wonderland
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Post by wonderland on Dec 28, 2014 12:48:44 GMT -5
First, get ST/LT disability insurance. Then you need life insurance (7-10x your pay in a term policy). It sounds like you are not a detail/spreadsheet person which is totally fine. I'd suggest a better budget process for you might be taking your monthly net (use a lower average amount to be conservative). Then put 15% to retirement, $X to debt, $X to your fixed bills, then you have your remaining monthly amount to spend as you please. Then you don't have to justify spending on a particular item/vacation, it's just your money. As long as you don't spend more than that amount (no CC use) you should be fine and can put your finances on autopilot. The biggie though is you have to do the savings and debt payments FIRST, and then live on the rest. Yes, this sounds like a way that would be less frustrating to me.
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Formerly SK
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Post by Formerly SK on Dec 28, 2014 12:49:59 GMT -5
Have you ever read Dave Ramsey's Total Money Makeover? A lot of people here don't like him much and his investment advice sucks, but for debt repayment his plan is very effective. Of course he may come off as being too extreme to you, but the snowball method can still be used even if you're not as intense about it. For sure I'd start wiping out the small balance cards first. I tried to read that book and it just seemed like a very long advertisement for his financial peace university. Dave Ramsey annoys me for more reasons than that. I think I can get out of debt without giving my money to a hypocrite who uses his status a "good Christian" to sell products and get rich off the backs of the poor. I would recommend "Your Money or Your Life." It really helped me open my eyes to how much of my life I was sacrificing working in order to pay for something that perhaps didn't mean as much to me as I had thought it did. For example, you may really love a particular widget for $X, but once you realize you have to exchange X hours of your life for it, you may decided it just isn't worth it. It also won't let you lie about how much money you make an hour (in other words, there are tons of costs to working including taxes, transportation, clothing, meals) that you need to factor in the analysis.
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wonderland
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Post by wonderland on Dec 28, 2014 12:51:00 GMT -5
I tried to read that book and it just seemed like a very long advertisement for his financial peace university. Dave Ramsey annoys me for more reasons than that. I think I can get out of debt without giving my money to a hypocrite who uses his status a "good Christian" to sell products and get rich off the backs of the poor. I gave up reading after page seven. I'm hoping this got all back on track by page 14. So, if your goal is to stop living off of credit--which I agree with and had to do about seven years ago--I would also suggest perusing YNAB.com. For the next few months, read and align yourself to their strategies. All of their philosophy and information is free. After a few months of trying to understand their philosophy and apply it to your life--which would most definitely include not using credit that carries a balance to make purchases--then you might consider purchasing their budgeting and tracking program. Good luck to you. I do own YNAB, I bought it a year or so ago when it was on STEAM for a ridiculously low price. Then I neglected to set it up and use it. Good intentions and such.
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wonderland
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Post by wonderland on Dec 28, 2014 12:56:26 GMT -5
After I get the debt paid, the plan is to start saving for the next house. We plan to keep this one as a rental when we move, so starting sometime in 2016 we will have to open the down payment fund.
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Dec 28, 2014 12:58:35 GMT -5
I gave up reading after page seven. I'm hoping this got all back on track by page 14. So, if your goal is to stop living off of credit--which I agree with and had to do about seven years ago--I would also suggest perusing YNAB.com. For the next few months, read and align yourself to their strategies. All of their philosophy and information is free. After a few months of trying to understand their philosophy and apply it to your life--which would most definitely include not using credit that carries a balance to make purchases--then you might consider purchasing their budgeting and tracking program. Good luck to you. I do own YNAB, I bought it a year or so ago when it was on STEAM for a ridiculously low price. Then I neglected to set it up and use it. Good intentions and such. Yeah, okay...so, fine you own YNAB, but that's not what I said. I said peruse the philosophies. You seem to have two goals--understand your spending and then control the spending to live within your means. The act of Owning YNAB doesn't reach those goals. If if you're still dismissing 99% of the advice without any consideration, then I still wish you the best of luck and I will move on.
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Shooby
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Post by Shooby on Dec 28, 2014 13:00:00 GMT -5
What's YNAB?
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Shooby
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Post by Shooby on Dec 28, 2014 13:04:13 GMT -5
BTW, your situation does not qualify as "hot mess". If anything, it just a small spill at this point. Nothing you can't easily recover from if you apply yourself.
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wonderland
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Post by wonderland on Dec 28, 2014 13:04:18 GMT -5
I do own YNAB, I bought it a year or so ago when it was on STEAM for a ridiculously low price. Then I neglected to set it up and use it. Good intentions and such. Yeah, okay...so, fine you own YNAB, but that's not what I said. I said peruse the philosophies. You seem to have two goals--understand your spending and then control the spending to live within your means. The act of Owning YNAB doesn't reach those goals. If if you're still dismissing 99% of the advice without any consideration, then I still wish you the best of luck and I will move on. Where on earth did I say I was dismissing 99% of advice with no consideration? I answered one of your statements. Post or don't post, it is of no consequence to me. I appreciate the advice, I don't understand the tantrum by some anytime I don't 100% agree with everything every one suggests. That's just how life is, not all advice is going to apply to every situation. I thought this was a discussion forum, not a "let anonymous Internet people control your life" forum.
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moneymaven
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Post by moneymaven on Dec 28, 2014 13:04:52 GMT -5
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wonderland
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Post by wonderland on Dec 28, 2014 13:05:19 GMT -5
BTW, your situation does not qualify as "hot mess". If anything, it just a small spill at this point. Nothing you can't easily recover from if you apply yourself. It certainly feels like a hot mess! This is so far off the path for me, I feel like I'm talking about someone else's life.
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Shooby
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Post by Shooby on Dec 28, 2014 13:06:22 GMT -5
Your situation is very mild. Just stay aboard and read some of the travails of the relatives of posters here! lol
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Deleted
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Post by Deleted on Dec 28, 2014 13:10:44 GMT -5
I think its a hot mess.
She isn't currently using spending to shop. She is using credit to pay for unplanned for essentials because all her money is going to shop, etc.
Has Emergency Fund come up here anywhere?
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Deleted
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Post by Deleted on Dec 28, 2014 13:12:13 GMT -5
Your situation is very mild. Just stay aboard and read some of the travails of the relatives of posters here! lol The only difference I see between them and her is that she currently has the income to make it not as big of a problem. Otherwise, not much different.
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wonderland
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Post by wonderland on Dec 28, 2014 13:23:41 GMT -5
Your situation is very mild. Just stay aboard and read some of the travails of the relatives of posters here! lol The only difference I see between them and her is that she currently has the income to make it not as big of a problem. Otherwise, not much different. And I am working on stopping this train before it completely derails. I think that counts for something. I am not living in denial of the problem .
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TheHaitian
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Post by TheHaitian on Dec 28, 2014 13:25:36 GMT -5
Your situation is very mild. Just stay aboard and read some of the travails of the relatives of posters here! lol The only difference I see between them and her is that she currently has the income to make it not as big of a problem. Otherwise, not much different. And that is a BIG, HUGE, ASTRONOMICAL difference.
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wonderland
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Post by wonderland on Dec 28, 2014 13:27:29 GMT -5
I think its a hot mess. She isn't currently using spending to shop. She is using credit to pay for unplanned for essentials because all her money is going to shop, etc. Has Emergency Fund come up here anywhere? I think i must have given a worse impression of my shopping habits than actually exists. It isn't as though I am constantly buying. When I do shop, I tend to go overboard, but I don't do it every day or even every week. Part of my 2015 plan is to put aside $800/month, for incidentals. Maybe I should further separate that into like $500 for repairs and vet visits and the like, and $300 for gifts, entertainment, clothes and such.
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Deleted
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Post by Deleted on Dec 28, 2014 13:29:23 GMT -5
The only difference I see between them and her is that she currently has the income to make it not as big of a problem. Otherwise, not much different. And that is a BIG, HUGE, ASTRONOMICAL difference. Actually, it's not. It's much easier to mitigate an income issue, if you have a good understanding of and emotional relationship with money and how to make it work for you. Big money doesn't solve much if the understanding et al isn't there. It's why so many lottery winners lose the whole kit and kaboodle so fast.
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justme
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Post by justme on Dec 28, 2014 13:34:36 GMT -5
It isn't necessarily 'odd' as in I can understand how it happens. It is however completely opposite her stated goals and objectives. She still thinks 'poor' is just about not having money to buy material things. She still lives spending every dime that comes in and then some. She feels entitled to things because she works hard and so should be able to spend all of her money on things and experiences. She is, perhaps unconsciously, living as if today is the only day. As if the future is unknowable and so I have to live it up today with what I have today. You're right, I do tend to have a live for today attitude. Because really, we aren't guaranteed tomorrow. Accidents and illness and tragedies happen sometimes. I much prefer to enjoy my life now than be miserable in the hope of having a great retirement. I have been financially responsible in the past, and I know I can get back on track. I may not exactly do it as cut and dry as most posters on this board, but I will do it. To be fair, weren't entirely financially responsible in the past as you have zero retirement money saved for yourself. It's great that you're starting now though. If you need more encouragement to save look at the calculators of how much you'll need to save to replace your current sending in retirement.
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Deleted
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Post by Deleted on Dec 28, 2014 13:35:56 GMT -5
I think i must have given a worse impression of my shopping habits than actually exists. It isn't as though I am constantly buying. When I do shop, I tend to go overboard, but I don't do it every day or even every week. When you gross 95k, have listed set bills at 3500 month and spent 25k more than you made the last two years, you are shopping a lot for goods and experiences. You don't seem interested at all in looking at that spending and actually tracking where your money goes.
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wonderland
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Post by wonderland on Dec 28, 2014 13:50:55 GMT -5
$15,000 of that 25 thousand covered my maternity leave for 3 months and my deductible from having a baby, so the spending hasn't been that out of control. It is problematic though and I recognize the need to get it under control.
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wonderland
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Post by wonderland on Dec 28, 2014 13:52:53 GMT -5
I also underwent a boatload of medical tests after I had her, due to unexplained vertigo and heart arrhythmia, so some of the money covered medical tests. And DD was hospitalized in January with complications from the flu.
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Deleted
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Post by Deleted on Dec 28, 2014 13:53:30 GMT -5
So, you didn't make 90k last year and 95k this year? I thought that was what you stated?
Statements like 'hasn't been that out of control' are what make me think your vague plans for the next year are not all that likely to succeed.
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Deleted
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Post by Deleted on Dec 28, 2014 13:54:12 GMT -5
I also underwent a boatload of medical tests after I had her, due to unexplained vertigo and heart arrhythmia, so some of the money covered medical tests. And DD was hospitalized in January with complications from the flu. You paid all this out of pocket? So... Track your money. Where did it go...
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Shooby
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Post by Shooby on Dec 28, 2014 13:55:17 GMT -5
She's 30 with a good job. And, now planning to make some changes. So, I think that's a great start.
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wonderland
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Post by wonderland on Dec 28, 2014 13:56:19 GMT -5
I also underwent a boatload of medical tests after I had her, due to unexplained vertigo and heart arrhythmia, so some of the money covered medical tests. And DD was hospitalized in January with complications from the flu. You paid all this out of pocket? So... Track your money. Where did it go... I had deductibles and Co pays for all of this. Our deductible is something like $1500 a person.
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wonderland
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Post by wonderland on Dec 28, 2014 13:56:47 GMT -5
So, you didn't make 90k last year and 95k this year? I thought that was what you stated? Statements like 'hasn't been that out of control' are what make me think your vague plans for the next year are not all that likely to succeed. Yes, those are our combined gross incomes for last year and this year.
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wonderland
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Post by wonderland on Dec 28, 2014 13:58:02 GMT -5
DD was born in 2012, which is when the downward financial spiral began.
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Deleted
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Post by Deleted on Dec 28, 2014 13:58:56 GMT -5
Shoob, she has no idea where her money goes. Thus she has no conception of what changes she might need to make.
Do you have an HSA or other savings account to cover your deductables? Is that part of your a savings plan? Or if something happens again will that just go on the card?
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wonderland
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Post by wonderland on Dec 28, 2014 13:59:38 GMT -5
Shoob, she has no idea where her money goes. Thus she has no conception of what changes she might need to make. Do you have an HSA or other savings account to cover your deductables? Is that part of your a savings plan? Or if something happens again will that just go on the card? If it happens again, it will hopefully come out of the $800/month we are setting aside.
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Deleted
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Post by Deleted on Dec 28, 2014 14:00:00 GMT -5
So, you didn't make 90k last year and 95k this year? I thought that was what you stated? Statements like 'hasn't been that out of control' are what make me think your vague plans for the next year are not all that likely to succeed. Yes, those are our combined gross incomes for last year and this year. So, when you add the 15k for mat reprints leave, does that not mean in addition to 90k gross? ..
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