Budget Plea for Help

[Shoshana]

I do not seem to be able to make these numbers work. If I divide the yearly items by 12 and put them in the monthly budget, I'm short. Am I missing something? Does something seem excessive? I'll do my best not to get defensive!

INCOME
3070 / month
5000 / prox yearly return on taxes

YEARLY
3200 property taxes
..500 homeowners insurance
....75 vehicle registration
...300 glasses (self & dd)
...125 Sunday school for dd
...150 vet care (includes flea & heartworm meds)
...130 YMCA membership (dd)
...160 YMCA swimming & gymnastics

MONTHLY
..955 mortgage
....50 cleaning (*see below)
....60 phone (landline)
....50 internet & Uverse
....80 electricity (avg over 12 mos)
..105 gas (avg over 12 mos)
....25 water
..280 food (incl. dog food, HBA)
..485 YMCA daycare for dd who is in Pre-K this year
..225 gasoline
....85 auto insurance
....50 synagogue membership
....50 rx co-pays
....75 my mad $$ (primarily for hair)

DEBT
1045 CC1
7080 CC2

NOT INCLUDED
auto repairs (2003 VW exc.condition w/yearly maintenance)
medical co-pays (minimal and varying)
synagogue activities/events
clothing for dd (tough to thrift shop for my dd in my town)
entertainment
home repairs/maintenance
?
*****************************************************

*Cleaning -- I have severe allergies & asthma. This is a big help to me and allows me to avoid at least two sick days per month. I could give this up, I'd worry more about the family who needs tthe $$ than my allergies

I'm truly concerned about my finances. I've been making concerted efforts at frugality since the beginning of the summer, but obviously have not been tackling the whole problem. I've never been "good" with money (except for spending it). I've paid off the CCs a couple of times, only to see them build again. Something's not working. I've increased the deductibles on my auto and home insurance, cancelled my cell phone, and made other small changes. I've also changed my dd's daycare from Montessori to the Y -- the Y membership of $130 allows me to pay a lesser monthly rate (and it's about $300 per month cheaper than Montessori). I "can't" get another job, I'm a single working mom and my dd just turned 5.

What is a "sinking" fund?

Thanks in advance for your help and suggestions!

[Mochashello]

Ok, I'm not seasoned or anything, but I have a couple of ideas.

Can you put your daughter in public preschool? There are often public preschools that you can qualify for based on economic need and/or child need (i.e. if there is a speech delay or something that would likely be improved by being around more kids her age). I know that I was able to get my dd into preschool this way, for free. That is a huge expense that you could cut right there. Also, I don't know where you are at and what the age requirements are, but at 5 she could even be old enough for kindergarten. If not, at least consider that this will be the last year you have to pay so much for childcare and starting next year this money will be freed up.

If those school ideas aren't an option, what about a friend who might be able to babysit? This is your biggest expense besides the mortgage and this is the area I would continue looking into. You've already made a change and saved some money here and that is good. But as they say "Good, better, best- never let it rest. Until your good is better, and your better best!" It may be possible to save more here. And she won't suffer by going to a friend's home as opposed to an "organized' preschool, believe me.

the next high thing I notice is your gas bill. That seems really high to me. Gas is relatively cheap. Perhaps last year (the year you are averaging), you used the heater a bit too much in the winter? Could you plan to put the thermostate down a bit and add a blanket to your bed? Something?

Forgive me for being naive, but do you have to replace your glasses every year? You have that as an annual expense and I was just wondering about it.

For this year, while you have to pay for the childcare, you should consider cutting out the swimming and gymnastics. When you free up that money as she enters kindergarten, you could look at adding it back in.

Does your synagogue perhaps have any way of helping out with their costs for people in your position? Do they have a sponsorship program or something that would pay for your daughter's classes or even your monthly membership? It doesn't hurt to ask.

=)

[FrugalMomof3]

I am no expert but I think you should cut out the swimming/gymnastics and Y memberships at least for now. That will surely free up a bunch of money. I know you want your DD to do activites but there are free programs out there you just have to look.

Just think once your DD gets into public school or Kindergarden, you will free up the cost of childcare. I would not put her in private/catholic school but take advantage of the free schooling. You probably pay school taxes, now your paying more to put her in private school.????

JMHO!

[Shoshana]

No, she's not in private school. She's in public pre-kindergarten, and will continue in public schools. The schools here are quite good. Pre-K is only four half days per week so I still have to pay daycare... I honestly think the cost of day care has a lot to do with my budget problems. Unfortunately, her birthday was 17 days too late for her to start kindergarten this year..

Re the gas -- I'm on the budget plan so I don't have a higher bill in the winter. I keep the thermostat set between 62 and 64 degrees all winter -- and I live in the frozen north!

Glasses -- so far, dd has needed a new pair each year, and I need a pair about every other year. Mine are wicked expensive.

Synagogue -- I am on their "budget plan" already! Based on my salary, my membership would be $225 per month! instead of $50.

Re swimming and gymnastics -- paid in full at the beginning of this month, along with the membership.

[The Muse]

I don't really see any excess in your budget, but I have a few suggestions that may or may not work for you...

1) Does the $300 for glasses include new frames? If it does, you might consider just replacing the lenses.

2) $60 for a landline seems high. Can you cut call waiting? Are you paying a monthly fee for "cheaper" long distance? If you don't make a lot of long distance calls, you can often nix the monthly charge, pay the higher per minute rate, and still come out ahead.

3) I agree with Mochashello, I'd dump the Y and gymnastics for now and pick them back up once you lose the daycare expense.

4) Can you cut your food budget? I pay $35-$40 every 2 weeks for DH and me and we eat healthy foods. It takes some some time and effort, but we've really cut costs in this area despite rising prices. I stock up on HBA with sales and coupons so the costs are nominal.

[Mochashello]

Re swimming and gymnastics -- paid in full at the beginning of this month, along with the membership.

Ok, then you don't need to budget for them anymore. So scratch them off your list. By the time next year comes around, if you decide to keep her there, you will have freed up a bunch of money because she'll be going into Kindergarten.

You are in a tight spot, that's for sure. I hate to bring it up because it is so deeply personal, but do you have to belong to a synagogue for your religion? I'm just grasping at straws here, please don't take offense.

What about child support? Can you pursue that?

What about a yard sale to pay for one of the annual expenses such as glasses or even just auto registration?

Are there any other items besides the Y that have recently been paid- within the last 3 months perhaps? Let's deal with the things you have to figure out before your dd starts Kindergarten. =)

There still might be a State preschool (that's what I meant, not just public but state run) which could save you money. Even though you already paid the annual fee for membership, the monthly fee is killing you. What state are you in?

Oh, and I think a "sinking fund" is for those annual expenses you've listed, and for the expected things like wear and tear on your car- new tires, etc.

Do you have family around- your parents perhaps- who might be able to contribute to your daughter's childcare?

Since you can't get a second "job", what about a home-based business, like a party-plan type thing that might take you out of the house only once a week?

People suggested to me that I sign up for MyPoints, you could try that.

What about a gasoline rewards card- if you are strong enough to make sure you only use it within your budget and pay it off every month so you don't pay any fees or interest.

[Shoshana]

I don't really see any excess in your budget, but I have a few suggestions that may or may not work for you...

1) Does the $300 for glasses include new frames? If it does, you might consider just replacing the lenses.

New frames & lenses for dd - children's frames don't last that long, plus she's growing. Just new lenses for me, but they're very expensive. I have two pair of good frames, and prescription sun glasses.

2) $60 for a landline seems high. Can you cut call waiting? Are you paying a monthly fee for "cheaper" long distance? If you don't make a lot of long distance calls, you can often nix the monthly charge, pay the higher per minute rate, and still come out ahead.

I don't have call waiting, I cancelled the unpublished service to save $5 per month. I do have a lot of long distance, my family is all out of state. I cancelled my cell phone as it was even more expensive -- and I decided I didn't need to talk and drive at the same time!

3) I agree with Mochashello, I'd dump the Y and gymnastics for now and pick them back up once you lose the daycare expense.

The Y had to be paid this year because it's where dd attends for daycare -- swimming and gymnastics are paid in full for a year, so I can forget them for now. I'll worry about next year next year.

4) Can you cut your food budget? I pay $35-$40 every 2 weeks for DH and me and we eat healthy foods. It takes some some time and effort, but we've really cut costs in this area despite rising prices. I stock up on HBA with sales and coupons so the costs are nominal.

Honestly? If I started to take the time and plan our meals, I could probably avoid shopping for everything except fruit, veggies, bread, and milk. I could even learn to use my bread machine - I tried it once and have been 'afraid' to try again! I have lots of beans, rice, pasta, canned tomatoes, oatmeal, soups, etc, even homemade frozen foods. We don't eat meat. I mostly buy organic, for lots of reasons -- including the fact that I break out in rashes when I peel/clean non-organic produce -- I could wear gloves and go back to the regular...

Thanks for taking the time to brainstorm!

[Cricketlegs]

Your house payment is so high. I do understand that with the housing economy like it is you probably can't sell and get a more affordable home but it sure would help alot.

Does that amount include insurance and escrow?

[Shoshana]

Ok, then you don't need to budget for them anymore. So scratch them off your list. By the time next year comes around, if you decide to keep her there, you will have freed up a bunch of money because she'll be going into Kindergarten.

got it.

You are in a tight spot, that's for sure. I hate to bring it up because it is so deeply personal, but do you have to belong to a synagogue for your religion? I'm just grasping at straws here, please don't take offense.

Each synagogue is completely self-supporting, unlike, say, Catholic churches. There is no weekly collection, but membership fees. The closest synagogue to my house is nearly an hour away - I'd save lots of $ in gas, but it would hurt my heart to give this up. No offense taken...

What about child support? Can you pursue that?

No, I adopted my daughter

What about a yard sale to pay for one of the annual expenses such as glasses or even just auto registration?

Well, I started the summer with grand plans to de-clutter and have a yard sale - I'd even named it "the pack rat's cure." Decluttering took much longer than expected, and I could barely walk in my basement by the end of the summer. I ended up donating almost everything. At least the chaos is gone...

Are there any other items besides the Y that have recently been paid- within the last 3 months perhaps? Let's deal with the things you have to figure out before your dd starts Kindergarten. =)

Yes. Homeowners is paid in full until May 09. Auto insurance is paid in full for 6 mos.

There still might be a State preschool (that's what I meant, not just public but state run) which could save you money. Even though you already paid the annual fee for membership, the monthly fee is killing you. What state are you in?

I wouldn't qualify. My gross is $54K

Do you have family around- your parents perhaps- who might be able to contribute to your daughter's childcare?

No, my bio family is local, but they're busy with their own lives, asking for help/time isn't comfortable. My adoptive family live 1700 miles away, my parents are elderly and I cannot ask them either. They do come to visit and help out with food and spoiling their granddaughter.

Since you can't get a second "job", what about a home-based business, like a party-plan type thing that might take you out of the house only once a week?

Ugh, I dunno. I'd still have to pay for babysitting. My job is fairly high stress, I often have to work at home in the evenings after dd has gone to bed. I really don't think I could handle it

People suggested to me that I sign up for MyPoints, you could try that.

What is MyPoints?

What about a gasoline rewards card- if you are strong enough to make sure you only use it within your budget and pay it off every month so you don't pay any fees or interest. Excuse my ignorance, but what would the rewards be?

Ya know, I could make a couple of changes. Internet and Uverse are $50 per month. I actually tried to cancel the TV service but ATT did a great job of convincing me to downgrade rather t han cancelling. I could give up both. The TV wouldn't hurt much at all, I'd go into internet withdrawal, but I'd get a lot more done around the house![

I could also try to give up my hair salon treatment and try to 'do it myself' for a while... Although, I haven't had luck with that in the past... It would be worth a try...

[Shoshana]

Your house payment is so high. I do understand that with the housing economy like it is you probably can't sell and get a more affordable home but it sure would help alot.

Does that amount include insurance and escrow?

I have a wonderful 1930, arts & crafts, bungalow-style home that in most places would cost a fortune. I live in an inexpensive town. I fell in love with the 'bones' of the house, bought it because it was 'perfect' and then had to face up to the fact that it was a dump. It's no longer a dump but I have a $144 mortgage If the housing market turns around, I will seriously consider selling and renting... I've also thought of trying to find a roommate but I don't know how practical that would be.

No, it doesn't include taxes and insurance. The 954 is just the mortgage payment. Takes are $267 per month, or $3200 per year. I usually pay them out of my IRS refund. Homeowners isn't bad at $48 and it's paid in full for a year.

I should probably add -- I could bring home $225 more per month if I didn't contribute to my retirement account -- if I stop the contributions, I miss out on matching funds plus 2% from my employer. In addition to the retirement, I also have investments -- of course there would be a significant tax penalty, but I could pay off about two thirds of my mortgage. I would be nervous about doing this...

[Cricketlegs]

I have a wonderful 1930, arts & crafts, bungalow-style home that in most places would cost a fortune. I live in an inexpensive town. I fell in love with the 'bones' of the house, bought it because it was 'perfect' and then had to face up to the fact that it was a dump. It's no longer a dump but I have a $144 mortgage If the housing market turns around, I will seriously consider selling and renting... I've also thought of trying to find a roommate but I don't know how practical that would be.

No, it doesn't include taxes and insurance. The 954 is just the mortgage payment. Takes are $267 per month, or $3200 per year. I usually pay them out of my IRS refund. Homeowners isn't bad at $48 and it's paid in full for a year.

I should probably add -- I could bring home $225 more per month if I didn't contribute to my retirement account -- if I stop the contributions, I miss out on matching funds plus 2% from my employer. In addition to the retirement, I also have investments -- of course there would be a significant tax penalty, but I could pay off about two thirds of my mortgage. II would be nervous about doing this...

Well I will tell you this--I am a dave ramseyette LOL! I have tweaked the plan to work better for me. I saved my Ef, I am rolling my snowball on my debt and there is a light at the end of my tunnel.

I have enough in my budget to do it and some months I just squeek by but being as frugal as I am it always gets done.

Dave Ramsey works!

If you could hold off on retirement and get the Emergency Fund at $1000 and then start a snowball on the credit cards you would be in a much better place.

If you are young, you can still make it work without doing retirement at this time.

Maybe do some research on the Dave Ramsey plan and decide for yourself what you want to do.

[Mochashello]

wow, ok. looking at the info re the retirement account and such. I think that $225 is a lot to contribute for you right now. I would lower it to the bare minimum, if not stop it altogether for this year. What you have in there right now should stay put, right? Then start it up again next year. Avoid withdrawing any funds because of the tax penalties, and I don't think your mortgage is very high at all, compared to mine anyway. But I live in So Cal and prices around here tend to be much higher than other places. We are only contributing I think $100 per month, and we have only done that for the last 5 months or so. We just couldn't afford it. I don't know how old you are, but taking a year off from that shouldn't affect your retirement outcome too much. Or like I said, lower it to the minimum you can contribute- maybe $50 or $100 per month. Don't touch the investments just yet. Let's see what we can do without that first.

Let's keep auto in there because in 6 months your situation will still be the same with your childcare expenses so you need to be planning for that. Homeowners is difficult because you will be just on the verge of being done with the childcare (or most of it). But, with the above details regarding the retirement account, you are better off keeping some of that money and then you'll be able to put it aside for all the annual expenses including homeowners.

Actually, to me, this is a no-brainer. Pause the retirement contributions until your daughter is in school. It is only one year. This will take a LOT of stress out of your life. Just make sure you are using it wisely and not spending it on drive thrus or whatever. Pay your bills, build a savings account (I believe they call it a baby emergency fund and recommend $1000), and throw anything extra at your debt - CC1.

And there you go! =)

I was actually going to ask about the idea of a roommate, but I would only recommend someone you already know and trust- since you have a small child. But a college student would be a good choice. Someone in need of cheap rent who won't be home much. I don't know, it's a possibility.

[janis362529]

With the YMCA child care bill ask them for financial assistance. They may help. I know with ours they never turn anyone away reguardless fo ability to pay(motto or something) Any way our bill got backed up and I applied for help and they knocked off $1000 which brough us owing down to like 500 which was wicked nice.

I agree that cutting retirement even for just this year will help out greatly with freeing up some funds till your daughter starts school. Then since daycare expense will be gone you will have the funds available for retirement.

Next year though when you daughter goes to kindergarten are you going to need before and after school care or will you be home when the bus drops her off. Iknow here before and after school care can run around $75 a week. So you may want to figure that into your budget to be prepared that while the childcare will drop it will still be present.

I think your morgage rate is good considering how much rent is but taking in a renter may not be too bad just watch and do a complete check on who ever that may be considering you have a young child in the home.

Best of luck to you with finding the extra money.

Oh mypoints is a web site that gives you points for shopping online,doing surverys, and being a bzz agent.

Bzz Agent is an online site where you are sent items to try plus coupons to share and you talk to your friends about the product,write 2 reports on who you bzzed, and in turn they give you mypoints.I love it and have gotten some very nice goodies for free(soy milk,soic care toothbrush, chocolate,cleaning supplies,ect)

[Mochashello]

Oh, and on a gasoline rewards card you would get free gas money.

[ladykemma2]

INCOME
3070 / month
5000 / prox yearly return on taxescan you adjust this so come out even?

YEARLY
3200 property taxes
..500 homeowners insurance
....75 vehicle registration
...300 glasses (self & dd)go cheaper, one pair only/you don't need prescription sunglasses
...125 Sunday school for dd
...150 vet care (includes flea & heartworm meds)
...130 YMCA membership (dd)cut
...160 YMCA swimming & gymnasticscut

MONTHLY
..955 mortgage
....50 cleaning (*see below)cut
....60 phone (landline)
....50 internet & Uverse
....80 electricity (avg over 12 mos)
..105 gas (avg over 12 mos)
....25 water
..280 food (incl. dog food, HBA)
..485 YMCA daycare for dd who is in Pre-K this year
..225 gasoline
....85 auto insurance
....50 synagogue membership
....50 rx co-pays
....75 my mad $$ (primarily for hair)
sewer, trash, home maintenance?

stop 225 retirement for one year til debt is cleaned up. do you know about dave ramsey? listeon to his radio archives for free on his website. they keep me on the straight and narrow

need a freedom account/sinking fund for annual and intermittent expenses. please read mary hunt Debt Proof Living

you have a lot of fluff, so did I when i first showed up. keep coming back!

i found that doing the electricity phantom load thing and doing the laundry suggestions were the first things i did with the most bang for the buck. shop with planned meals, keep a running total with a calculator, and with a list. i work 12 hour days so a lot of the "stay at home housewifey suggestions" don't work for me ( no offence meant, ladies) i do what i can. A crockpot has made a huge difference in last minute getting something to eat.



DEBT
1045 CC1
7080 CC2

NOT INCLUDED
auto repairs (2003 VW exc.condition w/yearly maintenance)freedom account for me based on past history is 83 a month, oil changes is its own category
medical co-pays (minimal and varying)mine is 120 a year for pap, mammogram, cancer skin check
synagogue activities/events
clothing for dd (tough to thrift shop for my dd in my town)ask friends for hand downs, garage sales for kids clothes
entertainment
home repairs/maintenancemine is 300 a month, which is about right
home owners association?

*****************************************************

*Cleaning -- I have severe allergies & asthma. wear a hepa respirator available at home depot with an exhalation valve This is a big help to me and allows me to avoid at least two sick days per month. I could give this up, I'd worry more about the family who needs tthe $$ than my allergies too bad

I'm truly concerned about my finances. I've been making concerted efforts at frugality since the beginning of the summer, but obviously have not been tackling the whole problem. I've never been "good" with money (except for spending it). I've paid off the CCs a couple of times, only to see them build again. Something's not working. I've increased the deductibles on my auto and home insurance, cancelled my cell phone, and made other small changes. I've also changed my dd's daycare from Montessori to the Y -- the Y membership of $130 allows me to pay a lesser monthly rate (and it's about $300 per month cheaper than Montessori). I "can't" get another job, I'm a single working mom and my dd just turned 5.

What is a "sinking" fund?

Thanks in advance for your help and suggestions!

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