Lurker coming out...with a budget

[wiffle]

I started lurking on the nest just before the migration here and I think I’m finally brave enough to post my monthly budget and financial info for you ladies to critique.  Please be gentle. 

Income....5,100
Rental property income....680
Groceries....600
Daycare (after-school only)....140
Gas....400
Fast food....150
Car Insurance (sinking fund)....100
Charity....80
Mortgage on rental property....770
Rent/Renters Insurance....1,215
Power/Water/Sewer....290
Car (incl maintenance sinking fund)....553
Internet....45
Student loans Min Pmt....150
Cell Phone....160
CC Min Pmt....52
Dry-cleaning....30
Haircut....40
Pet (food and vet sinking fund)....60
Christmas savings....50
Makeup/Beauty products....55
Debt Snowball...665
Leftover (goes to debt unless we don’t go over budget)....175

CC Debt....1,300
SL Debt....18,000
Car Loan....23,000

Savings....2,000
401K....14,000
I contribute 3% w/ 100% match
H can’t contribute until next year (new job)
 
 

My husband and I are both 25 and have a son who is 7 and an English/American mixed bulldog.  We have been following the Dave Ramsey plan for a year now and have paid off $14,000 so far (cc and medical bills from horrible health insurance).  We want a baby soon and have agreed to wait until we have the credit cards, student loans, and car paid off which should be early 2015.  That feels like forever away.

I guess I’m just wondering if we’re on the right track.  I think we’ve hit a plateau with our debt and I don’t feel like we’re making any progress.  What are we doing wrong?  Doing right?  Is there anything else we can cut back on to get out of debt sooner?  I feel like we’re doing MUCH better than we were before Dave but there are some things he says that I just won’t do…I am NOT selling my car.

 I would attach a picture of my dog if my phone would let me. And you can ask me anything.

[Deleted]

-Groceries and fast food is 750 a month--I'd really try to cut that down by 100 to make your debt payoff faster.
-What is the deal with the rental property? Can't sell it and moved? Is that the most you can get for rent? You're a few missed rent payments away from disaster so that would scare me that you don't have much in savings.
-Get rid of the data plan/smart phones and go for a cheap plan
-$55 a month on make-up/beauty is a lot

[mrshandy]

I agree PP.

Your savings need to be buffered. I would put some extra money towards that for a month or two. Then work on the CC debt.

Gas is pricey and I would cut down on Fast food and makeup/beauty products.

[Awkward]

I see your line for beauty products and fast food, where does the $ for things for your son come from? Like clothes, school supplies, etc? Or health insurance copays? I imagine from the $175 leftover, but as he gets older he might want to do things like sports that need to be budgeted for. It's been brought to my attention that I am a moron. Ignore this!

I think you're right to hold off on having another kid for a few years. And I'm anxious for the response on what's up with the money-losing rental property.

[takeonyou]

I think you need more in savings with a rental property. Cut from cell, beauty, and fast food.

[ladybrettashley]

Your grocery and fast food amounts seem quite high. We spend less than half of that amount per month. Meal planning and shopping at Aldi really helped us cut down on that expense.

[wiffle]

Aug 23, 2012 13:32:36 GMT -5 flygirl said:

-Groceries and fast food is 750 a month--I'd really try to cut that down by 100 to make your debt payoff faster.
-What is the deal with the rental property? Can't sell it and moved? Is that the most you can get for rent? You're a few missed rent payments away from disaster so that would scare me that you don't have much in savings.
-Get rid of the data plan/smart phones and go for a cheap plan
-$55 a month on make-up/beauty is a lot

Yes, we moved to another state for work and couldn't sell. The property is basically worth what we owe and we can't refi from 6.5% (yet) because we both recently changed jobs and our 2 year average income puts our debt-to-income ratio just over the criteria. We are hoping to sell ASAP but we have a good tenant in the meantime. We thought 3 months of mortgage pmts would be a good buffer in savings but I guess we could beef that up to 5-6 months.

[mrssavy42112]

Yeah, what's going on with the rental property? You're losing $90 a month if I read correctly. I also agree that grocery + fast food is high. In my books, it's very high. Not sure what others would say. That looks like the largest area that can be cut, if possible.

[minniebee]

What about rent/mortgage for where you live now? Or are you living rent-free with friends/family? Or maybe I'm missing that in the budget?

[Awkward]

Aug 23, 2012 14:01:06 GMT -5 minniebee said:

Aug 23, 2012 13:46:33 GMT -5 Awkward said:

I see your line for beauty products and fast food, where does the $ for things for your son come from? Like clothes, school supplies, etc? Or health insurance copays? I imagine from the $175 leftover, but as he gets older he might want to do things like sports that need to be budgeted for.

I think you're right to hold off on having another kid for a few years. And I'm anxious for the response on what's up with the money-losing rental property.

Her son is a dog, no clothes & school supplies needed :-)

Am I missing where rent/mortgage for your current home is listed? Not the home you own but rent out? What are you paying for your current home?

OH. Haha. I read it as they have a 7 year old son AND a bulldog. LOL carry on then!

[Deleted]

Wait--what is daycare (after school) for if you don't have a kid? If its for doggie daycare--you need to cut it.

[nicoliae]

Your grocery and eating out is high. I shop at WholeFoods for 2 people and we eat out every weekend and I don't spend close to $750.

The gas also seems high...

[takeonyou]

Aug 23, 2012 13:56:00 GMT -5 wiffle said:

We thought 3 months of mortgage pmts would be a good buffer in savings but I guess we could beef that up to 5-6 months.

It isn't just the payments. What if the roof needs to be replaced or the hot water heater/large appliance breaks?

You need an emergency fund strictly for the property you own. One year we needed the roof fixed, new gutters, new hot water heater, a washing machine, and regrading the property to stop water from coming in. It was an EXPENSIVE year.

[Awkward]

Aug 23, 2012 14:02:47 GMT -5 flygirl said:

Wait--what is daycare (after school) for if you don't have a kid? If its for doggie daycare--you need to cut it.

I'M SO CONFUSED.

[wiffle]

Aug 23, 2012 13:47:22 GMT -5 ladybrettashley said:

Your grocery and fast food amounts seem quite high. We spend less than half of that amount per month. Meal planning and shopping at Aldi really helped us cut down on that expense.

The fast food amount includes our allowances and our "fun" money which we usually use for eating out. I get groceries (including toiletries) each week for $150. I meal plan and try to cook from scratch but I'm having a hard time cutting this. We only have Winn-Dixie and wal-mart available for groceries (I go to winn-dixie and use their rewards card) and a small road-side produce stand is my farmers market. We havent had much luck with vegetarian meals but we are trying some new recipes.

In response to other posters: the $55 for makeup/beauty isn't every month but I leave room for it because i never know when my proactiv ships or my makeup will run out.

[wiffle]

Aug 23, 2012 14:02:45 GMT -5 Awkward said:

Aug 23, 2012 14:01:06 GMT -5 minniebee said:

Her son is a dog, no clothes & school supplies needed :-)

Am I missing where rent/mortgage for your current home is listed? Not the home you own but rent out? What are you paying for your current home?

OH. Haha. I read it as they have a 7 year old son AND a bulldog. LOL carry on then!

We have a human son who is 7 AND a dog.
I guess that could have been clearer.

[wiffle]

Aug 23, 2012 14:04:54 GMT -5 takeonyou said:

Aug 23, 2012 13:56:00 GMT -5 wiffle said:

We thought 3 months of mortgage pmts would be a good buffer in savings but I guess we could beef that up to 5-6 months.

It isn't just the payments. What if the roof needs to be replaced or the hot water heater/large appliance breaks?

You need an emergency fund strictly for the property you own. One year we needed the roof fixed, new gutters, new hot water heater, a washing machine, and regrading the property to stop water from coming in. It was an EXPENSIVE year.

The house is less than 10 years old so we hadn't really thought of that. :/

[wiffle]

Aug 23, 2012 14:07:01 GMT -5 @esquirefish said:

That rental property (which you lose money on, can you sell it?) can sink you very fast. What if your tenant leaves and it has to sit vacant, and not collecting rent, for a few months? Is your tenant getting a great deal, can you raise the rent to match rents in the area if the rent is low?

Your food budget is too high. If that fast food is being used for lunch, try packing lunches at home.

It also looks like your rent/renter's insurance is far higher than the mortgage on your rental property. Can you possibly live there instead? Again, I don't know how big it is or after you factor in utilities if it makes sense.

We moved to a higher COL area (south GA to FL). The rent is fair. It's low enough to get a tenant quickly should this one decide not to renew their lease. We originally wanted $50 to $75 more per month but it sat with no interested tenant for 3 weeks. After we lowered the price, it took 3 days. Unfortunately, we bought in 2006 before the market crashed and interest rates were 6.5%.

We pack sandwiches or leftovers 90% of the time.

[nicoliae]

Aug 23, 2012 14:07:15 GMT -5 wiffle said:

Aug 23, 2012 13:47:22 GMT -5 ladybrettashley said:

Your grocery and fast food amounts seem quite high. We spend less than half of that amount per month. Meal planning and shopping at Aldi really helped us cut down on that expense.

The fast food amount includes our allowances and our "fun" money which we usually use for eating out. I get groceries (including toiletries) each week for $150. I meal plan and try to cook from scratch but I'm having a hard time cutting this. We only have Winn-Dixie and wal-mart available for groceries (I go to winn-dixie and use their rewards card) and a small road-side produce stand is my farmers market. We havent had much luck with vegetarian meals but we are trying some new recipes.

I think you need to re-evaluate what you are buying then. I'm sorry, but I shop at Whole Foods, which isn't the cheapest place around, we buy a lot of fish, cheese, and wine. We also buy laundry soap and toiletries there. I still don't see how you can spend $600 groceries. Maybe a 7 year old eats more than I know...

[mrssavy42112]

Aug 23, 2012 14:18:24 GMT -5 wiffle said:

Aug 23, 2012 14:07:01 GMT -5 @esquirefish said:

That rental property (which you lose money on, can you sell it?) can sink you very fast. What if your tenant leaves and it has to sit vacant, and not collecting rent, for a few months? Is your tenant getting a great deal, can you raise the rent to match rents in the area if the rent is low?

Your food budget is too high. If that fast food is being used for lunch, try packing lunches at home.

It also looks like your rent/renter's insurance is far higher than the mortgage on your rental property. Can you possibly live there instead? Again, I don't know how big it is or after you factor in utilities if it makes sense.

We moved to a higher COL area (south GA to FL). The rent is fair. It's low enough to get a tenant quickly should this one decide not to renew their lease. We originally wanted $50 to $75 more per month but it sat with no interested tenant for 3 weeks. After we lowered the price, it took 3 days. Unfortunately, we bought in 2006 before the market crashed and interest rates were 6.5%.

We pack sandwiches or leftovers 90% of the time.

So if you pack your lunches 90% of the time, then when are you eating $150 of fast food? Unless it’s really $15 fast food & $100 clothes/fun stuff. That makes more sense, but still not so great when you’re already spending $600 on groceries. Do you guys have special dietary needs that you need to accommodate with really pricey foods? Even my vegan diet & my husband’s omnivore diet combined doesn’t cost us that much.

[wiffle]

Aug 23, 2012 14:35:49 GMT -5 mrssavy42112 said:

Aug 23, 2012 14:18:24 GMT -5 wiffle said:

We moved to a higher COL area (south GA to FL). The rent is fair. It's low enough to get a tenant quickly should this one decide not to renew their lease. We originally wanted $50 to $75 more per month but it sat with no interested tenant for 3 weeks. After we lowered the price, it took 3 days. Unfortunately, we bought in 2006 before the market crashed and interest rates were 6.5%.

We pack sandwiches or leftovers 90% of the time.

So if you pack your lunches 90% of the time, then when are you eating $150 of fast food? Unless it’s really $15 fast food & $100 clothes/fun stuff. That makes more sense, but still not so great when you’re already spending $600 on groceries. Do you guys have special dietary needs that you need to accommodate with really pricey foods? Even my vegan diet & my husband’s omnivore diet combined doesn’t cost us that much.

No special diet. I guess we just like to eat a lot. And we eat a lot of meat. $100 of the $150 is for our allowance that can be for eating out @ lunch or clothes or whatever. $50 is for a dinner out as a family or movies or something fun.

[wiffle]

I will admit that we all only eat Boar's Head sandwich meat. So that's $10-$15 a week, depending on what meals will have leftovers. I really appreciate everyone's help! I'll be scrutinizing our meals and snacks more carefully. And I thought I was doing so well...I used to spend almost $200/week on groceries!