Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:23:01 GMT -5
How much is in your EF at the moment? Other saving? I'm not understanding.
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 17:27:02 GMT -5
Pink - I'm going to try to answer you as accurately as possible:
Food: ~$8-900 month (taken from my bank account - does include some eating out at fast food, but honestly only about once a week) Gas: ~$4-600 month (also from bank account - depends on the month, but does include gas for boat at this time) Clothing: ~$100 month (usually spend it in chunks of $400 at a time, on average 3 times a year) House: $851 month (includes insurance and taxes) Electric: ~$200 month averaged Gas: $75 month averaged Water: $100 month averaged Vehicle Insurance: $225 month (includes 3 cars, with a teenage driver on the policy, not including the boat)
Total: ~$2721-3021 per month - average
Add phones: ~$250-275 Internet: $52.00
Total: ~$3023-3323 per month - average
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 17:30:04 GMT -5
How much is in your EF at the moment? Other saving? I'm not understanding. We have 3 savings accounts - mine, DH's and emergency. Anne is right though - we're just shuffling it around to keep up with everything. Total, there is $324 divided among the three accounts ($73 is actually in the emergency savings account... ).
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:30:35 GMT -5
Ok. Those 'budget' numbers are the start of something more reasonable, and that is what you need to do, list every expense tht way, in a manner that corresponds with the original list, ie couple, kids, house, etc. first .... So he sees tht your money runs out WAY before #12...
if he really wants to prioritize as we said... The boat will have to go...
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:31:59 GMT -5
Yeah, I'd set up one EF, get it to 500$ and then stop wasting time with a complicated shuffling system.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:35:49 GMT -5
Pink - I'm going to try to answer you as accurately as possible: Food: ~$8-900 month (taken from my bank account - does include some eating out at fast food, but honestly only about once a week) Gas: ~$4-600 month (also from bank account - depends on the month, but does include gas for boat at this time) Clothing: ~$100 month (usually spend it in chunks of $400 at a time, on average 3 times a year) House: $851 month (includes insurance and taxes) Electric: ~$200 month averaged Gas: $75 month averaged Water: $100 month averaged Vehicle Insurance: $225 month (includes 3 cars, with a teenage driver on the policy, not including the boat) Total: ~$2721-3021 per month - average Add phones: ~$250-275 Internet: $52.00 Total: ~$3023-3323 per month - average Then you have another ~2600 in debt payments, not including the boat insurance or the medical bills that you'll start paying later in the year. Did I add that up right? If I did, that's a pretty big gap to try to overcome every month, and you have to try to catch up first. I feel like I'm being really negative, but I don't mean to.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:38:11 GMT -5
When budgeting you don't say "between this and this". You and I both know it is the higher of those 2 numbers so just put the larger number down and get it over with.
For revenue it doesn't matter what you get in each week. What do you get each month? Hopefully you are paid bi-weekly and can throw the "extra" paycheques onto a CC.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:40:08 GMT -5
Yeah, I'd set up one EF, get it to 500$ and then stop wasting time with a complicated shuffling system. Where do you suggest she take money from to fund the EF? The expenses and bills are already more than the income. I'm not trying to be snarky, I promise!
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 17:40:55 GMT -5
LOL! Pink - you're not being negative! That's my bank account - it's negative! You're being realistic....as I'm trying to be...or...at least...I thought I was.... some of these numbers are even worse than what they were when I put things down on paper for DH a few weeks ago. I guess I'm not as realistic as I thought I was because my figures had us short "only" $2000 when I wrote them out for DH.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:41:13 GMT -5
You aren't being negative, the numbers are. She needs to face how serious this is. Even if she declares BK it will be a band aid on the real problem if they don't figure out that they are living way above their means. Putting it in perspective, they are spending as much on the boat as their house. They can't afford it. On top of that they are talking about not buying the kids clothes in order to pay for said boat. Houston we have a problem.
ETA = I was writing when Karaboo was posting.
I'll tell you a secret, nothing dramatic happens if you don't pay CC's. It might hurt your credit rating but the last thing you want is more credit. Right now stop paying them and sell the boat. Then call the CC companies and make a realistic payment plan.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:47:31 GMT -5
You aren't being negative, the numbers are. She needs to face how serious this is. Even if she declares BK it will be a band aid on the real problem if they don't figure out that they are living way above their means. Putting it in perspective, they are spending as much on the boat as their house. They can't afford it. On top of that they are talking about not buying the kids clothes in order to pay for said boat. Houston we have a problem. I know. But I've been through the same thing myself and I remember how hard it was to really face the truth. I rarely give money advice on here, but Karaboo's thread really struck home because I don't think she sees just how serious the numbers are yet. BTDT
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:49:46 GMT -5
Me too Pink, that's why I'm harping. They can turn it around but it is going to be humbling and take time. The first thing is to face the problem.
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 17:50:10 GMT -5
When budgeting you don't say "between this and this". You and I both know it is the higher of those 2 numbers so just put the larger number down and get it over with.
For revenue it doesn't matter what you get in each week. What do you get each month? Hopefully you are paid bi-weekly and can throw the "extra" paycheques onto a CC. Later - you might not believe me, but that's what my bank account actually listed for the last 2 months in those categories. The average for the last 12 months in food is actually $845, with some months less and some months higher. The gas category says $714 for the 12 month average, but just like I knew my food budget was wrong at $400 a month, I know this amount is wrong as well. I just haven't gone back over the last 12 months to see where the error is. It is also possible that I'm deluding myself and that is actually our average, but I don't think so. I was trying to paint an accurate picture on all sides.
Yes, I'm paid bi-weekly, so I do get extra paychecks during the year.
|
|
ՏՇԾԵԵʅՏɧ_LԹՏՏʅҼ
Community Leader
♡ ♡ BᏋՆᎥᏋᏉᏋ ♡ ♡
Joined: Dec 17, 2010 16:12:51 GMT -5
Posts: 43,130
Location: Inside POM's Head
Favorite Drink: Chilled White Zin
|
Post by ՏՇԾԵԵʅՏɧ_LԹՏՏʅҼ on Jul 14, 2013 17:50:44 GMT -5
You're certainly not the first person to say that to KaraBoo - but you're saying it to the wrong person. KaraBoo already knows the boat is one of their biggest (and most unnecessary) drains on their finances - it's her DH who has to start realizing it.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:53:25 GMT -5
Karaboo what you do is budget for the higher number then do your best to save money in that area. When you keep it down you can throw the saved money on another bill. Food, shelter and gas are really the first 3 things you put down on your budget. You absolutely have to have them. Maybe you can save money in those categories but you can't eliminate them altogether.
|
|
Apple
Junior Associate
Always travel with a sense of humor
Joined: Dec 17, 2010 15:51:04 GMT -5
Posts: 9,938
Mini-Profile Name Color: dc0e29
|
Post by Apple on Jul 14, 2013 17:54:20 GMT -5
Ok, I agree about the boat. Without it, you're well on your way to fixing this issue. Keeping it only gets you further behind.
All the other stuff can only cut so much. Shop at discount grocery stores, use generics, no more eating out, etc. Use it as an opportunity to teach the kids how to make a bunch of inexpensive, homemade meals. Cut the phones to text/talk only and get rid of any data. As for the land line, is it the cheapest you can get? Maybe it would be cheaper to get one pay-as-you-go phone to keep at the house at all times as the "land line" (I've thought of doing this). Still, this will only cut out so much. On the other hand, boat sold is huge. I've fished out of a tiny, two person boat that cost probably $200 max. It can be done, and it has to be enough.
As for how to spend the OT and his reply... I would say any OT OVER and BEYOND the boat payment (including gas and insurance), can go straight to the boat. But, because that boat payment is what is helping you guys dive into a hole, the total expense of it should go to cover everything else first. So (can't get exact number because it was on page one...) if the boat+gas+insurance is $800 a month, that first $800 in OT should go to the household, anything after that can go to the boat. Because that is the size of hole that needs to be filled. He can either help get that $800 through OT or through selling the boat, but that is what you need to go toward household and to get you guys out of the debt. OT shouldn't go to an "extra" until the other stuff is covered. If that makes any sense.
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 17:55:14 GMT -5
Me too Pink, that's why I'm harping. They can turn it around but it is going to be humbling and take time. The first thing is to face the problem. Trust me guys! I do know how serious these numbers are! But, reminding me that I need to put the basics first is helping - I'm just overwhelmed with everything else screaming at me to be paid! (those CC companies are a lot louder than the clothing category for example - and we all know the squeaky wheel gets the grease.) All of my life, I've been so good to make sure our bills are paid, that this is the first time it's gotten so bad that bills AREN'T being paid. I'm going in circles trying to figure out what to do and getting lost in the process. Having direction is helping me and I appreciate all of your comments - including the harping ones!
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 17:58:59 GMT -5
You're certainly not the first person to say that to KaraBoo I said it better.
|
|
constanz22
Senior Member
Joined: Dec 18, 2010 14:32:17 GMT -5
Posts: 4,219
|
Post by constanz22 on Jul 14, 2013 18:01:26 GMT -5
What about reading "Total Money Makeover" as I suggested? That costs nothing. Even if DH won't read it, I think you would benefit. There really is a lot of good advice in it about paying down debt, prioritizing debt, budgeting, and especially on working to get a spouse on the same page. I'd also recommend you and DH look for a Financial Peace University class in your area. It costs about $100 but I think it would be money well spent, especially if DH agreed to go too...
|
|
Sharon
Senior Associate
Joined: Dec 19, 2010 22:48:11 GMT -5
Posts: 11,287
|
Post by Sharon on Jul 14, 2013 18:02:32 GMT -5
Kara as you have mentioned your DH's thought process is different than yours so you will need to present the numbers differently for him to see the urgency.
I was keeping a spreadsheet and tracking every cent that was being spent. The bleeding was slowed to a trickle but progress wasn't being made to get things turned around. A couple three years ago I purchased YNAB based on the recommendations of people on this board.
I was still tracking every penny but the way the information was presented is what made the difference. There were colors and charts and graphs. Things that I didn't know how to do in excel. While I still have a long, long ways to go having things presented to me differently has made a huge difference.
Your DH may need to see a graph or pie chart that shows just how much of the monthly income is being eaten up by the boat expenses.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 18:03:54 GMT -5
Welcome to call display. If it's an 800 number or unknown number don't answer. I'm not recommending never paying them. Put them on hold for the moment. After you have everything else settled make a payment plan you can really do. Not having credit will help you not get into more trouble.
And no DH does not get to put part time money to the boat! Get serious! OT money goes to the medical bills and feeding the kids!
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 18:09:07 GMT -5
What about reading "Total Money Makeover" as I suggested? That costs nothing. Even if DH won't read it, I think you would benefit. There really is a lot of good advice in it about paying down debt, prioritizing debt, budgeting, and especially on working to get a spouse on the same page. I'd also recommend you and DH look for a Financial Peace University class in your area. It costs about $100 but I think it would be money well spent, especially if DH agreed to go too... Constanz - sorry! I saw the comment, but got side tracked from responding. I read it (and owned the book) many years ago, but lent it out to a friend and never got it back. I still understand the concept, but have drastically departed from the teachings. DH never read it and while was okay with the concept, was only following what I suggested to him without actually understanding the "why" behind it all. He'll listen to the radio program every once in a while, but since he has no interest in actually paying the bills, he doesn't really understand how bad our debt has gotten. DH will not read anything that is more than a page long and even that's stretching his limit. He's very ADHD. The closest he comes to reading is his Fishing Forum he's on and he'll skip posts like this one because they're too long. He understands now (he's been taking his lunch to work for the past couple of weeks - that's NEVER happened in the previous 10 years we've been together) - it's just not going to happen yesterday like I want it to.
|
|
mmhmm
Administrator
It's a great pity the right of free speech isn't based on the obligation to say something sensible.
Joined: Dec 25, 2010 18:13:34 GMT -5
Posts: 31,770
Today's Mood: Saddened by Events
Location: Memory Lane
Favorite Drink: Water
|
Post by mmhmm on Jul 14, 2013 18:09:52 GMT -5
*gibbering in a corner in fetal position* I'd go crazy trying to balance all those accounts and move money back and forth! I'm a simple person. I need things to be simple, like I am. I want to know how much money I have coming into my greedy little fists. Then, I want to know how much of that money already belongs to somebody else before I even get it (bills!). Once I know that, I can subtract the latter from the former. If I have left over money, I can save it, spend it, or paper the walls with it. If I come up with a negative figure, I know how much more money I have to have directed toward those greedy little fists for me to keep my head above water. I really think complicating this might be part of your problem, KaraBoo. Maybe I'm wrong, but that's how it seems to me.
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 18:12:22 GMT -5
Kara as you have mentioned your DH's thought process is different than yours so you will need to present the numbers differently for him to see the urgency. I was keeping a spreadsheet and tracking every cent that was being spent. The bleeding was slowed to a trickle but progress wasn't being made to get things turned around. A couple three years ago I purchased YNAB based on the recommendations of people on this board. I was still tracking every penny but the way the information was presented is what made the difference. There were colors and charts and graphs. Things that I didn't know how to do in excel. While I still have a long, long ways to go having things presented to me differently has made a huge difference. Your DH may need to see a graph or pie chart that shows just how much of the monthly income is being eaten up by the boat expenses. Correct! His thought process is very different from mine. Looking at a page of numbers is torture for him, but actually answering the calls from the CC and explaining to them why we're behind? He understood that just fine. I'm not sure the charts will help him....but I'm willing to try that approach. I know how to plug the charts and graphs into Excel (already have that!), I just need to get my spreadsheet back up and running!
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 18:16:50 GMT -5
*gibbering in a corner in fetal position* I'd go crazy trying to balance all those accounts and move money back and forth! I'm a simple person. I need things to be simple, like I am. I want to know how much money I have coming into my greedy little fists. Then, I want to know how much of that money already belongs to somebody else before I even get it (bills!). Once I know that, I can subtract the latter from the former. If I have left over money, I can save it, spend it, or paper the walls with it. If I come up with a negative figure, I know how much more money I have to have directed toward those greedy little fists for me to keep my head above water. I really think complicating this might be part of your problem, KaraBoo. Maybe I'm wrong, but that's how it seems to me. LOL! I understand. It makes sense to DH and I - but only if you understand the history behind it. We were overdrawing just having one account connected to two debit cards with bills being paid out of the same account. We added the bills account to keep from spending the bills money. But then we'd still get in trouble because I'd spend $100 on groceries while DH spent $100 on gassing up his truck and boat when there was only $150 in the account to spend (DH would know I was buying groceries, but never thought about how much was left and figured, what the hey - I'll fill up both vehicles while I'm here).
That's why we added the third account - so neither one of us could blame the other for over spending. Still not working!
|
|
zibazinski
Community Leader
Joined: Dec 24, 2010 16:12:50 GMT -5
Posts: 47,912
|
Post by zibazinski on Jul 14, 2013 18:28:54 GMT -5
Oh boy. Well, just because you want to sell that boat doesn't mean it's going to sell. I'd stop paying on it and let it get repoed. Then I'd stop making CC payments until they will lower your rate, which they will, after they threaten all kinds of shift to get you to pay. My girlfriend wasn't allowed to charge anymore on the cards she stopped paying on but they removed her interest rate and she just could pay the balance that she owed. This will start to help you but I don't think you have enough money even then. I'm thinking you both are going to have to get part time jobs. Cut cable and I'd lower the cell phone plan as well if you can.
|
|
KaraBoo
Senior Member
Joined: Dec 21, 2010 17:14:51 GMT -5
Posts: 3,076
|
Post by KaraBoo on Jul 14, 2013 19:42:15 GMT -5
Okay - So...I looked at the YNAB website. Question - is this something I can do on my own with Excel? Is this something that is worth spending the money on? I'm hesitant to spend money on something that I'm not going to use.
I did try out Mint at one point when it first came out, but never really got into it, so didn't get much out of it. At the time, my spreadsheet was working fine (but had been a while since I used it before I lost it when I transferred jobs).
I still get annoying emails from Mint that my CC was charged interest and I'm a moron because of it (at least, that's how I feel when I see the emails!).
Maybe I need to look back into Mint and see if it's improved any....
|
|
suesinfl
Senior Member
Joined: Jun 9, 2011 18:02:27 GMT -5
Posts: 2,765
|
Post by suesinfl on Jul 14, 2013 19:46:16 GMT -5
Karaboo, I have nothing to add that hasn't already been send. Just wanted to send you some hugs.
|
|
Deleted
Joined: Oct 12, 2024 3:25:53 GMT -5
Posts: 0
|
Post by Deleted on Jul 14, 2013 20:00:37 GMT -5
Go to microsoft.com and check out the Microsoft Money Plus Sunset Edition. I checked briefly to see if it's still on there (it is), but I didn't check to see if the details have changed. It's been a free download since they stopped selling Microsoft Money. I've used the paid versions for years to track my money. I loaded the free version on my laptop last year and it's pretty much the same as the last one I paid for. It just doesn't have the online features anymore.
Anyway, just an idea to help you get organized without spending money.
ETA: The budgeting is built around the 60/40 solution, which can be useful when you're trying to get a handle on your money. But you can change stuff around however you want to.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Jul 14, 2013 20:01:29 GMT -5
Okay - So...I looked at the YNAB website. Question - is this something I can do on my own with Excel? Is this something that is worth spending the money on? I'm hesitant to spend money on something that I'm not going to use. I did try out Mint at one point when it first came out, but never really got into it, so didn't get much out of it. At the time, my spreadsheet was working fine (but had been a while since I used it before I lost it when I transferred jobs). I still get annoying emails from Mint that my CC was charged interest and I'm a moron because of it (at least, that's how I feel when I see the emails!).
Maybe I need to look back into Mint and see if it's improved any.... I'm in the same boat as far as buying ynab is concerned. I could have sworn I downloaded ynab for free years ago. I don't know if this is the same, but the site looks similar to the one I remember, and there are free budget spreadsheets. www.mdmproofing.com/iym/excel.html
|
|