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So, I've been trying to figure out why I feel so much more strapped now than I did when I bought my house 2 1/2 years ago, when it didn't seem like a lot had changed other than paying for things related to the house, like plumbing/hvac/lawn stuff that I didn't have in an apartment. I just sat down and looked through my old checkbooks and credit card statements, and seeing it stark on paper was a shock.
Gas has risen an average of .75 a gallon since I bought the house, so I'm now paying $30 more per month to drive to and from work.
Health insurance increased premiums by $50 a month.
Mortgage increased due to homeowner's insurance, $10 more per month.
Cable/Internet increased $35 per month over what I was paying when I moved in!
And all other utilities (gas, electric, and water) have had rate hikes, but it's hard to pinpoint exactly how much of an increase it's been. I'm guessing between the three, a total increase of around $50 a month.
Increasing things slowly and sneakily by $175 a month WHEN LIFESTYLE HASN'T BEEN CHANGED is rough when you only bring home $880 every 2 weeks!
Seeing that number blows my mind. I'm not using any MORE service and utilities than I was 2 1/2 years ago, but yet I'm now paying $175 more for the same services! Not to mention the increase in grocery and toiletry costs over the years.
This is why people drown slowly and don't realize it until it's too late. It's not like they're going out and getting more stuff, it's the sneaky little increases of everyday living that gets them.
I agree. My monthly commuting cost has gone up $70 a month in the past year and a half. My cable/internet/phone jumped $40 (going to do something about that one.) Condo maintenance fee has jumped $25 a month since I moved here.
I have cut down on my own food--I can eat cheaply--but I have cats and the cat food has gone WAY up. I've recently found that a pet-food store has much better prices on the cat food than the supermarket--I would have thought it would be the other way around. It's a little further to drive, but worth it and I can stock up. The prices the supermarket is now charging for the cat food is unconscionable. I guess they figure that you will not stop buying food for your pet, and so that's one of the areas in which they will artificially pad the prices. Ain't fallin' for it, sorry.
I was going to buy some pork chops the other day, usually they are around $3-4 for a package of 4, they were $13 . I skipped them. There is only so much you can cut back on though too.
Not at the time. Inflation without a salary raise got him.
The poster bought the house 2.5 years ago.
Prices have gone up over those 2.5 years..much higher than the CPI.
I'll bet salary raises didn't go up as much.
This poster is getting caught in the same pickle as everyone else.
I noticed my food bill was going up and I didn't change what I was buying.
It was that prices were going up. I switched over to store brands for many things and that got me back to my budget.
The thermostat at home went lower in the winter and higher in the summer. Cable..gone for the same reason the poster stated..increase in price. And my salary was definitely not increasing at the same rate as prices were.
To the OP..might want to hop over to the frugal living subforum and get some advice on how to cut back.
Her :-)
and yes, that was the whole point of my post. When I bought the house, I was comfortable. I gross about $33k per year. My house was $100,500.
$1204 gross per check = $2608 gross per month = PITI 31% of my gross monthly salary without adding my commissions (usually about $100 a month). That's well within the guidelines, so no, I didn't "buy too much house".
But when you bring home $880 every 2 weeks, losing $88 of that is a big chunk.
My point was that if you went on the very low end of "the guidelines" instead of within, you'd have more breathing room!
Well, that would be true, except that I'm already in a not-so-great neighborhood, and this was the lowest price point available at the time for a neighborhood that I would feel at least semi-safe in as a single woman.
To kinda go with what the OP said, yes things have gotten more expensive. My cable/internet has gone up, as have groceries. I'll spend $60 at the store and there is hardly anything in the cart. My health insurance also increased.
and yes, that was the whole point of my post. When I bought the house, I was comfortable. I gross about $33k per year. My house was $100,500.
$1204 gross per check = $2608 gross per month = PITI 31% of my gross monthly salary without adding my commissions (usually about $100 a month). That's well within the guidelines, so no, I didn't "buy too much house".
But when you bring home $880 every 2 weeks, losing $88 of that is a big chunk.
Well then, definitely post a thread in the Frugal Living subforum here and ask for some suggestions on getting your outgoing expenses lowered so you don't have to feel so stressed each month. Lots of good stuff over in that subforum.
People with household incomes below 60k are going to get killed by inflation so much compared to their higher income peers. There isn't nearly going to be as much room for someone making 30-35k to cut back compared to a household making 100k.
Job market has improved, you might want to consider a job change to make more income. Understand if your salary stays the same you are effectively getting a pay cut.
Lots of this forum is focused on cutting expenses, but increasing your income 10% should be a lot easier than cutting your expenses 10%, in many circumstances.
In general it is much easier for someone making 150k house hold income to do 30% PITI for a house than it is for someone making 32k to do 30% PITI. I would say spending 40% for PITI at 150k is going to be effectively similar than 30% PITI at 32k income.
I wish getting a better job was the answer. I'm actually at the top of the food chain and earning potential for my job. As of my raise this month, I'm making about $1 more/hr than this job typically pays in this area, and most companies don't pay for uniforms. And unfortunately, for my skill set, this is the highest I'm ever going to make, as I'm even topped out at this company now.
I tossed around the idea last year of going back to school, and then realized that the jobs I'd be looking for when I graduated actually were paying less than what I'm making now :-(
I would get a p/t job, but I have some major health issues that cause extreme fatigue (among other things), and most weeks, I can barely work 40 hours and keep the house clean at the same time.
It's getting harder and harder to stay afloat as a single woman these days.
As much as I hate to do it (because it's really my ONLY entertainment anymore), I'm going to have to cut cable in September when my roommate moves out. Of course, that'll only save me about $50 a month. I was planning on moving when she moves out and getting renters, but that's not going to be able to happen now, so I'm stuck here until I can break even on this house and get rid of it, which will probably be the 32nd of Neveruary. (I'd have to bring about $20k to the table to break even right now, not quite feasible on $33k/year!) It's starting to look likely like I may end up losing this house within a few years if things keep on the same path they're on now.
I just hope my 12 year old paid off car keeps holding out, because if I have to buy a new one, even a new used one, I'm screwed.
People need to learn to add. Little things add up!
For example the lady across the street from me...
"It is just a dollar" she frequently says!
So she buys a fountain soda pop for just a dollar. Then another for her husband for just a dollar. And for the kid for just a dollar. And then burritos for just a dollar each.
And does that every day... That is actually $6 a day. Or $180.00 per month, $2,160.00 per year!
Then at the end of the month, she does not have enough money to pay her $40.00 water bill.
I tried explaining that she should buy the big bottles of soda pop and store brand at 90 cents, then that would be enough for all 3 of them each day. Then pour it at home. That would save $63.00 a month!
She does not "get it"!
Anyway this "price creep" has been going on for the last 10 years. Not only does each and every little thing go up 5 cents here and 10 cents there, but they are packaging less food in smaller boxes.
So you need to buy more and for more money. Watch the pennies!
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. I skipped them. There is only so much you can cut back on though too.
