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noffgurl · November 2015

Thank you all for welcoming me back the other day. It's been a pretty stressful several months. But, the kids are back with their dad now and H and I are now able to create a life together that for once doesn't involve others. Unfortunately with everything that's gone on, we've racked up some more debt, have had a change of jobs for both of us, and with H's job change lost our health insurance. He's now with a small company that he absolutely loves, I don't think I've ever seen him this happy. But being so small (think like ten employees total they don't offer health insurance). I started a retail job recently but they are only able to give part time so no benefits but I am looking for more work.

Anyway, I was hoping y'all could guide me on creating a budget that leaves room for insurance and helps us regain our footing in the debt department. I don't have the debt total with me at the moment (info is at home) but if y'all could suggest a rough monthly total amount that gives me an idea of what we can afford to do that would be great. We also need to rebuild the emergency fund front the ground up.

it's been bad.

H's monthly income estimate (he started not too long ago so on the 16th will be his first full check. $3,600

My income estimate (won't have my first check until the 19th) $600

Expenses:

Rent $1,200 stuck in the lease and its very reasonable for the area and for the safety it has- I know y'all are gonna yell at me for that one

Vehicle $400
Car insurance $170
Electric $75
Water/sewer/trash $50
Gas $30
Phone $130

Fuel ends up being about $40 a week or less (my work is only about 15 minutes one way but H's is an hour and a half one way- luckily we only have to do that drive to and from on Fridays and Sunday's)

Food and extras- I really don't know what to put here since we've had the kids this whole time and four kids can eat and use quite a bit.

Dog food- about $30 a month.

TIA!

brij2006 · November 2015

You said that you have acquired some more debt. The only debt I see on here is the car. What else is there?

noffgurl · November 2015

I'm not sure about the exact totals until I look at home but we are talking about $2,500 ish in medical bills and about $1,500 spread through four maxed out credit cards that have interest rates in the 15-18% range (they were to rebuild our credit-but that fell through temporarily). We also still had about $5,000 in old debt remaining that we had been chipping at. We have a little over a year left on the vehicle at that payment.

noffgurl · November 2015

Also $120 we owe H's dad and $300 I would like to pay back to a family friend.

brij2006 · November 2015

Okay, I would get intense with things. But I don't like to let debt linger and we live by Dave Ramseys' principals.

1. Cut up the credit cards. Charge nothing else to them and never take out another card again.

2. I would sell the vehicle. It's likely too much vehicle for your incomes, and even if it isn't there are other more important things to take care of than having the vehicle. If this is your H's vehicle, he just needs one to make his commute those 2 times/week. Nothing fancy or expensive is needed for that, and it likely sits throughout the week anyways.

3. Your rent is a bit steep and since your H is driving 1.5 hours to his job, what about moving closer to it? It sounds like your retail income could easily be replaced somewhere else. This way maybe you would be able to find something with a lower rent as well.

4. Pay off the FIL and family friend first. Thanksgiving dinner tastes different when you owe the person across the table, money.

5. I'm at $2,125 in expenses so far. This does not include any food, clothing, entertainment, gifts for Christmas coming up, etc. So let's say for rough numbers that takes care of another $600/month. That leaves you with $1,475/month extra (even if you keep the car).

6. Save up $1,000 for emergencies first.

7. Start with the smallest debt after your emergency fund is saved up,and put every extra penny toward that debt. Do not go out to eat, Christmas is no gifts, work with what you have as far as clothes, and become a super meal planner who gets creative with the food budget. Every extra penny goes toward the debt. Once the first one is paid off, snowball that payment onto the next debt and work at that one.

8. Since you're working part time retail, take on every extra Holiday shift you can. Offer to work Black Friday, every weekend, wherever they need someone. They're bound to need some extra abled bodies during this busy season.

julieanne912 · November 2015

Have you looked into seeing how much insurance will cost for you both? You may be surprised at how little it is, especially since you may qualify for subsidies. My state has it's own "exchange" website where you put in all your info and it gives you a variety of plans, but I know not all states have this. You could even call up Anthem/Blue Cross and just do an application with them, so you can at least get a rough idea of what the cost would be. Then you can figure out how to work that into your budget. Last year I had a personal plan through Anthem that wasn't great but was better than not having it, and it covered preventative stuff like annual exams and my birth control, and it was around $160/mo for me.

I also agree w/ brij that you need to build up some kind of cash emergency fund, and maybe even a little extra than $1,000 in case your kids return unexpectedly.

As for the debt payment, I also would attack the debts you owe to people first. Pay the minimums on the rest to get those personal loans paid back. Then, just start chipping away at the rest.... focus on the ones with the highest rates first, then just snowball it from there.

If you're in a lease you're probably stuck with that rental amount, so it is what it is until your lease is up. Same for the car, unless you think you can sell/trade it in for something cheaper that is still gas friendly and reliable. However, I understand if your credit has issues you may not be able to get another car loan, and it sounds like you don't have the cash either at this point so you may be stuck there. If you only have a year left on it I'd imagine you have some equity in it though.

For groceries/extra, I have a budget of $150/check (so basically 2 weeks) for groceries. It takes some meal planning and savvy shopping to hit those numbers, but I usually am at it or under for the grocery side.

Once you have your minimums for your debts, please come back

blondie42107 · November 2015

Welcome back! I would start with pricing out health insurance. After that then figure out a grocery budget, e-fund and debt repayment. For your rent, yeah maybe a little high but you mentioned safety and that's a priority in my book! Do you have renters insurance? The vehicle loan could go either way. If you feel that you can keep up with the payments then it might make sense to finish it (year, miles, etc). As soon as it's paid off, wrap that $400 in e-fund and debt. Also with the holidays approaching try to pick up hours or even a second job. Hang in there!

als1982 · November 2015

Glad you're back! Cell phones seem a little high. Can you cut back to a dumb phone or nix your data? My mom and brother just recently switched to Verizon with 2 lines for $75. I'd also say get rid of the truck, but I know there are some emotions tied to it. Otherwise, just look at picking up more shifts at work. Also, I've found that I can make an extra $100 or so a month with Swagbucks, EasyShift, Field Agent, Gigwalk and Zappidy apps. Best of luck,

vlagrl29 · November 2015

brij2006 said:

Okay, I would get intense with things. But I don't like to let debt linger and we live by Dave Ramseys' principals.

1. Cut up the credit cards. Charge nothing else to them and never take out another card again.
2. I would sell the vehicle. It's likely too much vehicle for your incomes, and even if it isn't there are other more important things to take care of than having the vehicle. If this is your H's vehicle, he just needs one to make his commute those 2 times/week. Nothing fancy or expensive is needed for that, and it likely sits throughout the week anyways.
3. Your rent is a bit steep and since your H is driving 1.5 hours to his job, what about moving closer to it? It sounds like your retail income could easily be replaced somewhere else. This way maybe you would be able to find something with a lower rent as well.
4. Pay off the FIL and family friend first. Thanksgiving dinner tastes different when you owe the person across the table, money.
5. I'm at $2,125 in expenses so far. This does not include any food, clothing, entertainment, gifts for Christmas coming up, etc. So let's say for rough numbers that takes care of another $600/month. That leaves you with $1,475/month extra (even if you keep the car).
6. Save up $1,000 for emergencies first.
7. Start with the smallest debt after your emergency fund is saved up,and put every extra penny toward that debt. Do not go out to eat, Christmas is no gifts, work with what you have as far as clothes, and become a super meal planner who gets creative with the food budget. Every extra penny goes toward the debt. Once the first one is paid off, snowball that payment onto the next debt and work at that one.
8. Since you're working part time retail, take on every extra Holiday shift you can. Offer to work Black Friday, every weekend, wherever they need someone. They're bound to need some extra abled bodies during this busy season.

totally not related to post but I saw in your siggy are you TTC#2? That's awesome. I don't have the guts to have kids so close in age which is why we are on the 5 year plan. TTC for us next year - eek I'm scared.

OP - totally go thru the marketplace for insurance. our family qualifies for a $628 tax credit each month for the 3 of us on the same plan.

brij2006 · November 2015

Oh and on the health insurance part. That needs to be step #2 after cutting up the credit cards. It's very important to have health insurance. Even a major medical plan will work. Google "independent insurance agent" in your area. Call a few of them and ask if they handle health insurance. They will be able to guide you as to what your best option is in your state and with your incomes.

@vlagrl29 Thanks. We're very nervous for TTC#2, but we've both pretty much been ready to since DD was born. And with my fertility issues, we decided to just go for it. We aren't sure if we'll go through fertility treatment to get pregnant with #2, so it may either be a long process or may never happen. We're just taking it 1 week at a time. Once DD turns 1, I will start my PCOS diet again and temping/charting. So we'll get more intense if it hasn't happened by then.

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