Should have came here first!!

iVillage Member
Registered: 04-27-2005
Should have came here first!!
38
Wed, 08-17-2005 - 8:09pm
I went to the SAHM/WOHM debate board to ask about my finances and that was a BIG mistake. Most of those women are nasty, know-it-alls who just looking for someone to put down. Here is my story:
My dh and I have gotten ourselves into over $6000 debt with our line of credit for overdrawing our checking account. Yes, it was stupid but it just escalated. I have come to terms with this and figured out a way to pay it off AND get us back on track (cutting out one of my dd's activities, having my dh understand he can't just take $20 here and $20 there whenever he feels like it, etc.)I know it will be hard but we are going to try our best. We do have cc debt but I only use one card and put all my clothes and medical bills on it and pay over the minimum every month. They were telling me I am wrong because I have a lease and my dh has a car loan. They INSISTED I needed to get rid of my car, my cable and cellphone. I have different ideas of how to save the money and they just insisted I wasn't listening.
I hope I have found a better board to go to. One that other people are in the same boat as me and we are all here to help one another, not berate them like they are a child.
iVillage Member
Registered: 04-27-2005
Sat, 08-20-2005 - 2:15pm

Sure. Here you go: (this is per month)

mortgage-1,000
electric-85
oil heat-145
water-7
cable & internet-100

cars (insurance & maint)-250
car lease-200
car loan-150
phone-35
food-320
diaper/wipes-46
newspaper-8
activities (now going to use for field trips, pictures, bday gifts, etc)-55
clothes-40
life insurance-16
med. bills-40
cellphone-65
credit card-40
after-care-20
spending-360
LOC-160

savings (starting back in Jan. again)-60
kids-40/40
table-40

iVillage Member
Registered: 08-19-2003
Sat, 08-20-2005 - 2:52pm

I am going to assume you pay the minimums on the credit cards. Is this all your income accounted or do you have "extra" not included?

Just by doing a quick look at your budget, I would do the following

1. Stop putting $80 per month in the kids savings.
2. Cut back the grocery budget to $200 per month.

How long do you owe on the cars & the table? What is the interest rate of the credit card?

Do you have an emergency fund?

Shannon


Pregnancy%20ticker
iVillage Member
Registered: 04-27-2005
Sat, 08-20-2005 - 4:29pm
Thanks!
No, we pay more than the minimum on the card, always. Alot of it is money we have for the bill and just use the card (medical, clothes, gifts, etc.)
I feel bad not saving for college but I guess that money would help us pay other things for the moment. In 3 years when my ds is out of daycare we will save $125/week.
I try and cut coupons every week to help out on the bill. That also includes all our hygeine products and paper goods too. My dh eats ALOT so that is really cheap for us. I am feeding 4 people on that so it is not too bad.
The table was a 2 year deal, it will be 1 year this November.
My dh took out a 6 year loan so he has about 4 years left, even though he would like to sell the car before that and get something else.
My lease is for 39 months and I just had it a year in February. I am really thinking of buying something next time so I won't have to find $3000 everytime I need a new lease!
We only have 1 credit card we use and the interest is 14%. A little high, I know.
We do have some savings for emergency funds but is under $1,000.
iVillage Member
Registered: 08-19-2003
Sun, 08-21-2005 - 10:15am

I feed 4 people on $200! So $360 is a lot. From now on please pay the minimums, stop putting money in savings. Open an ING savings or another similiar account if you have not already, and start putting anything extra in there until you have a $1000 emergency fund. This includes $80 that was going to college, and should include "some" of your spending money.

I think you need to cut back on cable, internet, and spending money. And getting rid of your husbands car is a bad idea, get rid of yours and purchase something, with cash! You have just wasted money how ever many years "renting" a car.

Please take a look at another board http://www.livinglikenooneelse.com/forum/index.php?

They will beat you up, but they are hardcore about getting out of debt, but they may make you see the light with getting out of debt. Register and you can read all the posts.

You cannot afford to keep everything. Something has to give or every doctor bill, oil change, or car repair is going to be an "emergency" in your lives. And I am not trying to be mean. I really am not But doing the math and looking at what you spend, its just not going to work.

Shannon


Pregnancy%20ticker
iVillage Member
Registered: 06-29-2003
Sun, 08-21-2005 - 2:14pm

What about using the Envelope system to help keep you on track each month?
At the beginning of the month (or each pay day) decide how much you will be
spending on each catagory and put that amount in an envelope. When you have
no money in the grocery envelope, you can't buy anymore groceries.

Examples:

Auto-Fuel-$60
Auto-Insurance-$200
Auto-Registration (Inspection and Registration x 2 vechiles divided
by 12 months)-$35
Auto Service-$20
Credit Cards-$300
Dining-$150
Gifts-$30
Groceries-$200
Household-$100
etc.....

iVillage Member
Registered: 04-27-2005
Sun, 08-21-2005 - 2:38pm
Thanks so much. We are definately going to cut our spending.
Can you please let me know how you can spend only $50/week on food. I thought I was doing good on $80 but that is great!!!
iVillage Member
Registered: 04-27-2005
Sun, 08-21-2005 - 2:40pm
That's what we pretty much do. I put the money in the checking account and have a notebook that I have everything broken down so I can see what is in each category and minus it when the bill comes in. I go grocery shopping once a week and only spend the $80.
iVillage Member
Registered: 08-19-2003
Sun, 08-21-2005 - 3:18pm

I shop exclusively at Aldi for groceries, and I buy personal hygiene products, paper towels, toilet paper, diapers & wipes in bulk at Bj's.

I write a shopping list & stick to it.

Shannon

Shannon


Pregnancy%20ticker
iVillage Member
Registered: 04-27-2005
Sun, 08-21-2005 - 3:48pm
We don't have any Aldi's here but I shop at Pathmark. It is one of the cheapest stores around. I also make a list too. I wouldn't be able to shop without one! I also total everything up as I go through so I make sure I don't go over. I try and buy generic brands as much as possible or buy what is on sale. If we don't like the generic brand, then we know we won't buy it again. Totally I actually got sausage and pork chops on sale. They were half price!! I was thrilled-lol!! I am actually a very good shopper and enjoy it very much!!
iVillage Member
Registered: 03-27-2003
Sun, 08-21-2005 - 5:16pm

Great advice from everyone. Personally, I don't follow one debt guru like Dave Ramsey or Suze Orman. I've tried to read a variety of financial books and then note what themes occur over and over again. I've talked with DH and agreed upon what works for our family. I know there are even more changes we "should" make but right now we're not comfortable with some of those. If we couldn't pay our bills or were facing collections our attitude would change. I've also noticed that over time changes I once thought were drastic don't seem so large. I've also learned that it's easier to focus on areas I'm personally responsible for instead of trying to force changes on the rest of the family. I could go with satellite pretty easily but DH & DD are hooked so instead I focus on what I can change things like using cloth diapers and hanging laundry on the line.

Taleyna