The doxie project, my attempt.

[8 Bit WWBG]

Here is what she said was the May Budget:

**Income $4064.00**
Mortgage -$1322.00 (includes taxes, insurance, HOA)
Utilities -$300 (cable, phone, internet, cell phones)
Electric -$200
Water -$105 (this is for three months)
Car #1 -$419
Car #2 -$257
Auto Insurance -$334 (normally $167, but I did not have money in April for it)
Gas -$500
Groceries -$600 (family of 4, this includes formula, baby food)
Personal Supplies -$100 (this is toilet paper, diapers, etc)
Medical -$50
School Expenses -$20
Clothing -$25
CC-$200
CC-$200
Trip-$500.00

Based on comments made, here is how that should refine into the June budget, and a few requests for clarification.


**Income $6,000.00 (my guess based on DH's $2k in OT)**

Mortgage -$1322.00 (includes taxes, insurance, HOA)
Utilities -$300 (did this change)
Electric -$200 (did this change?
Water -$105 (include the 3mo. amount monthly, then divert it to savings for the 2 months you don't need it)
Car #1 -$419
Car #2 -$257
Auto Insurance -$167 (she double paid, so now back to normal)
Gas -$500 (did this change?)
Groceries -$600 (did you get this down?)
Personal Supplies -$100 ($80 for diapers, rest toothpaste, shampoo, cleaning supplies...)
Medical -$50 (what is this?)
School Expenses -$20 (school expenses in May? For what?)
Clothing -$25 (What is this?)
CC-$200
CC-$200
Trip-$0.00 (left as placeholder to show it was done)
Registration for car every 2 years - (mention this later)

Assuming the above is correct, this means:

Total Expenses as listed: $4,465.00

NET INCOME: $1,535.00

But as I went through the may budget thread, I found a lot of gems that demand explanation. Bear with me as I post some of them, it will take some time and I am in and out today...

[muttleynfelix]

[8 Bit WWBG]

"I have not been setting money aside for the water. If I am being honest, nor the property taxes or homeowners insurance.." (with this surplus, she can afford to set aside the full amount, then save it later).

"The heat/ac has been off for a month." (with 90+ degree days, I bet the AC has come on)

"The insurance is $30 a month, the registration is $128 every two years" (wasn't sure where to slot this in.)

"Currently he does most of the grocery shopping... DH has a junk food habit..." (here is an opportunity to cut the groceries down)

"We have a triple play from verizon, and then cell phones." (she never followed up on cutting the TV and phone and just keeping the internet)

"hopefully the formula expense will start winding down in the upcoming months." (hopefully)

"I did a bunch of balance transfers, so I have no idea what the new min payments will technically be, I am just assuming its close to the figure I put in the budget. We now owe $10k on one card (0%), this was previously 3 cards. We owe $8k on a second card at 13%" (might be time to figure that out)

"Soon to be, I will look into the Amazon moms program tonight." (did you look into this? Will it save you money on that special formula and diapers?)

"Dark, I am going to try to get rid of my car which is the biggest expense, in terms of payment and fuel consumption." (how is this going?)

[zibazinski]

You cannot help someone who does not wish to be helped only sympathized with.

[doxieluvr]

Your gonna make me do this budget thing aren't you? Let me get out my trusty post its to jot the numbers down in another place on my phone.

[suesinfl]

WWBG, you're a brave soul

[KaraBoo]

Plus, she posted the $2k in OT was going to pre-pay the taxes - don't forget that tidbit.

[8 Bit WWBG]

"but apparently they are getting away with it so it worked." (she said this in reference to her DH's company making employees either furnish their OWN cell phones for a $20 subsidy, or paying the company $20 to have a company cell phone. This is just another example of the company practices that I'd forgotten)

"We have 1400 minutes and we each use about 700 or so, in addition to calling other verizon people." (time to investigate using skype in conjunction with your data plan. That could cut down on the minutes you need, which will save $20+/mo at least)

"Dark, he is at about $18-$19 an hour. I did not include his fuel. I just factored the amount he brings home after buying his fuel at work. Sadly I spend close to $500 myself, but I do all the running with the kids" (her first mention of her DH's approximate salary, hers comes later)

"I do not look at his stubs often, but that could easily be well over $100, or even closer to $150 a week." (DH's gas, coming out of his checks)

"GG- I have a 401k, and I have to pay for health insurance out of my check. He has taxes, and fuel out of his." (this needs to be accounted for in the budget)

"I owe $20,500. KBB is $15k with excellent condition. We do have a lifetime warranty and pay for no maintenance for aslong as we own it." (approx car value)

"A friend suggested that DH & I pick up another cheap 4cy. car and each commute to work in them. What do you all suggest?" (your friends are all broke, like you. Get some new ones)

"DH sold his old truck for $1500, he put some in savings, paid for a few things we needed around the house, and fixed a few things on his truck." (conflicting info about where the proceeds from the sold truck he was gifted went)

"Sroo, I have cash that I could buy a $1k car or so." (really?)

[8 Bit WWBG]

"Zib, I do get child support. I included it in the income total." (you should break out the income total so we can see EXACTLY how your income comes in. This is doubly important if it fluctuates so wildly)

"I am very willing to get rid of my suv. How should we go about doing it?" (you should go about it by stopping making excuses and DOING it)

"Fire, I think that part od DH's issue is that he is an immigrant in the typical immigrant type positions. I think employers tend to take advantage of them." (this is more about DH's employment and it makes it sound like he gets raw deals regularly. Not every immigrant gets shafted. Plus, if he is French-Canadian, that is a VERY different "immigrant".)

"$20,500 is what is owed just on my car. We owe $10k on his truck. We have about $2k in our emergency fund/savings." (info on what is owed on his truck)

"If I could get another cheap car for under $1k, and leave it

parked at my parents, i could do what you suggest as well. With two cars, we could spend in the $250-$300 range to drive for the month. Insurance couldn't be more than $30 bucks a month or so. Is this not a good idea?" (doubtful)

"It is all my debt because he has no credit. I had probably about $10k in cc debt prior, all the cars, house, and additional cc debt was accumulated during the relationship. By default, since its under my name, it is all my debt." (info on their debt -- accumulated together, under her name)

"DH's truck would help, but thats not a choice I can make for him." (maybe not, but you can choose to be mad and angry and difficult and icy until he chooses to sell it)

"The $15k was KBB, private party value. I will run it to carmax and see if they will buy it for this." (did you do this? What was their offer?)

"Between, Payment, insurance, and gas, I am spending about $900. I can get by with just putting a few hundred in fuel in my old car in a month," (but Mom and Dad won't let the kids ride in Herbie)

"On our electric bill, we pay a $20 service contract. It covers labor, and some parts. Like when our unit ran out of freon, they filled it at no charge. Is it worth having or should I get rid of it?" (this needs to be included in the budget, you lack transparency and have no REAL idea of where your money actually goes)

"Oh his earning potential is definately higher, but I can't take his hand and drop him off at those jobs." (good to know)

"My debt to income ratio is killing my credit. DH has no credit. I want to pay off the debt before buying, but I do want to move towards that goal." (what exactly IS your D:E ratio?)

[8 Bit WWBG]

and finally, here is how Dark re-categorized your budget, which you can use as a model for June:

Housing: $1,557 (mortgage, electric, water (used your monthly average for water))
Transportation: $1,343 (Car payment #1 and #2, gas, insurance (monthly amt.)
Groceries: $700 (I put the food and personal stuff together since they're usually purchased together)
Debt: $400 (CC #1 and #2)
Entertainment: $300 (cable, phone, internet, cells)
Medical: $50
School: $20
Clothing: $25

TOTAL: $4,395

The reason I rearrange them is to see what your spending is as a percentage by category. Yours looks like this:

Housing: 38%
Transportation: 33%
Groceries: 17%
Debt: 10%
Entertainment: 7%
Medical: 1%
School: 0.5%
Clothing: 0.5%

I haven't plugged in the changes yet, I think I need a break...

[midjd]

WWBG, major props for sifting through all this.

I think it would be easiest to get the entire picture from Doxie, though - not just monthly income/outgo (since it seems to vary so widely), but also CC balances/interest rates, checking and savings balances, balances and interest rates on the car loans, etc. It is hard to know where to apply any extra net income without a better idea of the big picture.

ETA it looks like you found some of that... so

EF = $2K (still? Or was this vacation money?)
Balance on car = $20,500 (interest rate?)
Balance on truck = $10,000 (interest rate?)
Balance on CC = $10,000 (interest rates?)

I'd be torn between throwing extra money at the CCs (since these are probably the highest interest rates) or coming up with enough cash to bring to the table to offload the $20K car loan.

Really, $40K in debt is not the end of the world - and the car loan could be gotten rid of pretty quickly. However, with the current budget (and assuming the overtime was a one-time thing) there isn't enough wiggle room for hefty debt repayment.

HOWEVER, I think there is plenty of wiggle room to be had - it is just going to take some short-term discomfort.

[8 Bit WWBG]

...:::"Your gonna make me do this budget thing aren't you? Let me get out my trusty post its to jot the numbers down in another place on my phone.":::...

Yes, because I really think you can be helped. There was a LOT of helpful ideas on the other thread (I re-lived many of them in singling out just your posts). But you have to be willing to actually DO them.

There is NOT going to be a quick-fix magic long term solution. Even if there was (as the miraculous OT which gave you a surplus) you have to MAKE the MOST of it.

Prepaying the property taxes is a great idea.
Breaking expenses down to the line item level is a great idea.
Selling your SUV is a great idea. Maybe DH just has to suck it up and be the kid hauler for a while, then you can commute in Herbie which is more mpg friendly than your SUV.

You have to find places you can make BIG cuts. The cars are your biggest budget buster. You will make MUCH more headway getting rid of a car than you will trying to clip a few coupons and turning off lights when you leave a room. Yes small cuts add up to big cuts, but you need GIGANTIC cuts.

...:::"Plus, she posted the $2k in OT was going to pre-pay the taxes - don't forget that tidbit.":::...

She did mention prepaying the taxes, but I wasn't sure if doing so will consume the entire $2k or less or more? Doxie?

ETA: I made it through page 21 of the May thread (located here: notmsnmoney.proboards.com/index.cgi?board=finance&action=display&thread=7549&page=1) I may do some more later. Anyone else is welcome to revisit it and add to here.

But doxie, you have to do YOUR part.

[8 Bit WWBG]

...:::"I'd be torn between throwing extra money at the CCs (since these are probably the highest interest rates) or coming up with enough cash to bring to the table to offload the $20K car loan.":::...

I vote for the car, because then there is a gas and insurance savings as well. If she can get Uncle Carmax, or private party to get a decent sale of the SUV, then the $2k OT (which hopefully he gets again), some of the EF, and her savings could go a long way toward the difference. Then she'd be out from under the car, could reduce her insurance, reduce her gas costs, and eliminate a car payment.

[doxieluvr]

Mays income ended up being $4682. thus is what was brought in after dh paid for his gas out of his checks.

June

Income is projected to be at least $5763

Mortgage/hoa/prop taxes $2345
Phone/cable/internet/cell $293.46
Elect ac is on $200
Veh $418.65
Veh $257
Gas $400
Ins. $168
Groc/per $600
Medical $100 (covers co pays/prescriptions)
School $71.64 (pictures, yearbook, fieldtrip)
Clothing $50. Kohls min and daughter got some shorts
Entertainment $45
Cc $175
Cc $190

Extra $449

[midjd]

Agreed, that is probably the best place to begin.

Just an aside - around here, gas is back down to $3.59/gallon, and amazingly - all the screaming on my FB newsfeed about high gas prices has stopped. I suspect people are becoming complacent and expecting gas to stay in the $3 range for the foreseeable future. If I were Doxie, I'd take advantage of the temporary lull in fuel costs and offload my gas-guzzler as fast as possible.

[doxieluvr]

Dh parked his truck and has been driving herbie. I have $1700 in savings. I like to keep $2k as my ef, so will most likely add some surplus to this.

According to my cc balances, we have paid them down$7189 sincd jan 1st. If i can continue this trend we should be pretty close to cc debt free by this time next year. Or at least well under $5k

[midjd]

That's great news about the CC balances!

If the truck is parked and things are going OK with that routine... why not sell it? It makes even less sense to pay $257 (plus insurance) for something that sits in the yard vs. something that is actually used. It's still depreciating.

[Plain Old Petunia]

<< Your gonna make me do this budget thing aren't you? Let me get out my trusty post its to jot the numbers down in another place on my phone. >>

If you are serious about wanting to get your finances in order so you can accomplish your goals, then you are going to have to get a handle on your budget. There's just no way around it.

[8 Bit WWBG]

...:::"Dh parked his truck and has been driving herbie.":::...

That is a start. Good move.

...:::"I have $1700 in savings. I like to keep $2k as my ef, so will most likely add some surplus to this.":::...

In the old post, you mentioned both an EF and a savings account. Please confirm if this is the case? It sounded like $1k personal savings, and $1,700 EF?

...:::"According to my cc balances, we have paid them down $7,189 sincd jan 1st. If i can continue this trend we should be pretty close to cc debt free by this time next year. Or at least well under $5k":::...

Since Jan 1st of THIS year? If you were only paying $400-ish a month, how in the world did you pay down $7k in 6 months? Did you make some big extra payments that weren't accounted for? You'd have to pay at least $1,200/month to make that kind of progress, and that ignores finance charges.

[Wisconsin Beth]

Jun 14, 2011 10:49:42 GMT -5 8 Bit WWBG said:

...:::"I'd be torn between throwing extra money at the CCs (since these are probably the highest interest rates) or coming up with enough cash to bring to the table to offload the $20K car loan.":::...

I vote for the car, because then there is a gas and insurance savings as well. If she can get Uncle Carmax, or private party to get a decent sale of the SUV, then the $2k OT (which hopefully he gets again), some of the EF, and her savings could go a long way toward the difference. Then she'd be out from under the car, could reduce her insurance, reduce her gas costs, and eliminate a car payment.

I thought there was something about Carmax coming in under $15K, maybe around $12K? But I could be mixing stuff up. And I can't go hunt for it today. Sorry. But awesome job on putting it together.

[doxieluvr]

Mid, the cc interest rates are at 0%. The cars are in the 7-8% range. He does drive his truck on the weekends.

[8 Bit WWBG]

By the way this is a SUPERB start, and I think that breaking this down further can help you even more. Lets try this:

=====Income:=====
doxie base check 1: 991.67 (my guess based on $34k/year, 2/mo checks, and 30% in deductions)
doxie base check 2: 991.67
doxie bonus: (goes to CC payment, per doxie)
dh base check 1: $1,008 (my guess based on $18/hour, 40 hour weeks, 2x/mo checks, and 30% deductions, not incl gas)
dh base check 2: $1,008
dh overtime about $2k? (goes to property taxes this month)
Child support:

Total: $5763

----------------

=====Expenses:=====

=Fixed Expenses:

Housing:
Mortgage: $1322.00
hoa: ?
prop taxes: at least $1,500? (prepaying for July, but due Dec.)
house insurance:
total housing: $2345

Car Payments:
DH Truck Payment $257 (~$10k balance @ 8%)
doxie SUV Payment $418.65(~$20k balance @ 8%)
Total Car Payments: $675.65

Car Ins. $168 (monthly, and she is caught up now)

CC Debt:
Cc1 (0% rate, issuer? balance? min?) $175
Cc 2 (0% rate, issuer? balance? min?) $190
Kohls Card (0% rate, $100 balance) $25
Total CC Debt payments: $390

=VARIABLE EXPENSES:

Utilities:
Electricity: $200
Water: $60 (~$180 quarterly) (I've padded this a bit, but she needs about $55/mo to get her previous quarterly total of $163.)
Verizon: $293.46 (triple play and cell, one bill per doxie)
Total Utilities: $553.46

Gas:
doxie gas: $400
dh gas (you should know what he is spending even if it is pre-tax)

Groceries and Personal Items:
Groceries/peronal/food (how are groceries and food different?)
toiletries (shampoo, toothpaste...)
diapers: $80
Pet Food: ?
Total Groceries and Personal Items: $600 (number from doxie)

Irregular/controllable odds and ends:
School: (pictures, yearbook, fieldtrip) $71.64 (is this monthly or not?)
Clothing $25 (is this monthly as well? Remember, I moved the kohls payment)
Entertainment $45
Medical $100 (covers co pays/prescriptions)
Total Irregular: $241.64

NET INCOME $449 (positive this month, negative others)

I will update this post during the saga as more is clarified.

[8 Bit WWBG]

...:::"I thought there was something about Carmax coming in under $15K, maybe around $12K? But I could be mixing stuff up. And I can't go hunt for it today. Sorry Dark. But awesome job on putting it together.":::...

She asked us what we thought the lowest amount she should accept as a sale was. I believe she said "if I only get an offer for $12k, should I take it? Where can I come up with $8k for the difference".

...:::"Mid, the cc interest rates are at 0%. The cars are in the 7-8% range. He does drive his truck on the weekends.":::...

I'll add this to my breakout. Good on the weekend driving, much better than daily commuting.

Out of curiosity, are you two working better as a team, or is it still like two childish roommates each trying to look like "the good one" while pinning blame on the other?

[Wisconsin Beth]

WWBG, are you doing this in a spreadsheet?

[doxieluvr]

I do each month budget seperate and some months this year dh made killer overtime and we made higher payments to credit cards. Also any bonuses i get i put on debt. I dont budget that stuff into our daily expenses.

[8 Bit WWBG]

...:::"I do each month budget seperate and some months this year dh made killer overtime and we made higher payments to credit cards. Also any bonuses i get i put on debt. I dont budget that stuff into our daily expenses.":::...

This fact should also emphasize the importance of yearly budgets. Your income fluctuates WILDLY, and its GREAT that you have been able to divert some of that huge overtime (that apparently now he got paid when he earned, instead of in the form of comp time) to CC debt.

I have reformatted my example line item budget to break out your base pay (guessed based on your $34k/year salary) and his (based on his $18/hour base) to include additional line items for your bonuses and his OT.

Establishing a bare minimum baseline will show you what you need to make it through months that you don't have all that extra money.

[Plain Old Petunia]

<< I do each month budget seperate and some months this year dh made killer overtime and we made higher payments to credit cards. Also any bonuses i get i put on debt. I dont budget that stuff into our daily expenses. >>

I thought that dh's overtime was all going to comp time until recently?

It's very smart to not spend that extra money, but to use it towards something specific, such as credit card debt reduction. Good job on that.

[doxieluvr]

Wwbg, in the busy seasons they get ot. If its a slow money month they get comp time instead. So dec and jan is good. This month and probably next will be good but aug and sept will be slow.

[8 Bit WWBG]

...:::"Wwbg, in the busy seasons they get ot. If its a slow money month they get comp time instead. So dec and jan is good. This month and probably next will be good but aug and sept will be slow.":::...

OK, this is great information. So hopefully next month will have some OT cash too, which means that you might very well be able to bring enough cash to the table to get rid of your SUV, and only needing a very small personal loan (or even CC) to make up the difference. That frees up insurance, a car payment, and a LOT of headache!

Please make use of the template I've started in Post 21, as I keep refining it. Also, don't think I forgot about food for the pets! You didn't have that listed.

[Deleted]

"Establishing a bare minimum baseline will show you what you need to make it through months that you don't have all that extra money."

It helped me to add in my infrequent yearly expenses also. Since I'm clear on what I need to bring in every month (actually every paycheck) to cover everything, every month, until the end of the year, I don't get confused about what's really extra money and what's not. I also don't end up looking crazy when it's time to actually pay one of those infrequent expenses. It really helps my peace of mind.

But that's just what works for me.