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Monthly Income and Expenses

May 23rd, 2014 at 08:25 pm

I would normally post my whole monthly expenses and income but it is always fluctuating. I get paid weekly and my fiance gets monthly commission. Plus our expenses are always fluctuating because of the extra income. I do budget about 6 months in advance so I have a plan. Basically without having to post so much detail about my budget, my total debt will look like this:

Now: $67,396
9/1/14: $62,832
1/1/15: $55,570

SO I can have $4,500 paid off in 3 months, and a total of about $12,000 paid off by the end of the year. At that point we should get a good tax return soon and also have extra money each month to pay toward more debt or to create an emergency savings. I actually think along the way I would like to build up at least $1,000 in an EF. What do you guys think?

11 Responses to “Monthly Income and Expenses”

  1. Kiki Says:

    How much of an emergency fund do you have right now with the new house and two kids?

    I would put $2000 away into an EF and then pay down debt aggressively. When your tax return comes I would bump it up to 5k (minimum) and then pay off debt.

  2. BuckyBadger Says:

    Beware falling into the "planning" trap. You've done this in nearly every single post you've ever posted on this board. "I'll have $X amount paid off this month, then $XX in so many more months." You did that last year and nothing came of it - you came back a year later with even more debt.

    It's fun to plan ahead and make spreadsheets about your debt repaying, but the most important thing to do is PAY IT OFF.

    I'd stop talking so much about your plans. Don't tell us how much you "plan" on paying off this upcoming month. Just DO it, then come and tell us how much you actually DID pay off.

    I mean this in a positive way. Think ACTION, not TALK.

  3. hehateme000 Says:

    Thats a great idea. We have nothing in an EF except $4500 in my 401k but that is definitely not an EF..

    I think $2000 would be perfect, and then bump it to $5000 with the tax returns.

    I already applied for school loans and grants and I find out how much I get in a couple weeks. I do not have to accept any of them but the grants are free money so I will definitely accept those. However with the loans, if they are a lower interest rate than my car, then what would be bad about paying down one of my cars with the loans?

    Or if it is an unsubsidized loan (meaning the interest will be paid until I am done with school, another 3-4 years), then would it be a good idea to use some of that as an immediate emergency fund, and the rest to pay off some high interest debt like the car or CC balances?

  4. hehateme000 Says:

    I know exactly what you mean bucky. I do a lot of planning but most of my planning has been about what we can afford monthly, and not looking at how much interest I am paying each month and how my total debt is going up. I have finally realized that just because I can afford the monthly payment doesnt mean that paying 200+ per month in interest is a good thing, just on 1 CAR PAYMENT. 10.99% interest rate, on a 21,000 dollar loan. Geez

    Anyway thank you for the comment. Besides the 200/month that I am going to let my fiance spend on whatever she wants, everything else is going toward debt. I will keep you guys updated but you will never see this debt about 67k again I promise that.

  5. creditcardfree Says:

    Do not use a loan to fund your emergency fund! You will do much better financially if you learn to save and scrimp if necessary to fund the things you need and want. You need to learn that habit.

    I do not advocate bankruptcy in the least, but if you take out student loans know that those can never be written off (excused) in a bankruptcy. The government ALWAYS gets their money and you will have your wages and tax refunds garnished to pay for student loans if they are not paid by you. I would really avoid student loans for anything but actual tuition and books. I have a friend who took out 'college' money over 15 years ago to the tune of $80K+ and is making $500 plus payments currently. She did not need that much money for classes...she used some of it to live on. It all needs to be paid back eventually. Don't take out more money than you NEED.

    I'd sell the car, and get a cheaper one considering the interest rate and the amount of debt you have.

    I look forward to cheering you on as your debt decreases!!

  6. hehateme000 Says:

    I see what you are saying creditcardfree. I guess it just seems that the student loans are so easy to get and they are interest free until I graduate college. BUt it doesnt make sense to pay off debt with more debt lol.

    As far as the car, dont I need to wait until I am not under water on it? If I sold it today I would still have a loan but only 1 car. We both need cars for our work.

  7. Kiki Says:

    Find one way to pay off the debt and stick to it. Either pay down the smallest debt and then put the payment to the next debt or pay down the highest interest rate and then add to the next payment. Snowball your debt however you decide but make that your plan and STICK TO IT.

    You listed your debt amounts in the first post but you did not list the interest rates, what are they?

    Stop living and spending blindly: put a set amount to each expense and don't go over it for your variable expenses (transportation costs, food, entertainment, kids, alcohol or cigarettes, etc.). Do not cut yourself so short on your budget that you end up having to charge something on credit to get to the next pay check. If that happens you are only sinking more into debt and not making progress. If you end the month under the budget amounts you set, then either the money is put toward your emergency fund, your debts or saved for future months when income may not be as high. It is NOT spent willy nilly on anything you want to spend it on.

    You need to have a plan for every penny that you bring into the house. Even people on commissions have a budget and when they have more money one month they save it for a month when there maybe less. People on commissions should either make a budget based on the smallest commission made in the previous 18 months and all extra commission earned is put toward debt OR add the last 10 months of commissions together divide by 12 (yes 10 months) and use the average of the 10 months as the base to our budget. Which is the lower number?

    Do you track what you spend? 120 a week on groceries, $40 per week for car for gas, etc.?

    What are your one time a year expenses (car insurance, medical insurance etc.)?
    Do you have subscriptions for magazines, video games etc.?
    Do you drink or smoke?

    How much do you spend on groceries, diapers, household expenses?

    You bought a new house how much have you bought for the house? Gas for your cars weekly?
    Utilities for the house?
    your education?
    Take lunch to work or buy something every day?
    Snacks to the univ/college or do you buy them?
    How much do you cook at home versus fast food?

    Have you stopped and thought about the reasons why you are in debt? What causes you to make the decisions you do to spend money? You were going to wait a year to buy a house then you bought in April? You are breaking up with the fiancÚ now you are back together?

    Have you really thought about what you are doing and why you are in debt?

    If you do not have a written budget with all possible expenses and income on a sheet of paper or an excel sheet or some programs you are really just guessing. Seeing the numbers in black and white is what is going to get you to see the damage you are doing to your family every day with the purchases made without thinking. And makes your plans possible.

    He who fails to plan, plans to fail.

  8. Kiki Says:

    By the way unsubsized loans are not interest free until you graduate. Subsized loans are.

    With unsubsized loans the interest begins as soon as the money is disbursed. Subsized loans are the ones where the interest is not accrued until the education is finished or you drop of out school.

    If you don't understand the loans they are giving you, don't take them until you do. And using your student loans for living expenses means most students get used to a life style they cant sustain once they leave school.

    And paying debts using your students loans is not paying off debt but paying one debt with another, a bad habit to get into especially when unsubsized rates can be very high in interest. I agree with the above posted: only loans for tuition and books or edu expenses (lab fees, sciences materials) etc. Never for living expenses.

  9. hehateme000 Says:

    Sorry, most of my student loans are subsidized, not unsubsidized.

    My interest rates were listed in a reply to the first post..

    As far as unexpected stuff, I usually have 100-200 for spending money that goes to us eating out, or spending money on anything other than what is in the budget. This can be fast food or diapers, or alcohol once a month. I think we are in debt because we justified it based on having kids. We bought a house so we could have a "home". We bought stuff on furniture so we could have stuff for our new home, and we always justified our debt by being able to afford the monthly payments. That is all changing now though.

    kiki if you give me your email address I will send you my excel worksheet and I think you would be pretty impressed lol I am a little OCD with the planning part. Now it is time to take that OCD and actually apply it and DO IT, not just plan it on excel.

  10. Eagle Says:

    @ Hehateme000

    Do NOT take out another student loan in order to pay down one of the cars or put in the bank for an e-fund. You can't borrow your way out of debt. You need to either increase your income or decreases your expenses.

    Preferably both. {thumbsup}

    You have a plan to make more money at work... Potentially an additional 9k a year. And you've started cutting expenses. What else can you cut from your budget? That's the answer. Focus on these things.

  11. Eagle Says:

    Hehateme000... Do NOT take out another student loan in order to pay down one of the cars or put in the bank for an e-fund. You can't borrow your way out of debt. You need to either increase your income or decreases your expenses.

    Preferably both. {thumbsup}

    You have a plan to make more money at work... Potentially an additional 9k a year. And you've started cutting expenses. What else can you cut from your budget? That's the answer. Focus on these things.

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