Okay here's the deal. I'm better with money now since I've been living with J. I don't have a huge cushion, but I've been trying to pay some debt.
Please bear with me and I will be patient with responses. I know my past has been shitty with money.
I am claiming Chapter 7 bankruptcy. I've been working with an attorney since last July. I have been having a hell of a time getting the money together for him because I need to give him $1300 (including retainer and filing fees) before he can start filing my bankruptcy. In the past year I had given him $225.00. So I owe him $1075 before we can get this ball rolling and my bill collectors will stop harassing me.
My budget looks like this: $1500 a month. I pay: $260 for my car $80 for insurance $110 for phone $250 for groceries $150-200 for gas and probably $200 on extras...helping with rent/netflix/eating out sometimes...I don't *have* to pay rent. J pays the mortgage, but I try to help out or bring him dinner to work or if we need anything like paper products/shampoo/non food essentials.
What can I do to not be so frivolous with my extra every month so I can pay this off. Once I'm paid off, I will be comfortable with putting any extra in a savings account.
The underlined are things I cannot change right now.
What do the ladies of SO say?
Right now, I pay cash for everything. I've been pretty good with not over spending, but I'd like to cut back a little more to get this going.
Post by dakotadangerdog on Dec 7, 2012 15:50:41 GMT -5
Drive the bare minimum so you spend less on gas. You may be able to get a cheaper phone plan, go into a verizon or whatever you have store and talk to the people there. Last time I went in I saved 20 bucks a month just by dropping my monthly minutes but I still have unlimited text and data. Spend less on groceries. Don't eat out or get netflix. Don't pay J's mortgage.
1. I've said it before and I'll say it again - now is not a good time for you to be having a baby.
2. Will you be getting a tax return this year? Could you use money from that to pay the bankruptcy attorney?
1. Yes, I understand/agree but I can't give it back now.
2. I don't really even know. I got $60 back last year. This year I have to file for a partial year married/rest single, so I don't know what to expect at all. I also lived in 3 cities with higher tax brackets this year, and worked multiple jobs. Normally when I work more than one job, my tax return is close to $0 or non-existent so I'm not really banking on that one.
If you take home $1500 a month and you spend what you claim you are spending here (both the underlined and the non-underlined) you should have a $600 a month cushion.
You need to literally write down every penny you spend next month to see where that extra is going. That will be a better illustration of what you can cut and what you can't.
The scary part is, once the baby comes, where will you get the money for diapers, childcare and formula. I put formula because even if it is your intent to breastfeed, that doesn't always work out so you need to at least thing about the expense. And it is expensive. My son is 6 and I spent $25-30 a week on formula when I had to stop breastfeeding him.
Ugh, this is why things like getting J a new phone and asking about Christmas gifts got the side eye from me. We've told you before to downgrade the car. That's the best option. Nevermind, I saw you can't change it. Groceries you need because you're pregnant.
Why can't you just put the extra $200 in savings and not do presents and eating out?
Also, where is your copay for doctors visits and bills? Those will add up after the baby.
Luckily my insurance does one co-pay for maternal services. I pay $20 once and won't have a bill until the baby is born, then I plan on making payments.
Ugh, this is why things like getting J a new phone and asking about Christmas gifts got the side eye from me. We've told you before to downgrade the car. That's the best option. Nevermind, I saw you can't change it. Groceries you need because you're pregnant.
Why can't you just put the extra $200 in savings and not do presents and eating out?
Also, where is your copay for doctors visits and bills? Those will add up after the baby.
yup. i will bet you 1million nest dollars you CAN change your phone plan. you CAN downgrade, call your provider. Why can't you change your car payment? Sell it and get a clunker? Or sell it and use public transportation? I don't think you are willing to change things when you are already saying *non-negotiable* about negotiable things. i suggest you post this on MM. They have really good with this stuff.
Yes for the household. I pay for groceries because he pays the entire mortgage. He doesn't make me pay for anything else in the house.
What are you buying? Are you couponing and shopping for sales?
I grocery shop every 2 weeks. I get basics like milk/bread (I buy 2 loafs and freeze one), lunch meat, veggies, meat/chicken, pastas and stuff. Dog food once a month (we buy an 18 lb bag). I sometimes will spend $100 for 2 weeks. Sometimes it's more. I try to buy things on sale but I don't use coupons because I don't get the paper and I always forget to print them from work. I probably should sit down with the sales flyer and pick what to buy that way. I'm sure that will save a lot more money.
Also your comment about filing part of the year married and part single makes no sense. You file your taxes based on what your marital status is on Dec. 31 of the tax year.
Same with dependents. You don't file for have a dependent. If your kid is born before Dec. 31 of that tax year, you claim a dependent for the whole year.
Are you perhaps referring to your tax with holdings from your paycheck? If that is what you mean, yes you will have to switch from single to married when you get married and that will change your tax liability come filing time, but you can plan for that by having more with held while you are still claiming single on your paycheck and then adjusting your with holdings when you switch to married. You can change your with holdings whenever you want during the year by filling out a new W4 and giving it to whoever processes your payroll.
Ugh, this is why things like getting J Luckily my insurance does one co-pay for maternal services. I pay $20 once and won't have a bill until the baby is born, then I plan on making payments.
That's funny. Because when I mentioned this before you told me that there wouldn't be any bills after the birth. You really have no idea what you're in for and it makes me sad because you really are going to struggle just to make ends meet. Might as well wait until after the baby is born and then bankrupt out of the hospital bills too.
What about copays for the baby? Will there be an increase in cost for adding the baby to insurance? Do you have paid maternity leave?
I have 6 weeks paid maternity leave. I will be using some of my vacation to take off 8 weeks paid total.
Either myself or J will add the baby to our insurance and I don't know how much it will cost but I already accounted for that because it comes out of my paycheck. I make $1500 a month take home after insurance/benefits/401k.
Do you have an HMO? If so, you should be able to call and ask what your out of pocket will be for the delivery -- it's usually a flat one time fee with HMO. Mine was like $250 for the entire hospital stay for me and ds (including all the fees associated with c-section birth, after care for both of us, etc). Save $100 of that each month and you will have the cash and not need to make payments. You need to minimize your required payments now so you can afford baby-related necessities.
I don't use coupons because I don't get the paper and I always forget to print them from work. I probably should sit down with the sales flyer and pick what to buy that way. I'm sure that will save a lot more money.
I think this is key. I always look at the sales flier and plan my meals that way. I think you can get it under $250 if you work really hard at it. Maybe try to eat less meat and more beans (super cheap if you buy dry).
Also I think for now eating out is off the table. Why is gas so high?
Ugh, this is why things like getting J Luckily my insurance does one co-pay for maternal services. I pay $20 once and won't have a bill until the baby is born, then I plan on making payments.
That's funny. Because when I mentioned this before you told me that there wouldn't be any bills after the birth. You really have no idea what you're in for and it makes me sad because you really are going to struggle just to make ends meet. Might as well wait until after the baby is born and then bankrupt out of the hospital bills too.
As far as I know, and I tried to look this up and asked a friend from work who has my insurance who just had her baby.. I will get billed $250 for the birth and hospital stay. Possibly more if there are complications but if I'm looking at $250 I can handle that.
What about copays for the baby? Will there be an increase in cost for adding the baby to insurance? Do you have paid maternity leave?
I have 6 weeks paid maternity leave. I will be using some of my vacation to take off 8 weeks paid total.
Either myself or J will add the baby to our insurance and I don't know how much it will cost but I already accounted for that because it comes out of my paycheck. I make $1500 a month take home after insurance/benefits/401k.
You really need to figure out how much it's going to be to put the baby on your insurance. It costs me about $160 a month to have my daughter on my insurance. And maybe also see if you can insure the baby through your state. You may qualify and it will probably be cheaper for you.
Either myself or J will add the baby to our insurance and I don't know how much it will cost but I already accounted for that because it comes out of my paycheck. I make $1500 a month take home after insurance/benefits/401k.
That is what your take home is NOW when you are only insuring you. I have fabulous insurance coverage -- they are very generous here -- and I'd have to pay $200 a month out of my paycheck to add ds. You may want to look into what your share of the baby's health insurance will be so you can actually account for that. Don't assume it will be the same as it is to just insure you, because more likely than not, it won't be.
I'm bad with money, so I'm staying out of this except to say that it looks like you've gotten some good suggestions in here. And ask over on MM again, too. They ARE really helpful.
What are you buying? Are you couponing and shopping for sales?
I grocery shop every 2 weeks. I get basics like milk/bread (I buy 2 loafs and freeze one), lunch meat, veggies, meat/chicken, pastas and stuff. Dog food once a month (we buy an 18 lb bag). I sometimes will spend $100 for 2 weeks. Sometimes it's more. I try to buy things on sale but I don't use coupons because I don't get the paper and I always forget to print them from work. I probably should sit down with the sales flyer and pick what to buy that way. I'm sure that will save a lot more money.
Yes to the bolded. Also, sometimes you can get meat really cheap if the sell-by date is that day or the next day. Some grocery stores have a special section for markdowns like that, others just put stickers on the food. Look for those.
Also, vegetarian meals are usually cheaper than ones with meat. Get your protein through beans--they're cheap and nutritious. If you or J are the kind of people who cannot deal with a meal without meat (FI is, so no judgement), use ground meat or chopped up meat--you can stretch it a lot further than, say, chicken breasts or steak. Example--I buy a 1 lb package of chicken breasts. There's probably 2 or 3 in there. If I cook them whole, FI views that as 2 or 3 servings. If I chop it up into bite-sized pieces in a stir-fry or pot pie or pasta or whatever, I can get 5 or 6 servings out of it, because he sees meat in there but doesn't realize that there's less of it.
I put $25-40 in my tank a week depending on if I'm driving farther that week. I over estimated on gas, but I'd like to be safe and always have money for gas. J does public transportation to work. We only have one car right now.
I really appreciate the help. I'm really trying hard to get my shit together and I need all the help I can get. I have good intentions and the first step is asking for help, right?
You have not answered WHY your phone and car are non-negotiable. MY cell plan is less than yours with data, which I don't NEED, but CAN afford. you CAN get rid of data, go to a smaller plan, etc, downgrade your phone, you just don't WANT to. this is the problem. You confuse needs with wants.
You have not answered WHY your phone and car are non-negotiable. MY cell plan is less than yours with data, which I don't NEED, but CAN afford. you CAN get rid of data, go to a smaller plan, etc, downgrade your phone, you just don't WANT to. this is the problem. You confuse needs with wants.
The car thing is fucked up but I love my car. It was bought for me (I have to pay it off), by my mom as a sort of gift. She never would have done that for me but she felt bad about everything I've been through. She bought it for me right after I got out of the hospital. I know it was a little frivolous, but I love love love my car and I am being selfish with that one. It means a lot to me because my mom and I never got along. It took us years and years and this was kind of the peace offering from her to help our relationship. The phone thing is true. I can downgrade. I may downgrade.
You have not answered WHY your phone and car are non-negotiable. MY cell plan is less than yours with data, which I don't NEED, but CAN afford. you CAN get rid of data, go to a smaller plan, etc, downgrade your phone, you just don't WANT to. this is the problem. You confuse needs with wants.
The car thing is fucked up but I love my car. It was bought for me (I have to pay it off), by my mom as a sort of gift. She never would have done that for me but she felt bad about everything I've been through. She bought it for me right after I got out of the hospital. I know it was a little frivolous, but I love love love my car and I am being selfish with that one. It means a lot to me because my mom and I never got along. It took us years and years and this was kind of the peace offering from her to help our relationship. The phone thing is true. I can downgrade. I may downgrade.
Look, I don't mean to be a bitch, but you ARE being selfish about your car. You need to put that selfish attitude aside and think about your kid. What's more important? A car you love with a payment you really can't afford, or peace of mind knowing that you can afford all the necessities of having a baby?
You still haven't answered my question about your plans for child care and diapers and formula. That is a HUGE expense and you need to think about it now, before you have a baby crying at you and are lacking sleep. Plus, in many area there are waiting lists for the good centers, so that's something else to consider.
The car thing is fucked up but I love my car. It was bought for me (I have to pay it off), by my mom as a sort of gift. She never would have done that for me but she felt bad about everything I've been through. She bought it for me right after I got out of the hospital. I know it was a little frivolous, but I love love love my car and I am being selfish with that one. It means a lot to me because my mom and I never got along. It took us years and years and this was kind of the peace offering from her to help our relationship. The phone thing is true. I can downgrade. I may downgrade.
Look, I don't mean to be a bitch, but you ARE being selfish about your car. You need to put that selfish attitude aside and think about your kid. What's more important? A car you love with a payment you really can't afford, or peace of mind knowing that you can afford all the necessities of having a baby?
You still haven't answered my question about your plans for child care and diapers and formula. That is a HUGE expense and you need to think about it now, before you have a baby crying at you and are lacking sleep. Plus, in many area there are waiting lists for the good centers, so that's something else to consider.
We are cloth diapering for sure. J and I work opposite schedules so we will only need an hour or two of childcare coverage between when I get off work and him going in. My dad is retired and he already told us that he and my mom will gladly take the baby for a few hours every day. And that will be free. I plan on breast feeding and I know it doesn't work for everyone but I will try and if it doesn't work out then we will have to use formula.
You make $1500 a month and can barely support yourself. How the heck are you going to support a baby? Do you know how expensive it is to raise a child? What are you going to do about childcare? That in and of itself is crazy expensive.
Like others said, ditch the phone plan and get a regular phone and pay $40 a month. Sell the car, I know you have an emotional attachment to it but the payment alone could save you tons. I hope you take all the advice given here and make some changes. Im rooting for you, and hope you are able to make ends meet in the long run but in order to do that something has got to give.