http://www.frugalvillage.com/forums/ Discussions on debt reduction, credit cards, consolidation, debt free living, and money. Snowballing debt, paying yourself first, and money management. en Wed, 22 May 2013 09:49:18 GMT vBulletin 1 http://www.frugalvillage.com/forums/images/misc/rss.png http://www.frugalvillage.com/forums/ http://www.frugalvillage.com/forums/debt-reduction-money-management/153330-home-owners-insurance-useless.html Fri, 17 May 2013 22:37:27 GMT We've been with American family for over 5 years. In 2010 we had several severe hail storms. We noticed many people in our neighborhood getting new roofs, so we called our company. The adjuster came out and told us we didn't have enough damage to warrant a claim and to start saving our money for a new roof. We called our agent and another adjuster came out and said they would pay for about 20 shingles. I think we got $400 for it. I can look out my windows and see at least 15 homes that got new roofs. That doesn't count the rest of the neighborhood. This week, Dh talked with a guy doing the roof at the building he manages and he was surprised that we didn't get a new roof. He said he did half the city back in 2010.

Last month we got a letter telling us that they won't be renewing our policy at the end of this term because the roof is bad. We called our agent and he said he'd check into it. His office girl called back to say there wasn't anything except to insure the house one more year without the roof being covered. The agent knew we'd be mad and was too chicken to call and tell us himself.

A new roof is going to cost us about $4500. Of course we don't have that kind of money right now. Our neighbor is a roofer and will carry the loan for us and we pay him monthly for 2 years. We really can't afford that either, but we'll be cutting way back so we can.

We're going to get the roof done, make the insurance come inspect it and then cancel it. We'll go with a different company and have a higher deductible. There's no point in having a low deductible when you try to have a claim and they won't pay. I'd rather save more money every month, plus they keep raising the limits and I know it won't cost that much to replace the house or contents.

The to top it off the agent had the nerve to send a letter asking for referrals yesterday. If I have anything to do with it, I'll be getting people to drop American family. Thanks for letting me rant. ]]> jettsmom http://www.frugalvillage.com/forums/debt-reduction-money-management/153330-home-owners-insurance-useless.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153269-hud-home-journey.html Sun, 12 May 2013 21:06:14 GMT *Executive summary* My wife and I put in an offer for a HUD home today to be owner occupants in. *The Long Story* What is it that they say, all silver clouds have a grey lining? About a year ago I found a full time job. It is an awesome job, pretty much a dream job and I intend to retire... Executive summary

My wife and I put in an offer for a HUD home today to be owner occupants in.

The Long Story

What is it that they say, all silver clouds have a grey lining? About a year ago I found a full time job. It is an awesome job, pretty much a dream job and I intend to retire from it. Before getting this job I was working part-time at night, taking care of our infant daughter (now 19 months) during the day when my wife worked full-time.

Upon being hired full-time we had to put our daughter into day care. On paper, after daycare with both of working we had about $500 / month net income. With just me working, but no day care, we went down to -$4 per month. Before getting hired, we were still making slow but steady progress on our debt reduction. After starting daycare, I've racked up at least $10K new debt during the year.

Besides day care finances, our commute expenses in money and time have been painful. When we car pool to save money when I'm not traveling for work, we're in the car three hours a day. We're tired and cranky with each other more often than not.

Financially, I am in a traineeship at work and will get a small raise soon and a more substantial raise next year. This raise will obviously help with the financial stress, perhaps pull us into breaking even, but will do nothing for our commute time.

So, we assessed our means and decided to try to find a reasonable, inexpensive property that we can use some of my wife's retirement assets to purchase with cash and that is much closer to my (our) work. We will then sell our current house and then not have a mortgage. If our current house closes and sells within the 60 day window we can put the retirement money back from our return of equity. If not, we'll accept the tax consequences and invest the return of equity in cash and/or Roth IRA accounts.

Once we don't have a mortgage, we will transition to me being a sole breadwinner. My wife will continue working for a time, but her salary will pay for daycare and debt reduction as well as being a reserve for household costs, while I will start paying all of the household expenses and minimum payments on debts. From what is left I will also contribute to debt reduction.

Once we are stable with me paying the household bills, my wife can come home to care for our child in time for our goal of homeschooling her (our daughter, though I'm sure my wife and I both will also be learning through the journey). We can then also move on to baby step 3 and beyond. Part of beyond will be to perhaps start looking for creative ways to purchase a forever house under retail price.

The use of retirement assets for a home purchase is controversial and many people will disagree with our choice. If the problem was strictly financial, I would be more inclined to continue to stick it out while my traineeship progresses and then use my increasing pay to ease the financial stress and eventually return to debt reduction mode rather then debt creation. However, this strategy does not address the time stress that our commute causes and associated marital stress, nor does it do anything to accomplish our goal of homeschooling.

If our offer is accepted, I'll be back periodically to let you know how things are going. If our offer is not accepted, we'll continue to look for cheap houses. ]]> mek42 http://www.frugalvillage.com/forums/debt-reduction-money-management/153269-hud-home-journey.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153235-life-insurance-question.html Thu, 09 May 2013 12:34:26 GMT Life Insurance question I'd like to get some opinions on.

30 yrs old, primary income, married +1 young child

I am shopping for 20 yr Term insurance at roughly 6x my income.

Currently I have 2x annual income provided by my employer.

Due to past health issues I have been denied coverage from everywhere I have applied.
The broker I was using (one of them) called this week and says he found a company that will quote me a policy, but they are quoting $150 / month for a policy like descibed above.

A "quick quote" online from Zander puts the same policy for a "healthy" individual at about $18/month

So, the question is.... when is the break even point on Life Insurance? How do you determine or what do you consider when comparing an exspensive policy to jsut investing the same $150 / month in a retirement account or in paying the house off faster? ]]> Chris4x4Gill2 http://www.frugalvillage.com/forums/debt-reduction-money-management/153235-life-insurance-question.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153219-back-need-advise.html Tue, 07 May 2013 19:12:58 GMT It has been awhile but I am back. Last summer I received some money from my dads trust. I paid off all cc and car loan, installed new windows and have about $5000 in a savings account.. But I have not done great building that savings. I have spent in areas that were not needs but wants. recently... It has been awhile but I am back. Last summer I received some money from my dads trust. I paid off all cc and car loan, installed new windows and have about $5000 in a savings account.. But I have not done great building that savings. I have spent in areas that were not needs but wants.

recently My Mother passed away. I still owe 42,000 on our house because we added on several years ago. We are 57 and 61

We have never used a financial planner but my sister has suggested we use the one she and Mother use.


So for my questions would you use a financial planner and leave the bulk in a retirement account except to pay off the house?

Then If you pay off the house do you open a savings account just for the ins and taxes that were paid through excrow? ]]> itlw8 http://www.frugalvillage.com/forums/debt-reduction-money-management/153219-back-need-advise.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153129-yes-im-paying-off-debt-get-over.html Wed, 01 May 2013 10:18:03 GMT I've been working on paying off our debt for over a year now! Living on a budget, using the envelope system!

It amazes me how many times I've heard "You still have to live and enjoy life"! This statement is because we are NOT going on vacation this year. We have a camper (a loan we are working on paying off). Our camper stays at a campground year round...we pay a yearly rate to keep it there. Our vacation week in August will be spent at the camper relaxing, riding go-carts, playing putt putt, swimming, running around in the golf cart and most importantly doing whatever we want to do!

I have heard the "You still have to live and enjoy life" speech so many times it makes me want to scream! Yes, I love going on vacation just as much as the next person! Right now our priority is paying off our last debt (minus the house).

Vent over! Thanks for listening! :) ]]> heyaim http://www.frugalvillage.com/forums/debt-reduction-money-management/153129-yes-im-paying-off-debt-get-over.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153127-tired-being-broke.html Tue, 30 Apr 2013 22:05:56 GMT I am a 43 yr old newly single women with a very good income and NOTHING show for it. I am about $50,000 in charged off c.c debt. My credit score is in the 576 range. I am ready to turn my spending habits around. I have recently discovered or should i say actually have been listening to Dave... I am a 43 yr old newly single women with a very good income and NOTHING show for it. I am about $50,000 in charged off c.c debt. My credit score is in the 576 range. I am ready to turn my spending habits around.
I have recently discovered or should i say actually have been listening to Dave Ramsey on youtube. My credit score was around 687 to 700 1.5 yes ago. I met someone and in my foolishness tried to spoil
them so i would stop being compared to thier ex. Anyway, lesson learned. Starting May 17th, is when i am going to start budgeting, and begin on baby step #1. I am thankful for this website and look
forward to sharing my progress with u all!! God bless ]]> MOTOGIRLX1 http://www.frugalvillage.com/forums/debt-reduction-money-management/153127-tired-being-broke.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153119-my-new-life-goal.html Tue, 30 Apr 2013 15:36:20 GMT For the past several months, I have been struggling with goals and objectives. I make a decent salary (altho, not great) and my DH makes a decent salary as well. We do not have joint finances right now. We got married a little over a year ago and we sorta just split up the bills each month and... For the past several months, I have been struggling with goals and objectives. I make a decent salary (altho, not great) and my DH makes a decent salary as well. We do not have joint finances right now. We got married a little over a year ago and we sorta just split up the bills each month and we both pay certain ones. We also split large expenses like taxes. We ride thru life with no real money goals and we save whatever is leftover at the end of each month. It makes it difficult for me without something to focus on. I really like my job at times and other times I hate it. I work in a basement building computer software. Today it is 78 and GORGEOUS outside.

I've been reading websites like mr money mustache and several other early retirement sites. I made a decision to retire in 7 years. I am 38 this year.

I am not taking any of my DH's income into my plan. I am also not adding in my current retirement savings.

MY GOAL - Retire in 7 years
What I need - $375,000
Where I will invest - basic diversified stock mutual fund.

I need to save 75% of my net income starting this month to meet this goal.

Today - I started my account with $5000

I need to get my living expenses down a little and start watching what I spend.

goals make me happy. I feel like coming to work every day now has a purpose in my life on a personal level. I'm not coming to work to buy a nicer car or anything else that doesn't do a whole lot of anything for me. I have a plan.

Don't get me wrong. I don't mean that I'm going to stop working entirely in 7 years. I just want to get to a place where I get to decide what I do with my life. ]]> Giro http://www.frugalvillage.com/forums/debt-reduction-money-management/153119-my-new-life-goal.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153116-harp.html Tue, 30 Apr 2013 02:51:31 GMT Hi.....we found out that we are eligible for this program, and the great news is that we will have a savings of $274 a month. Right now that is huge for us, and really gives us the breathing space that we desperately need as we proceed with the DR snowball program. I know that sounds wonderful,... Hi.....we found out that we are eligible for this program, and the great news is that we will have a savings of $274 a month. Right now that is huge for us, and really gives us the breathing space that we desperately need as we proceed with the DR snowball program.

I know that sounds wonderful, but my hubby is still skeptical about it. I know that it's always better to be safe than sorry, so i am not at all against what he's feeling. I'm just anxious about having some extra money, and feel confident about what the loan officer stated, so I'm totally ready to sign and move forward.

But anyway, I'm figuring there must be some people on here who have participated in HARP. So in order to come to a better feeling about it all, my question is did you come up against any hidden surprises, and would you do it again if you had to? Why or why not?

Thanks for any info. It'll help a lot!

Theresa :) ]]> mamamia http://www.frugalvillage.com/forums/debt-reduction-money-management/153116-harp.html http://www.frugalvillage.com/forums/debt-reduction-money-management/153003-back-cash-budget.html Sat, 20 Apr 2013 13:49:24 GMT In order to rein in spending, hubby and I will be going back to a cash budget for groceries and "walking around money". Starting off with those two categories and adding more as we go. I buy gas with my debit so that I don't need to leave the kids unattended in the car to go inside and pay..but I will be setting a spending limit on that per week and trying to stretch it.

I don't spend much on myself, other than groceries and household needs, it is somewhat rare for me to spend. DH is the one who swings into the store every other day or so and picks up snacks, magazines, lunch etc. I've tried to get him to stop those things but it turns into a control issue ie "you aren't my mom, I'm a grown man and I can buy a soda if I want, it's my money too." Honestly, he is a grownup and I hate the tension it causes. He agreed to a cap of $60 per week in cash, so we will give that a go. I have not set my own amount yet.

As far as food, my starting budget is $150/week. There are 2 adults and 2 kids. I know many people do it on less, but food is not an area I am willing to compromise on. We eat whole foods, cook from scratch, organic, local etc as much as we can. I am going to focus on meal planning, not wasting food, buying in bulk and starting a garden to help control this category. I am on modified bedrest due to preterm contractions with this pregnancy, so hubby does a lot of the shopping now and often comes home with extras. Hoping that if I send him with my grocery cash envelope and the list, that he will be more mindful.

As much as we buy good food for meals at home, we also fall prey to take out or a family meal at a restaurant more often than we should, for the convenience and sometimes to just be out of the house. I haven't decided yet if I will set a separate budget for that, or if it will need to come out left overs from other categories... ]]> mama2James http://www.frugalvillage.com/forums/debt-reduction-money-management/153003-back-cash-budget.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152918-where-budget-do-expenses-reimbursements-claimed-quarterly-go.html Thu, 11 Apr 2013 20:12:24 GMT Where in the budget do expenses (claimed quarterly) go? Once every three months, I put in a small travelling expenses claim for getting to the venues for the volunteer work that I do: I say how many miles per trip – they pay back some magical, mythical figure per mile per size of vehicle... Where in the budget do expenses (claimed quarterly) go?

Once every three months, I put in a small travelling expenses claim for getting to the venues for the volunteer work that I do: I say how many miles per trip – they pay back some magical, mythical figure per mile per size of vehicle engine. Until now, that sum has just arrived in the bank, appeared on the bank statement, and rattled around in there, without a specific home. I know the YNAB thinking says "Give every £ a job" so I wonder if it would be best if, on paper at least, I paid back that amount into the vehicle budget envelope? Or stuck it in a savings pot, immediately it arrived? Logic tells me it belongs in the vehicle/transport budget, right?

Similar sort of thing for the cashback health plan I have: currently, I don't need to make a lot of claims, for which I'm grateful, but – what do you think? Should the repayments go into the next month's "medical/health" budget envelope or in a savings pot when they arrive?

The reason I don't know what to do with them is because, happily, my budget balances, in the black, at the month end, albeit with a bit of inter-category shuffling. I manage, without the reimbursements: so does that make them savings? Any suggestions? All sensible (!) ideas considered - thanks ]]> Toffeekit http://www.frugalvillage.com/forums/debt-reduction-money-management/152918-where-budget-do-expenses-reimbursements-claimed-quarterly-go.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152873-help-me-help-my-son.html Sun, 07 Apr 2013 23:29:59 GMT I just finished a nice dinner with DS. He is 26 and will be 27 in July. He has a cushy job/career and is doing well (according to him). Probably better than most of his friends. Anyway... He will move back home in Aug/Sept when his lease is up. He is done with the frat house environment and... I just finished a nice dinner with DS. He is 26 and will be 27 in July. He has a cushy job/career and is doing well (according to him). Probably better than most of his friends.

Anyway...

He will move back home in Aug/Sept when his lease is up. He is done with the frat house environment and wants quiet. He is returning to school for his MBA and needs study area. He will stay in the 3rd floor suite where DD2 and baby were. He doesn't need to pay rent - only needs to pay for cable (because I don't have it) and needs to buy his own food. (Or else he'll have to eat beans and rice and rice and beans with me. )


He tells me he is getting excited to save up for a home. So, I asked how is the school loans were coming along?

He owes $40K'ish and he said they weigh him down every month. I suggested he pay off his school loans first, then save. Put every penny into it.

He thought it was better to save up for a deposit on a house while the market is a buyers market, then pay off the loans.

He is afraid the market will turn and he'll lose his opp to get a decent home for low low price and low low interest rate. Plus he said he only pays 3% interest on school loan. I told him to check that interest rate - I think it's wrong. (He will do that).

Which would you suggest? and why?


PS.. his employer has $10,000 tuition reimbursement per year. He doesn't need to take out additional school loans for his MBA. :clap: nice bene ]]> Frugal Nurse http://www.frugalvillage.com/forums/debt-reduction-money-management/152873-help-me-help-my-son.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152836-telling-your-parents-they-wrong-about-money-hurts.html Thu, 04 Apr 2013 22:52:11 GMT My fiance and I are nearly done with college, although we are older than average (27/28). As that time draws near, we need to think about what kind of situation we want to find ourselves in as we begin to pay back our $230,000 in student loans (why that balance is so high is explained in a... My fiance and I are nearly done with college, although we are older than average (27/28). As that time draws near, we need to think about what kind of situation we want to find ourselves in as we begin to pay back our $230,000 in student loans (why that balance is so high is explained in a different post). We came up with an idea that we are SO very excited about..the problem is, we are getting extremely negative feedback from family.

In about a year we are getting married. Neither one of us was thrilled at the idea of having a big wedding, but we always figured we'd take about 5K and do it and get it over with. Well, we have decided that instead of spending that money in one day, we are going to take it and build one of those "micro-houses" on a flatbed trailer, and park it on my parents' farm (there are more jobs in their area). It would mean we will have no rent, no utilities, and bare bones living costs. I did the math, and it would cut our debt payoff time almost to a third! Plus we could have our pets, could never get evicted, could move anywhere without worrying about a lease, and the idea of simplifying and going minimalist really appeals to us. Plus with a trailer..no zoning issues. Less "stuff" to clutter our lives..physically and mentally. Plus, I want to turn it into a side project and do a blog about it..."Extreme Living for Extreme Debt" kinda thing. Also, I figure we could keep it for when we retire one day.

I was so excited to tell my parents about it, and was showing them concept photos on my laptop. They exchanged worried glances, and my dad proceeded to close my laptop, and then inform me that what we were actually going to do was flip houses after college, because that's how he and my mom bought their first house free and clear (they are since ridiculously in the hole..more on that later). What???? I said after a decade of stress, financial hardship, being between a rock and a hard place and underwater on a home he coerced me to buy when I was 19, there was NO WAY we are getting into that much risk again until we are debt free. They both proceeded to tell me that we HAD to live in an actual house,and insinuated that living like I suggested was shameful and strange, and that they would help us get a real house. I again tried explaining that we don't WANT a house right now, because we don't have money for one. Then they tried convincing me that we should live in their basement. I said while I love them and would love to do that for a few months while we build our tiny house, that was not a 3-5 year solution (I know my family..and plus, we have indoor cats and such. But I digress..). Then they tried convincing me to buy a duplex and be a landlord again. YEAH RIGHT. After what I went through last time..no chance! Then they wanted us to move into a duplex next to my grandparents in their 80's. Basically same idea, only using them as bait lol. Ah! So basically, anything but a tiny house!


Then my mom tried guilt tripping me, saying that we'd have to have kids pretty soon and that it would be cruelty to have them live in a tiny house. First of all, we had planned on it just being us for a while, and I'm pretty sure a kid isn't going to suffer because its parents lived in a tiny house and are now debt free and paying for his/her college. My grandma, literally, grew up in a one room shack with 9 people for crying out loud, and she's a normal human being as far as I can tell.

I asked if it was the fact that we'd have to rely on their well, or if they were embarrassed of how it looked. They insisted it wasn't, that they'd be happy to let us park out back for a few years, and would love having us around, if that was what we REALLY wanted. I think they see my sister, who is younger, looking for nice houses with her fiance, and they feel like they don't want us to be that outwardly pathetic while we knock down our debt. Being in debt is normal. I'd rather be "pathetic" for 3 years than "normal" and in debt for 20 years! My sister and her fiance don't have debt, therefore they can afford a nice house. We can't.

Here's what I'm asking..how do I go about politely declining the many ideas my dad offers up without hurting his feelings? He WILL be hurt if I don't take his advice. He does mortgages for a living, and has always worked in finance.

But he is a man of extreme risk even though he works in the finance world. Growing up, we went through cycles of having it all and being broke. My parents would be millionaires several times over if he had just saved and not dropped money he didn't have into a "bigger better deal" all the time, and played "keeping up with the Joneses". I always thought my dad was a financial guru until some years back when we did FPU. To be honest, after I learned some things from Dave Ramsey, I was really disappointed in my parents. My dad loves "exotic" situations and nothing is too big for him. He likes to deal with investments with big players..only thing is, he doesn't have "big player" money so to speak. He'd throw everything my family had into an investment, and lose it all. That's what happened to my college fund, my mom's retirement, etc. They have nothing but leveraged properties now. My mom is at fault too for not getting involved in their finances and leaving it all to him. I'm disappointed, and worried about their future.

I'm disappointed in what they didn't teach me about money..but I know they just don't have a clue. I tried getting them to go to FPU, but Dad scoffed at it and was insulted even though I said they were just "suggestions" on what to do, and Mom said she would but won't actually commit to it. I've given up and decided that we are going to have to be living examples to them. That said, they love us dearly and mean the best for us, which makes it even harder. I was nearly in tears trying to explain to my dad why I was not getting excited about his advice, because he really loves helping his kids and pushing us to do "big things." I am not like him..I want to win this race slow and steady, but surely. Obviously they can't make us do anything at this age, but I just hate hurting them.

Not sure if I'm looking for advice, or just comments. If anyone has had a similar experience, what did you do? ]]> VictoriasImage http://www.frugalvillage.com/forums/debt-reduction-money-management/152836-telling-your-parents-they-wrong-about-money-hurts.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152831-1-300-quote-dental-work-my8-yo-ds.html Thu, 04 Apr 2013 04:20:55 GMT Ouch!!!!!

DS had been complaining for a couple of days about some pain in his mouth. He said it felt like the adult teeth were pushing the baby teeth out. I decided to look in his mouth and it looked like there was a cavity. We don't go to the dentist on a regular basis because we don't have dental insurance. I can't get enough money set aside at any one time to even get cleanings and exams for everyone. We are working at paying down DD's medical bills from over a year ago, so I don't have a lot of "rainy day" funds set aside.

So, I scheduled an appt. for both kids with a dentist here in town. We have not been there before. DD's teeth are great and they said they were really clean (DD is 5). DS on the other hand has 7 CAVITIES!!!!!! OMG!!! I knew he was rather complacent with his personal hygine, but I didn't think it would be that bad!! It is a struggle every day to get him to comb his hair, brush his teeth and put on some deodurant.

He will be turning 9 years old next week. I struggle with wanting to have control and trying to step back and let my kids start to take responsibility for themselves. I guess he is not ready, although, I feel he should be more personally responsible at this age. He won't take responsibility for anything.

Anyway, one of the cavities is so deep that they said it would be like a root canal on a baby tooth. $350 for just the one tooth. Then the other 6 cavities will be just under $1,000 to fix. These are all on baby teeth. He has only lost 4 of his baby teeth. He was over a year old before any of his teeth came in so they are late to fall out too, I guess.

Do we have any options? Do we have to repair the cavities? Are the any other options? I think all of the other ones on rather small and not nearly as big as the one.

We don't have dental insurance and I don't have any money set aside to pay for this. We did receive a small tax refund (usually we have to pay), so I used that to pay for their exams the other day.

What do I do? They won't accept payments, they wanted to refer me to some credit program. So frustrated with DS for being so careless about his teeth, but this may be a huge eye opener for him. ]]> http://www.frugalvillage.com/forums/debt-reduction-money-management/152831-1-300-quote-dental-work-my8-yo-ds.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152830-coming-back-life-hell.html Thu, 04 Apr 2013 02:24:43 GMT OK -- so brief summary of where I am. IRS debt: (owe taxes for 2010 and 2011, still havent filed for 2012, but plan on doing my taxes this week or so) $90,000+ Lawsuit settlement debt (long story about this; I can expand later): $30,000+ Current Credit Card debt: $11,500 Legal bills:... OK -- so brief summary of where I am.

IRS debt: (owe taxes for 2010 and 2011, still havent filed for 2012, but plan on doing my taxes this week or so) $90,000+

Lawsuit settlement debt (long story about this; I can expand later): $30,000+

Current Credit Card debt: $11,500

Legal bills: $1,800 remaining (I've been good on this)

Monthly rent: $2250
Parking rent: $200+/month
Monthly groceries & food expenses (I work a lot, have no time to cook & order in all the time): $800
---

And now the positives:

Current Annual Income: $180,000

Expecting a bonus of about $18,000 (minus deductions for current taxes, retirement account, etc.) in a few weeks, if I don't get fired

Bank Account Balance: $8,000

No other assets (the car in the parking space isn't mine, it belongs to my girlfriend, I don't own a home, no boats, nothing, really).

---

The IRS has basically told me that I should try to pay $32,000 by mid-May to bring the amount under control and to avoid a lien being placed on my account. However, they told me to call them and let them know if I can't make that goal for any reason (e.g., job loss, an emergency expense, etc.). They also stated that if I do keep my job but am unable to pay the $32,000, that they will set me up on a payment plan, and based on my income, marital status (single), zip code, and estimated basic minimum expenses, that they would attempt to take nearly $8,000 a month from me to pay down my IRS debt in a payment plan (while penalties continue to accrue at 0.5% or so a month; and realistically, paying $8,000 a month for *back* taxes while my current taxes continue to get withheld would just not feasibly leave me with enough to live on).

Any tips would be appreciated (what's the best way I should prioritize and handle these debts -- should I add to my credit card debt to pay off IRS debt? should I forget about trying to pay $32,000 in about 45 days and aim for something more realistic?) I really need some help as I am totally under water here. I've even considered giving up my high-paying job just so I can have the IRS put a hold on trying to collect from me -- and so I can default on the $30,000 lawsuit settlement (if I do actually pay that settlement, it was agreed that I would pay $2,500 a month for 12 months; but if I lose my job, I can go through and default on it, punt on the whole debt until my 2010 tax debt hits the 3 year mark and I can combine that in with the lawsuit and throw it out in a bankruptcy). If I do take the Chapter 7 bankruptcy route, though, it would have to be in 2014 (3+ years from the date I filed my 2010 taxes, which was in April 2011), AND I would still have my 2011 taxes to worry about.

I know I've given a very hurried synopsis here, so feel free to ask me anything which may be crucial but which I might have missed. And please try not to judge. I ran a business in 2010 in 2011 which went under, and I was harmed by very many people to get to the point I'm in (for months, I had even worked for clients for free, expecting to be paid, but ending up with nothing). Needless to say, I'll never end up in such a situation again, and I now have a good job -- so I feel that with a bit of good planning, I can be out of the woods for good. ]]> net_worth_times_-1 http://www.frugalvillage.com/forums/debt-reduction-money-management/152830-coming-back-life-hell.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152803-well-i-need-better-budget.html Mon, 01 Apr 2013 19:26:31 GMT I am not horrible but I definitely give lots of wiggle room. However today my husband lost his job. We are not upset or anything b/c we know we can make it off my income. It's just going to suck b/c we were only a year away from being debt free and now that could be 2 or more years away. Hopefully not though. Looks like I need to get cracking on the budget. Wish me luck! ]]> ARCMOMMY http://www.frugalvillage.com/forums/debt-reduction-money-management/152803-well-i-need-better-budget.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152798-going-rough-month.html Mon, 01 Apr 2013 14:49:18 GMT April is always a tough month because of the tax deadline. But, this year seems a little worse than previous years. We put in a sunroom and they are finishing it this week. We spent $15K and we have to pay the second half as soon as they finish. Our tax bill is $11K. I sorta wish we would have... April is always a tough month because of the tax deadline. But, this year seems a little worse than previous years. We put in a sunroom and they are finishing it this week. We spent $15K and we have to pay the second half as soon as they finish. Our tax bill is $11K. I sorta wish we would have waited until after we paid the taxes to do the sunroom.

My grandmother is giving my daughter $2k to help with a newer car. Hers is on it's last leg. I have to kick in $1500 to help out also. My daugher is selling her car and will combine all the money on a newer, more dependable car. But, I was hoping grandma would wait until summer to chip in. I had promised to chip in with grandma.

so, there will be NOTHING but money going out this month. Fortunately, I did not have a lapse in my contract at work as expected. That would have not been pretty. But, I would have qualified for free unemployment checks for the couple of weeks I would have been off. I've never received unemployment before. I was hoping for a break but I need the cash so.....Spring Break is here and I'm at work.

this post is so woe is me. good grief. Sorry to sound so negative. I love my life and wouldnt change a thing....well, other than my tax bill. ]]> Giro http://www.frugalvillage.com/forums/debt-reduction-money-management/152798-going-rough-month.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152789-how-much-can-i-earn.html Sun, 31 Mar 2013 00:43:14 GMT http://www.frugalvillage.com/forums/...can-i-cut.htmlFor NikoSan999. Who has requested I start this thread as an offshoot of my thread "How Much Can I Cut?".

The general consensus from people who responded to that thread was that I had basically cut all I could, unless I wanted to go drastic, bare bones, which would have meant neglecting my health and moving. As hubby was (and still is) dead set against moving, the focus became how to earn money to stay in the house we now occupy.

More recently the focus has been how to afford to renovate the house we now live in. It is a 1928 build and needs:

~ hardwood floors refinished both floors
~ front entry totally renovated, including new door and sidelight
~ kitchen totally renovated
~ basement refinished into a suite
~ new double car garage
~ new fence on one side of the yard
~ renovated yard

Hubby does not want to do any of the work himself. He is 61 and "too busy" and doesn't know what he's doing with these old out-of-square houses.

We have not had any quotes yet. We are not planning on doing the work for two years (2015), when our boarder graduates from trades school. That gives us two long years to save 'X' amount of dollars for the job.

Right now we are putting anywhere from $500-$1500/mth. into the C&H (car and house) account. Our car is 18 years old. It is in good shape, except the body is starting to give. It's a 1995 Toyota Corolla Wagon. We were told the engine should be good for 500,000 km. We have just shy of 300,000 on it now. We would like to replace it before hubby retires.

Hubby's retirement: Hubby is eligible for retirement with a full pension this fall. There is a bridge pension that goes with that, but only for a year or two. He is not going to retire before next spring he says. He is enjoying his job too much. :) I am happy for him. He says he hasn't decided what he will retire TO yet, and is a bit afraid of retirement as a result. So he will work until he feels like retiring or has to. He is 61. He has to retire at 65.

Current state of income...

Hubby brings in a good upper middle income from his managerial job. I am a stay-at-home wife with health issues. However...

I am an artist. I was juried into the provincial craft council this spring to sell my artwork. I will be selling at two large markets this year, one of them upscale. My work will be juried for at least one exhibit this year.

I have a cookbook in progress since last year. It is almost ready for printing. I need to test three recipes before asking for quotes on printing it. I want to do a small run vanity print to start with, so I can sell it with my art at a large street sale this spring.

I have a friend who is just finishing his web design course this spring and is willing to set up a website to sell my cookbook as an e-book online. He is giving me a discount to do this. Not sure I can afford it right now. But it takes money to earn money. So I might do it just for the experience.

I volunteer tutor newcomers to Canada in English. I have my name on a list of available tutors for our local technical institute, for which I would be paid, but I put down a really low rate and unreasonable conditions I think. I will talk to the man who asked me to do it and see what he thinks.

We have a boarder in the basement for $600/mth. room and board. Costs of having her are around $300 - $400/mth., giving us an extra $200 for the C&H account.

So...

1. Nail down the kid who wants to do my website on how much it will cost.
2. Talk to guy about tutoring.
3. Talk to contractors/designers about cost of a renovation.
4. Test the final three recipes for the cookbook.
5. Plan garden renovation.

Anything else anyone can think of for ideas to increase income? Don't say online surveys please. I tried that an got burned by telemarketers phoning night and day. Hubby and I were totally not impressed.

My hope is I can sell enough art this year to actually qualify as a business and be able to write some things off next year come income tax time as a result.

Right now my focus is art and tutoring, as those are the two things I know I can do well.

So I guess my question is...what do you all do to earn money? How to you bring home the bacon? Any ideas for me, given the above scenario? ]]> peanut http://www.frugalvillage.com/forums/debt-reduction-money-management/152789-how-much-can-i-earn.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152787-downside-paying-off-mortgage-credit-cards.html Sat, 30 Mar 2013 20:01:56 GMT What is the downside of paying off the mortgage and all the credit cards?

The sense of urgency to actually pay bills is dramatically reduced.

Yikes! I've been sick for over two weeks and simply didn't get around to bill paying. I'm finally doing it now. Where has the time gone. It is so stupid to be late on a bill or two when the money was in the bank, I just didn't cut the checks. ]]> CookieLee http://www.frugalvillage.com/forums/debt-reduction-money-management/152787-downside-paying-off-mortgage-credit-cards.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152718-funding-529-plan-vs-saving-up-down-payment-house.html Sun, 24 Mar 2013 00:38:21 GMT Hello all, I am 23 and almost a year into my first job. I have about 22k saved in the bank (including emergency fund) and no debt. I know this may sound weird for a single guy without kids, but I was thinking about taking 5k of my savings and putting it into a 529 plan (investing in mutual... Hello all,

I am 23 and almost a year into my first job. I have about 22k saved in the bank (including emergency fund) and no debt. I know this may sound weird for a single guy without kids, but I was thinking about taking 5k of my savings and putting it into a 529 plan (investing in mutual funds) for my future children's education and adding 100-200 dollars a month to it after (and more down the road as my salary increases). After housing, food, gas, and 15% into retirement I can save about $1000 a month. Should I just continue piling up cash in addition to what I already have to put down for a down payment on a house or do you think investing in a 529 would be wise due to the compound rate of return I would achieve? Thanks for any insight! ]]> jpmey http://www.frugalvillage.com/forums/debt-reduction-money-management/152718-funding-529-plan-vs-saving-up-down-payment-house.html http://www.frugalvillage.com/forums/debt-reduction-money-management/152660-help-me-start-budget-please.html Tue, 19 Mar 2013 10:14:52 GMT I'm having a hard time making & sticking to a budget. I write everything down but there is always money leftover so I'll buy things here & there and I need to work harder at paying down my debt. Credit cards and Ava's hospital bills are paid off but I still have a student & car loans. I'll write out my monthly expenses for the month. My husband & I share our finances but keep everything separate. It works well for us so I'm not looking to change that. Please keep in mind that the expenses below are my half. Sorry if this is confusing. TIA!

My income per month: $1478.64
Mortgage: $250
Water: $12.50
Electric varies of course but lately it's been around $85
Car insurance: $35
Health ins (Ava): $70
Cable: $54.50
Zantac (Ava): $7.50 - working on weaning her from this
Groceries: $125
Car payment: $210.51 but I pay $300, sometimes more.
Student loan: I paid extra for a long time so I don't have a set payment at this time. I've only been paying $100 while we were working on paying off credit cards.
Gas: $70-80/month
Cell phone: $75
Current school payment: $54 ]]> danimarie0820 http://www.frugalvillage.com/forums/debt-reduction-money-management/152660-help-me-start-budget-please.html