Shooby
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Post by Shooby on Dec 28, 2014 14:00:24 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? Well, I agree. I have said she needs to get a handle on that.
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TheHaitian
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Post by TheHaitian on Dec 28, 2014 14:00:39 GMT -5
She's 30 with a good job. And, now planning to make some changes. So, I think that's a great start. X 1,000 I don't get the obsession with trying to beat her down.
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wonderland
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Post by wonderland on Dec 28, 2014 14:00:57 GMT -5
In 2012 our gross was not 90k I thought you were asking about 2013 and 2014?
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Deleted
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Post by Deleted on Dec 28, 2014 14:02:02 GMT -5
'Hopefully'
You mean if you haven't spent it on clothes and entertainment etc. Will 800 even cover it? You are talking about spending and saving from the same funds, and as you don't seem to have a handle on what you spend,I'm not confident there will be as much savings as spending.
Have you thought about an EF?
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wonderland
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Post by wonderland on Dec 28, 2014 14:03:33 GMT -5
I started my current position in early 2013. In 2012 our combined gross was More like 50-60 thousand, due to my lower pay, 3 months maternity leave, and DH brief unemployment right when DD was born.
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Deleted
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Post by Deleted on Dec 28, 2014 14:03:34 GMT -5
In 2012 our gross was not 90k I thought you were asking about 2013 and 2014? I was... You were the one who said your maternity leave was part of extra spending. I guess the extra 25k was over 2 1/2 years...
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TheHaitian
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Post by TheHaitian on Dec 28, 2014 14:04:26 GMT -5
'Hopefully' You mean if you haven't spent it on clothes and entertainment etc. Will 800 even cover it? You are talking about spending and saving from the same funds, and as you don't seem to have a handle on what you spend,I'm not confident there will be as much savings as spending. Have you thought about an EF? Isn't someone on a power trip today! OP you have a good plan, stick with it and move forward. Pay down your debt, max the ROTH and keep on saving. You don't need to be explaining your past to anyone. What is done is done, move forward!
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wonderland
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Post by wonderland on Dec 28, 2014 14:05:06 GMT -5
In 2012 our gross was not 90k I thought you were asking about 2013 and 2014? I was... You were the one who said your maternity leave was part of extra spending. I guess the extra 25k was over 2 1/2 years... 2 years 4 months
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Deleted
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Post by Deleted on Dec 28, 2014 14:05:24 GMT -5
She's 30 with a good job. And, now planning to make some changes. So, I think that's a great start. X 1,000 I don't get the obsession with trying to beat her down. I'm not trying to beat her down. I see her situation as precarious, and I don't see any indication that she understands the seriousness of the issue, or is willing to try to understand where her money goes.
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Deleted
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Post by Deleted on Dec 28, 2014 14:06:35 GMT -5
I'm on a power trip? Lol. Funny.
What is her plan exactly? As you understand it Carl?
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wonderland
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Post by wonderland on Dec 28, 2014 14:11:23 GMT -5
I'm on a power trip? Lol. Funny. What is her plan exactly? As you understand it Carl? oped, What is your understanding of my plan? I laid it out a few pages ago.
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Deleted
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Post by Deleted on Dec 28, 2014 14:15:46 GMT -5
My understanding of your plan is that you plan on putting 800 a month aside to cover the things which currently you spend 3000 a month on... And not track it and hope it will be there when you need it...
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Plain Old Petunia
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Post by Plain Old Petunia on Dec 28, 2014 14:16:13 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. I do something like this. I have a monthly automatic deposit into an online savings account I have named "Curve Ball Fund". When I have irregular expenses, Curve Ball to the rescue. This is separate from my Emergency Fund.
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Deleted
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Post by Deleted on Dec 28, 2014 14:19:03 GMT -5
But that 800 is supposed to cover all med expenses, all vet expenses, all car repairs, entertainment, parties, all clothes, all gifts, all things that come up...
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wonderland
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Post by wonderland on Dec 28, 2014 14:21:09 GMT -5
My understanding of your plan is that you plan on putting 800 a month aside to cover the things which currently you spend 3000 a month on... And not track it and hope it will be there when you need it... More like stop spending $3000/month on things, and set aside that money to pull from if/when things come up. I'm think a medical deductible or car repair won't come along every single month. Also, after a few months of paying off credit cards, I should have a few hundred more dollars a month to add to the fund, since I won't have those minimum payments anymore.
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wonderland
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Post by wonderland on Dec 28, 2014 14:22:52 GMT -5
But that 800 is supposed to cover all med expenses, all vet expenses, all car repairs, entertainment, parties, all clothes, all gifts, all things that come up... The vacation and parties will come from overtime shifts that aren't included in my income.
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Deleted
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Post by Deleted on Dec 28, 2014 14:25:08 GMT -5
So, you will work slightly more than full time for your budgeted stuff, then more than that to increase your income another 10k to cover parties and vacations.
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wonderland
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Post by wonderland on Dec 28, 2014 14:25:42 GMT -5
$800/ month equals $9600 over the course of the year. DH and I have a ton of clothing. I doubt clothing expenses, repairs, gifts would total more than $10k. If they do, we can re-evaluate. Thus is also just a temporary budget to pay off the debt quickly and start retirement savings, then I can focus on more of an emergency fund.
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wonderland
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Post by wonderland on Dec 28, 2014 14:28:13 GMT -5
So, you will work slightly more than full time for your budgeted stuff, then more than that to increase your income another 10k to cover parties and vacations. No, vacation will be $3000 and party will be kept at $500 or less. So $3500, which I can cover with 6 days of overtime, spread throughout the year.
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justme
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Post by justme on Dec 28, 2014 15:06:14 GMT -5
Put your information into mint. It won't perfectly split your expenses in cases like buying at target and Wal-Mart because they have lots of things there and some miscategorized things, but I would do that. And look month by month what your categories are and by the year.
A lot more realistic view than only looking at a month or two where you can dismiss things saying well that only happened because of x without knowing that's true.
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justme
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Post by justme on Dec 28, 2014 15:08:55 GMT -5
So, you will work slightly more than full time for your budgeted stuff, then more than that to increase your income another 10k to cover parties and vacations. No, vacation will be $3000 and party will be kept at $500 or less. So $3500, which I can cover with 6 days of overtime, spread throughout the year. The overtime is gross...you'll have to take around 30 percent out for taxes so it's more like 85 hours at 60 hr since it becomes 42 after taxes. And I'm not even clear on the tax bracket so it might be more at the 120k level.
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Formerly SK
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Post by Formerly SK on Dec 28, 2014 15:54:37 GMT -5
I think Oped's point (that I agree with) is that you don't sound as if you have a grasp of your finances. You didn't even know your gross wages until this thread, or what you've been spending on anything. You also have made it very clear that entertainment/clothes/vacations are really important to you (ie 1K for a bday party is what you will do, period, because your southern and that's that). You also appear very flippant (I'll just work some OT for that). Now, maybe you have worked through all this and you're just not communicating it to us, but I don't think so.
DH and I make about 125K/yr and we spend NOTHING like you do. I'm trying to wrap my brain around your numbers and mathematically they don't make sense. That's why I question what you are saying. Because if you take your gross and subtract taxes, 15% 401k, bills, I don't see how you are affording everything. Maybe I'm wrong. I hope I am. But I know our situation and we couldn't spend like you.
I think a lot of people are cutting you slack because you are a higher wager earner. IMO that doesn't matter, because the issue with finances is whether you spend less than you make. The people who are financially unstable spend more than they make. A lot of people lie to themselves and justify things by using emotions. But the truth is in the math. You can either afford something or you can't. Higher earning people just want more expensive things.
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Shooby
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Post by Shooby on Dec 28, 2014 15:56:33 GMT -5
Maybe you know how many children you won't. Honestly, I didn't know until I had them. Then I had 3 kids. But, having kids wasn't even on my radar for years. A change of heart can happen very quickly.
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DagnyT
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Post by DagnyT on Dec 28, 2014 15:57:36 GMT -5
I'm not any nationality beyond American, a mish mash of backgrounds and cultures in my family tree, mostly Caucasian and Native american. I am southern, and when I entertain, I like to go big. Hot dogs and chips won't cut it, I show people I care by showing then a good time. We eat healthy most of the time, but the occasional celebrations we have, we are all about the food!
Her 16th b'day will likely be quite the affair, no doubt about that. But by then I should be on a better financial plan.
Well, I'm also Caucasian and Native American and Southern, so I don't see what that has to do with it. If you want to do something big, and hot dogs and chips won't cut it, fine. But that has nothing to do with showing people you care by showing them a good time. As for eating healthy, well, I will give you that. Hot dogs are not healthy, but I could provide a salad bar instead for about the same amount of money.
Best of luck to you. Maybe I don't show people that I care by spending a lot of money on a birthday party, but I have no consumer debt and have a healthy retirement account and insurance, so if something happens to me, the people I love will not have to deal with all the consumer debt agencies calling after my demise trying to get their money, which I can tell you from experience will happen. Those credit card companies will hound all of your relatives, even distant cousins.
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Deleted
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Post by Deleted on Dec 28, 2014 15:59:36 GMT -5
DH and I make about 125K/yr and we spend NOTHING like you do. I'm trying to wrap my brain around your numbers and mathematically they don't make sense. That's why I question what you are saying. Because if you take your gross and subtract taxes, 15% 401k, bills, I don't see how you are affording everything. Maybe I'm wrong. I hope I am. But I know our situation and we couldn't spend like you. Well, for starters, they're not putting 15% in a 401K, and the last two years they've burned through 15K of savings and increased the credit card debt by 10K, so they're on a spend more than they make spree. I wonder how much is due to the recent depression/anxiety issues?
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swamp
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THEY’RE EATING THE DOGS!!!!!!!
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Post by swamp on Dec 28, 2014 16:04:30 GMT -5
So they've overspen t $25k in 2 years. Keep it up and OP will be $100k in debt when her DD is in first grade.
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gooddecisions
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Post by gooddecisions on Dec 28, 2014 16:09:47 GMT -5
I agree that paying off debt, opening Roths for 2014 and 2015 for both of you $5500 each x 2 = $22,000 and cutting your spending habits is really ambitious.
If it were me, I'd prioritize the roths and reducing spending. Any overtime should go to funding your roths, not vacations. Create a budget to accommodate affordable vacations within your non-overtime income. The Roths can be your emergency fund if you find yourself in a crisis. See how that goes through 2015 and then tackle the debt in 2016.
Good luck! You are young and taking the steps now will make a world of difference!
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justme
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Post by justme on Dec 28, 2014 16:13:14 GMT -5
It's really nice that you can get as much OT as you want. But you describe your work and daily life as stressful. That you don't relax until you go on vacation. It just seems odd that you'll add more stress to your life to go on vacation and have a blowout birthday instead of cutting elsewhere. i.e. you're working an extra 8 days (and taking that away from family time) to take a 7 day vacation. Do you get paid vacation time?
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wonderland
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Post by wonderland on Dec 28, 2014 16:20:25 GMT -5
DH and I make about 125K/yr and we spend NOTHING like you do. I'm trying to wrap my brain around your numbers and mathematically they don't make sense. That's why I question what you are saying. Because if you take your gross and subtract taxes, 15% 401k, bills, I don't see how you are affording everything. Maybe I'm wrong. I hope I am. But I know our situation and we couldn't spend like you. Well, for starters, they're not putting 15% in a 401K, and the last two years they've burned through 15K of savings and increased the credit card debt by 10K, so they're on a spend more than they make spree. I wonder how much is due to the recent depression/anxiety issues? I have already said that the $15k went to maternity leave, deductibles, and DH was unemployed briefly right around her birth. Abs some of the other ten went to deductibles as well. Not so much a spending spree. Some of the anxiety did cause some of the medical bills. And some of the medical issues caused the anxiety. But that is neither here nor there, as I am healthy now and I am hoping there won't be any more hospitalizations for any of us any time soon.
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Deleted
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Post by Deleted on Dec 28, 2014 16:21:16 GMT -5
I also don't see how you will homeschool, if that is a priority. If you really want that to happen it will take starting to plan, now.
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