Income question and budget critique

[rbec820]

I'm 24 and getting married this month and also plan on attending night classes 2 nights a week, in addition to working my day job 8-5.

I've also been cutting grass on the weekends for last several years now and it's been great supplemental income. However between my upcoming marriage, going back to finish my degree and how physically demanding/time consuming yards can be, I'm thinking of quitting.

Our take home is around $3,250 a month from our day jobs and I probably take home approximately $700-$800 from yards during the spring/summer months and about $400-$500 during the remaining months.

We're on baby step 2 and have $6,200 in student loan debt. I've crunched the numbers and I know we'll "get by" with out the extra income, but I just don't want to regret quitting. Maybe I can find something less demanding...who knows.

Here's our mock budget (I say mock, because a lot of it is subject to change after marriage.) Please review and critique it, and also provide any insight on letting go of my supplemental money.

mortgage 730
power 85
water 40
tv & internet 125
auto ins 150
verizon 85
grocery 250
gas 250
eat out 200
misc 250
health ins 320
tithe 325
student loans (min) 150
total 2960

This leaves an extra $290 a month to go towards student loan debt.

[Missourimom]

$200 a month for eating out seems like a lot of money.

[gmarie]

How long until you finish the degree? Are your classes paid for by your employer? You didn't list tuition costs in your budget.

What is your reason for completing the degree? Is it for a better job, a raise, or is it just nice to have? I would seriously consider putting off additional school until you are done with BS2 (and even BS3).

Also, 250 for groceries and 200 for dining out is high. I would cut the dining out budget and then start working on reducing the $250 food budget.

Good luck!

[rbec820]

How long until you finish the degree?

I'm embarrassed to say, but I'm a little under the half-way mark for completing my degree.

Are your classes paid for by your employer?

I get reimbursed based on how I do in the class. 100% for A's, 75% for B's, etc.

What is your reason for completing the degree?

It's a requirement for keeping my job.

Also, 250 for groceries and 200 for dining out is high. I would cut the dining out budget and then start working on reducing the $250 food budget.

Yeah I can see where eating out needs to be reduced. And I wasn't sure about a reasonable budget for groceries, so I was going to adjust accordingly after we get married.

[Debbie-cat]

I agree with the eating out. It is quite high. When you combine that with your grocery budget yulounare spending $450 a month on food. I spend $300 for 3 adults, 1 dog, 2 cats and that includes health and beauty aids. The eating out is definitely a place where you can cut.

[nuisance26]

~School will take up a lot of your time. I think you're going to need your weekends for study and projects. Don't spread yourself too thinly!~

[Libby]

I agree eating out at $200/month plus $250 (though guesstimated) for groceries is a lot.

What if you kept the grocery budget at $250 and only allowed $100 for eating out/month (then slowly keep reducing it) for the both of you. Make a game of it. Start to menu plan and only buy whats on your grocery list for your menu plan that week - don't allow too many 'extras'. Have you considered batch cooking?

Question: How do you cook? Do you cook from scratch? Do you buy prepared foods from the grocery store counters - both hot/cold? (deli salads etc) Do you buy prepared packaged food items - bag salad vs making your own? Do you portion out your meals? Cook once for 4 servings = leftovers. Do you freeze leftovers or throw them away? Cooking from scratch and serving proper portions can make/save a grocery budget as well as your waistline.

With the weekend job - I'd keep it. Stick it out for the rest of the year if you can, extra income is always welcomed especially if you're slapping it right onto debt. Plus you have an upcoming wedding - extra expenses WILL pop up out of nowhere. I learned this firsthand myself recently. BTW CONGRATS!! The bonus of keeping the weekend job, you'll be getting your exercise as well. But, IF the weekend job becomes too much then I'd consider cutting back. Reduce the number of clients - maybe keep just one or two? (Not sure how many you have)

[gmarie]

I'm embarrassed to say, but I'm a little under the half-way mark for completing my degree.

I get reimbursed based on how I do in the class. 100% for A's, 75% for B's, etc.

It's a requirement for keeping my job.

Yeah I can see where eating out needs to be reduced. And I wasn't sure about a reasonable budget for groceries, so I was going to adjust accordingly after we get married.

Don't be embarrassed! I just finished my bachelor's degree last year at age 32. My big regret is that at the time I believed that student loans were "good debt," and financed 80% of it :-(

A full time job, two classes, a side job, and a new marriage is a LOT. And your ability to get A's will likely be affected by exhaustion.

If you were able to put off school for right now, kept your weekend job, and got gazelle intense, how long would it take you to be debt free?

Would your employer be okay with you taking one class right now while you get out of debt?

[shoiji]

I would look on how you can cut back on cable, internet and cell phone service. Really ask youself if you really need all the bells and whistles especially if you are going to school and working a full-time and part-time job. Many tv shows can be watched for free on the computer.

The food and eating out budget seems awfully high. I would say to first put about $100 aside from the eating out budget towards stockpiling the first month. Just keep the money in an envelope and use only to stockpile using coupons and sales. Once you have a good stockpile of foods you normally eat you can then wait until the items go on sale and use a coupon. It always takes a little more money to start a good stockpile. After you have a stockpile established you really do spend less money. I have reduced my grocery budget by $40 each month. Then reduce the eating out budget to less than $100 each month.

The tithe amount could also be lowered until you pay off you debts and established an emergency fund.

What you have listed is good especially when starting a budget. Can't help but think you may be missing some categories such as emergency fund and savings.

The idea to cut back on you weekend job may be a good idea or maybe your husband would be interested in picking up hours from your weekend job.

[rbec820]

Can't help but think you may be missing some categories such as emergency fund and savings.

I'll add these to the budget once we complete baby step #2.

The idea to cut back on you weekend job may be a good idea or maybe your husband would be interested in picking up hours from your weekend job.

My [future] WIFE doesn't know how to cut grass. But her mom does clean houses on the side, so that's something she might be able to do on the side in the future.

If you were able to put off school for right now, kept your weekend job, and got gazelle intense, how long would it take you to be debt free?

Would your employer be okay with you taking one class right now while you get out of debt?

I'm thinking we could pay off the student loans by January or February, if I didn't stop mowing lawns.

I think my employer would be be happy with my efforts, but I don't know that one class would satisfy them. I might could get by for just this semester, with the whole marriage thing in all.

I'm pretty annoyed because I just realized that two classes at my local university will cost $250 more than I was originally told/anticipated. They have so many outrageous fees for things that I will never use. Very frustrating.

[mndtrp]

Are you not able to reduce the amount of lawns you care for?

[gmarie]

How long have you been working for the company? When was the last time you took a class?

I do believe that education is a want not a need and should come AFTER being debt free and you can pay in cash. Especially since it will only take you until Jan. My answer may have been different if it would take you a few years.

However, if your employer is insisting you take classes, you may have no choice. But, I would either offer to take one right now, and focus on the debt snowball, and THEN put all of your effort into classes. You are going to lose money if you don't get As.

If you absolutely must take 2 classes now, I would put the part time job on hold until you are at least settled in the classes and have your study schedule figured out.

I completely burnt myself out working a full time job, classes at night, side jobs and volunteer work on top of it all. I don't recommend it!

[Anna43]

I think you should give up the mowing job and put your time and effort towards achieving excellent grades and having your employer pay 100% of school costs. That would be better than keeping the mowing jobs and ending up paying tuition. I doubt you could do both.

Okay, on your budget. You need to keep track. That means write down every penny spent and put it on paper in the proper category. Until you know what you ACTUALLY spend there is no way to make a realistic budget. You haven't included a repair/ maintenance amount for home, household or auto upkeep/repairs. Perhaps the $150 eating out could be put into repair/maintenance keeping $50 for eating out.

Sometimes the things you do daily without thinking about them can add up. Buying soda or water from the machine, picking up a coffee, grabbing a sandwich at the deli can add up to major dollars. On the other hand, buying soda at the grocery store (on sale with a coupon), making coffee at home, and carrying your lunch can quickly lower or eliminate those expenses. The key is to become aware of where your money is going so you can make decisions based on facts not guesses.

Have you and your fiancee actually sat down and made a budget together? You really should do that because its likely she has things that are important to her that she will want included. Personal supplies, make up, haircuts, perms etc. come to mind.

You have a good start -- you are actually thinking and planning a budget. You'd be amazed at the number of people who never manage to take that first step!!

[khaski]

an the $250 mic. be cut back too? not sure what that coves for you guys, but you might be able to cut back some there.....and I would take a hard look at quitting ALL the jobs vs. keeping only 1 or 2....

[gmarie]

an the $250 mic. be cut back too? not sure what that coves for you guys, but you might be able to cut back some there.....and I would take a hard look at quitting ALL the jobs vs. keeping only 1 or 2....

I'm told that $150 should be enough for two people! Still working on that!