I need some help here.

[Erica]

I just started a new job last week and I'm about to get my first paycheck tomorrow. I was unemployed for 2 weeks prior (NYS Unemployment denied). I got my tax refund back and paid the bills, so no money left over. BUT, I thought I was strapped before I lost my job and the job I'm at now pays $40 less a week. How can I budget better? I use Money now to balance my checkbook and schedule bills, but I don't really know how to budget. Can someone give me a hand???

[Gingerly]

I'm certainly no expert, but here's how I do it.

 

Let's say, for simplicity's sake, I make $1000 a month.

 

Bills come first:

 

$300 rent

$50 utilities

$20 phone

$200 daycare

$50 credit card minimums

________________________

 

$620, leaves me $380

 

$80 for gas, leaves me $300

 

$150 for food, leaves me $150

 

So I can use that $150 however I need to: pay $150 extra on my credit cards, or spend $100 on clothes for the kid and put the other $50 into savings, or whatever is needed for that particular month.

 

I know that's kind of a goofy example but it was just to illustrate making sure the bills are all paid first and on time, the necessities are covered, and to be flexible with a few leftover dollars for whatever is needed most at the time.

[radi8]

You may want to keep track of everything you spend for a month- then use that to find places to save a few bucks.

 

Have you shopped your car insurance lately? I do it yearly- last time I managed to find the same coverage for $40/month less money!

Take that savings and stash it- don't spend it. Reason why is below-

 

 

Other than that, Gingerly's got it. Subtract your fixed expenses from your income- the rest is divided up as appropriate.

 

 

 

Try to set something aside in an emergency fund , even if it's only a couple bucks. It will add up.

Ideally you'll find something you can reduce now and use that savings to put away.

Heck, chop the cable TV for a few months in the summer-

It'll provide you with a real sense of security and keep your budget from going haywire when there's an unplanned emergency expense.

 

What tends to happen is people budget to the last penny.

Then something unexpected happens- car needs a repair, water heater blows, etc. They pay that, and push a utility bill down the road for 30 days.

Then the next month, they have twice the utility bill to pay, plus late fees- so they kick something else down the road...

A snowball of the wrong kind has started, lol.

Having even a modest emergency fund will provide a cushion to keep that from happening.

$250-500 would be enough to cover most of that stuff.

[Gingerly]

I agree with radi8. It is very important to have an e-fund, and to replace the money that's taken out ASAP. The peace of mind of having an e-fund is priceless. You never know when the dryer is going to go out, you get a flat tire, etc.

 

It's also good for the things that aren't exactly an emergency, but just sneak up on you...tag/license plate renewal, school picture money, school supplies, etc.

[Algo]

I'm trying to start budgeting too. There are some excel examples at http://office.microsoft.com and others use money, etc. The basic idea of budgeting, I believe, is this:

 

Take TOTAL INCOME - TOTAL EXPENSES = LEFTOVER MONEY

 

The key there is the expenses. You have 2 basic expenses. Fixed and Changeable. Keep in mind that not all expenses you may think are fixed are actually fixed.

 

The key is to get your changeable expenses down as much as possible.

 

Example:

 

RENT - Fixed, unless you move to a cheaper place or renegotiate the price

CABLE - Changeable (usually). You can order a cheaper level of service or cut it altogether.

 

FOOD/CLOTHING/GAS/ETC - Big opportunity to cut costs here

[Erica]

Ok, after getting my first paycheck, I have to get another job. LOL

 

I only have 136 left over after all essentials are paid. Then there's gasoline and food.

 

Ok, going PT Job hunting tomorrow.

[Gingerly]

Do you have kids you have to look after? I used to be a bartender for a long time, and it was a great job, you only work a few hours and you have cash (tips) every night. Waitressing is good for the tips too, but I liked tending bar much better.

 

Would something like that be an option?

[Erica]

Do you have kids you have to look after?  I used to be a bartender for a long time, and it was a great job, you only work a few hours and you have cash (tips) every night.  Waitressing is good for the tips too, but I liked tending bar much better.

 

Would something like that be an option?

<{POST_SNAPBACK}>

No, no kids to look after. I took a bartending class in 2003, and that was a big waste of $350. I haven't been able to find a job as a bartender yet. They all want experience bartending. I have none.

 

My full time I work 4 days a week, leave the house at 7:15 am get home about 7:15 pm, M-TH. So the only time is like Friday and Saturdays. You see, I have required travel for my full time some Fridays and Saturdays, so that may make it tough to work a PT. I think I'm just going to do more Mystery Shopping to make up the money. I have to do something.

[Dane]

Care to post your budget and income??

 

The people here are really good at ripping them apart and finding places you can cut. Might be worth a shot!!!

[Erica]

Well, my first paycheck was 266.50, and it's probably going to be that every week. So based on 52 weeks, that's 13,858 a year, bring home.

So the monthly income is roughly: 1100 a month.

 

 

My bills are:(not including past due and collections that haven't seen money in over 3 years.)

 

Rent: 350

Car payment: 230

Insurance: 140 every other month

Student Loan: 178

Life Insurance: 2

Cell Phone: 100 (my portion is 50 but I write the check)

 

Then gas and food and tolls. I take the NYS Thruway to and from work every day. $1/day. I bought an EZ pass, and the base for March to the end of the year is $67. I'd like to do that this month so I can eliminate the tolls. It's much cheaper to do the annual thing than the daily.

 

Suggestions?

 

Thruway Annual Permit Plan: For frequent travelers on the Thruway ticket system. Flat fee, covers the toll for the first 30 miles or less per trip, except when you cross the Castleton-on-Hudson Bridge, where a 40¢ surcharge is applied. Prepay the following amount for each tag depending on which month you sign up: Jan., $80; Feb., $73; Mar., $67; Apr., $60; May, $53; Jun., $47; Jul., $40; Aug., $33; Sept., $27; Oct., $20; Nov., $13; Dec., $7. (For the next calendar year, $80, available in December).

Edited February 25, 2005 by Erica

[Erica]

Forgot that doesn't include car maintenance, and personal care or clothing.

[Dane]

Okay...at a quick glance-

 

Is this the highest paying job you could find?

How much/ and for how long do you own on the car?

Have you conslidated the student loans?

What about utilites? Or do you rent a room somewhere?

 

When I was going through my divorce I was broke! IF ( and only IF) I worked 55 hours a week- I would have $35 a week left over for food/gas and personal expenses. I learned fast to eat for cheap and to cut all extras....lost ALOT of weight.

[idtheftvictim]

Well, my first paycheck was 266.50, and it's probably going to be that every week. So based on 52 weeks, that's 13,858 a year, bring home.

So the monthly income is roughly: 1100 a month.

 

 

My bills are:(not including past due and collections that haven't seen money in over 3 years.)

 

Rent: 350

Car payment: 230

Insurance: 140 every other month

Student Loan: 178

Life Insurance: 2

Cell Phone: 100 (my portion is 50 but I write the check)

 

Then gas and food and tolls. I take the NYS Thruway to and from work every day. $1/day. I bought an EZ pass, and the base for March to the end of the year is $67. I'd like to do that this month so I can eliminate the tolls. It's much cheaper to do the annual thing than the daily.

 

Suggestions?

 

Thruway Annual Permit Plan: For frequent travelers on the Thruway ticket system. Flat fee, covers the toll for the first 30 miles or less per trip, except when you cross the Castleton-on-Hudson Bridge, where a 40¢ surcharge is applied. Prepay the following amount for each tag depending on which month you sign up: Jan., $80; Feb., $73; Mar., $67; Apr., $60; May, $53; Jun., $47; Jul., $40; Aug., $33; Sept., $27; Oct., $20; Nov., $13; Dec., $7. (For the next calendar year, $80, available in December).

<{POST_SNAPBACK}>

 

 

Ok, right now with the above figures you are at $947.00 a month in outgo. So you would take the $1100 - 947 = $153 left for Grocies/toiletries/maintenance/everything else.

 

Do you truely think you can live on $153 a month for grocieries and everything else?

 

It would be rough.....but I think it could be done...I know you said you just started a new, lower paying, job....is there anyway to up your income? You are barley scraping by right now....At least it doesn't look like you have any credit card/consumer debt...is this true? What about those items you mentioned that are in collections???

 

Lets try this for a monthly budget...see what you think....

 

Income: 1100 (you might want to make sure this is correct, as in order to budget properly, you need the actually take home, not just a guess)

 

Rent: 350

Car payment: 230

Car Insurance: 70

Student Loan: 178

Life Insurance: 2

Cell Phone: 50

EZPass: 67

Groceries: 120 - this is $30 a week

Maintenance: 10

Savings: 10

Cable Tv: ???

Home Phone:  ???

Gas:  ???

Electric: ???

Water/Sewer:  ???

Renters Insurance: ???

 

Total beofre willing in the ???  $1087.00

 

Leaves you with a balance of $23.00 with which you could save mroe of, or fill in the rest of the above budget....

[Erica]

Okay...at a quick glance-

 

Is this the highest paying job you could find?

I had been unemployed for 2 weeks and took the job that had the most promise. I love what I do, and there's the possibility for a raise in 3 months. What I didn't include in the pay is the complimentary gym membership, and the travel.

 

How much/ and for how long do you own on the car?

I have owned the car since June 2002, and have 32 payments left. I postponed this months payment, and may have to postpone next months too.

 

Have you conslidated the student loans?

Yes, they are consolidated. I owe somewhere around 26K

 

What about utilites? Or do you rent a room somewhere?

I live with my BF and I pay half the mortgage. Utilities he pays for.

 

When I was going through my divorce I was broke! IF ( and only IF) I worked 55 hours a week- I would have $35 a week left over for food/gas and personal expenses. I learned fast to eat for cheap and to cut all extras....lost ALOT of weight.

<{POST_SNAPBACK}>

[Erica]

Ok, right now with the above figures you are at $947.00 a month in outgo. So you would take the $1100 - 947 = $153 left for Grocies/toiletries/maintenance/everything else.

 

Do you truely think you can live on $153 a month for grocieries and everything else?

 

It would be rough.....but I think it could be done...I know you said you just started a new, lower paying, job....is there anyway to up your income? You are barley scraping by right now....At least it doesn't look like you have any credit card/consumer debt...is this true?  What about those items you mentioned that are in collections???I don't have any credit cards. They were all charged off years ago. I WOULD like to pay the tuition that I owe because I'd like to get back into school. That is roughly $350. Not figured in. I didn't figure it in because it's not THAT ESSENTIAL. 

 

Lets try this for a monthly budget...see what you think....

 

Income: 1100 (you might want to make sure this is correct, as in order to budget properly, you need the actually take home, not just a guess)

 

Rent: 350

Car payment: 230

Car Insurance: 70

Student Loan: 178

Life Insurance: 2

Cell Phone: 50

EZPass: 67that's just one payment for the year. it just happens to be next month

Groceries: 120 - this is $30 a week

Maintenance: 10

Savings: 10

Cable Tv: none

Home Phone:none

Gas:none

Electric:none

Water/Sewer: 80 every 3 months combined. I pay half.

Renters Insurance:none

 

Total beofre willing in the ???  $1087.00

 

Leaves you with a balance of $23.00 with which you could save mroe of, or fill in the rest of the above budget....

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[idtheftvictim]

What about gas, to and from work....? I have a spreadsheet that I can send you that will help quite a bit with putting together a budget and sticking to it....maybe some of the items on the budget don't need filled in, but some should be....let me know your E-Mail via PM and I will send if you want it....

[Erica]

Ok, just to let you know, I spend about $30/week on gas, and I buy at the Sav-On. Basically Reservation prices. Do you think that Money can help? I already have somewhat of a budget set up.

[idtheftvictim]

Ok, just to let you know, I spend about $30/week on gas, and I buy at the Sav-On. Basically Reservation prices. Do you think that Money can help? I already have somewhat of a budget set up.

<{POST_SNAPBACK}>

 

OK, the $30 a week also needs to be in your budget...basically what a budget is for is to "spend" you money on paper, and to tell your money WHERE to go, rather then letting it go somewhere that it shouldn't go.....

 

With that $30 a week in gas, that is $120 a month, and also needs to be part of your budget....basically anything that you NEED to spend money on to survive needs to be in your budget....

[Erica]

Ok, well, 120/month for gas. and the rest for food?

[Dane]

would BF consider lowering your rent?

[Erica]

I don't know, Dane. I hadn't thought of talking to him about it. Up until now, the Student loan wasn't there. I was in a Vol. Forbearance. So rent wasn't a problem.

[Dane]

1st things first....buy that toll pass. $67 for the rest of the year???

DO IT!! See if you can get BF to pay your half of the cell bill for March so you can pay that.

 

If you budget off your paycheck (266.50 a week) you will bring in 1066 a month and have 880 a month out. That leaves 186 a month or 46.50 a week.

 

There doesn't like there is a lot to cut so you will have to watch your pennies big time. I suggest the cash method- take out 40 a week and leave the 6.50 as a savings plan ( gotta start somewhere) only buy things as needed and pay attention. It is going to go fast if you are spending 30 a week in gas.

 

I know you just started this job but are you looking elsewhere still? Are you undeerpaid or just in a low wage area?? ( In va beach you are LUCKY to find an admin job for $9 an hour)

 

If you know a raise is coming in 3 months maybe you can talk to BF and see about lowering the rent for a short time to help you adjust. Who pays for food though??

 

Have you shopped around for car insurance?? 140 seems high to me but I don't know your age/location/car/history.

 

If you were to take a night class could that put your loans back into forbearance? Might be easier that trying to work a second job.

 

KUDOS to you for finding a job in two weeks. Don't let this get you down!!

Edited February 25, 2005 by Dane

[Algo]

I'm guessing you are in college or have went to college right? And you live in New York? I'm also guessing from your pay, assuming a 40 hour work week, that you make about $7 an hour give or take a little. If you are in New York you should be able to make more than that. I don't know what you do exactly but even flipping burgers at a fast food place should pay $7 an hour or more in New York!

 

Look for another job. You can love your job all you want, but you could also love another job. And isn't it more important to be able to be financially secure than to have a job that you love now but is gone tommorrow?

 

Just a thought

[Erica]

1st things first....buy that toll pass. $67 for the rest of the year???

DO IT!! See if you can get BF to pay your half of the cell bill for March so you can pay that.well, it's only $50 and the Student Loan isn't due until April 16th, so I'm ok for this month. I was just trying to plan early

 

If you budget off your paycheck (266.50 a week) you will bring in 1066 a month and have 880 a month out. That leaves 186 a month or 46.50 a week. 

 

There doesn't like there is a lot to cut so you will have to watch your pennies big time. I suggest the cash method- take out 40 a week and leave the 6.50 as a savings plan ( gotta start somewhere) only buy things as needed and pay attention. It is going to go fast if you are spending 30 a week in gas.

 

I know you just started this job but are you looking elsewhere still? Are you undeerpaid or just in a low wage area?? ( In va beach you are LUCKY to find an admin job for $9 an hour)I'm not looking elsewhere. I feel that there is alot of potential here, and it's only $1 hr less than I was making HATING my job as a jewelry salesperson. (I make 9/hour)

 

If you know a raise is coming in 3 months maybe you can talk to BF and see about lowering the rent for a short time to help you adjust. Who pays for food though??we both pay for food.

 

Have you shopped around for car insurance?? 140 seems high to me but I don't know your age/location/car/history.No, I haven't shopped around. I pay $796 a year. In NYS they can check your credit for car insurance, and since my credit is chocolate, I think I'll stay where I'm at. I have full coverage and a $200 deductible. I have thought about raising my deductible, but I just can't bring myself to do it.  I can easily come up with $200, but would struggle with $500 or $1000. I'm 29 (almost, turn 29 in June), I have a 2001 Saturn, and have a clean driving record.

 

If you were to take a night class could that put your loans back into forbearance? Might be easier that trying to work a second job.

 

KUDOS to you for finding a job in two weeks. Don't let this get you down!!

<{POST_SNAPBACK}>

[Erica]

I'm guessing you are in college or have went to college right?  And you live in New York?  I'm also guessing from your pay, assuming a 40 hour work week, that you make about $7 an hour give or take a little.  If you are in New York you should be able to make more than that.  I don't know what you do exactly but even flipping burgers at a fast food place should pay $7 an hour or more in New York!I'm in CNY, and I made 7.27 an hour as an Assistant Manager at Arbys. That is chocolate, and then they wanted me to pay $150 a month for health insurance. I have an AAS in Criminal Justice - Police Science, but don't really want a job in Law Enforcement. I want to be able to come home at the end of the day. Right now I work in a Chiropractor's office and I get free adjustments. Something I would have needed anyways, I just don't have to pay for it. I work roughly 37 hours a week, and it's in 4 days. My lunch is long enough to go to the gym and work out. (something else I can't afford to do, but wanted to, and the DR pays for it) There's alot of benefits to this job, and I feel that I could be making what I was making at the jewelry store in 3 months. I just have to stick it out.

 

Look for another job.  You can love your job all you want, but you could also love another job.  And isn't it more important to be able to be financially secure than to have a job that you love now but is gone tommorrow?

 

Just a thought

<{POST_SNAPBACK}>

 

Telling me to just go find a new job isn't as easy as it looks. I was looking for a new job for about 6 months before I found this job. I was fortunate enough to have a job for the majority of it.