see in what categories we need to cut back for the remainder of the month, or we can then discuss if something has come up and we need to add it to the budget.

Each month you will reconcile the budget to see how you did, and each month you create a whole new budget together. You both agree on what is being done with the money, and you both have a say.

smerka · June 2014

What's your tax situation? Do you get a huge refund? I ask because we have almost the exact same take home pay, but DH only makes about $80,000 and you said you make about $100,000 combined. If you haven't adjusted your withholding since having the second child, you should look into that. I think the daycare credit will go up too. I did a quick goggle search and you can get two smartphone plans with Go Phone for $60 each with 2.5 GB of data, unlimited calling and texting. Less data is cheaper. Here's the website. http://www.att.com/shop/wireless/gophone-plans.html?WT.srch=1&wtPaidSearchTerm=&utm_medium=cpc&source=ECPSMB0000000000P&utm_campaign=__&utm_term=at&t go phone_e&utm_content=s0_pcrid_39897303542_pkw_at&t go phone_pmt_e_pdv_t Can you take the bus to the train? I'm in the Naperville area and we can do that. IDK if Where you are does.

My budget, and how to make extra $$ ?

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