Another budget post

[cricketwife]

If I had no savings and debt on top of it, I would definitely not be spending $400/month eating out. Other than that, you could cut Netflix or Hulu, but we're not really talking much money there.

[lys]

Cut the eating out down to 100 and spend more on groceries -- eat at home more, take your lunches.
You could also reduce the pocket money to 100 each.

[madringal]

Aug 27, 2012 17:37:06 GMT -5 nuggetbrain said:

Aug 27, 2012 17:33:59 GMT -5 cricketwife said:

If I had no savings and debt on top of it, I would definitely not be spending $400/month eating out. Other than that, you could cut Netflix or Hulu, but we're not really talking much money there.

This budget is based on after our debt repayment.

$400 is just a really high amount for people looking to build up a savings. I'd take $200 of that and put it in a car fund.

[sh10]

What is the internet rate on your 401k loan? It might be a good idea to divert some savings to pay that down.

[Deleted]

How much is 401K loan that needs to be paid off in 4 years and what is the monthly payment on that? Your budget already looks pretty lean except for the $400 in dining out that could be easily halved imo.

[ssmjlm]

I would cut dining out and pocket money, by half.

[ssmjlm]

Aug 28, 2012 10:07:12 GMT -5 nuggetbrain said:

Aug 28, 2012 9:45:26 GMT -5 @missy1 said:

How much is 401K loan that needs to be paid off in 4 years and what is the monthly payment on that? Your budget already looks pretty lean except for the $400 in dining out that could be easily halved imo.

Interest rate is 4%, total amount is about $9k left, monthly payment is $199.

Once we switch up the car insurance and cell phones we should have an extra $125.

Since we'd be saving almost 28% of our net income I'm hesitant to slash too much from our eating out AND our fun money.

Yes but with no savings and debt payoff, I would be over conservative at this point. Esp if you own a house and one emergency could have to back where you are now.

[mrssavy42112]

Aug 28, 2012 10:07:12 GMT -5 nuggetbrain said:

Aug 28, 2012 9:45:26 GMT -5 @missy1 said:

How much is 401K loan that needs to be paid off in 4 years and what is the monthly payment on that? Your budget already looks pretty lean except for the $400 in dining out that could be easily halved imo.

Interest rate is 4%, total amount is about $9k left, monthly payment is $199.

Once we switch up the car insurance and cell phones we should have an extra $125.

Since we'd be saving almost 28% of our net income I'm hesitant to slash too much from our eating out AND our fun money.

I feel you on the last sentence, because that’s how DH was feeling. But when you have NO savings (as you mentioned), then you really need to make some sacrifices until things are better balanced. Obviously it’s not ideal, but at the same time, cutting it in half isn’t exactly going to be depriving you both. We cut ours way waaaay down & it’s working.

[SusanBAnthony]

I could go either way on how aggressive you should be on reducing eating out. I mean, that is a lot of money, but you aren't spending tons on other stuff, so, idk. I would at least try to reduce it by 50$ a month, or something, for a few months in a row, and see how it feels. Maybe set it lower, but if you want to eat out more you can use your fun money?

[SusanBAnthony]

Also, we have about the same take home as you, no debt other than mortgage, and we spend about 800 a month on food, including eating out (for the kids too) so I don't think the number is totally crazy. It's just that even saving a third of your income, it will take you like 20 months to save up a 6 month efund, and that is assuming you stick to the budget perfectly and don't have any emergencies.

[mrssavy42112]

Aug 28, 2012 10:20:56 GMT -5 nuggetbrain said:

Aug 28, 2012 10:10:46 GMT -5 ssmjlm said:

Yes but with no savings and debt payoff, I would be over conservative at this point. Esp if you own a house and one emergency could have to back where you are now.

Once again, this is AFTER our debt is paid off. So we would be saving about $1,500 a month. Right now we are living a lot leaner.

I mean, I get what people are saying and I would be okay cutting the dining out in half to put towards savings in one form or another, but our pocket money includes things like clothing and gifts for each other for birthdays and christmas and stuff so I really, really am not comfortable with cutting that.

Out of curiousity, at what point would things be considered more balanced? One month's EF, two, three....?

I’d define that as 3 months & then building from there, but I know not everyone here agrees. We rent, so the unexpected home expenses aren’t an issue.

[Deleted]

I wouldn't cut the personal money either but I do think it's a little premature to be thinking "we are saving 28% of our net so we don't need to trim down". This is a hypothetical budget and a million things could go wrong, especially with the house. I do feel that you are overextended with the cc debt, 401K loan AND $0 in savings. I would want 3 months e-fund.

[Roc A Bee]

I think it looks good. I would probably save up 3 months of bare bones expenses or about $10000 in an efund then start throwing more money at your 401k loan until that is paid back.

[taylormade]

I had a 401K loan once and couldn't adjust the payoff schedule. My only option was to pay it in full or to continue on the payment plan. I was a little bummed finding that out. Obviously all loans are different, but that was my experience.

[aspentosh]

Aug 27, 2012 17:51:06 GMT -5 madringal said:

Aug 27, 2012 17:37:06 GMT -5 nuggetbrain said:

This budget is based on after our debt repayment.

$400 is just a really high amount for people looking to build up a savings. I'd take $200 of that and put it in a car fund.

I agree. After debt repayment you'll be trying to build and efund and car savings. That seems more important than eating out so much.

Otherwise, I only find ~$100 between dropping Hulu/Netflix and shopping around for car insurance and cell phones... Good job!