Semi New and budget advice

AUTigerFan · November 2015

Hi all! I have been a long time post reader, just never have made the jump to actually post. Today I just have a few questions about my budget. A little back story first. I was married for 5 years and against my better judgement, everything done within the marriage that was financed or bought was was put in my name. I had the credit (700's), ex husband had the income. Well, long story short, when divorce was final, I realized quickly that I didn't make enough to pay everything, and after trying to work out arrangements with companies with no success, I filed chapter 7 bankruptcy. It was discharged in February of this year.
Now, I am in a wonderful relationship with a man who's very understanding of my past credit hiccups. We are trying to prepare for our future together and I just want to know if I am missing anything I need to be including anywhere in my budget. These will be things only I am responsible for, as he has his own bills he's working on.
Monthly income:$1516.00
Rent: 400(my half, we do live together)
Savings:100 ( only about $300 in there right now, this is a new budget item for me)
Power: 130
Water: 30
Gas (heat): 50
Charter: 40
Garbage: 40 (only due once every three months)
Cell phone: 165 (still paying for ex husbands phone, have argued with Verizon about getting it taken off, but they aren't budging.)
Lane Bryant credit card: 50 (928 balance. Card is actually in my father's name so it wasn't included in my chapter 7)
Car gas:80 (40 every week, bi weekly pay)
Car insurance: 81 ( liability only. Currently shopping other companies)
Renters insurance: 57 ($50k coverage)
Capital One: 75 (this is a joint account with boyfriend. Balance is around $1800, with 0% until May of 2016. Only used to purchase a washer and dryer when we moved in to house in August.)

Sorry for any format issues, I am on mobile.
I am open to any suggestions and advice. If you have any questions, I will try to answer them quickly.
Thanks in advance!

brij2006 · November 2015

There are some things missing here. What do you spend on groceries, eating out, and household items/toiletries.

Xstatic3333 · November 2015

Welcome! Sorry for your troubles dealing with your ex; that sounds really tough. Hope you'll stick around and jump in here!

Looking at your budget, some other things I'd include are groceries, fun money/blow money/entertainment (it's really tough to have that number be zero), clothing, gifts (though it's fine to keep that number small while you're working on your goals), household goods (can be combined with groceries), and haircuts if you get them frequently. If you're not doing a work retirement plan, I'd get that in there too, at least once you have $1,000 or so in your savings and the Lane Bryant card is paid off. I'm sure other posters will find other items I've missed.

You may have seen this advice from lurking here before, but make sure you triple read the fine print on that Capital One card. For most 0% deals, if you're ever a day late on your payment or don't have the full balance paid off during the promotional period, they'll hit you with all of the back interest. I have a 0% card right now too (Care Credit) and I'm feeling very nervous about it to the point that I'm aiming to pay it off in about half of the time that is required.

simplyelise · November 2015

I'm getting about $200 extra that isn't budgeted. Maybe that is what you are using for food/entertainment because as PPs have pointed out, you don't have line items for those.

Can't help but say that it probably wasn't necessary to spend $1800 on a brand new w/d when you are still dealing with other consumer debt and only have a couple hundred in savings. You can almost always find good condition used W/Ds for $300 total on craigslist, no matter where you live.

Your renter's insurance seems very high to me. We've got a statefarm renter's policy (also have auto there) and it is $119/year for 35k personal property coverage and 100k personal liability coverage with a $500 deductible. Since your buffer on cashflow is pretty low, I'd look into changing your policy coverage or shopping around. (IDK if these rates change a lot based on location, it's been around $100 for me in a large metro and in a small city).

I would recommend throwing all extra money at your savings until you've got at least $1000 in there and then throw all your extra money at your remaining credit card debt. Then you can start focusing on retirement and other future goals.

AUTigerFan · November 2015

Yes, I knew I was forgetting some things.
The groceries/toiletries he buys. He's the chef too haha. He definitely makes more than I do, and has the ability to work more/earn more. I am pretty set at 40 hours with very little (1-2) hours of overtime per pay period.

We very rarely eat out. Maybe once a month and it's typically a Papa Murphy's pizza, so not really even eating out since we have to bring it back home and cook.

My haircuts are done by the local Paul Mitchell school, so they are very cheap and I tend to only get them twice a year, so maybe $20 for two hair cuts all year.

The Capital One I could've been more clear about. That $75 is just what I pay. He does pay more on it also, and it's set to be paid off by February or at latest March.
I am currently waiting for open enrollment for my companies 401k plan and will be participating in that when available.

I'll probably add a line for maybe $20 blow money for me.

With what money is left over at the end of a pay period, I'll typically apply more to Lane Bryant, or try to put more in savings. I don't blow through a lot of money typically. I just need to do a better job of keeping track of where it goes. ( Example, my mom's been sick the last two weeks, so I picked up a few groceries for her that she was needing. Milk, bread, the usual staples. But I know, again, I need to keep track of that so I don't go crazy with "extra money")

Please keep the advice coming, I'll take whatever I can get

AUTigerFan · November 2015

@simplyelise trust me, that was an argument I lost. I would've been just as happy with a set from the Goodwill.

Xstatic3333 · November 2015

AUTigerFan said:

I don't blow through a lot of money typically. I just need to do a better job of keeping track of where it goes. ( Example, my mom's been sick the last two weeks, so I picked up a few groceries for her that she was needing. Milk, bread, the usual staples. But I know, again, I need to keep track of that so I don't go crazy with "extra money") Please keep the advice coming, I'll take whatever I can get

You may find it useful to have a $20 or so "buffer" line item in your budget for stuff like this that comes up. I do this in our budget. I plan ahead to a crazy level, but H is more last minute and there's usually something we need to buy that he forgets to mention until after we've set a pretty firm budget for the week.

simplyelise · November 2015

AUTigerFan said:

@simplyelise trust me, that was an argument I lost. I would've been just as happy with a set from the Goodwill.

I feel ya! It's totally different when you have to get someone else on board with a plan.

I would prioritize getting your efund built up a bit before throwing extra at the LB card. Just because you don't have much of a safety net right now and without that net it can be really easy to resort back to credit. And it's crazy how much easier it feels to handle tough financial decisions when you know you've got $1000 stowed away for emergencies.

hoffse · November 2015

When will the contract with Verizon expire? I'd cancel that ASAP and maybe even pay to buy them out of the contract, depending on what the cost would be. I just know that paying for a phone for my ex would make me ragey.

Renter's insurance does seem high. Are you in AL (I'm guessing from your SN)? I think I was paying $19/month for my renter's insurance when we rented in Birmingham, but our complex was new and had all the fire systems and stuff updated. Still, it might be worth shopping around. You might also ask yourself how much coverage you actually need for personal possessions. Most people who rent don't actually own $50K worth of personal property, unless you happen to have some really expensive jewelry or furniture or something.

I would add extra $$ to the Lane Bryant card, especially if your BF is paying for the bulk of the washer/dryer, and you guys are confident it will be paid off by March. If he was the one who wanted to finance it, he should be the one to pay for it IMO, at least until you guys are engaged/married.

Do your BF split the cost of power and water with you? Those seem kind of high if they are being split. Though if you are in Bham then I guess you're at the mercy of Alabama Power and BWWB. Still, you might look at installing a low-flow shower head or making a point to unplug things you aren't using to try to save some money there. I have started getting brutal with our laundry. My H likes to run it half-full, and I've been putting my foot down about that as our water bill keeps getting higher.

hoffse · November 2015

Oh one thing I forgot to mention - if you have annual or quarterly dues/payments, start a sinking fund for those. It's much easier to pay $100 for Amazon prime when you put aside $8/month for it.

Add everything up that you pay for quarterly or annually and then divide by 12. Don't forget things like taxes, life insurance premiums, or annual vet visits for pets.

I also do $600/year (or $50/month) for car stuff. That helps us cover new tires, oil changes, brakes, etc. The $50/month is sufficient for both cars for us, but we drive newer vehicles. We bought new tires for me at the end of October, and it was really nice not having to stress out about a $480 purchase.

If there are other things that blow up your budget a few times per year, sinking funds for those items can also be good. H and I are starting one for clothing and gifts next year, because those are things that always seem to strain our budget.

AUTigerFan · November 2015

@hoffse Verizon contract is up in April 2016. It's $400 to break contract no matter what. (And yes, paying for his phone does make me ragey.)
Renters insurance company is same and car insurance company (Farmers) and I am definitely shopping rates for both of those right now.
Yes, I am in Alabama. The power and water are not split, and those prices are on the higher side of average. Alabama Power and BWWB are not the easiest to work with concerning billing issues either. I'll look into the low flow shower heads and the unplugging of things not used regularly.

hoffse · November 2015

AUTigerFan said:

@hoffse Verizon contract is up in April 2016. It's $400 to break contract no matter what. (And yes, paying for his phone does make me ragey.) Renters insurance company is same and car insurance company (Farmers) and I am definitely shopping rates for both of those right now. Yes, I am in Alabama. The power and water are not split, and those prices are on the higher side of average. Alabama Power and BWWB are not the easiest to work with concerning billing issues either. I'll look into the low flow shower heads and the unplugging of things not used regularly.

Well I would see if your BF would split the costs of power and water with you, unless the agreement is you pay for utilities, he pays for groceries. In that case it seems fair for you to pay for all of it.

If that's the entire bill it's not so bad. I was thinking it would be double if your BF was paying half.

I hear you on AP's and BWWB's billing issues. When we moved to our new house AP continued to charge me for the apartment for a couple of months before somebody finally bothered to disconnect the service. I didn't have to pay for their screw up, but it took many phone calls to work out.

Eh $400 to break the Verizon contract is right on the edge, if it expires in April anyway. I guess I would continue to pay it and then cancel it the moment I could do so without penalty.

Erikan73 · November 2015

Here is a list of small things that I use to always forget, some of the are annually, but I now put money away for the annual expense so that when it comes due I have the money

License Plates

Hair Cuts

Magazine subscriptions if you have any

Memberships - AAA or museums, etc

Fun Money - even with living on a budget, you need to allow yourself a few dollars that you don't have to account for. So say you want to go out with a friend for a drink to celebrate something, or you want to treat yourself to a manicure or even just a cup of coffee or ice cream one day. Or that great top you found on a clearance rack for $5.00. It's good to have a few dollars in your wallet (or on your debit card) that you can just spend.

AUTigerFan · November 2015

Thanks everyone for the advice. Looks like I'll have a sit down discussion with the boyfriend soon so we can tighten up my side of the budget. Get my savings really built up and get the few debts I have paid off.

Erikan73 · November 2015

If it's an option, check to see if you can get utilities set up on a budget plan. That way you know exactly how much the utility bills will be each month. Granted those can be adjusted ever 6 or 12 months depending on the utility, but if you split the utilities, it's easier to plan for it when you know the budget amount is say $60.00 and you each need to contribute $30 each every month.

Semi New and budget advice

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