Post by ri49ers4life on Apr 18, 2014 18:49:25 GMT -5
I just sat down and put all of my transactions into an Excel Spreadsheet (including by category). Now I am trying to make a realistic budget for the new apartment, however the past few months I had lots of shopping to set up the new place and had to pay the security deposit and first month, as well as not knowing the utility bills for this place.
Things I do know:
Income $1600/month (this is my non-overtime pay)
Rent: $725
Car Insurance: $218/6 months (up again in August)
Renters Insurance: $217/year (just paid due again April 2015) Cable: $100
Cell Phone: $50
Electric (cooking and heat): Varies
Savings: $25 auto (put more in when I can)
MC: $40 min. $2300 balance Furniture: $80 min. $2540 balance
Gas (Car): $90/month
Groceries: $200/month
Netflix: $7.99
Household and Cash: $40/month each
Fun Stuff Clothes I am currently good on and will buy more when I can financially , I shop consignment shops too I do get gel manicures every 3 weeks and go to a salon for my hair every 3 months. $30/nails $115/hair
My car is not passing inspection next month and I am planning on buying a new vehicle, I am looking at getting a 2011/2012 Civic or Fit.
If you average $75/month for electric then it looks to me like you have already spent $1600. How are you going to be able to afford a new car? Even on the low end you will pay $15k for a 2011/2012 honda. Do you have any money saved for this? If not, I would think you are looking at about $250/month for a car payment or more. You can save some by getting a car that is a few years older than this but still reliable. A 2008 honda will probably last you at least 5-7 more years before you have major problems. DH used to have a civic and we didn't have trouble with it until it was 11 years old and had 140,000 miles.
You could cut cable and just keep internet (I'm assuming this is combined in that bill) and stop getting your nails done and this will give you a little extra but you will still be short. Also, $725 is a pretty high rent for your income. I know you usually have overtime but something like that can never be guaranteed.
Your rent, renter's insurance, and electric (if it averages $50-$75/mo) is 50% of your income. I know you just moved in but do you have to stay there forever? Is there anything cheaper?
I wouldn't get a car if you are counting on the overtime to cover the payment. That is very risky.
Without even running the exact numbers, I made about that amount when I graduated from college and paid about that in rent with a Honda civic car payment. I lasted 6 months before I had to pick up a job waiting tables at night and eventually had to move.
Post by ri49ers4life on Apr 18, 2014 19:11:50 GMT -5
The cable bill is internet, tv and phone (house phone is for the bundle savings and to get free installation) and I just signed up for it.
My current car is a 2000 Honda Civic that I spent $2,300 on last year, and will be another $1,000 to bring to legal (lower ball joints need to be replaced and brake lines).
I am not counting on overtime to cover payment but it will be used towards debt pay off. My pay checks average around $840 with no over time but decided to round down for budget wise. I have all of my April bills paid, so I have money from this paycheck that will carry over to next month. I plan on using the 3rd paychecks to go towards debt.
Also, I would work really hard at getting some of your cc debt down, try to pay more than the minimum with your overtime. You will get an outrageous interest rate for a car with that high of a debt to income ratio. I would pay as much off as I could before applying for a loan. Is your car insurance liability only? This number seems low to me. Factor in that you might have to pay more for insurance for a new car. I would cut out cable, hair and nails until you can get your debt down.
Post by ri49ers4life on Apr 18, 2014 19:15:43 GMT -5
My aunt is a hair stylist so I could get my hair done for free, so I can cancel those. Yes right now my car is liability only. I know it will be go up with the new car. As my inspection sticker expires next month, the month of May to buy a car.
I just totaled everything in excel and I got 1614/month, assuming $100 for electric. Your income before overtime is 1600. That's not including a car payment...
If it were me in the situation (and I have been there), I would cut cable, manicures, and get cheaper haircuts twice a year. It's tight still even then if you add a car payment. You may need to get a 2nd job if the overtime isn't consistent?
Have you called for insurance quotes for a new car? I'm not trying to discourage you but things seem really tight and I wouldn't want you to end up in more debt. I would get a second job for awhile to get out of the hole.
Post by ri49ers4life on Apr 18, 2014 19:29:29 GMT -5
The household and cash spending is if I need something for the apartment. My checks tend to be mid $800 for take home, so there is some wiggle room above $1600.
Post by ri49ers4life on Apr 18, 2014 19:32:21 GMT -5
I will be using the same company I have been. I have been with Progressive for 7 years now. I am hoping we get some overtime approved here and there to help pay down the credit cards.
The cable bill is internet, tv and phone (house phone is for the bundle savings and to get free installation) and I just signed up for it.
My current car is a 2000 Honda Civic that I spent $2,300 on last year, and will be another $1,000 to bring to legal (lower ball joints need to be replaced and brake lines).
I am not counting on overtime to cover payment but it will be used towards debt pay off. My pay checks average around $840 with no over time but decided to round down for budget wise. I have all of my April bills paid, so I have money from this paycheck that will carry over to next month. I plan on using the 3rd paychecks to go towards debt.
I would keep your current car & pay the 1,000. That's a LOT less than a newer used civic - around 15k as another poster said.
Post by ri49ers4life on Apr 18, 2014 20:10:13 GMT -5
Since I have owned this car, I replaced the motor not even a year into buying her, fixed the exhaust multiple times until I replaced it, spent $2,300 last year, and now another $1,000 doesn't really seem worth it for a 14 year old car with almost 200k miles.
Post by ri49ers4life on Apr 18, 2014 20:25:31 GMT -5
each time it has been a new major repair. engine replaced was due to prior owner running her with oil. The exhaust would break in a new place. I think it was after the second break I replaced it. I know the insurance is going to go up.
Post by ri49ers4life on Apr 18, 2014 20:28:59 GMT -5
I have survived on this income amount in the past (though it was two people's income) with a car payment and credit cards. I just have to be smart about things. I had nothing in savings at that time. Finding a second job would be hard as I live about 30 minutes away from my work, so on days I work till 5 I would get home at 530/6, and then 1 day a week I work til 7. So I could just give up my weekends and work 7 days a week, but I have done that in the past and worked myself sick.
each time it has been a new major repair. engine replaced was due to prior owner running her with oil. The exhaust would break in a new place. I think it was after the second break I replaced it. I know the insurance is going to go up.
So how are you going to pay for the new car and higher insurance? -Suze Ormond
Post by ri49ers4life on Apr 18, 2014 22:14:19 GMT -5
I don't know really. I can't cut cable then I will have absolutely nothing to do at my apartment by myself. I know things are tight, but I was hoping for other ways to save, i.e. maybe food ideas. I have already changed my tax with holding today, which was recommended. I do plan on changing the hair and nails habit. I guess I just always find a way to make things work. Last summer I found a way to pay rent on a $1,000/month apartment, pay the bills and have the XH spend as if he was still helping to pay. Luckily my work had a bunch of overtime, though I did have to put things on the credit card and dig into our savings. I am hoping to drop one credit card by at least $800 next month.
I don't know really. I can't cut cable then I will have absolutely nothing to do at my apartment by myself. I know things are tight, but I was hoping for other ways to save, i.e. maybe food ideas. I have already changed my tax with holding today, which was recommended. I do plan on changing the hair and nails habit. I guess I just always find a way to make things work. Last summer I found a way to pay rent on a $1,000/month apartment, pay the bills and have the XH spend as if he was still helping to pay. Luckily my work had a bunch of overtime, though I did have to put things on the credit card and dig into our savings. I am hoping to drop one credit card by at least $800 next month.
What about cutting cable and watching tv online? Or going down to the most basic package. Before my H, I watched tv this way. Redbox sends out free movie codes.
Food ideas? Hmmm....do you have a community garden? Or Googling $5 budget meals or something. Do you use coupons? That is all I've got.
I divided your car and rental insurance out to see what it would be per month. That way, I think you have $200 left over. I would stop the hair and nails, and probably through $1000 at the car to fix it.
Post by ri49ers4life on Apr 19, 2014 7:05:50 GMT -5
This is my first month in the apartment, so I am trying to create a budget now, before I started to receive any bills. I did want to buy a car once my credit cards were paid down. If I repair now and kill the credit cards by next year I can try to buy one at tax time. I just feel like it is a waste to keep throwing money at her, but the budget would be incredible tight.