Trying to Prioritize

[bee9984]

I have not been on here to post in quite some time except for yesterday with regards to finding a dave ramsey website. To give an update:I have not been with my ex for 2 1/2 years. My children all live on their own with my youngest child in her 2nd year of college living in another province. I have had a rough go of it over the past 2 1/2 years but things are starting to actually look up for me financially, I am living in a small town and have 4 part-time jobs as full time employment here are few and far between. I have an apartment but will be giving that up to share an apartment with one of my best friends and her son...she will soon be an empty nester too. I am currently paying $635 for rent/power/phone/internet. That number will go down to $250 a month when I start sharing a place with my friend. (We are like sisters so I am not worried if we will drive each other crazy). I will have a savings of $385.

I do have a boyfriend who is a single dad with two boys ages 10 and 14. We have been dating for almost 2 years now and have been talking about possibly buying a house this upcoming summer. I do not feel like we are on the same page when it comes to managing money and I plan on picking him up "the total money makeover" by Dave Ramsey for him to read. I need to go over his book again as well.

I will be current on all of my bills within the next couple of weeks along with my only debt paid in full, I have no car payment( paid cash for my car 6 years ago), I will have a baby emergency fund of $1000. I have a retirement savings although I will be taking a small percentage each month to help compensate my monthly income and to pay for my daughters bus pass and some food each month as her father is paying for her college. My daughter is also working while going to school.

I am wondering what comes next? What should I be thinking about? A bigger emergency fund? I want to save money towards owning a home.....I just feel so lost with trying to get back on track

[bee9984]

I have been going over the baby steps and will just start there. I need to fund the baby emergency fund which I can do within the next week or two as I am waiting for my income tax to come in,(long story about why it was so late with getting sent out ) ... I will have enough to fund my baby emergency fund, get caught up on any past due accounts, and pay off my one debt. So within a couple of weeks baby steps one and two will be completed. I will worry about baby steps 3 through to 7 after that but I do have some ideas . I guess that I just needed to clear my head, focus, and Simplify as I have had so much going on in my life. It really is hard doing this alone but I am determined to start living like no one else

[shoiji]

I would make sure to discuss with your friend on how much utilities will cost, if you will have a separate line or just cell phone, what type of internet connection you will use, and how food will be purchased. Knowing all this before you move in will help you figure out a budget and make the financial side of living together out in the open.

It is great you will be able to getting more savings soon!

[khaski]

If you don't live together yet, fully, I would give that a whirl before committing to purchasing a home together. Sounds like you've gotten yourself on track though- good job!

[gmarie]

I have also had multiple part time jobs so I understand what that's like!

Have you thought about taking DR's class together after reading the TMMO?

Also, I'm not sure that taking money out of your retirement for your living expenses in a great idea, especially when you will have the savings from your move. Also, does your daughter really need the money from you if she is getting help from her dad and working? I'm sure it feels good to be able to help, but maybe that can be put on hold while you focus on your finances?

My parents cut me off completely at 18 (aside from xmas and bday gifts), and not having anyone to fall back on in my 20s was more of a help than anything.

[bee9984]

My best friend and I have already gone over the details Her apartment includes heat and lights. I can use her phone and pay for any long distance calls that I would make which are not many. I will buy my own food or I can always give her some extra on that.

I am at my boyfriends a lot but he is living in a low rental, rented out to low income families by the town. I do not want to put my name on his lease as it goes by income and it wouldn't be feasible for me to do that. They charge 25% of everyone's income. Not that I make a lot of money but I have a retirement fund which I have access of up to a small percentage...which I will be starting to use the end of every month starting the end of this month (Jan) to help compensate my cost of living....I have four part-time jobs, two of which I am my own boss and seems to be picking up. With our incomes combined we could get a reasonably priced home and we are thinking on maybe this summer but it might not happen this year.

I only have myself to count on though when it comes to the financial aspect so I have to pinch my pennies, and also plan on joining a few challenges on FV. If We do buy a home eventually we would go halves on the mortgage, hydro, taxes, etc...My boyfriend is on disability and as his boys reach a certain age his income will be going down.

[bee9984]

I have also had multiple part time jobs so I understand what that's like!

Have you thought about taking DR's class together after reading the TMMO?

I would love for us to take a class together but I am not sure if they offer it in Canada? Maybe online? I am hoping once he reads the book he will understand that yes, it doesn't matter how much you make it is how you save and spend it even if the savings are very little to start off with. He has no debt but I find it hard seeing the way he spends his money...it is his money though but if we were to get a home together we would have to discuss that part of it, example how we spend our money on groceries.

Also, I'm not sure that taking money out of your retirement for your living expenses in a great idea, especially when you will have the savings from your move. Also, does your daughter really need the money from you if she is getting help from her dad and working? I'm sure it feels good to be able to help, but maybe that can be put on hold while you focus on your finances?

I have thought of this as well. I can stop at anytime taking money out of it. I am however wondering if I should take out enough to fully fund my emergency fund for baby step #3. It is an odd retirement fund. The way it is locked in I can take a small percentage out every year whether I want it all in one lump sum or divided up monthly, quarterly etc..Once I reach 55 years of age I can move 1/2 of it to an RRSP and compensate my cost of living...I will never be able to take out the other 1/2 but can still take out a small percentage of the remaining balance each year or month. Anyhow I will never be able to take all of it out so I will always have that extra until the day I die. Once I do pass away however there is no hold on any of it and will go to my children and they can spend it all or do with it whatever they choose.

My parents cut me off completely at 18 (aside from xmas and bday gifts), and not having anyone to fall back on in my 20s was more of a help than anything.

I have not been able to help my daughter very much although last year I paid for her books for college and bought her a computer. She is making good money so maybe I will think about that and maybe start putting together "care packages" and mailing them off to her but I would still like to at least pay for her bus pass each month which is $60 to $70 (I have to find out the exact amount) My daughter will be 19 next month.

You all have given me some great ideas to think about and I am so thankful for that.

[my4littlebuffaloes]

Well because you only have yourself to depend on, I think it is very important that you increase your EF to at least 3 months of expenses. On top of that do you have a sinking funds account set up? Eventually you will need to buy a newish car - start saving now. A sinking funds account would likely cover ins premiums, car repairs, etc. Good luck, you are on the right track!