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Discussion Starter · #1 ·
after doing our budget we have just enough to cover all the basic expenses except our emergency fund, car repair/tires, home repairs, Christmas fund,and license and tags. i am a firefighter and could potentially have more income in the next few months but we are planning the budget with what we KNOW we will have for the month. i know the EF MUST be funded or we will get nowhere but while there is no $$ for these items am i in crisis mode? i am new to this so could use the help. thanks
 

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I am sure Greebo will have more wisdom than I, but I would say you are in crisis mode. You are only one unforeseen event away from deeper in debt.

I would think that you need to do one or more of the following:

Sell anything you can do without and put the proceeds toward your emergency fund. See his expanded BS 0.6 "Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months"

Decrease monthly expenses by reducing where you can (utility use, grocery bills, gasoline) until you can free up money for your emergency fund. See expanded BS 0.7 Cut lifestyle (Cut CATV, Cellphone, Regular phone "extra's", Internet, Eating out, etc) and/or take second job if $1000 EF will take more than 30-90 days. (depending on income)

I'm not saying starve yourself, or freeze, but look for every angle you can.

Then, when that extra work comes along, you will be in a better position to take advantage of it.
 

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If you lost the ability to work tomorrow how would you fair?
How long before savings are gone?
Do you owe more than you own?
Are you late on anything?
Are you on track for retiring on schedule?
How big of an emergency would it take to sink you?
Do you know exactly what you owe?
Do you have disability?enough life ins? Can you live on that? can your family?
Pretty sure you are just A small crisis away.
You ask you these questions,don't rationalize anything,and see if your on track.
 

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after doing our budget we have just enough to cover all the basic expenses except our emergency fund, car repair/tires, home repairs, Christmas fund,and license and tags. i am a firefighter and could potentially have more income in the next few months but we are planning the budget with what we KNOW we will have for the month. i know the EF MUST be funded or we will get nowhere but while there is no $$ for these items am i in crisis mode? i am new to this so could use the help. thanks
Would you be willing to post your budget here?

We have people who are expert at finding wiggle room. :)
 
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I'm guessing everyone will have their general opinion on what's crisis mode. What will you do differently if you are in crisis mode?

I'm still hanging on to my internet and cell phone so whether I'm technically in crisis mode or not I'm too stubborn to admit it and I just a'goin with keeping current and paying what I can to debt.

Posting your budget, as Greebo says, can do wonders!! It really helped me and I still visit my old thread to see what other people suggestion that I may not have implemented yet.
 
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Discussion Starter · #7 ·
heres the budget:

total income-2291.22

giving-295
saving and pension(cant put on hold)-40.89
housing-748.65
utilities-282.50
food-280
transportation-222.50
medical/health-273.68
personal-148
NO DEBT!!! except house

if you want to know anything more in depth let me know. we have already cut our utilities to minimum and i know know house total seems high but thats with taxes and insurance. really when i find a part time job it will change everything but until then this is what i got. thanks for your help
 

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By giving do you mean to a church? Or charity? This is just my opinion but if you can't afford to meet all your personal bills/goals you can not afford to give. Maybe you could give another way? Donating things you no longer need/use or time?
 

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Your housing is at 32-33% of take home (that IS take home, right?) - that's not terrible but it's not great - but I don't know how you'ld get that any lower either.

Utilities --- I'd like to see that broken out. Transportation - if you have no debt, what's included in that - gas and insurance?

How many ppl in the house?

What part of the country do you live in?

And what's in "personal"?
 

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By giving do you mean to a church? Or charity? This is just my opinion but if you can't afford to meet all your personal bills/goals you can not afford to give. Maybe you could give another way? Donating things you no longer need/use or time?
His expenses exactly equal his income - so he's not shorting anyone to give to someone else.
 

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His expenses exactly equal his income - so he's not shorting anyone to give to someone else.

I would argue he IS shorting himself by giving so much right now, when he cannot afford to save $ or pay down something. Think that category should shrink substantially for the now. 'Pay yourself first'!
 
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His expenses exactly equal his income - so he's not shorting anyone to give to someone else.
Op says he has enough to cover everything expect savings, car maintaince Christmas etc. So when the time comes that the car breaks down where will he take that money from? It's just my personal opinion that he should have those things taken care of before he gives. But again just my opinion :)
 

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I would argue he IS shorting himself by giving so much right now, when he cannot afford to save $ or pay down something. Think that category should shrink substantially for the now. 'Pay yourself first'!
Well, he's shorting his future, but when I said "not shorting anyone" I meant shorting creditors . The FIRST person one should short is one's self. ;)

Op says he has enough to cover everything expect savings, car maintaince Christmas etc. So when the time comes that the car breaks down where will he take that money from? It's just my personal opinion that he should have those things taken care of before he gives. But again just my opinion :)
Maintenance maybe. Christmas? No. Christmas is nice but is not an entitlement. Christmas can be done very very cheaply.
 

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I know you'll get a lot of slack for giving. I just want to say that I think it's great! One of the first things people cut is giving and it could hurt someone else who that money might help with they make less than you. Keep up the good work. You will be rewarded for it later.

I'm also curious about how many people you feed, what's in transportation, and to see the utilities broken down.
 

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'Well, he's shorting his future, but when I said "not shorting anyone" I meant shorting creditors . The FIRST person one should short is one's self. ' -Greebo

Gotcha- you are correct, he is keeping up with his obligations. But I think it's an area that could easily be cut back, for now. I am all for giving, I think charity is VERY important, but if one is one paycheck away from financial disaster, I think giving in the form of $ needs to go, or be drastically cut. Charity should NOT mean putting your own family at risk while giving....it is only a 'gift' if the giver can truly afford it- this poster cannot, right now. I say this with the assumption the 'give' is to a charity, not something like helping elderly Momma or disabled adult sibling who cannot make ends meet.

To 'find' some $, can you pick up shifts? Can your family get on board with couponing some, and planning out meals for the week, shopping with a list and sticking to it, so see if there's any 'give' in the food budget? Can anyone pick up an extra part time job for 6-12 months to get you a nice cushion of savings going? If there's little room for 'give' in the budget, then income will have to rise. I think giving $100 a month instead of the almost $300 you're so generously (and foolishly, to me, at this point in your financial life) would give you an extra $200 a month to sock away for that 'rainy day' that always shows up in all our lives. I would say do away with it completely for 6 months or so, but it is obviously important to you, so if you must, do some, but cut waaaay back. When your financial house is in order you will be able to be generous again, but now it's time to be generous to you and yours by getting some emergency $ in place!
 

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Discussion Starter · #18 ·
thanks for all the feed back. let me explain some of your questions.

giving includes 10% of gross income. God has got me this get far! also $25 to a ministry that my wife and i are involved in.

utilities:electric 75, water 37.50, cell phones 54, cable 16, gas 100

transportation: gas and oil 80, insurance 142.50

personal: hair care 10, subscriptions 13, blow it(wiggle room) 40, life insurance 55, internet 30

the 280 for food includes health and beauty, toiletries etc.

2 adults, 1 child in northwest ga

this budget plan is our first and we think the food will actually end up being less but this is to start with
 

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Auto insurance - how many vehicles, what makes/models, what kind of coverage?

Perhaps you could go to liability only on the less valuable vehicle?
 

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Discussion Starter · #20 ·
also my wife does major couponing, and we do the e-z mealz which dave ramsey recommends. i know to some giving right now would be foolish but i am debt free and have got where i am and am the person i am because of God so i will continue to give 10%. i have always found that God can do much more with 90% than I can with 100%
 
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