I need you guys to analyze my budget

iVillage Member
Registered: 07-05-2006
I need you guys to analyze my budget
21
Tue, 11-03-2009 - 3:04pm

I have spent the last year really cutting back and re-structuring my budget. I think I've done a good job and I'm almost out of debt. You all know about my car problems. This month they are going to have to be dealt with as it is time for inspection and registration and I can't have a vehicle in my parking lot that is not registered. So I have a little more than a month to figure out what to do with my broken down car.

Today I drove down the street to a local mechanic and he was so nice. He looked at my car, did a read out of the check engine light codes and test drove it to try and discover what was wrong with it and whether it was worth fixing. He didn't charge me a penny either. I was so grateful! We talked for about an hour about the car, and all of my options. It basically came down to 1. This car is on it's way out, would cost over $1000 dollars just to fix 3/4's of the problems. 2. I drive a lot so buying a beat up used car would probably just get me right back to where I am now in about a year. He said I could probably sell it to some mechanic that could fix it on his own for $1500.

He suggested that I invest my money into something decent that is going to last me awhile (read new or almost new). So I am seriously considering buying a new car. I already filled out the loan application at my credit union. We'll see what they say. And why do I want to buy new? I am so tired of buying used and having this same thing happen to me year after year. Maybe I'm just buying bad used cars, but I want something that I can take care of myself right from the beginning and something that I have confidence in.

What I need you guys to do is look at my current budget and tell me if I can afford a new car. I think I can because I know that on paper, I should have a lot of money left over at the end of each month. SO here goes:

Monthly Expenses:

Mortgage: $1240
Condo fee: $225 (going up in December to $250)
Condo Insurance: $21.58
Utilities: $190
Groceries and household items: $650
Life Insurance: $22
EZ Pass - $50
Gas: $216
Auto Service: $62.50 (last years average)
Auto Registration: $30
Auto Insurance: $57.41 (2 cars with liability only)
Cable/Internet/phone: $120
Cell Phones: $80
Facial care - acne treatments: $66 (I suffer from adult acne and have a special product that works for me)
Health Club: $20
Viola - $32
Condo Assoc. payment plan: $150 for 6 months
Entertainment: $138 (this is from quicken over the last year)
Dining: $377 (we have done much better on this recently, but this is just our last years average)
Clothing: $141 (last years average)
Christmas: $42
Birthdays: $30
Timeshare Taxes: $35

Total Expenses: 3995.49

Remaining Debt that will be gone this month so it doesn't count towards my monthly expenses:

Gap Card: 51.03
Dartmouth Hitchcock (doctor): 34.76
Macy's Card (balance paid in full when used): 67
Dentist: 20

Total Income:

Husband: Approx $3380 per month net (give or take $100)
Me: $1205.80 per month Approx (I calculated for missed lessons)

Husband's part time jobs: $125

Total per month: $4710.80

So, as you can see, I should have around $715 dollars left over each month and I tried to think of every expense although I see that I forgot our yearly vacation, but that's only about $500 dollars per year. I'm almost out of debt. In 6 months I'll free up another $150. My auto insurance and registration will go up with a new car, but my auto service will go down. I spent close to $1000 dollars last year fixing my car. I can also work on bringing other expenses wayyyyy down like dining. We have done really well the last few months on not eating out hardly at all. The beginning of the year ruined my average. I can also cut down on my clothing purchases. I spent a lot of money on myself this year because I really had no clothes to wear after having a baby and gaining weight.

I'm looking at financing about 10K and having a $200 dollar car payment. Possibly buying a toyota yaris or similar. I'm also looking at paying it off as quickly as possible. Don't forget that my business is run out of my car, so I can claim my miles. Maybe there's something else I can claim since I drive for a good part of my piano business.

I'm just looking for some reinforcement that I can afford a car. I need it badly and I've thought long and hard over months and months about this decision. Dh and I are starting to have issues with our jobs. He can't get to his part time job because I have lessons and vice a versa. I have about $500 in savings but that will be brought back up to $100 with my husbands part time Christmas job in the next month. I'm planning on not putting anything down with the Credit Union loan.

OK - give it to me!

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iVillage Member
Registered: 07-05-2006
Tue, 11-03-2009 - 3:21pm
On a side note, we just got declined for the loan from our credit union. Now what? Our credit is 'fair'.

iVillage Member
Registered: 07-02-2008
Tue, 11-03-2009 - 3:56pm

Abbie,


I want to be more encouraging here but I'm having a tough time. Just recently you got caught up on your mortgage and you are still behind on your association dues. (although its awesome they are working and letting you do a payment plan.)


Whose to say that you won't fall behind again when you are adding $200 more dollars to your debt?


Can you at least wait the 6 months out until you are done paying off the association and you KNOW you have an extra $150?


Hugs. I am trying to be soft about saying this stuff. I just don't want you to not be able to afford a car.

iVillage Member
Registered: 11-14-2008
Tue, 11-03-2009 - 4:19pm

You have come such a long way this year Abby. I'm so proud of you for catching up on the mortgage and condo fees.

I posted awhile back about putting away money for a few months to see if you can actually afford a big purchase. It would be like trying the payment on for size. Maybe this is a good idea in your situation, especially with being declined. You also know it is impossible to include every expense as we always forget to list something in our budgets.

You just got out of debt revel in the sensation and rejoice.

Believe me I feel your pain in the unreliable category, I drive a 94 chevy pick up. I want it to last 6 more years until I can reach some of my other goals. It likely won't but I can dream. I know you need to do something soon, but I'm not sure a "new" car is the answer right now. In six months I would say hey, try again? Or save for a year or two for a down payment.

Sorry this is probably not what you wanted to hear. Give yourself a bit more time with something big and new.


iVillage Member
Registered: 04-10-2003
Tue, 11-03-2009 - 6:26pm

Abbie, I have to agree with the PP's. You have come SO FAR and you need to be given high fives for that. That said, up until last month you were behind on the mortgage and you are still behind on the condo fees.


The other thing that concerns me is that I am wondering if you have a full grasp of your budget. If have over $700 left on paper but don't, that means you have a budget leak somewhere. I would focus on trying to really focus in November and plug the leak and see where that gets you. Even if it doesn't fully resolve your car situation you will have an extra $700 that you can use to get things started.


Sorry, I know this isn't what you wanted to hear! Good luck with whatever you decide to do!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 03-05-2006
Tue, 11-03-2009 - 11:15pm

Hi Abby!


Kudos to the progress on your debt.

Lilypie First Birthday tickers
iVillage Member
Registered: 07-05-2006
Wed, 11-04-2009 - 12:29am

I've gone over so many of the positives and negatives in my head. For months I've been thinking about what the heck to do. We're coming to a rough point here where 1 car is just not cutting it. DH is having to say no to extra hours because of my piano lessons. I make a lot of money doing piano lessons, but he also makes a lot of money working overtime and we can't do both at the same time, but we could do both if only we have 2 cars! We could be making twice the amount of money on certain days! I just don't know what to do anymore! This is so hard! I definitely have some serious thinking to do.

iVillage Member
Registered: 07-05-2006
Wed, 11-04-2009 - 12:43am

I think that our budget leak has something to do with us having no savings. What I mean is that, if you average out our birthday expenses over a years time, it equals out to only $30 dollars a month, but we just had all of our birthdays in one big lump and paid $300 dollars all at once in one month for the birthday party. The same thing happens for Christmas and our timeshare taxes. We haven't had a savings for the last year so every few months we have a huge bill to pay for something, whether it's car registrations and maintenance or a clothing purchase, our washing machine breaking or the new instrument I had to get for my son's school. It's always something! And all of that money came straight out of our paychecks, leaving nothing behind for the past couple of months. I feel like once I get my butt back in gear, I'll be able to plan for these yearly expenses. I know that there are other leaks in our budget, but I'm really trying to focus on getting it completely under control. As for our car situation, it's at the point where we need the car now...Dh has a christmas job coming up and we are at a loss as to how he's going to do that job and I'm going to do mine at the same time. It starts next week. And I'm at a loss too...give up the jobs, give up the extra money or get myself a car that runs and bust my butt to get it payed for. All I want is to be able to pay all of my bills on time, save a little bit each month for unexpected expenses, rebuild my credit and have a reliable car that gets both me and DH to our jobs. It just shouldn't be this hard, right?

iVillage Member
Registered: 07-05-2006
Wed, 11-04-2009 - 12:44am
I didn't know you lived so close. Small world! I'm not sure which direction to go in, but I will check in to DCU. Thanks!

iVillage Member
Registered: 04-10-2003
Wed, 11-04-2009 - 8:21am

Well, I guess what you need to do is sit down and think about what makes more sense (money wise). The extra money from working the extra jobs, or the car payment.


I just worry about life happening. All those expenses that you listed that you hadn't saved for (Christmas, taxes etc) you still haven't saved for (I think). That means that you are still going to have to pay for Christmas out of your paychecks.


What I would do if you decide that the car is an absolute, gonna do it no matter what must have expense is this:


1) Use the budget that you have listed here but only include the absolute minimum that you could make. Don't count any overtime. Be cautious. Include the new car payment, insurance etc.


2) Set up a savings account (like ING) and take those averages


Bex -

iVillage Member
Registered: 10-01-2008
Wed, 11-04-2009 - 10:48am

I think this should be a sign. (I'm sorry.) But now is probably not the time.

Norma


"Patience is the best remedy for every trouble"- Plautus


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