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OP, people with tight budgets do not go out to eat, do not buy their lunches, or go out on the weekends for entertainment that costs money.
They don't buy lots of new clothes and new shoes. They find entertainment that is extremely cheap or free.
They don't pay for cable TV. They don't eat meat every day. They don't go to the beauty parlor and they don't have their nails done.
They never buy anything without asking if they really need it and can they get a better price elsewhere.
I'm sure with a little organizing, you could get your expenses down. I don't recommend stopping payments on your student loans unless you are desperate. A bad credit rating costs you a lot, so you want to keep your credit rating high. Better to cut up your credit cards than to stop paying your student loans.
This ^^^^ I thought your going out/eating out budget was for a YEAR. Don't waste all the money. Instead of worrying, get your spending under control. Don't send out for food--COOK. Don't buy lunches, TAKE your lunch from home. Find cheap or free things to do. Get books and DVDs from the library-free. There's no need to throw all that money away and then worry that you don't have enough money.
Our home purchase was less than 3x our income and we were approved for like 25% higher than what we ended up going with. I thought this was pretty good based on "rule of thumbs" I read about.. If I tried to get out now I'd be out tens of thousands just in Realtor fees. All the other costs are just pseg/insurance/used car/etc. Then another like $350 for lunches/eating out/extras (gifts,haircuts,surprises).. This isn't really splurging. $350 groceries. $70 for internet/hulu.. Unfortunately, housing is just expensive. My buddy lives down the road and rents a 2 bedroom 900sq/ft 4th floor walkup apartment that is aged with broken concrete steps on the way up. "Low" tax area, and not really near a major city or anything, kinda out in the boonies. His rent is $1,600 not including all the other added BS fees. Just an expensive area to live.
OP, you have a nursing degree, even though you've not used it. Have you thought about working for an insurance company or something like that where the knowledge would come in very handy, but you're not doing actual nursing. Do you have an active nursing license?
This ^^^^ I thought your going out/eating out budget was for a YEAR. Don't
waste all the money. Instead of worrying, get your spending under control.
Don't send out for food--COOK. Don't buy lunches, TAKE your lunch from home.
Quote:
Originally Posted by PAhippo
OP-do I understand that your $4700 for going out to eat, buying lunches, etc is more important than paying your college loan?
I get the feeling a lot of people in this thread have misunderstood the OP in this same way. The OP didn't say he spends $4700/month on food. He said he spends $4700 a month total INCLUDING those extras.
Quote:
Originally Posted by ericp501
Our total expenses including going out, lunches, ordering in, etc is $4700.
If you look at his budget in the other thread, he's cut back a lot on expenses already. Personally, I think he's taken a good first step.
OP, let these changes sink in for a few months. Then post how it is going.
Food is one of the major expenses.
1. Do bulk cooking for week free time
2. Join a food rescue group such as freegan group or volunteer at the food bank in exchange for food
3. Join a food rescue group and offer service in exchange for food
4. Exchange service for food. Perhaps you have skills to barter for...handy man skill in exchange for accounting skills
5. Find free enjoyable activities like museums etc..
There is a lot of good advice from many posters in this thread. I have always wondered just the opposite - 'how do people have such Huge monthly expenses'??
We live in a Very expensive place but keep our spending down by doing many of the things mentioned here, buying in bulk, driving a paid-off-long-ago vehicle, spending almost nothing for entertainment (the beaches, parks, etc. are free), no cable tv just the internet, cheapest possible cell phone plan, etc.
We no longer have student loans, never had kids and are retired so we are in a completely different situation. Still, over the years, it has always surprised me that we have traveled so much, lived in great places and had nice things while friends and family that make/made a lot more than we have complained that they are always broke or unable to afford what they really want.
We have always and still do try to make sure we really Want all the stuff we are paying for and stay aware of how much is going towards non-necessities that may be better saved for peace of mind or used for a little vacation to help avoid daily stresses from building up.
We make less than you (I'm a stay at home mom) and live in one of the most expensive cities in Fl and we get by, and sleep at night. Priorities in spending first and foremost. We even managed to save almost $75,000 for a down payment on a home. My question is now can you NOT do it on those numbers? With that amount of income your savings should be absurd.
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