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seriously tight budget
I am a very newly wed and we are setting up our budget and it is very discouraging. Please help with any advise!!
rent- 580
water- 35
power- 100
internet- 20
netflix- 10
hulu- 10
cell phone- 80
gym- 40
gas- 250
food- 350
quarters for laundry- 30
insurance- 40
3 student loans- $50 (about 3,200 left)
$153 (about 18,900 left)
$85 (about 8,000 left)
then for the wedding costs we ended up putting a good bit on our credit cards....
so on one we owe 3,500 with a minimum payment of $80
the other has 1,600 with a minimum payment of $20
it all adds up to $1933 in bills each month
I bring home $1,020 a month..... its a little harder to say what he makes since he is part time and they like to change up his hours all the time. it works out to about $800 a month....I see that we have about 100 extra a month to either pay down the credit cards or try and save a little since right now we are a one truck family and it is ancient. I am seriously worried about it and want to save money for a new car. here is my question.... should we try to pay down the credit card so that if something happens to the truck we can pay for repairs or should we try and save that for a e fund and then use it as a down payment on a new car.
Obviously we are both looking for either better full time jobs or a second part time job but then I still wonder if we should save for a new car or pay down more on the credit card debt. Before the wedding I had been paying a little extra each month on my student loans but now that really is not an option...
Any help/advice will be greatly appreciated!! thank you!
Re: seriously tight budget
It looks like you're actually about $100 short every month.
What are the interest rates on your cards and loans?
I would look at dropping the Netflix, Hulu, and gym membership.
If your montly bills total $1933 and your combined monthly income is $1820, you are actually $113 short each month.
I would definitely drop any extras - Netflix, Hulu (do you really need both?), and the gym membership.
Do you meal plan when you grocery shop? $350 seems like a lot for two people monthly. Cut down to just the basics and skips the snacks. Clip coupons.
Can your H get a second part-time job, or you? I know it sucks but sometimes it is what is needed in order to get by.
To quote your title, "Seriously tight budget."
Right off the bat I see 3 things you can cut out right now and save money. Hulu, Netflix and the gym. That's $60 each month. These items are not necessities. If exercise is a big thing in your lives, which is a healthy way to be, don't give it up, just run/walk outside or use your apartment complex's gym if it has one.
For your food: stop buying name brand foods - the generics are just as good and often cost at least $1 less. High cost items in gorcery stores are: alcohol, soda, snack foods, and paper products. Try to cut back or eliminate these. Pack your lunches for work if you aren't already. Strive for a food bill of less than $300 each month.
That could be $110-$130 saved monthly with the first cuts I mentioned plus the food scale back.
On your one truck: define "ancient"...what are it's true problems or does it just seem rough? Has it caused you trouble recently?
Also, can you consolidate your SLs into one payment that is lower than the $288 total you pay now?
What are the rates on the CCs? And, what are the limits? Are you close to maxing them out? I need more info on this.
Ditto PPs that this is more than just tight - you're short $113/mo - and that you should cut netflix, hulu, and the gym, and try to cut back on groceries. You can watch tv shows on the networks' websites and rent a couple $1 movies a month and save $18. Instead of the gym, either run/walk outside, or you could buy free weights to use at home. There are tons of workout videos and training programs for free on the internet.
Some other places you can cut back:
You spend $30/mo on coin laundry for the two of you?? I haven't been to a laundromat in a while, but this sounds high. Can you cut back on the number of loads you do?
How far away do you both work? DH and I have fairly short commutes, but we both work and spend ~$100/mo on gas. Can one of you carpool to work with someone else, or can you keep all your errands to one trip a week or otherwise cut back on driving for non-work purposes?
What about your cell phone? Is that $80 for two phones or one? If it's one, see if you can cut back on your data and/or minutes, and downgrade your phone if you have a smartphone.
As for the car, it's hard to say without knowing more about how old it is, what you have in savings, and what your loan/CC interest rates are.
"You know you're in love when you don't want to fall asleep because reality is finally better than your dreams." - Dr. SeussPPs hit on pretty much everything I was thinking when looking at your budget. $30 a month for laundry seems really high and you can prob cut down on groceries if you coupon/go for store brands/get on a "rice and bean" diet. Cut out things you don't really need to eat.
The only other thing I would add is that your power bill seems a little high. Can you cut back on electricity? Turn off computers when you aren't using them, only have the TV on when you're actively watching it, don't let oven preheat for unnecessarily long times, etc. Just an idea. Good luck!
I think PP have pretty much said everything. Cut EVERYTHING you can because your income is not covering your monthly expenses. Get rid of netflix and hulu, the gym, cut your grocery budget significantly (if you don't want to do beans and rice literally like somebody else mentioned- you can do spaghetti for like $2 a meal, or make enough for left overs to take into work)
You may need to get creative. Are you or DH still in school? Is there a reason he is only working part time? It sounds like he needs a full time job ASAP. If you can't cut enough to get traction on your debts, then you need to get your income up. Start delivering pizzas on the evenings or weekends. With tips you can supposedly earn $1000-$1500 every month delivering pizzas, which would be a huge boost to your income. Even something as small as picking up one shift a week working at a restaurant or something like that would help your cash flow and help you get working on these debts.
Good luck! It may take a bit of hard work, but it will be worth it!
Are you still students? You both need full-time jobs asap. Cut where PPs have already mentioned, but go apply everywhere! You have student loans...did you finish your degree? Are you working in-field? More info!