Thoughts on my budget please...

**LexTysMommy** · 07-24-2008, 07:20 PM

I saw some other budgets posted thought I would get your advice on mine. Not much $$ to play with, but need to know what you would do.

First off I am single only income self employed through daycare so my income varies every week/month/year and could change at any time. Ugh.
Mortgage : $1216/mo (15yr@5.75% owe 14 more years)
Internet : $12/mo

Taxes: $0 (none due until Jan 09 then its $3000/yr)
Insurance: $1044 due Aug 31 for year (then wont owe til sept 09)

Utilities Listed are paid through December as I make more in summer and threw extra money toward this just in case. So numbers below are usually what my bills are each month and starting in January.

Home Phone: $38 (need this with daycare)
Cell Phone: $65
Water: $27
Cable: $55 (in down to basic)
Electric: $200 (i pay this regardless so winter months arent so bad)

Extras:
Gas:$150 (fill up about once every 24 days, so could be less.)
Grocery:$150
Out to Eat:$100(we spend about this or little less each mo)
Going out:$60 ( 3 times a month to keep my sanity!)
Stores:$200 ( i dont write exactly but this is for bdays, clothes, household, yard stuff, school stuff, Christmas, etc. I NEVER go over $200 a month so this is worst case)

So I figure for
*August income$4600. bills/extras $3000 for leftover of $1600
*September income $3500. Bills/extras $1900 for leftover of $1600
*October income $2700.Bills/extras $1900 for leftover of $800
*November income $2100. Bills/extras $1900. Leftover of $200
*December income $2100. Bills/extras $1900. Leftover $200

I have $5000 in EF. I have no car payment or credit cards w balances.

As you can see come January I will have to pay my $385 in utilities to pay and with making $2100/mo , my bills/extras are at $2285. That is not even counting taxes due January 2009.

Following me yet? So this is why I pay things in advance while I can. So what should I do with leftover money? Everytime I make budget I think maybe throw toward mortgage since my only real debt? but then I think maybe make EF bigger? what are your thoughts on anything I wrote above.

Thanks!

**Greebo** · 07-24-2008, 08:05 PM

I'm more worried about your mortgage. With an income of $2100, $1200 is MORE THAN HALF your income.

As a single mom, I'm inclined to think that you're in too much house, right off the bat.

If you're determined to keep it, then you need to build up your emergency fund to 6 months expenses to get you through the drier months. I calculate that as needing to bank 14k.

AFTER you bank 14k, then start thinking about retirement and let the mortgage tend to itself. At least until you are able to put at least 15% into retirement. Until then, I wouldn't even consider paying more on the mortgage. 15 yrs is fairly fast as it is, given your circumstances.

**meanestmom** · 07-24-2008, 08:05 PM

Wow the thing that jumps out at me, is that between your mortgage and property taxes, you are paying about $1500 a month just for your housing. On a $2100/month income, that just isn't a reasonable amount. Can you make more per month? Why do you make so much more per month during the summer? What is your actual average monthly income year round? Your housing shouldn't be more than 28% (ours is only 15%) of your pay. So if you figure you can make at least 2100 per month, your housing should be somewhere between $600-$650

**LexTysMommy** · 07-24-2008, 08:12 PM

I could make up to $5000 a month. I net about $50,000 a year. I do daycare. I can have 8 kids, and as of now only will have 3 starting in september. And in summer I am full with school aged kids. So if I get more kids to start in september that will be at least $600 more a month per kid. IF. This is the worst with economy, and no calls in a while.

I just refinanced my mortgage. After divorce everything was still in his name because of me being self employed. So 2 years later I decided to go for it after being debt free. I pay now on a 15 year what i paid then for 30 year mortgage because I got good rate. I paid this much for about 4 years now, so I guess I never thought of it as BAD.

**Domestic Gal** · 07-24-2008, 08:12 PM

I do not see any health or life insurance? Is the insurance you pay include this?
What about co-pays and RX co-pays?

**Greebo** · 07-24-2008, 08:29 PM

I'm only saying the mortgage is bad in the months where your income is low. However, if you are saving up extra during the good months to carry you through the bad months, then you're mortgage will be no problem. You just need to be on top of it. For net 50k, the mortgage is a TAD high 28% - but not terrible.

**LexTysMommy** · 07-24-2008, 08:32 PM

Originally Posted by Domestic Gal

I do not see any health or life insurance? Is the insurance you pay include this?
What about co-pays and RX co-pays?

No life insurance. Health insurance for kids is covered by ex. I am paid up until 2010 sometime. Co pays for me are $2 and medicine $4. Kids co pays are $0. That is why I did not include in. Thanks for bringing up though!

**ladykemma2** · 07-24-2008, 09:32 PM

start working in those huge annual bills and put the money aside monthly. i think you're doing great!

3000/12 = ?

edited to add: are you paying the gummint social security and income taxes monthly, quarterly, or annually?

**nodmicks** · 07-24-2008, 10:06 PM

Wow I think you deserve a big hand! Your obviously very frugal and a wise spender to have handled the mortgage at that % of income for 4 years and have no cc debt and an ef! Good for you on the shorter loan term too.

If you have left over $$$ I'd definately add it to the ef. You can't go wrong with a little more cushion.

**Wendy99** · 07-24-2008, 10:40 PM

Originally Posted by nodmicks

Wow I think you deserve a big hand! Your obviously very frugal and a wise spender to have handled the mortgage at that % of income for 4 years and have no cc debt and an ef! Good for you on the shorter loan term too.

If you have left over $$$ I'd definately add it to the ef. You can't go wrong with a little more cushion.

I totally agree!!! Good job!!!

**mamamia** · 07-24-2008, 11:48 PM

Originally Posted by Wendy99

I totally agree!!! Good job!!!

I totally agree too! You really have a great sense of smart spending and finances. Gotta admire you for that!! A 15 yr. motgage? EXCELLENT!!!!!

Very inspirational!!

Theresa

**MomToTwoBoys** · 07-25-2008, 01:13 AM

Originally Posted by LexTysMommy

I saw some other budgets posted thought I would get your advice on mine. Not much $$ to play with, but need to know what you would do.

First off I am single only income self employed through daycare so my income varies every week/month/year and could change at any time. Ugh.
Mortgage : $1216/mo (15yr@5.75% owe 14 more years)
Internet : $12/mo

Taxes: $0 (none due until Jan 09 then its $3000/yr)
Insurance: $1044 due Aug 31 for year (then wont owe til sept 09)

Utilities Listed are paid through December as I make more in summer and threw extra money toward this just in case. So numbers below are usually what my bills are each month and starting in January.

Home Phone: $38 (need this with daycare)
Cell Phone: $65
Water: $27
Cable: $55 (in down to basic)
Electric: $200 (i pay this regardless so winter months arent so bad)

Extras:
Gas:$150 (fill up about once every 24 days, so could be less.)
Grocery:$150
Out to Eat:$100(we spend about this or little less each mo)
Going out:$60 ( 3 times a month to keep my sanity!)
Stores:$200 ( i dont write exactly but this is for bdays, clothes, household, yard stuff, school stuff, Christmas, etc. I NEVER go over $200 a month so this is worst case)

So I figure for
*August income$4600. bills/extras $3000 for leftover of $1600
*September income $3500. Bills/extras $1900 for leftover of $1600
*October income $2700.Bills/extras $1900 for leftover of $800
*November income $2100. Bills/extras $1900. Leftover of $200
*December income $2100. Bills/extras $1900. Leftover $200

I have $5000 in EF. I have no car payment or credit cards w balances.

As you can see come January I will have to pay my $385 in utilities to pay and with making $2100/mo , my bills/extras are at $2285. That is not even counting taxes due January 2009.

Following me yet? So this is why I pay things in advance while I can. So what should I do with leftover money? Everytime I make budget I think maybe throw toward mortgage since my only real debt? but then I think maybe make EF bigger? what are your thoughts on anything I wrote above.

Thanks!

What about expanding your EF to maybe 6 months living expenses? Always putting the extra towards the principle on your mortgage = a good thing. Can you expand your insurance that you pay once a year over 12 months? What about putting that leftover into a bigger stockpile, if you're doing one?

I'd love to have that much leftover per month but it always varies. This past two weeks, we had over 500 leftover and I'm not sure about how it'll be when the next two weeks comes back up.