Figured out how things go to be where they are!
by, 01-05-2009 at 04:55 PM (1012 Views)
I've been trying to figure how we ended up with so much debt.
There was some frivolous spending no doubt. That surely helped, but looking at the numbers, I know for a fact that there is NO way we blew that on luxury items alone.
Ends up in taking into account that for 5 years we lived on dh income alone. In a world that there's NO way we could stay in the black. If I remove the debt payments, with the current house hold bills: bus passes, groceries, gas, utilities, insurance, mortgage, taxes, we'd have $60 at the end of the week. I have set the current grocery budget $50 LESS than what we had been using. So if I went by the old amount that would mean $10! NO BLOW MONEY.
For 5 years, we lived on one income(for a few of those years it was considerable lower that what it is now), and I struggled and struggled to make ends meet. We just didn't take into account the small things. $20 for cell phones, $97 for the kids bus passes, fluctuations in utility bills. changes in gas prices. It's no wonder we didn't balance!
Doing a spending plan has been an eye opener, my snowball is smaller than I had thought it was, which explains why at the end of the month things weren't adding up.
I know work from home and make a decent income, approx 75% of it is being used as a snowball. I know we could cut the baseline, but dh wouldn't agree to it, the only things we could cut out are internet(I earn money online too, so that would be silly, plus it's a business write off) and the satellite, cell phones. But all 3 combined is under $100. And we HAVE a snowball, so it's not the end of the world.
I'm just kinda shocked at the totals. It does explain a lot. We apparently didn't include all the little things that come along.
We kinda thought that once all the debt other than mortgage was paid off, I wouldn't have to have an income. I just don't see it happening. It will mean that we'd be able to live on dh income alone though for all the baseline, but that leaves NO breathing room. My income would put away retirement funds for me, accelerate the mortgage, and a family trip or 2 in the next few years.
This just shows me SOOOO much, why on paper we should have been doing way better. We didn't include it all in there. DOH.
I'm very very happy I took the time today and fussed with the numbers. Now I'll have a way better idea of what is going on.
I recommend everyone sit down with bills, bank statements and check books and see what is really being paid out. For us it was the bus passes, insurances and the cash spending money, not spent freely, but spent not realizing there was none to be spent! How dumb we can be!