Here's our budget, OMG!

iVillage Member
Registered: 03-27-2003
Here's our budget, OMG!
12
Tue, 09-30-2003 - 3:23pm
Well, here is our monthly budget, just for the household, not my husband's business, total $3,776:

Mortage Payment (includes taxes) $1,452.00 (the home business takes a deduction)

House Insurance $87.00

Natural Gas $99.00 flat rate (based on last year's useage, heat way down too)

Electric $80.00 (average)

Water $25.00

TV Basic cable $11.06

Garbage $27.00

Volvo payment $462.00

Gas Less than $30 a month

Insurance (2 cars) $150

Car Maintenance (oil changes, scheduled maintenance) $15

Life Insurance $184 (term, on 750,000 each)

Prescriptions $35-$70

Co-pays/deductibles (medical)$100 a month budgeted based on past use

Food/Sundries $325 (based on prior months)

Dog and cat Food $40.00

Medical for Dogs and Cats (preventive/other) $70.00

Consumer Debt (Visa's) $550 (zero interest for one year, total about 15,000 used for home siding, emergency dental work, medical bills, vet bills emergency)

Clothing?

Other?


Debts On Hold

Home Depot (bathroom remodel) 2,400

Student Loan (K, on approx. 9,000) $410.00


We could sell our home, go smaller and newer, but with the interest rates even lower, the home prices are even higher. And, the major issue now though will be whether we can get financing as I am not working and DH has taken out all the business debt.

I could sell my car. Long term, will end up costing more though as I plan on having the Volvo at least 12 years like the prior Volvo.

We could try to refinance our home.

DH could get a job! I just looked up what a computer programmer earns and it is more than I thought (average 67,000). I really think he undersells himself. He most likely would get healthy insurance too. We need a take home pay of 44,000 live with this budget.

Of course, his business debt would still be there. I believe he is at least 1,2000 a month in debt there. OH, and he has the business car too. OMG!

If I go back to work, we need childcare - for 2, that is at least 1,500 a month, as one is an infant, unless we can do swing shifts.

I do not want money to rule my life. Ideas? Comments? I do think I will look into selling my car.

Karen




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iVillage Member
Registered: 03-27-2003
Tue, 09-30-2003 - 3:44pm
Could you go back to work part-time? He could be at home with the kids on these days, and still run his company.

I don't think selling your car is a good idea, you need it and its a long term investment.

I would lay some of this at his door to. I would tell him he needs to make this much for his family or get another job.

HTH Mishelle

Avatar for sarahfran
iVillage Member
Registered: 03-26-2003
Tue, 09-30-2003 - 4:19pm
Your budget doesn't seem that awful in any area, at least by my standards (which are pretty flexible, given my credit card debt!). How would you manage without a second car? Give it some thought before you sell it. When we went from two cars to one, it wasn't by choice, but we've managed pretty well, even though it's a pain at times (like today; DH is working his second job this evening, which means I have to leave work early to take the bus home, pick up the kids from daycare, and walk them from there to home). But what we've saved has been worth it--no car payment, insurance on a second car, gas, or maintenance, plus no monthly parking fee in the garage at work. So the hassle has been worth it for us. However, we live right on a bus line so we do o.k., and our jobs are flexible enough that we're able to show up a bit late if one of us needs to drive the other to work (if, for example, we have a doctor's appointment or something). So look into it, but look into other car-related options as well. My sister just bought a new Honda Civic for next to nothing. I think her car payment is under $200 a month, plus it costs very little to insure and gets 43 miles to the gallon--so just by trading down you could save quite a lot of money, and with two kids, something like a Civic would do fine and you could make it last 10 or 12 years (as we did with all of our Toyotas and Hondas).

Don't sell your home. You could go cheaper, but as you said, the housing prices are unnaturally high right now. But definitely refinance if you haven't already.

Look into jobs either where you could work opposite shifts from your DH so you wouldn't need child care (working just two shifts a week at Barnes and Noble brings in another $70 a week for us) or from home (surely an intellectual property lawyer could find some work from home? Consulting or writing of some sort? I'm sorry I'm not up on home employment opportunities!). I wouldn't expect much from your DH looking for another job. I don't know where those average salaries come from, but they never seem to have much bearing in the real world. I keep kind of pushing my DH into looking elsewhere with all of his computer training and experience since his non-profit job doesn't pay much, but his salary as it turns out isn't far off from what for-profits are offering, and the work environment would make him completely miserable. Obviously I don't know your DH, but it's something to keep in mind.

If you go back to work FT, look into various daycare options. We've had our kids in a licensed home-based daycare since they were born (which is great if you have kids with health issues, as the home-based centers are more flexible about allowing sick kids in. My son has chronic ear infections and chronic diarrhea, two things that exclude him from traditional daycare centers) and not only do we like the quality of care better, but it's also much cheaper. We're paying $220 a week for both kids full time, which is about what it would be for one child at a center.

Good luck! Sorry I couldn't help much!

Sarah

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iVillage Member
Registered: 03-27-2003
Tue, 09-30-2003 - 5:56pm
Sarah,

Thanks so much for the input. I could try to do work from home as a lawyer, but I first need to look into the reality of it. As a work out of the home lawyer, I would have quite a few expenses, namely malpractice insurance, legal research database, dues, continuing legal education, computer costs, business insurance, office supplies, bank fees, etc., but I may be able to make it work. What I like about that idea is that we can keep daycare out of the picture (maybe).

Part time work as a lawyer is really hard to find. And, even if labeled part time, I have heard it is close to a 40 hour week. Full time as a lawyer, at least where I worked was 60 hours a week minimum to keep up with billable hours.

I think I'll keep the car. I got a great deal on it, and do not owe much more (around 12,000). I would lose long term and that would bug me. Same with the house. The house is a great one and large with most of the repairs now done (plumbing, electrical, siding etc.) We have a Honda van, not sure yet how long it will last as this is our first non-Volvo ever (can you believe it?). I know hOnda and Toyotas are great vehicles, just really partial to the Volvos. In hindsight, wish I had not sold my older Volvo wagon, it was a 92 and in perfect shape. Oh well...........

My biggest goal is to stay home with my youngest until he is at least 3. My oldest was adopted at age 2 and I missed out on her early years. We also had her in care at age 2 (part time) and my 3 she was in full time. At age 3, she enjoyed it, but at age 2, she was too young and had difficulty. Not sure how my son will be, but for now, I love being home.

Thanks again.

Karen

iVillage Member
Registered: 04-18-2003
Tue, 09-30-2003 - 8:40pm
Hi,

I'm just a lurker and occassional poster, but after reading your first post I was wondering - Can you work for your husband's business to make it more profitable. You said in your first post that you do all of the planning stuff and that is the stuff that he's not good at planning, budget, accounting, scheduling. Maybe you could be his office manager. Just a thought, I own my own business out of the home and it can be really tought (especially with the procrastination part ;-) and my DH helps out some. I know it can be really tough working with a spouse though and not everyone can do it. Thank God DH works out of the home or we'd probably kill each other. I don't know how he does sales, but maybe there is something you could do in that area to drum up business. I do small business planning and I've helped lots of confused, disorganized business owners clean up their act and move to the next level. If you'd like you can email me at smr700@wideopenwest.com if you have questions or would like some free advise. I wouldn't mind a bit.

Sam

Sam

Avatar for louannems
iVillage Member
Registered: 03-27-2003
Tue, 09-30-2003 - 11:01pm
I see you live in rainy Pacific NW-where it rains all the time, (except in the past 150 days, where all we've seen is sunshine!!!) Could or would your DH try to get on at Microsoft? They are always hiring and they are also building a huge new building in Issaquah where they will need lots of people. Microsoft is so short of qualified computer people, that they hire lots of Indians and other immagrants who are well trained.

They also have great benefits.

Lots of Luck. Louanne

iVillage Member
Registered: 10-12-1998
Wed, 10-01-2003 - 2:06am
One thing that sort of stands out to me is your life insurance. $184/month seems very high to me for term insurance. Obviously I don't know any of your specifics, but you might try comparing some new quotes to see if you can get a better deal. If you are relatively healthy, go for a policy that requires the paramedical exam, there's not much to it and it will save you some money- they actually discounted DH further after he had his exam. Otherwise you seem to be doing pretty well with your budget. I'm still thinking about your work situation...

~Vickie

Avatar for nonisfern
iVillage Member
Registered: 03-26-2003
Wed, 10-01-2003 - 9:32am
Louanne, not to start anything political or be to "internet picky'.But all these big companies are Chosing H1-B visa people over Americans ( huge difference in cost).There are plenty of well trained IT proffessionals unable to find work and the companies still say they are so short that the Govt allows them to hire immigrants, who effectively become indentured(sp?) servants because they can only work for the company who brought them here.I'm not saying the original poster shouldn't try this, just that I *had* to butt in with my own perspective.I am by the way a green card holder, I came here for the nursing shortage in '91 and when the shortage was over they denied applications for H1-A visa's.

Original poster , sorry I can't remember your name, I wish you the best, I had the same idea as another poster, you run Dh's company. Naomi, whose Dh is constantly close to being laid off by a huge company that hires Indians for half the price.
iVillage Member
Registered: 04-08-2003
Thu, 10-02-2003 - 11:06am
This is off-topic but I am curious. There were a couple comments on hiring Indians. Where are these Indians from? I am from South Dakota and there is a large Native American poplulation and they are American, not foreign, so I do not see how they can be hired as cheap labor.
Avatar for sarahfran
iVillage Member
Registered: 03-26-2003
Thu, 10-02-2003 - 11:43am
Not Native Americans, but Indians, as in, people from India.

Sarah

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Avatar for nonisfern
iVillage Member
Registered: 03-26-2003
Thu, 10-02-2003 - 12:00pm
Yep like Sarah said, Indians, not Native Americans.

I want to clarify, this isn't a racially motivated post, I am not American, I came here on America's visa program when there was a shortage in my field, and knew if there was to be a turn around and Americans needed my job I would lose the right to work here.This is the way it should be in my opinion.

If Americans need the jobs foreigners should lose the right to them, unless they have become citizens or have a permanent work visa, like a "green card".The people I am talking about have temporary work visas such as an H1-B.

I hope this cleared up any confusion.Naomi

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