My Finances --help!

[liubotflittyfud]

Okay let's break it down:

I make $775 every two weeks. So $1550 a month and it's just me.

I will be paying $400 living at my cousin's apartment, utilities included. My aunt called to tell me A (my cousin) may be accepting another month or two under her contract so I can sublet for as long as she's out... so we'll say $400 a month.

My cell phone bill is $75.00

My car payment is $270.00

My car insurance is $80.00

I've been paying my bankruptcy attorney $100 a month just recently because the total to file bankruptcy is $1300 with him.

I just started letting my credit cards go to collections. I'm $40k in debt with those. (Thanks xH)

I have to pay past dues on my electric, gas, and water. They are each: $40 p/mo, $85 p/mo, and $50 p/mo because I'm 3 months behind.

I smoke cigarettes. I do a little less than a pack a day. That equals to $170 p/mo.

I drive far to and from work. I put $50 a week in my tank. $200 p/mo.

I RARELY buy groceries. It's not in the budget. I will get a few things and make them last a long long time. I usually get to spend $40 a month.

I have 2 medications per month, one is $30 and the other is $10. Plus co-pays for my monthly psychiatrist is $25.

I know I'm over how much I make...

[wrathofkuus]

That's kind of an expensive car on that budget, isn't it?

[doriswe]

I'm not a ton of help, but I ditched my $70+ a month cell phone and went with a Straight Talk plan (from Walmart). I spend $45 a month for unlimited text/talk/web. The internet isn't fabulous, but I don't really use it for that.

[liubotflittyfud]

Aug 15, 2012 14:03:10 GMT -5 wrathofkuus said:

That's kind of an expensive car on that budget, isn't it?

It is. I love my car so much though and my mom got it for me because she wanted to make me feel good after all of the xBF abuse. I will skimp elsewhere to make sure i pay my car.

[Bernadine]

You've got to get a part-time job. Sorry chica. Take whatever crap job you can find. You will be able to find SOMETHING.

[Bernadine]

Aug 15, 2012 14:05:44 GMT -5 @liubotflittyfud said:

Aug 15, 2012 14:03:10 GMT -5 wrathofkuus said:

That's kind of an expensive car on that budget, isn't it?

It is. I love my car so much though and my mom got it for me because she wanted to make me feel good after all of the xBF abuse. I will skimp elsewhere to make sure i pay my car.

What? She didn't get it for you if you're making the payments.

[wrathofkuus]

Aug 15, 2012 14:07:53 GMT -5 Bernadine said:

Aug 15, 2012 14:05:44 GMT -5 @liubotflittyfud said:

It is. I love my car so much though and my mom got it for me because she wanted to make me feel good after all of the xBF abuse. I will skimp elsewhere to make sure i pay my car.

What? She didn't get it for you if you're making the payments.

This confuses me, too.

[stephbfan]

I'm thinking that she means that she got it under her mom's name. I would definitely sell or get rid of that car and get something more affordable. Right now you don't need a fancy car, you just need a car that takes you from point A to point B.

Also with what you make, you cell phone bill is a little too high.
Also I want to understand, how you rather pay your expensive car than get groceries?

[liubotflittyfud]

Aug 15, 2012 14:08:36 GMT -5 wrathofkuus said:

Aug 15, 2012 14:07:53 GMT -5 Bernadine said:

What? She didn't get it for you if you're making the payments.

This confuses me, too.

She got it for me, it's in her name. I am making the payments because I couldn't get it on my own because xH ruined my credit. It was the first car I ever *wanted* like woah, and she was trying to make me happy. So I guess to clarify, she took the loan out for me.

[wrathofkuus]

Okay, see, this is what's going wrong. You're prioritizing a want over a need. You're sacrificing a roof over your head and food to eat in order to have a cool car. This is not reasonable.

[Bernadine]

Aug 15, 2012 14:19:14 GMT -5 wrathofkuus said:

Okay, see, this is what's going wrong. You're prioritizing a want over a need. You're sacrificing a roof over your head and food to eat in order to have a cool car. This is not reasonable.

Kuus is wise.

[blackkitty]

Are you qualified to get a better job making more money?
And what hours do you work? Is an additional part time job feasible? Or are you qualifed to do anything "on the side"?

Also, how do you live on $40 in food. Like what do you eat? I spend that a week on produce alone!

I'm not going to harp on the cigarette thing but just want to point out that is over 10% of your take home pay.

[liubotflittyfud]

Aug 15, 2012 14:21:30 GMT -5 @blackkitty said:

Are you qualified to get a better job making more money?
And what hours do you work? Is an additional part time job feasible? Or are you qualifed to do anything "on the side"?

Also, how do you live on $40 in food. Like what do you eat? I spend that a week on produce alone!

I'm not going to harp on the cigarette thing but just want to point out that is over 10% of your take home pay.

I eat a lot of almond butter sandwiches. I will buy 2 for 1 deals and freeze them a lot. Cereal a lot of the time, too.

[formerlyak]

Adding up all the expenses you list (without the credit card payment) you have $1535 in expenses and $1550 in income. A second job would certainly be helpful. However, in the meantime, here are some suggestions:

1. Call the BK attorney and ask if you can pay $50 a month instead of $100 while you are looking for a second job. I am sure you won't be the first person to request a lower monthly payment with a longer term from a BK attorney.

2. Call the three utilities you are overdue with and ask if you could pay over six months instead of three. Ask to speak with a supervisor who can actually approve a payment play. Getting to pay half would save you close to $90 a month.

3. I am not going to suggest you stop smoking. I get that it is an addiction - I have several family members who have dealt with addiction, so I do understand it is hard. But perhaps find ways to cut back if you can. Some things that have helped smokers I know include alternating cigs and gum (smoke a cig and then when you would normally smoke your next try a piece of gum). Even if you could lengthen the amount of time between cigs, you'd end up smoking less and saving a little money, right? My cousin actually took the approach of "today I don't want to smoke" ... he never said he was quitting. The first few days I think he had one or two, but he found that making an active choice every day to not want a cig was easier than committing to quitting smoking. I don't think he's had a smoke in 5 years now, and he smoked for like 30 years up to that point. So maybe think of ways to "cut back" instead of quitting.

4. What is your deductible on your car insurance and what is your coverage? You can lower your monthly payment if you increase your deductible -- like if you have a $500 deductible, ask how your rate would change if it was $1000.

5. Figure out which day is cheapest to fill up with gas in your area and plan accordingly. I know Tuesday was the cheapest day for gas in my city, so I'd fill up on Tuesday. That usually got me through the week.

6. Your income is fairly low, so you may qualify for some type of public assistance for food. It can vary by county and not knowing where you live, I do not know what the limits are in your area. But it is worth looking into. Or if you belong to a church, some churches have like an "angel food" program where you can get a bag of food a week while you get on your feet. It's something that might help.

7. Check your withholdings on your tax forms and see if they are withholding too much. There is a calculator on IRS.gov that asks questions and lets you know an estimate of what you will owe or get back when you file. If you are en route to get a lot back based on your current withholdings, the calculator will make suggestions on changes you can make to make it closer to a $0 balance when you file.

8. Call your car loan company and ask if their rates have changed. On my ex's car, I noticed that the rate had gone down .5% since we bought and they did a one time rate adjustment for us since we had been paying all our payments on time.

I know all these things may sound like $10 here, $20 there, but it adds up.

[liubotflittyfud]

I have a side business making cakes/cupcakes and that helps from time to time. I work a mid shift (10:30-7) so it's tough to get a second job during the week but I can for the weekend.

Also, I am working hard at work to be upped a paygrade to an engineer, not just a lowly tech. It's a goal I'm working for.

[wrathofkuus]

Aug 15, 2012 14:24:27 GMT -5 @liubotflittyfud said:

Aug 15, 2012 14:21:30 GMT -5 @blackkitty said:

Are you qualified to get a better job making more money?
And what hours do you work? Is an additional part time job feasible? Or are you qualifed to do anything "on the side"?

Also, how do you live on $40 in food. Like what do you eat? I spend that a week on produce alone!

I'm not going to harp on the cigarette thing but just want to point out that is over 10% of your take home pay.

I eat a lot of almond butter sandwiches. I will buy 2 for 1 deals and freeze them a lot. Cereal a lot of the time, too.

Be careful. This kind of diet is how you get scurvy.

[liubotflittyfud]

Aug 15, 2012 14:24:35 GMT -5 formerlyak said:

Adding up all the expenses you list (without the credit card payment) you have $1535 in expenses and $1550 in income. A second job would certainly be helpful. However, in the meantime, here are some suggestions:

1. Call the BK attorney and ask if you can pay $50 a month instead of $100 while you are looking for a second job. I am sure you won't be the first person to request a lower monthly payment with a longer term from a BK attorney.

2. Call the three utilities you are overdue with and ask if you could pay over six months instead of three. Ask to speak with a supervisor who can actually approve a payment play. Getting to pay half would save you close to $90 a month.

3. I am not going to suggest you stop smoking. I get that it is an addiction - I have several family members who have dealt with addiction, so I do understand it is hard. But perhaps find ways to cut back if you can. Some things that have helped smokers I know include alternating cigs and gum (smoke a cig and then when you would normally smoke your next try a piece of gum). Even if you could lengthen the amount of time between cigs, you'd end up smoking less and saving a little money, right? My cousin actually took the approach of "today I don't want to smoke" ... he never said he was quitting. The first few days I think he had one or two, but he found that making an active choice every day to not want a cig was easier than committing to quitting smoking. I don't think he's had a smoke in 5 years now, and he smoked for like 30 years up to that point. So maybe think of ways to "cut back" instead of quitting.

4. What is your deductible on your car insurance and what is your coverage? You can lower your monthly payment if you increase your deductible -- like if you have a $500 deductible, ask how your rate would change if it was $1000.

5. Figure out which day is cheapest to fill up with gas in your area and plan accordingly. I know Tuesday was the cheapest day for gas in my city, so I'd fill up on Tuesday. That usually got me through the week.

6. Your income is fairly low, so you may qualify for some type of public assistance for food. It can vary by county and not knowing where you live, I do not know what the limits are in your area. But it is worth looking into. Or if you belong to a church, some churches have like an "angel food" program where you can get a bag of food a week while you get on your feet. It's something that might help.

7. Check your withholdings on your tax forms and see if they are withholding too much. There is a calculator on IRS.gov that asks questions and lets you know an estimate of what you will owe or get back when you file. If you are en route to get a lot back based on your current withholdings, the calculator will make suggestions on changes you can make to make it closer to a $0 balance when you file.

8. Call your car loan company and ask if their rates have changed. On my ex's car, I noticed that the rate had gone down .5% since we bought and they did a one time rate adjustment for us since we had been paying all our payments on time.

I know all these things may sound like $10 here, $20 there, but it adds up.

Thank you. I will try these.

[jm5855]

Liubot I was a finance manager for a major auto dealer for several years. Most of the banks I worked with would allow a borrower to skip one payment per 12 months when a financial crisis arrived. The payment would be put on the back of the loan and it would not negatively impact your mom's credit in any way. I realize this does not solve your long term problems, but having that extra $270 could go towards catching up your utilties or paying your BK attorney. You have nothing to lose in at least looking into it.

[explorer2001]

How/what do you eat on $40 a month? I spend more than that a week on groceries, not counting what I spend eating out.

Ditto on the car. You can't afford it. That's a huge expense on your budget. Can you sell, trade in and get an older model used car that still gets you from a to b?

Also cigs being more than 10% of take home is rough. Can you cut back, switch to a cheaper brand, quit?

Consider prepaid or cheaper phone service.

Have you looked into discount Rx, savings plan, getting samples?

Your budget doesn't work mathematically. You list more expenses than income in your post.

What can you get out from under in bankruptcy? Will you even be able to keep the car after declaring? What bills can you ignore for now (ex back utilities at the old plan once you move that will be dismissed)?

You need to prioritize: roof over your head, food, a way to and from.work so you have an income-bus, clunker, not Corvette, your meds and copays. Then you can start adding other stuff.

[stephbfan]

I have a question. Did you go to school or have a degree? If not, or even if you did, as soon as you are out of this, you need to start looking at getting some type of training that will help your earning potential.

I would also try to look into renting a room instead of a whole apartment. You can visit a lot of different places and then see if you can find someone that you get along with. You could also try to find something closer to work so you dont spend as much in gas.

[bumpushounds]

Some states have smoking cessation programs available at a reduced cost or for free. I know in my state, there's a tollfree number you can call to get a free kit to help you quit. Check with your state or local public health department.

ETA: Your insurance provider might also cover a smoking cessation program, especially if you have Medicaid.

[hocus]

Sorry I don't belong on this board, but I wanted to weight in because I've been truly broke. (I actually earned less than this for 2 years).

Are you truly paid every 2 weeks? Because if so I'd get out a calendar and find out which month you'll receive a 3rd paycheck (this happens twice a year if you're paid every 2 weeks vs. twice per month).

It is very important that when that 3rd check comes in you don't blow it. Treat your self to one nice $20 dinner with lots of fruit and veggies, but $100 into savings and then put the rest toward your utilities or toward your bk law fees.

Once you get back on track you'll find that you have more wiggle room in your budget. It is critical for you to have a plan that is focus on long term stability. You have no savings, you're about to have trashed credit. You need to save, pay your bills and eat healthily food. Be honest with yourself at all times. It is hard to be broke. But you don't have to always be broke. Saving your nickles and dimes will prevent you from having a crisis like this again.

[roselis]

Another possibility... do buses run in your area and your work area? Maybe look into taking the bus at times, or try to carpool. Cuts down on gas costs

[shopgirl07]

Come on, this is obviously not accurate. There's no way you spend $10 per week for food. And you don't have any budget allocated to toiletries such as toothpaste and toilet paper and the like. And what about oil changes for your car, which I imagine you need every 3 months or so with your mileage.

And I will say it. You have to quit smoking. You simply can't afford it and it's ridiculous to go into debt for a something that makes you stink and will kill you. Try the patch or chantix or something. $170 per month with your income is a heck of a lot of money.

[nogutsnoglory]

Aug 15, 2012 18:56:48 GMT -5 shopgirl07 said:

Come on, this is obviously not accurate. There's no way you spend $10 per week for food. And you don't have any budget allocated to toiletries such as toothpaste and toilet paper and the like. And what about oil changes for your car, which I imagine you need every 3 months or so with your mileage.

And I will say it. You have to quit smoking. You simply can't afford it and it's ridiculous to go into debt for a something that makes you stink and will kill you. Try the patch or chantix or something. $170 per month with your income is a heck of a lot of money.

None of what you said is helpful, especially the bolded.

OP - I think the others have given really good advice. FWIW, as a smoker, I would suggest doing whatever you can to cut back, but ditching the car payment will be way easier than ditching the smokes, as a start.

[shopgirl07]

Aug 15, 2012 19:23:59 GMT -5 nogutsnoglory said:

Aug 15, 2012 18:56:48 GMT -5 shopgirl07 said:

Come on, this is obviously not accurate. There's no way you spend $10 per week for food. And you don't have any budget allocated to toiletries such as toothpaste and toilet paper and the like. And what about oil changes for your car, which I imagine you need every 3 months or so with your mileage.

And I will say it. You have to quit smoking. You simply can't afford it and it's ridiculous to go into debt for a something that makes you stink and will kill you. Try the patch or chantix or something. $170 per month with your income is a heck of a lot of money.

None of what you said is helpful, especially the bolded.

OP - I think the others have given really good advice. FWIW, as a smoker, I would suggest doing whatever you can to cut back, but ditching the car payment will be way easier than ditching the smokes, as a start.

I disagree. She's spending over 10% of her pay on something that's totally frivolous. It would be in her best financial interest to quit smoking. There's no way anyone can argue with that. And clearly she's made some poor choices so she needs to understand that almost $200/month is killing her literally and figuratively.

And as to the rest of what I said, how is it not helpful? She presented a budget that can't be accurate. She needs to figure out exactly what her real expenditures are each month in order to formulate a plan. Or else she'll be right back where she started with credit card debt because she didn't budget for necessities.

[liubotflittyfud]

I don't budget for necessities. I use what I have and when I need more I hit up Walmart or dollar general for more. I don't need toothpaste or shampoo every month so I never budgeted. And seriously, I spend maybe $40-50 on groceries.

[roselis]

Aug 15, 2012 20:41:03 GMT -5 shopgirl07 said:

Aug 15, 2012 19:23:59 GMT -5 nogutsnoglory said:

None of what you said is helpful, especially the bolded.

OP - I think the others have given really good advice. FWIW, as a smoker, I would suggest doing whatever you can to cut back, but ditching the car payment will be way easier than ditching the smokes, as a start.

I disagree. She's spending over 10% of her pay on something that's totally frivolous. It would be in her best financial interest to quit smoking. There's no way anyone can argue with that. And clearly she's made some poor choices so she needs to understand that almost $200/month is killing her literally and figuratively.

And as to the rest of what I said, how is it not helpful? She presented a budget that can't be accurate. She needs to figure out exactly what her real expenditures are each month in order to formulate a plan. Or else she'll be right back where she started with credit card debt because she didn't budget for necessities.

I don't understand why it can't be accurate?

[doriswe]

Aug 16, 2012 6:39:04 GMT -5 @roselis said:

Aug 15, 2012 20:41:03 GMT -5 shopgirl07 said:

I disagree. She's spending over 10% of her pay on something that's totally frivolous. It would be in her best financial interest to quit smoking. There's no way anyone can argue with that. And clearly she's made some poor choices so she needs to understand that almost $200/month is killing her literally and figuratively.

And as to the rest of what I said, how is it not helpful? She presented a budget that can't be accurate. She needs to figure out exactly what her real expenditures are each month in order to formulate a plan. Or else she'll be right back where she started with credit card debt because she didn't budget for necessities.

I don't understand why it can't be accurate?

Agreed. I, for one, lived on less than this and had 2 kids to care for and my expenses always exceeded my income. Sometimes it happens.

[chrissie3416]

Yea Im with Doris on this one, as usual lol. I make a little more every month and have a daughter and a pet to take care of. Some months my expenses are more than what I bring in but you do your best with you have and make the best out of the situation. I would look into seeing if you qualify for any government assistance...I get money each month for food and although its not much ($100 a month for two of us) every lil bit helps.