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It took guts to lay out your financial details to this degree, and for that I commend you.
Your car payment is more than our monthly mortgage payment. Trade in for a small, reliable Toyota or Honda beater.
Mrs. isn't employed? That has to change. Your household desperately needs two incomes while you both work to cut down debts and expenses.
The kiddies don't need to be in costly sports programs. Cut out immediately.
The price you paid for your house? I weep tears of blood. If you sell your house, you're rid of the home insurance, HOA, and alarm costs. That's three big nasties right there.
Rent a small house or large apartment (don't forget renter's insurance; it's cheap and valuable.) Something tells me this is a multi-flat screen household. Sell all but one. You won't die, and you desperately need the money.
As far as eating out? Hell, you have to have some treats in life. I won't recommend you cut back there, because you're only human. The problem is, you have too many "treats." Your cell phone costs alone are ridiculous, and needless.
Good luck to you and your family. Your work is cut out for you, but do-able. I would wish you all the best, but you seem to have too much of it already.
It took guts to lay out your financial details to this degree, and for that I commend you.
Your car payment is more than our monthly mortgage payment. Trade in for a small, reliable Toyota or Honda beater.
Mrs. isn't employed? That has to change. Your household desperately needs two incomes while you both work to cut down debts and expenses.
The kiddies don't need to be in costly sports programs. Cut out immediately.
The price you paid for your house? I weep tears of blood. If you sell your house, you're rid of the home insurance, HOA, and alarm costs. That's three big nasties right there.
Rent a small house or large apartment (don't forget renter's insurance; it's cheap and valuable.) Something tells me this is a multi-flat screen household. Sell all but one. You won't die, and you desperately need the money.
As far as eating out? Hell, you have to have some treats in life. I won't recommend you cut back there, because you're only human. The problem is, you have too many "treats." Your cell phone costs alone are ridiculous, and needless.
Good luck to you and your family. Your work is cut out for you, but do-able. I would wish you all the best, but you seem to have too much of it already.
No, the car payment isn't more. The wife going back to work is just going to increase their costs--day care isn't cheep but maybe working evenings/weekends or something. I think she just needs to cut back on the spending and they should be fine. 200K is MORE than enough for a family to life off if they are reasonable with their spending....
I agree you need to downsize your home. This is the highest food budget I've ever seen. Coupled with eating out it is horrendous! You must be eating steak, caviar and lobster every night! If your wife is staying home, she should be cooking almost everything from scratch, using coupons, buying in bulk etc. Here is the USDA's average budget plans for food. http://www.cnpp.usda.gov/Publication...oodJan2013.pdf
A SAHM's job includes budgeting and getting household expenses as low as possible.
I would also suggest switching cable companies every year or two when your contract expires, to find the cheapest rates. I just switched from Comcast to Verizon and saved $60 mo for pretty much the same cable plan, Plus I bundled my Internet and home phone
I see your youngest is 4 years old. If your wife is planning to return to work shortly, you may be okay holding on to your house if she is able to draw an adequate salary.
I would cut up the credit cards and go cash only. Interest payments will suck you dry.
Sounds like you know the answer. And why are you paying $1200 on the 0% credit add but Nearly nothing on the cc with the 25k?? I think you need to use your savings and pay that in 1 lump sum.
You can probably stay in the house youre in, just cut some expenses.
I know there is lots of room to cut here and there but I feel like the house and the associated bills will never go away. Even if we were debt free and just had the mortgage, is it really worth staying here for $5400/mo (including taxes)? The 5400+the HELOC+50K in CC+ all other expenses makes it feel as if we will never get ahead. It just hit me that my oldest will be going to college in 10 years and we have absolutely ZERO saved for that. So that brings me back to my thinking, is it really worth staying here?? If I look at the numbers it's a pretty simple decision, move to the smaller home. It's the irrational emotional stuff that makes us want to stay in our current Toll Bro home.
That may have been a typo on the amount paid to the CC. It's at least $1300/mo which I am sure does not make a dent in the balance since we use that card for typical purchases.
My income of 175-200K is gross. Shame of it is the last two years I made 223 and 262 and somehow we are in a worse financial position!
What are you sliding the cards for and taking out a 401K loan for? Why on earth are you paying so much a much to 0% interest card when you should be paying that to the high interest card with the 25K balance
I know there is lots of room to cut here and there but I feel like the house and the associated bills will never go away. Even if we were debt free and just had the mortgage, is it really worth staying here for $5400/mo (including taxes)? The 5400+the HELOC+50K in CC+ all other expenses makes it feel as if we will never get ahead. It just hit me that my oldest will be going to college in 10 years and we have absolutely ZERO saved for that. So that brings me back to my thinking, is it really worth staying here?? If I look at the numbers it's a pretty simple decision, move to the smaller home. It's the irrational emotional stuff that makes us want to stay in our current Toll Bro home.
That may have been a typo on the amount paid to the CC. It's at least $1300/mo which I am sure does not make a dent in the balance since we use that card for typical purchases.
My income of 175-200K is gross. Shame of it is the last two years I made 223 and 262 and somehow we are in a worse financial position!
it doesn't matter what you do. Until you get on a budget and stick to it nothing is going to change. Same crap different shovel by moving. This is a 100% behavior problem. Fix the behavior and the problems will go away. There is no overnight solution. You make too much money to be this poor.
Well you will need to sell your house for what you owe? Not sure where you live but can this be done? If so I'd do it in a minute-
If not, you can probably live in the house but you have to sit down with Mrs. OP and have a budget-no more going out to dinner or go out only twice a month. No more CC-pay the most on the highest balance first. No more shopping or spending-if the wife needs to stay home..she cannot spend money-only for needs!
Also, you will be driving your car until it drops.
You need to make sure you are both willing to sacrifice-this will take years but you can do it. No more bells and whistles....cut down on everything. Clip coupons when you can...$1500 a month on groceries...you need to shop at Target..no more $6 lattes at Starbucks. You get the picture, anything that is not a need you do not spend. And $400 a month for kids activities? Cut it out or cut it down that extra money can go towards debt.
It will be hard but you MUST do this.
Good luck.
Last edited by dnvrsoul; 08-12-2013 at 09:43 AM..
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