Budget Advice

[freshstart]

If there's a spot for this and I overlooked it I apologize in advance. It's my first day here and there are so many forums and sub-forums it's a little overwhelming!

This is my budget, if anyone could look it over, let me know what I'm missing or what I should factor in please let me know.

Rent: $575 (Includes utilities, parking, cable)
Groceries: $200
Gas: $80 (Only driving I do is to work and the gym)
Cell Phone: $80 (Under contract, can't reduce this right now)
Dining out: $80
Eating out at work: $75
Gym: $60 (Cheaper gyms don't have pools and I swim a lot)
Alcohol & Bars: $50
Misc Shopping: $40 (i.e., stuff for an oil change)
Coffee Shops: $20
Personal Care: $20
Insurance/Registration: $55

Grand Total: $1335 a month

My situation: My take home pay (at a minimum) is $1,224 per pay check. It is very rare I do not work overtime and my checks average $1800 or $3900 take-home a month.

I have $18,500 of credit card debt at 12.5% (down from around $23,500 since the beginning of the year). I have an emergency fund of $900 right now and all my excess money goes to the credit cards.

Does this seem like a good plan? I know I can cut more from my budget, and I'm working on it (especially the food section). Did I miss anything?

Thanks!

[Nishu]

Even if your phone is under contract you may be able to reduce the amount of your bill by downgrading to a bare bones package.

I think you're doing great. 12.5 is kind of high though. I know balance transfers are generally frowned upon but maybe you could call the card companies and try to negotiate a lower rate?

[freshstart]

Even if your phone is under contract you may be able to reduce the amount of your bill by downgrading to a bare bones package.

I was stupid and got a Blackberry so the data package is required and I'm already on the lowest minute plan! :-(

I think you're doing great. 12.5 is kind of high though. I know balance transfers are generally frowned upon but maybe you could call the card companies and try to negotiate a lower rate?

Thank you for the compliment. How does negotiating work with the card company? Do I just call them and tell them I want a lower rate? I don't know much about this stuff but I don't see what their incentive would be to accommodate me. Is there a thread somewhere on here that talks about how to negotiate a lower rate?

[forHISglory]

I see a money leak right away: eating out. Between eating out, coffee shops, bars, and work lunches, you are spending $185 a month! Then you add in your groceries at $200, and that is $385 just for food. Are you single? If so, this is a lot of money. If push comes to shove, you can do with the gym for a period of time. Think basic food, basic shelter, basic protection (insurance) and paying off the debt. Focus on that.

[freshstart]

I see a money leak right away: eating out. Between eating out, coffee shops, bars, and work lunches, you are spending $185 a month! Then you add in your groceries at $200, and that is $385 just for food. Are you single?

I am single which is part of the reason I budget more for the coffee shops, bars, and eating out. As much as I try to be frugal, it can be difficult to date if you appear too cheap, as sad as that is.

I'm working on cutting work lunches down to $20 or less, my grocery budget is there more for an idealization, but I rarely even hit half of that $200. In the cooking forums I'm getting advice on how to prepare my own meals (I'm not much of a cook, if you couldn't tell from my budget).

[Debbie-cat]

You can call the credit card company and tell them that you would like a lower rate. Some card companies will talk with you and lower the rate. You can also mention that you are looking at other card companies with cheaper rates and that will get them moving to please you.

I agree with forHISglory....you food/eat out/lunch budget is really high if you are single. Start cooking at home, taking your lunch, OMAC, buying in bulk, buying generic brands, use coupons, watch sales and start a stockpile. This will help you immensely. If you follow these ideas you could get your food/eat out/lunch budget down to about $200 per month. Good luck!

[craftypam]

My son bought a blackberry and found it too expensive (pkg like you have) he went back to his old phone and pkg went down in price. I don't know what company you have for phone service, but my other son's phone got wet and the place he went to get another phone sold him a phone for $40, cheaper than staying on the expensive plan. If you really want to get out of credit card debt; which is the worst kind, you need to give up going out to eat and coffee shops. Make it at home. When you start reading the threads in here that is what you will see. Another thing that is talked about in here and is a GREAT idea is an emergency fund.

I love to swim too and knew that was the way for me to exercise. I found a pool with an aerobic class, wgts and a lazy river to walk and a gym and I pay monthly. I guess I got really lucky I'm paying $21.60 a month.

Some of the problem with trying to lower rate now is that they are raising them on everybody, but I would still try. It would be worth it to transfer balance if you can get a better rate.

[MomToTwoBoys]

I agree with the ladies. Eating out, the bars, etc is costing you quite a bit. You can always have people over for drinks and find other places to hang out that aren't going to cost a whole lot. You can always plan parties at your place where everyone brings either a bottle of wine or something to eat. If it's a matter of meeting other people, have everyone bring someone that no one at the party will know. That way, you can increase your social network and not spend an arm and a leg to do it.

What about any clothing costs? This would include coats, shoes, etc.

At the coffee shops, you can always get a bottled water or bring your own. I'd personally bring my own coffee in a travel mug.

As far as the gym goes, can you just pay a per use fee to use the pool or is that fee overall? My gym membership is about $30/mo but it doesn't come with a pool. If I want to use the pool, I can go swimming at the local indoor pool and pay a small fee.

[Nishu]

Honestly I see the eating out and the coffee is a leak but if you're able to maintain that budget you have on the income you have I'd say you're doing pretty good.

If the eating out and the coffee does not bring you $100 worth of pleasure a month then cut it out. The thing we have to consider is how much pleasure something brings us relative to how much it costs. If you love love love eating out and drinking with friends and drinking coffee so much that you have no problem spending what you do on it- then go for it. If you eat out because that's just what you've always done or because you can't say no to a friend or because you don't like to cook... then you may need to revisit your habits. Either way I still think you're doing okay.

In regards to credit card companies- they still want your business. An ideal credit costumer would carry a high balance on a credit card and pay the minimum balance monthly while continuing to charge on the card when they pay any down or get a credit increase. The least they want is for the account to stay open so that you have the opportunity to charge.

If I were in your situation regarding credit cards...
I would call each company up and ask if they can lower your rate. If they say no- just ask to have the account closed. You'll still have a balance and the same interest rate obviously but you won't be adding any more to the balance. Closing it anyway would be a good idea but you may find they change their tune regarding the interest rate after you ask them to close it. You might not. Worst they can say is no. (Don't get your feelings hurt if they tell you no... it's business- not personal.)

I would also go through all your cards and see if you have any that have credit left on any that have a lower rate. Check the balance transfer procedures. You may get an okay deal by switching the balances around a little bit.

In any case don't get too hung up on the interest rates. You should be paying them down fast and furious so the interest rate is going to matter less as you continue to pay them down. You can always rinse and repeat the credit balance shuffle in another 6 months after you get a better grip on what you're doing.

[2ndGenGranola]

I agree with the others about the eating out/bars being a major leak in the budget. Look around your area and see what kind of cooking classes they have. Many community colleges offer mini courses in the evening for the general public. It would be fun, useful and social. My sibling meets a lot of people with his cooking skills. He will drag his grill out to the pool on a crowded day and offer his neighbors a simple grilled item. Before you know it everyone is pulling out their offerings and it is a big party.

[rachelj]

ok, I am going to come at this from a different angle.

You say that you are wanting to date and don't want to look cheap but you want to pay off debt. You are 23 and already have a lot of debt.

Think about the type of person you are wanting to attract. If this is a person who is going to interested in how much money you spend then you will only go further in debt. Besides right now people aren't interested in debt - they will be more interested in you b/c you are wanting and actively paying off your debt.

Just a different way of looking at it....

[Siebrie]

Take your dates on a woodland walk and provide a picknick! Or visit some (free) event, and bring your own drinks/snacks. Or, you could learn to cook 1 dish really well and invite the date to your house (maybe this will go down better on a second or third date). Or invite her to help out at some charity event, or to join you while you're babysitting your nieces and nephews, etc. I mean, you want your dates to get to know the real you, right? If she only sees you in restaurant settings, it's harder to get an idea of the real you.

[ladykemma2]

If there's a spot for this and I overlooked it I apologize in advance. It's my first day here and there are so many forums and sub-forums it's a little overwhelming!

This is my budget, if anyone could look it over, let me know what I'm missing or what I should factor in please let me know.

Rent: $575 (Includes utilities, parking, cable)
Groceries: $200
Gas: $80 (Only driving I do is to work and the gym)
Cell Phone: $80 (Under contract, can't reduce this right now)drop to lowest package or prepaid trackphone
Dining out: $80don't see the inside of a restaurant unless you work there
Eating out at work: $75don't see the inside of a restaurant unless you work there

Gym: $60 (Cheaper gyms don't have pools and I swim a lot)drop
Alcohol & Bars: $50drop
Misc Shopping: $40 (i.e., stuff for an oil change)
Coffee Shops: $20buy a coffee pot and a thermos
Personal Care: $20
Insurance/Registration: $55

Grand Total: $1335 a month

My situation: My take home pay (at a minimum) is $1,224 per pay check. It is very rare I do not work overtime and my checks average $1800 or $3900 take-home a month.

I have $18,500 of credit card debt at 12.5% (down from around $23,500 since the beginning of the year). I have an emergency fund of $900 right now and all my excess money goes to the credit cards.

Does this seem like a good plan? I know I can cut more from my budget, and I'm working on it (especially the food section). Did I miss anything?

Thanks!

i highly recommend reading mary hunt and dave ramsey. you can listen to dave on the free radio archives

[kita]

About the "single" expenses...could you change up you gym routine to one where you can talk to more people. YOu can't make a lot of small talk while swimming laps. I second the concept of looking for free concerts or classes. In many cities in the summer there are "brown bag concerts" where you can eat a brown bag lunch and listen to music and maybe even meet someone.
I would save the $20 for coffee shops but drop the bars, try to cut the social eating out with dates by half..change resteraunts and get some cheap ideas for first dates. Look into Meet-up or other interest orientated activities. What about the weekend classes at HOme Depot where you can learn how to put in a house fan?
Good Luck...

[freshstart]

Thanks for all the wonderful advice. I'm going to try very hard to limit my dining out next month. I'll keep everyone updated on m progress.

I'm already getting recipe help from people and will be preparing meals for work.