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I need help setting up a personal budget and managing my expenses based on my income.
A few facts about me:
-28 yrs old
-$55K annual salary
-No savings (basically paycheck to paycheck)
-Started new job June 2013; working for big 3 credit rating agency (1st permanent job since graduation)
-Graduated in 2009 and had a hard time starting my career (mostly temp work and customer service)
-Single (not ready to settle down due to financial instability and just starting career)
And now my expenses:
Apartment: $950 monthly (utilities included except electricity)
Electricity: between $20-30 monthly (live alone in small studio apartment)
Car note - $375 monthly
Car Insurance - $195 monthly
Parking - $240 monthly ( I live downtown)
Sallie Mae: $375 monthly
Government loan - $183 monthly but currently in forbearance ( I keep pushing it back)
Credit cards - $140 monthly ( I have 4 and make minimum payments; all have small balances of approximately $400 - $700 and all basically 90% maxed)
Cable/Internet: $90 monthly
Phone: $90 monthly
Train - $100 monthly
Total expenses: $2,585
Monthly take home: $3,068
This leaves approximately $483 for food, etc. And when I finally start paying back my gov't student loan I will have even less. I'm definitely in over my head.
I feel like I am committing financial suicide right now and it is very stressful. My grandmother has filed bankruptcy in the past and she is the only financial mentor I have used in the past, but I don't want to follow in her footsteps. My mother is basically a spendthrift as well and has never owned a home and whenever I ask to borrow money ( in my youth), she would mention a lack thereof. I don't want to be the same way, but I already see that I am.
Please help me out with any suggestions you may have.
Would like to sell my car but I am just the co-signer on the vehicle AND I live in a different state from the borrower of the loan. Car was also undervalued by $1200 vs. the amount owed on the loan. I don't have this money and I have no one to ask for it either.
Can you get a less expensive apartment or move in with someone? Do you have renter's insurance-if not, get some, the discount will save you money--or should--you will pay less for both policies then you will for just the car.
Sell the car..who cares if the other person is in another state--that is what Fed Ex and email is for. Who is the loan through? If it's a bank, chances are you can take out a small loan to pay the excess--but you might make enough if you sell the car that you won't have to. That has to be the first thing to go....and really, about the only thing you can cut out..but that frees up about $800/month. Put 1/4 of that $800 into savings and 1/2 to pay off the credit cards. When the credit cards are paid off-use the money you were putting toward the credit cards to pay off the loans (1/2 into savings, 1/2 to the loans). Don't eat out, don't buy any new clothing, etc. until your credit cards are paid off.
What all is coming out of your check that you are only bringing home that much?
I would still try to sell the car. That expense is crazy, especially with monthly parking and the car note itself. How much is the interest rate? I know many would be against this but if your car is undervalued by $1,200.00, go to Lending Club to get a small loan and pay it off that way. You might have another loan for $1,200.00, but you'd have another $810.00 (per month) to pay it off.
Can you rent a room or get a roommate in another apartment?
Take out cable and just use internet. That should be another $40-$50.
Your phone is also very expensive. If you can, get out of a monthly contract and do a prepaid phone. You can still get great smartphones and pay $35 a month.
Bottom line, once you sell your car, you'll have breathing room... more than enough breathing room.
Can you get a less expensive apartment or move in with someone? Do you have renter's insurance-if not, get some, the discount will save you money--or should--you will pay less for both policies then you will for just the car.
Sell the car..who cares if the other person is in another state--that is what Fed Ex and email is for. Who is the loan through? If it's a bank, chances are you can take out a small loan to pay the excess--but you might make enough if you sell the car that you won't have to. That has to be the first thing to go....and really, about the only thing you can cut out..but that frees up about $800/month. Put 1/4 of that $800 into savings and 1/2 to pay off the credit cards. When the credit cards are paid off-use the money you were putting toward the credit cards to pay off the loans (1/2 into savings, 1/2 to the loans). Don't eat out, don't buy any new clothing, etc. until your credit cards are paid off.
What all is coming out of your check that you are only bringing home that much?
Progressive mentioned the renter's insurance policy to me but I just never followed through. My lease is one year (from July - June) so I plan on moving as soon as it ends.
I would like to sell the car, I have it listed online, but I'll need to call the loan provider and find out the current amount of debt owed on the vehicle. It has a few dings so I am considering using my tax refund to get them repaired.
I only bring home approximately $36K per year after taxes. Or I assumed after taxes. Can I look into this further somehow?
I need help setting up a personal budget and managing my expenses based on my income.
A few facts about me:
-28 yrs old
-$55K annual salary
-No savings (basically paycheck to paycheck)
-Started new job June 2013; working for big 3 credit rating agency (1st permanent job since graduation)
-Graduated in 2009 and had a hard time starting my career (mostly temp work and customer service)
-Single (not ready to settle down due to financial instability and just starting career)
And now my expenses:
Apartment: $950 monthly (utilities included except electricity)
Electricity: between $20-30 monthly (live alone in small studio apartment)
Car note - $375 monthly
Car Insurance - $195 monthly
Parking - $240 monthly ( I live downtown)
Sallie Mae: $375 monthly
Government loan - $183 monthly but currently in forbearance ( I keep pushing it back)
Credit cards - $140 monthly ( I have 4 and make minimum payments; all have small balances of approximately $400 - $700 and all basically 90% maxed)
Cable/Internet: $90 monthly
Phone: $90 monthly
Train - $100 monthly
Total expenses: $2,585
Monthly take home: $3,068
This leaves approximately $483 for food, etc. And when I finally start paying back my gov't student loan I will have even less. I'm definitely in over my head.
I feel like I am committing financial suicide right now and it is very stressful. My grandmother has filed bankruptcy in the past and she is the only financial mentor I have used in the past, but I don't want to follow in her footsteps. My mother is basically a spendthrift as well and has never owned a home and whenever I ask to borrow money ( in my youth), she would mention a lack thereof. I don't want to be the same way, but I already see that I am.
Please help me out with any suggestions you may have.
Would like to sell my car but I am just the co-signer on the vehicle AND I live in a different state from the borrower of the loan. Car was also undervalued by $1200 vs. the amount owed on the loan. I don't have this money and I have no one to ask for it either.
Your biggest expense is your studio apartment. If you're not currently locked into a lease, is there any way you can cut your rent payment by living with roommates in a 2 or 3 bedroom until you build a comfortable safety cushion in your savings? If you can cut your rent payment, then you should be able to save up the $1200 you need to bring to the table when you sell the car and pay off the loan. Selling the car will save you another $810/mo plus gas/maintenance.
Also for the time being, I would cancel cable and just pay for basic internet service (probably about $40-50/mo). You can also get a cheaper cellphone plan (Virgin Mobile?). There are a couple carriers that offer $40-50/mo service for phone/data. Service may not be as good as what you have now since most of them use the Sprint network, but you can't be choosy when you're in the financial situation that you are currently in. Use the extra money you save by switching cellphones and canceling cable to pay off your credit cards. It sounds like you won't be able to manage the student loan debt once it becomes due unless you have your credit cards paid off.
According to the net pay calculator on ADP, you should be taking home a lot more than $36k.
Your Pay Check Results
Annual Gross Pay: $55,000.00
Federal Withholding: $8,153.75
Social Security: $3,410.00
Medicare: $797.50
New Jersey: $1,710.00
SUI/SDI: $242.57
FLI: $30.90
Net Pay: $40,655.28
So you should be getting a refund of around $4-5k if you only took home $36k this year. This is assuming you are filing as a single and claim yourself.
I would like to sell the car, I have it listed online, but I'll need to call the loan provider and find out the current amount of debt owed on the vehicle. It has a few dings so I am considering using my tax refund to get them repaired.
Don't bother fixing a dent on a car. You won't get back what you paid for the repairs when you sell it. Sell it as-is, but be honest and point it out as a flaw when you list the car.
According to the net pay calculator on ADP, you should be taking home a lot more than $36k.
Your Pay Check Results
Annual Gross Pay: $55,000.00
Federal Withholding: $8,153.75
Social Security: $3,410.00
Medicare: $797.50
New Jersey: $1,710.00
SUI/SDI: $242.57
FLI: $30.90
Net Pay: $40,655.28
So you should be getting a refund of around $4-5k if you only took home $36k this year. This is assuming you are filing as a single and claim yourself.
Sorry Parsec, I should have mentioned that I live in Chicago, IL. Relocated here specifically for the job opportunity.
Your biggest expense is your studio apartment. If you're not currently locked into a lease, is there any way you can cut your rent payment by living with roommates in a 2 or 3 bedroom until you build a comfortable safety cushion in your savings? If you can cut your rent payment, then you should be able to save up the $1200 you need to bring to the table when you sell the car and pay off the loan. Selling the car will save you another $810/mo plus gas/maintenance.
Also for the time being, I would cancel cable and just pay for basic internet service (probably about $40-50/mo). You can also get a cheaper cellphone plan (Virgin Mobile?). There are a couple carriers that offer $40-50/mo service for phone/data. Service may not be as good as what you have now since most of them use the Sprint network, but you can't be choosy when you're in the financial situation that you are currently in. Use the extra money you save by switching cellphones and canceling cable to pay off your credit cards. It sounds like you won't be able to manage the student loan debt once it becomes due unless you have your credit cards paid off.
I'm currently locked into the lease but I plan on moving when it ends. I'd like to change cell phone providers once my contract expires in April 2014 and I have been contemplating canceling the cable service. Cable service can be cancelled anytime.
Quote:
Originally Posted by drunkwithwords
I would still try to sell the car. That expense is crazy, especially with monthly parking and the car note itself. How much is the interest rate? I know many would be against this but if your car is undervalued by $1,200.00, go to Lending Club to get a small loan and pay it off that way. You might have another loan for $1,200.00, but you'd have another $810.00 (per month) to pay it off.
Can you rent a room or get a roommate in another apartment?
Take out cable and just use internet. That should be another $40-$50.
Your phone is also very expensive. If you can, get out of a monthly contract and do a prepaid phone. You can still get great smartphones and pay $35 a month.
Bottom line, once you sell your car, you'll have breathing room... more than enough breathing room.
The prepaid phone is a great idea. Yes, the car situation is very stressful..to say the least.
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