I'm going down.

[Kerjack]

And I need some help. I'm new to the whole budgeting thing so I need some assistance with my budget and stuff.
I work approx 35 hours/week at 10/hour. So that leaves me about $933 gross pay.(Unless I've been doing that wrong)

I have to pay for;
-$100 - Cell Bill (Looking to get that down)
-$180 - Car Insurance
-$??? - Debt

And I need money for entertainment, food and gas. I live at my friends house with her parents, so I don't have to pay rent now, but I will in the future. Also I have to get my own place by the end of the year.

Basically I need help, any thoughts/suggestions would be awesome.

[misscas]

$180 for insurance for one car is awefully high...you might want to shop around

[frugalbabe]

Welcome!
First things first. You will need to figure out how much your pay will be after taxes and FICA etc. So when you get your first check look at the stub and you can see all of the withholdings. Once you have figured out your net (take home) pay we can make a budget. You say right now you are living rent free but that will change soon. One thing to keep in mind is you don't want your rent to be more than 1/3 of your income so that will give you you rent ceiling when you begin looking. I figured out your gross to be $1400 a month but let's say you take home the $933 you said in your post here is a sample budget:

+ 933
- 93 (10% savings right to a hard to access account)
-100 (cell I would definitely try to get this down)
-200 (monthly grocery that gives you $50/week for food)
-100 (gas how close is work/recreation this could be more or less)
-100 (entertainment this could be supplemented from grocery at times)
-400 (rent this could be less depening on where you live and if you can find a roommate)

This of course is just a sample budget and it's great you are getting your head in the budgeting mode at such a young age! Don't forget to look into renter's insurance when you do get your own place and savings is vital and your money works so much harder when you are young -- I wish I had figured this out at your age! Good luck! Ooops! Forgot the car insurance you are going to have to factor that in as well and yes that does seem kind of high --- always shop around!

[homesteadmamma]

Just remember, she lives in Canada so prices are higher. Our car insurance at present is $82 a month, however I had 5 merit points which gives me a good discount. Our insurance isn't as high as some of the other provinces.

As to entertainment, you don't need a lot. There is lots of free entertainment out there if you look.

[MomToTwoBoys]

$180 for insurance for one car is awefully high...you might want to shop around

That's actually normal for a 19 year old driver in Canada. DH pays $94 per month and he's 32, been driving for 16 years.

Welcome to the board, Kerjack! Here's some good ways to help you get started:

1) List your total income. Account for every reliable means of income that comes into your household for at least one month. If you have one income and that's $933 gross pay, look at what your net pay would be. If it's a weekly pay amount or a bi-weekly pay amount, count up how many times you get paid per month. Once you have that amount, then you can base your budget on that.

2) List all of your expenses for the entire month. Write down the expense description, the amount you need to pay and the due date.

3) Subtract your expenses from your net pay and that's how much you'll have left over for other things, like debt repayments.

Since you're 19, I imagine you don't have much debt. If you do, make sure you account for every debt you have.

As far as expenses go, make sure you put them into specific groups if necessary:

Food
Clothing
Utilities
Rent/Mortgage
Gas
Entertainment
Miscellaneous (this can cover all of the items that you don't receive a bill for or don't make regular monthly payments on)

4) Go over your budget and make sure that you update it when you make purchases with the cash that you have. Once you've listed your net pay and your expenses, then you can look at how much money you have left over and put some of that towards debt.

There is a whole slew of information on these forums that can help you. If you need further help, then please let us know. It'll take you about three months of work on a budget for you to see results, but the results are worth it.

[mombottoo]

And I need some help. I'm new to the whole budgeting thing so I need some assistance with my budget and stuff.
I work approx 35 hours/week at 10/hour. So that leaves me about $933 gross pay.(Unless I've been doing that wrong)

I have to pay for;
-$100 - Cell Bill (Looking to get that down)
-$180 - Car Insurance
-$??? - Debt

And I need money for entertainment, food and gas. I live at my friends house with her parents, so I don't have to pay rent now, but I will in the future. Also I have to get my own place by the end of the year.

Basically I need help, any thoughts/suggestions would be awesome.

Welcome to the village ! I don't live in Canada, but I hope my ideas will help you on your way. Since you know you need to be in your own place by the end of the year I would start putting what you think you will be paying in rent into a savings account each month. That way by the time you have to get your own place you will have money saved and you will have learned to live without that money. Plus, start putting at least 10% of your net income into a different account to start your emergency fund...this fund can pay for unexpected expenses like car repairs for instance.

Work on getting the cell bill down or find another service that is cheaper, check around for a better rate on car insurance (but, from the sounds of other Canadian's posts you already have a good rate for Canada) and work on paying off your ccs.

My concern is the way you listed what you still need money for..."entertainment, food and gas"...entertainment is a necessary commodity when you are 19 , but once you are on your own you will find that the funds for entertainment are meager. Try finding things you can do for entertainment that cost little or no money to do. Food is a necessity, but for one person the cost will of course be less than it would be for a family...shop sales, use coupons for what you buy if you can and I personally shop at more than one store for my groceries...it's amazing how much you can save by doing this.

I wish you the best on your journey through life !

[forHISglory]

Good advice here! Think of those things that you absolutely must have to stay alive and which things are not an absolute. For example, you MUST have food, but you do not need entertainment. Learn to entertain yourself for nothing. Also, when you rent, you may then liable for things like water, sewer, electric, gas, etc. Have you factored that in? I always counsel folks to be sure and save something each month and to give something each month. It helps keep everything in perspective. Can you give us an idea of your food bills and preferences? We can probably help you cut down the bills in this area.

Best to you!

[mommy4ever]

Car Insurance at $180 isn't bad for a 19 yo in Canada. Some youths can pay upward of $600/mo. It's insane here, but we do what we can..lol.

I'd recommend paying off that debt and keeping it that way. Do it NOW while are rent free, this is when you'll have the most. Put toward it what you might pay for rent. I don't know what you are located, but where we are, you'd be looking at $650/mo for a studio suite. Figure out how much you'd pay in your area, and put it on debt, then when that's done, put it in savings, live on the difference, no matter how tempting, don't use that money for anything else, because once you have to pay rent, it's no longer optional. You have to live on the balance.

From you signature line, you have $2000 in debt. Get rid of it, live on cash. No debit cards allowed. Each month, or pay, divide out in to categories. Paid every 2 weeks? $100 for food, in an envelope. $50 for gas in an envelope. Bills paid ON Payday, even if you're paying 1/2 at a time, so then they are paid. Transfer to savings each pay, if all you can do is $5, then do $5. That's $5 saved, period. Don't touch unless a true emergency.

You have a wonderful opportunity here to learn to live within your means. Take it, relish in it, and know that even if you don't have the latest in cellphones, mp3, stereos, you are not living in fear of the debt collectors. That your job might not cover your debts.

You're in Canada, if you can find time watch a couple episodes of Til Debt do Us Part. Gale Vaz-Oxlade has some awesome information. If you can live within your means and put away a small amount every month, you could be sitting real nice later in life. That's all a person needs! Peace of mind in your future life.

[mommy4ever]

BTW... 933 would be your net, not gross. Gross would be $700 ever 2 weeks.

[peanut]

Everyone's given great advice. I just want to add that I think it is great you're "behind the eight ball" on this and dealing with it at such a young age. I too agree with getting rid of that debt as soon as possible.

I also suggest you prepare for moving out by checking local thrift stores for clothing options. And by searching the Internet (Recipezaar is good) for frugal and healthy recipes to create menu plans from. Having a menu plan can really save on food costs.

If you rent here a one bedroom apt. will run you about $600/mth. But heat and water are included. You just pay power and telephone. then there's furnishing...which is best done during garage sale season (or through on-line freebie sites like Full Circles).

We found it costs about $3000CAD/yr to keep a car on the road here. We are very frugal in it's use, and it gets about 10 km/l....I think... It's not just insurance, but license, maintenance and gas. So really think twice before getting in the car. Try to bunch your errands and maybe do one run a week for them. Walk whenever possible. Or bike. They are healthier for you too. Though that's debatable this time of year in Canada! I would sit down and add up the car expenses and see if it's worth keeping. Or if you could get by with public transit, etc.

Also look at your entertainment expenses. DD#1 and #2 used to do the bar scene a lot. They determined they didn't like alcohol that much, which helped in their decision to cut back. What they did instead was nurse one drink all evening...or invite people to their home and then people could BYOB (bring your own booze). It was cheaper for them to actually buy the liquor at the liquor store than go out for a night with friends. So they'd play games, watch movies, etc. with friends in each others homes.

Also don't forget your local library for borrowing DVDs, CDs, computer programs, magazines, newspapers, books, computer use, etc. For a nominal cost of $5 or so you have unlimited access to material all across Canada (check out the Interlibrary Loan office in the library). Depending where you live your library may have an art gallery or film theatre as well...both free.

You have a lot of options open to you. Be brave and snoop them out!

Jean

[forHISglory]

I was continuing to think about your situation and wondered if you had explored getting a second job? You are not working full time at 35 hours, so you might be able to flex another part time job.

I moved into my first place at 21. I had just graduated from college and was starting my first teaching job. I was totally broke so my parents fronted the first month's rent for me. But I could not afford any furniture, so I slept on the floor and piled up boxes to be my dresser. I sat on the floor, ate on the floor, graded papers on the floor. Eventually I saved enough money to get a hide-a-bed, which could serve as couch and bed. So I encourage you to go slow in furnishing; it's not so bad!

[kita]

Depending on if you have a place for storage, I would start looking at free furniture. Freecycle, Craigslist or whatever. Also dishes, pots, pans and such. ANYTHING you can have on hand when you make the big move will make your life much easier. As a previous poster said, life was much better when she got a sofa bed. Remember that furniture can serve several purposes when you have your own place. A free coffee table will serve as a table/desk.
As you get closer to the time for the first apartment, look at Goodwill or other second hand places for what you absolutely need.
And the second job sounds like a good idea. At nineteen, you could easily get babysitting or "people" care jobs. Sitting with an elderly grandmother while a family goes to church or runs errands can pay well per hour and be "under the table". I would never suggest that a full-time job be under the table, but 5-6 hours a week of baby/people/pet sitting shouldn't be a problem. And since you are young, another "real" part-time job of 10 hours a week shouldn't be a problem. 55 hours a week sounds terrible but temporarily, it shouldn't be a problem.
You are nineteen and are being given a leg up from your friends family. I think with a little work and thought, you could end up with some really solid financial footing.

[Kerjack]

Wow thank you everyone, this is all great advice.

[erinny1983]

Make sure that you have enough cash on hand to pay for security deposit/ first month's rent/ application fee for your new place. You may also want to make up a list of things you need (dishes, furniture, etc.) and price check some local thrift stores

When I was about 6 mos. from getting my own place I "planted seeds" with relatives and friends of the family that I needed "starter" furnishings. I got a free couch, bookshelf, and a full set of dishes.

Good Luck!! Keep us posted.