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!

iVillage Member
Registered: 07-05-2006
Wed, 11-04-2009 - 11:52am

I see what all of you are saying. I go back in forth in my own head all day long! My true problem is that I really really need a car now. I don't have a lot of options or wiggle room. We've been living off of one car now for 4 months and that was easy because it was summertime and our schedules were easier. DH has a job to go to next week, on Monday. They want him to drive to Boston. They pay him 'under' if you know what I mean and he could be gone all day. I have 3 piano lessons on Monday and I make $50 dollars for that. So that's at least $150 dollars right there in one day that could go towards something. Dh has another job in Worcester (which is an hour and 15 minutes away) that calls him short notice on his days off if they need him. On those days, he's gone from 5 in the morning until 7-8 at night and he makes at least $120 on a slow day. I have to cancel my job on the days he goes there as well. It's just not working for us. DS needs a new set of drumsticks by tomorrow's band class and I'm probably not going to have time today to get them before the music store closes and I couldn't go yesterday or the day before so he's going to maybe get in trouble because I can't get any errands done in our current schedule.

Maybe I was a little hasty in saying 'new'. I don't need a 'new' car, all I need is a reliable, easy to fix, no major problems, inspectable car!!!! It wouldn't seem that that should be so hard to find! So I've been thinking. What if I only took out a 4,000 or 5,000 dollar loan. I could pay that off easily in a year or less. It's just that I'm so tired of crappy, unreliable cars. I've had 5 of them in the last 10 years!

The thing about me is that when I put my mind to something, (like being responsible with my money and getting out of debt) I'm one-tracked! I know I can handle a car payment and pay it off with ease. I just have to put my mind to it. I'm going to find that leak in my budget and I WILL put that $715 dollars into savings each month. Christmas will just have to be another small, cheap, event. I've been doing that for 4 years...easy!

How to you respond to everyone by the way? I've seen other people do that but I cannot figure it out!!!

iVillage Member
Registered: 11-14-2008
Wed, 11-04-2009 - 12:37pm

Where is the baby when you two are both working? That is so great you can teach and he can work extra. You hate to say no to those things......this is a tough one. It sounds like your mind is made up. Make a promise to yourself to keep the mortgage paid on time and condo fees paid on time as well. Only your variable expenses should fluctuate anyway.

Perhaps you can find some new clients and make even more for the car payment.

Good luck Abby

PS. When you go to write a message to someone(in the preview area) you can click on the down arrow beside their name and you will see the option of "AlL" there


iVillage Member
Registered: 11-17-2007
Wed, 11-04-2009 - 12:56pm

Abby


Years ago I learned that if you don't live by these percentages then you are in trouble and you will have

iVillage Member
Registered: 07-10-2003
Wed, 11-04-2009 - 1:22pm
Did the CU deny any loan at all, or just the amount you were estimating you needed?
iVillage Member
Registered: 10-01-2008
Wed, 11-04-2009 - 2:26pm

To add just a little to what you are saying about lending at credit unions, here's what I know.

Norma


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


iVillage Member
Registered: 07-05-2006
Wed, 11-04-2009 - 2:31pm

The kids go to grandma's when we both have work. She's like our permanent babysitter and she's always available. I'm definitely very lucky and I have thought that perhaps I could add on a few more students and make even more money. Money, Money, Money...that seems to be all it's about lately.

I wouldn't say that my mind is made up. My mind is definitely made up that I need a car soon, within the month, but my mind is not made up yet as how I should go about that. I just posted my old car on craigslist for $1500 which is what my mechanic told me to do and I've already had 2 people interested. One guys said that if it wasn't sold by Friday, he'd give me $1200 dollars cash. WOOO!!!! I wish I was a mechanic because obviously this must be a good deal.

iVillage Member
Registered: 10-01-2008
Wed, 11-04-2009 - 2:40pm

I thought of something else.

Norma


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


iVillage Member
Registered: 07-05-2006
Wed, 11-04-2009 - 2:43pm

Oh my goodness, Maryann...My head is in a whirlwind! I don't know how you do all those numbers. I'm going to go through your letter more thoroughly and try to understand what you're talking about. When I look at my bills, especially my grocery bill, I think I'm pretty average for what a family of 5 spends on groceries. I spend $150 dollars a week and that includes all household items like toothpaste, toilet paper etc. I just multiplied $150 a week * 52 weeks in a year and then divided by 12 months and got my monthly total of $650. When I originally started this process of budgeting for things, my grocery budget was $75 dollars a week. Then I slowly started to see that by Thursday or Friday we were out of food and ordering pizza. Then there were the school lunches I was paying for at $50 dollars per month. So I stopped all of the eating out (but that's still in my budget so I need to re-evaluate) and I stopped the school lunches and now I make sure to buy enough food to keep my family happy. I just don't see how I could do less. But I am interested in those percentages. How do you know all of those numbers and where are you getting those percentages?

Thanks for crunching all of my numbers Maryann.

iVillage Member
Registered: 11-17-2007
Wed, 11-04-2009 - 5:24pm

Percentages come from places Like Old Dave's books, Suze Orman

iVillage Member
Registered: 08-24-2007
Wed, 11-04-2009 - 6:29pm

Hi Abbie,


Just catching-up on this string.

Kate


empty purse