How would you rebuild? (pay, rent, taxes, rate)

[Student66]

Hi:

Appreciate your thoughts on the following situation:

After taxes, etc., I only make about $2k per month. My wife recently lost her job. She only has a HS diploma and has been looking for a new job, but, so far, nothing. Bills are way behind, including 2 car payments. On top of all that, I have health issues, as does my spouse, and my daughter. I turn 50 this year. Savings? Gone. 401k? nearly gone. And, there is a possibility I will be evicted from my apartment soon.

My current job has great medical benefits, but, pay is simply not enough. And, room for advancement, aka more money, is nearly non-existent. And, I am tired of doing the same thing every day. What do I want? Fancy cars? Expensive toys? Nope. But rather, the following:

*Improve health for me, spouse and daughter, but, that takes money.
*Pay off all debt, and start over on some sort of path toward.."prosperity"?
*Find new job that can pay me more than $2k per month. I have looked but, seems like low paying in my area.
*Save for retirement?
*Save for daughter's college?
*Somehow, own a house or townhome.

If I do not get caught up, we will be evicted, and, most likely, one or both cars will be repossessed. Needless to say, the stress/worry is high.

My education is: BS Finance

I feel overwhelmed. I am underweight due to not enough money for food. As to what type of job I would like? I am not sure. Is it important to find a job you actually "enjoy"?

Thank you.

Rice and Beans Bob

[Serious Conversation]

Your priorities have to be shelter, food, health, and some sort of transportation (unless you live in an area with good public transit) to get to work in.

Where are you currently located and what kind of work do you do?

If you have a minor daughter especially, I would be looking into food stamps and whatever other government benefits you may be eligible for. Look into social workers or similar that work for the county or city you're in and could direct you to the appropriate resources. At this point, it sounds like you need them.

I would pay things in this order.

1) Catch up the rent. Not being homeless is priority #1 in this situation. How far are you behind on rent?
2) Adequate food comes before paying off anything but possibly car #1.
3) Pay off one car. You need transportation to get to work and take care of your family. With both cars repossessed, no employment, no way to get to work, and no money, you're in a world of hurt.
4) If the other car is not critical, sell it if you can get more for it than you owe.

Other than critical utilities like power, water, etc., the rest of the bills do not get paid until critical needs are taken care of (food, health, shelter, transportation). This is past the point of worrying about your credit - it's about avoiding homelessness and worse health.

Your wife or daughter (if she's old enough) absolutely must find a job, any job they can take, to get more income coming into the household. Once you have a bit more income, I would absolutely look into filing a chapter 7 bankruptcy to reorganize and get a sounder financial footing established for the future.

[Icemodeled]

This is when we would go in emergency mode and cut any and every expense other then total needs. Needs being a home, food(ramen noodles if necessary) and to get you to and from work. Go to food pantries if needed, don't let your health slip due to that. Obviously catching up on rent is top priority. Could you find a part time job? Week nights or weekends, ect to fit in while not at regular job. Even if it's working at a fast food place or wherever. Any small amount extra will help while your wife looks for any job she can find. Banks will hire with just HS diploma and even insurance agents hire in with that. They will pay for your training and license typically. Have her continue sending resumes everyday or any job she may have a chance at. I applied at jobs I was under qualified for and got one because I interviewed so well.

Don't worry about you finding a job you like right now, with this situation be glad you have one and work hard to keep it while she's not working. After you catch up and she has a job again, then start thinking about finding a new job with better pay. I have worked a good bit of jobs and never found one I loved and was excited to go in each day for but doesn't mean nobody does. Some are more tolerable then others. If you can find a job you enjoy, then that's wonderful but it's more whatever pays good.

Also, look and see if there's anything you could sell to keep rent paid. Worse case, is there anyone you could temporarily move in with until you get back on your feet?

[jrkliny]

If you wife recently lost her job, why doesn't she have unemployment?


When it comes to food there are options to eat well for very little money. You mentioned rice and beans. A 20# sack of either is very cheap and lasts a long, long time. I especially recommend stir fry. Another low cost ingredient is a $5 roaster chicken from Costco. Anyway, there are a lot of ways to cut food costs.


The big issue is income. I would look for public assistance, food stamps, etc. Longer term if your wife cannot even find a low paying job and your salary is low and not going to increase, it is way past time to start looking outside your area. That might mean moving on your own until you can dig out from under your situation.

[Lacerta]

If you post your current spending here, there are a lot of helpful folks who could help you figure out where the leaks are (and everyone has leaks, so don't say you aren't wasting a penny).


For example, are you brown bagging your lunch?
Do you have smart phones? Cable TV?


That sort of thing.

[Student66]

Thanks for your reply. Ironically, I just got the eviction notice today. What a tragic fall. I have a BS and MA, and have a job, and yet, it is not enough. The downward spiral continues. And contrary to the glowing news stories, I have not seen an abundance of quality jobs out there.

Perhaps this is a good chance for a mid-life re-boot. Get a new job, even if pays less, gain access to 401k, pay off all outstanding bills/debt, try to save at least one car, load up the car, and head out to a new city, in search of what used to be called..the American Dream.

[Student66]

Hi all:

1. I tried applying for food stamps, I make too much to qualify.

2. Our cell phone service was suspended due to non-payment, so, we got prepaid cell phones. Must have a phone. As for cable, I cannot cut that since it is part of the apartment lease agreement. I would love to cut it, but, not allowed.

3. Must keep internet for job search..

4. Spouse has been receiving unemployment. It ends this week.

5. I will consider 2nd job, but, my health is already a wreck, adding another job, may make things worse.

[Serious Conversation]

You didn't answer where you're at. Could you go somewhere with a better job market if you're in a bad area?

Liquidating the retirement assets isn't a good choice, but it beats homelessness.

[MLSFan]

if you like healthcare at current job, find the minimum hours needed to keep it then switch to that. I worked a few places where for full coverage, someone needs to work 20 hours/week, so they switched to part time, then worked another job for money. So 20 hours at a higher pay rate + 20 hours at part time for insurance nets them more pay for same 40 hours. Not really same, you have travel time/costs between both jobs but it's something to consider.

give up on daugther's college fund, but not on her. Have her and yourselves look into the many scholarship options and make sure she keeps a good grade/stay active in school and community. This way she can get enough money for a full ride through 1 or multiple scholarships and you guys stay involved with her education/life.

at least here, there are many finance openings at the city/county/state/federal level, look into that for a retirement plan? You just don't have the time span for compounding to work at 50 in a 401k. Sure, if you plan to retire at 65, it gives you 15 years, but even maxing out 401k you net around $500-600k but it doesn't sound like you can afford to max it out.

cut the cable, if they are evicting you as is, what difference is cable going to make on it? Save yourself a month or two of cable bills while being evicted

If you are coming to the mid west, KC has a low-ish COL, rent about $600 for a good place, my mortgage is about $1k for 3/2 house. KC has State Street that hires people with finance backgrounds left and right. It's high pace work with deadlines. The IRS has year round auditors since this is one of the pubs for the entire country to process IRS paperwork. Casinos have people in backroom keeping track of money. I forget what the gaming commission calls them, they aren't direct casino employees, just located there. Casino has their own workers too.

Do you need the phone for data? If not, get a free phone plan for calls/texts. KC also has "free" internet through google, heard it isn't offered now but I'm not sure. I haven't been billed for it since I got it.

while on the topic of the IRS, they hire people with high school education and no more for data entry jobs. A few people that I went to school with worked there to pay for college over the summers. It's just typing all day and gets boring but your wife wouldn't have an issue getting a job there.

[Aredhel]

Originally Posted by Student66

Hi all:

1. I tried applying for food stamps, I make too much to qualify.

Check out the local food bank, they may be able to help you. Also check with the local churches, who may offer various types of assistance.