Is our budget do-able?

[SixxOfDiamonds]

We've always been on a budget, but starting July 1 we're tightening our belts. I want your opinion on if this is do-able. The "fun" money, church offering, grocery money and vehicle restoration project money will be taken out and will be cash-on-hand money.

1st of the month paycheck = $1770

-$325 Subaru Payment
-$150 Electricity Payment
-$75 DirecTV Payment
-$25 Trash Payment
-$50 Landline Phone & High-speed Internet Payment
-$180 Cellular Phones Payment
-$135 Car Insurance Payment
-$200 Mr. Husband and my "fun" money
-$100 Church Offering
-$100 1958 Chevy Apache Project
-$250 Grocieries/pet food/personal items
________________
=$190 left over for buffer and vehicle gasoline.


15th of the month paycheck =$1770

-$960 Mortgage Payment
-$25 Water Payment
-$150 Groceries/pet food/personal items
-$400 Horse Board Payment
________________
=$235 left over for buffer and vehicle gasoline.

My entire paycheck (anywhere from $1400-$2000 depending) will go partially into our escrow/vehicle registration (the big, once a year payments - $100/month) savings account and the rest towards the Subaru. We have already established a $1,000 emergency fund. Should I transfer more into savings and pay a bit less towards the Subaru?

We're paying about $80/month in interest on the Subaru. We've owned it for a few months thus far and have already paid about $15,000 towards it. We have about $10,000 to go. I figure we should have it paid off before the end of the year.

What do you all think? Is that budget do-able? Is it too tight?

[FrugalMomof3]

I mean I guess it is doable, as long as your not strapping yourself into not having a fun money. I found that paying only bills and stashing the rest into savings, while it was gratifying, left me kinda bored. KWIM?

Seems your paychecks aren't being used at all, which is great, why not put atleast half your paychecks to the subaru and get that out of the way in less than a year, saves you alot of interest.

I would also look around for cheaper horse boarding, around my neck of the woods you can get it for around $200 a month and maybe cut the cell phones since you already have a landline phone. JMHO.

[SixxOfDiamonds]

I mean I guess it is doable, as long as your not strapping yourself into not having a fun money. I found that paying only bills and stashing the rest into savings, while it was gratifying, left me kinda bored. KWIM?

Seems your paychecks aren't being used at all, which is great, why not put atleast half your paychecks to the subaru and get that out of the way in less than a year, saves you alot of interest.

I would also look around for cheaper horse boarding, around my neck of the woods you can get it for around $200 a month and maybe cut the cell phones since you already have a landline phone. JMHO.

We have $100 each of "fun" money and then money for the Apache, which is our fun project of the moment.

If we only put half of my paychecks towards the Subaru, it will be paid of in 10 months, if I put all of my paychecks towards the Subaru, it will be 5 months.

I am unwilling to board the horse for cheaper a month, he's a rather expensive show horse and food in front of him comes before food in front of me, haha! I'm not interested in cutting our cell phones either. The only reason we have a landline phone is for the internet, I can't have the internet without it. We pay for four cell phones, two of which are iPhones (that's where the large part of the bill comes from) and unfortunately, I need an iPhone for work (although Mr. Husband doesn't, I figure it's only fair he has one as well.) We each have a personal line and a business line. All of our family also live rather far away, but are on the same carrier, so calling them is free.

Either way, I'm not truly interested in cutting down our expenses as they are, I am rather happy with everything. We have about $2,500 of "extra" money each month. If it becomes tighter, then of course I would look into getting rid of our cells.

[ladykemma2]

only 1000 for emergency fund, and no buffer beyond that. 10,000 in debt. do you know about the advice of 3-6 months of expenses in an emergency fund?

i'm not clear. are you banking your salary?

[MaryCarney]

Is there any way you could give more with that 'extra'?? God has truly blessed us since we started faithfully giving 10% of our income to charity (church, missions, disaster relief). We have never wanted for anything since adopting this policy - we figure it all belongs to Him anyway.

[SixxOfDiamonds]

only 1000 for emergency fund, and no buffer beyond that. 10,000 in debt. do you know about the advice of 3-6 months of expenses in an emergency fund?

i'm not clear. are you banking your salary?

My paycheck is going towards the Subaru. We have approximately $20,000 in bonds, cash and mutual funds, and about $10,000 in retirement (I am 22, DH is 23) but I do not count that as part of the money we have. ETA: But if something truly necessary came up, we could cash into any of those things.

AFTER the car is paid off, we will put $18,000 in an emergency fund account.

[SixxOfDiamonds]

Is there any way you could give more with that 'extra'?? God has truly blessed us since we started faithfully giving 10% of our income to charity (church, missions, disaster relief). We have never wanted for anything since adopting this policy - we figure it all belongs to Him anyway.

That is where I was torn. Originally, I had budgeted to tithe $450 a month. DH wasn't comfortable with that amount.

I told him that I would alter that amount if we did more volunteer work with our church and other organizations. We settled on $100/month.

[SixxOfDiamonds]

Back to the original post - is our budget do-able? Do I need to add or change anything? The leftover after the categories are for any small needs that come about.

Can we live this way at least until the end of the year?

[kmonokwe]

Whitney - it sounds like you are really thinking things through and trying to find the best thing for your family. You are blessed with a wonderful salary, and your urgency to be out of debt is great. You have a lot of choices with your salary, and I think you're making good decisions. Keep on the course and you'll make the goal!

[FrugalMomof3]

May I ask why you have 4 cell phones when there are only 2 of you?

On that note, YES your budge is doable, you already know that if you have an EF, been paying on your car and making it and still have stocks/bonds, etc... why would you think otherwise would be my question?

Most times at your age, we're not thinking about the future, we were thinking about that moment, so give yourself a pat on the back, your doing things the right way.

[ladykemma2]

if you are married, i would recommend one checking account and one pile of money. could you re-do the budget making a separate line item for gasoline, escrow, subaru repayment, car tags and inspection, home maintenance, car maintenance, trash, sewer, predictable annual medical and dental co-pays, clothing, shoes.

[frugalwarrior]

I personally would change your budget to dump the car payment. Horses get sick,people too, Wives get preggers by accident. This is a weird economy. Your budget is do able but we are frugalites. We get the most for our money. We don't understand why everyone wouldn't, So..
- check to see if progressive will be cheaper car ins. if you pay 6mo. (we only pay about 1200. but we're older and have no points)
-$400. is a lot for food for two people.
-that's too many phones

I would pay off the subaru in 3-4 months by scrimping to get rid of it. Hopefully your interest is simple not front end loaded but eiter way. Then hit the saving much harder.Check out Dave ramsey. Then give yourself a pat on the back for thinking smart at your age.

[Denvergirlie]

Your budget is do-able, but what do you dow ith the buffer money? Is there some reason you don't allocate it to a catergory? Is it just continuing to pile up each month? Or does it just wander way from you?

I would allocate funds to gas based on what you actually use as well as look at adding an eating out catergory.

When I just have "buffer" money, it seems to just wander away and get spent.

If you have to have an iphone for work, does your work pay for it? I have to have a Blackberry for work and my work pays for that bill each and every month. If your work will not pay for it, then make sure you expense that out as a work expense on your taxes at the end of year.

[SixxOfDiamonds]

May I ask why you have 4 cell phones when there are only 2 of you?

On that note, YES your budge is doable, you already know that if you have an EF, been paying on your car and making it and still have stocks/bonds, etc... why would you think otherwise would be my question?

Most times at your age, we're not thinking about the future, we were thinking about that moment, so give yourself a pat on the back, your doing things the right way.

There are four phones for two of us because we both need separate lines for work and pleasure. We were both having a hard time quitting work at 5 p.m. so with the separate lines, we can shut the phones off and be done with it. No calls from any business-related sources. It comes out to be about $17 extra a month for the two extra lines, and for a relaxing night at home together, I would pay much more than $17 a month.

I just wasn't sure if we were cutting it too tight with only having $100 of fun money each month, only $400 for pet food, personal items and groceries. (Our actual GROCERY bill is near $250.)

To be honest, we're used to having closer to $300 each of fun money. So this is a BIG step.

[SixxOfDiamonds]

if you are married, i would recommend one checking account and one pile of money. could you re-do the budget making a separate line item for gasoline, escrow, subaru repayment, car tags and inspection, home maintenance, car maintenance, trash, sewer, predictable annual medical and dental co-pays, clothing, shoes.

We are married, and only have one checking account. Here is the re-done budget. We do not have sewer, medical or dental payments. We are very lucky to have insurance that covers it all. Also, for shoes and clothing - we are good for years. Honestly, I had a pretty bad shopping habit for a while, we still have clothing and shoes with tags! Aye! Car and home maintenance would come out of the Apache fund if needed. Two vehicles are still under warranty (the Subaru even gets free oil changes for life) and the house is still under warranty as well.

Let me know if this looks better to you! Thanks!

1st of the month DH paycheck = $1770

-$325 Subaru Payment
-$150 Electricity Payment
-$75 DirecTV Payment
-$25 Trash Payment
-$50 Landline Phone & High-speed Internet Payment
-$180 Cellular Phones Payment
-$135 Car Insurance Payment
-$200 Mr. Husband and my "fun" money
-$100 Church Offering
-$100 1958 Chevy Apache Project
-$250 Grocieries/pet food/personal items
-$100 Gasoline
________________
=$90 left over for buffer.

1st of the month my paycheck =$700

-$150 Escrow/Vehicle Savings
-$550 Extra thrown to the Subaru

15th of the month DH paycheck =$1770

-$960 Mortgage Payment
-$25 Water Payment
-$150 Groceries/pet food/personal items
-$400 Horse Board Payment
-$100 Gasoline
________________
=$135 left over for buffer

15th of the month my paycheck =$700

-$700 Extra thrown to the Subaru.