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Author Topic: Treading Water  (Read 3927 times)

Ummm

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Treading Water
« on: November 03, 2017, 07:33:06 PM »
Hey gang,

Late to the Mustache party.  Not really sure what to expect, but looking around didn't see a whole lot of situations similar to mine.  Figured this may help me out and anyone in a boat like mine.

Keep in mind I'm working in film production and salary is relatively fixed until there is a position bump.  Potentially next season!

Life Situation: 30 Single, Male. *Claim 1 allowance W4.

Gross Salary/Wages: Roughly $823 Weekly

Adjusted Gross Income: Roughly $620 Weekly

Taxes: FED- 93, FICA-SSA- 49.74, FICA-MED- 11.63, CA SDI- 7.22, CA RS ST- 22.94

Current expenses: Monthly
Rent: 955 (moving next year looking to lower, but LA so we'll see) *Living with roommate
Phone: 84
Health Ins: 89
Car Ins: 85
Gas: 100 (Again LA)
Utilities: +-60
Student Loans: 336 (Paying slightly more than necessary)
Groceries: 150
Misc: 24
Pet: Avg 25
CC: 280
Saving: 100 (scaled back to pay off debts)

Avg left over: +- 200

Assets:
Car 2009 Pontiac Vibe- I don't plan on selling, decent MPG and wouldn't get much.
Savings- 2k

Liabilities:
Student Loans- 35K
Credit Card 1: 2080 (0% Until January)
Credit Card 2: 2000 (0% Until June)
Credit Card 3: 0
Stopped using credit cards except in emergencies.  (Had front and back car windows broken... was not cheap)

Specific Question(s): Job switching is not a possibility.  I'm in the field I want to be in. 
That being said. 
Assuming my main option is pay minimums on student loans until the CC debt is gone and then roll that money into student loans. Guess I'm posting here in case someone sees something I do not. 
Am I just stuck in the purgatory of debt repayment until a pay bump? 

Thanks in advance!
« Last Edit: November 03, 2017, 08:26:09 PM by Ummm »

ixtap

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Re: Treading Water
« Reply #1 on: November 03, 2017, 07:53:04 PM »
You have a car, but no car maintenance budget. Does your gas budget take into account the new gas tax?

Similarly, you say that you claim a dependent, but there don't seem to be any expenses related to said dependent.

You are paying way too much for your phone.

I am impressed with your grocery budget. While there were a lot of long term staples, I spent almost that much today.

Does your schedule allow for a part time job or side gig?

You only have two more months before you start getting charged interest on CC1, that should be your priority. Depending on the actual interest, perhaps even over additional savings at this time. However, I would not empty out your emergency fund. As I pointed out, you seem to have some gaps in your budget and you shouldn't have to put the next oil change on a credit card.

ER expenses refers to expected budget for (early) retirement.  Perhaps you have it confused with EF (emergency fund)?

Ummm

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Re: Treading Water
« Reply #2 on: November 03, 2017, 08:25:37 PM »
To clear up some things.

Gas budget is averaged out to what I have been spending.  $25 a week easily gets me through the week, I make a point to ride my bike on the weekends. 

Don't really have a budget for maintenance.  Just rolling over any left over balance to use as a cushion, may designate a set amount to this. 

Edit* Allowance not dependent

Phone- Looking into to this

Very lucky to get lunch at work and never have been one for breakfast.

Been looking around CL for a PT on the weekends, but could more diligent/less picky.

Yes CC1 is my current target. 

All valid points, thank you!


Tuskalusa

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Re: Treading Water
« Reply #3 on: November 03, 2017, 09:49:59 PM »
Check out Ting Wireless for your phone. You could easily save half of what you spend today. Throw that $40 at those credit cards!

Posting is a good first step. Cutting your phone and finding a PT gig would be great next steps!  Rock on!

Playing with Fire UK

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Re: Treading Water
« Reply #4 on: November 04, 2017, 01:05:12 AM »
Summary:
Gross Salary/Wages: Roughly $823 Weekly
Adjusted Gross Income: Roughly $620 Weekly
Rent: 955 (moving next year looking to lower, but LA so we'll see) *Living with roommate
Job switching is not a possibility.  I'm in the field I want to be in. 

You are in a HCOLA, with not huge wages, and are doing what you love and not looking to change, yes? Do you love the field enough to do it until a typical retirement age? Would you be doing your job if you didn't need the money?

If so, then your big picture goals and timeline will be different to other people here, and that's okay.

Short term, you need to nail that credit card that is about to have the 0% rate run out. Unless the rate is low (maybe 6%), or you are likely to have emergency expenses that can't be put onto a credit card, I'd use the savings account/e-fund to wipe out the credit card debt. If you do have an emergency you'll be no worse off, and if you don't then you'll save the interest. You need to be disciplined about building the savings make up - but that will be (mathematically) easier when you are not paying high credit card interest. I could also see the logic of holding onto $500 or so in the savings account.

Could you get an evening or weekend job over the holiday season? Seasonal work can be relatively high paying and could put a dent in that CC before January!

Dee18

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Re: Treading Water
« Reply #5 on: November 04, 2017, 07:48:25 AM »
Instead of looking for a PT job on CL, you could create one that can be higher paying. Can you tutor high school students?  Pays $40/hr in my LCOL city.  Mow lawns?  Pays $50 for lawn that takes 25 minutes. (No, you don't need a truck...get an electric mower and carry it in your trunk.)  If you would rather work for someone else, choose a restaurant where you could make great tips and work a couple nights a week.  Or, as earlier poster suggested, at least get a holiday job.  You could set a goal to just work part time until the cards are paid off, then decide whether or not you want to continue.

Laura33

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Re: Treading Water
« Reply #6 on: November 04, 2017, 08:29:00 PM »
Sounds like you have made some changes recently (e.g., paying down debt instead of running it up), which is good, but at this rate you're going to be tight for a normal retirement, much less ER.  Some specific questions/thoughts:

1.  Take the advice about slashing the phone bill.
2.  Why is your insurance so high on such an old car?  Call around and see if you can cut that back quite a bit -- a lot of folks omit all but liability, but usually you do that only if you can afford to cover a replacement vehicle yourself.
3.  You top priority is getting the CCs paid off before you start paying interest.  You have $2K in an EF -- that is sufficient as a bare-bones EF for now.  Stop putting money into savings.  Stop putting extra at your SLs.  Pay the minimums on everything except that CC, and throw all the extra cash you can find at the CC until it is gone.  Once you accomplish that, throw everything at the other CC that will start accruing interest in June.
4.  What are the rates on your student loans?  If they are low enough and tax-deductible, you may not want to prepay them, as you would likely do better in the market.
5.  Do you have a 401(k) with a match at work?  If so, as soon as you are out of the immediate CC debt, do whatever you need to do to get the match.
6.  Second the notion to pick up a side hustle, even if it's just some seasonal work.  Your rent is a pretty high percentage of your take-home income, and when you add your loans/debt payment back in, you're always going to feel tight -- you're really not throwing money at stupid stuff at all, but when your fixed expenses are that comparatively high, you just don't have a lot to work with.  You need to knock out at least the CCs (and maybe the SLs, depending on the rates) to give yourself some breathing room -- just the CC payments look to be over 10% of you take-home, so knocking those out will feel very good and allow you to start saving for some longer-term needs (like car repairs/replacement, retirement, larger EF, etc.).

cazio

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Re: Treading Water
« Reply #7 on: November 05, 2017, 07:34:47 AM »
Woo, another Mustachian film person!

A few questions for you:

1. Are you getting mileage reimbursement?

2. May I ask what your title is? Sounds like about what Production Secretaries are paid here in ATL, and I assume you aren't Union yet. Would your pay bump be to become an APOC?

3. Have you considered moving to Atlanta? Cost of living is much lower, and we're in dire need to experienced crew--to the point where ATL-based offices are calling LA contacts in hopes they know of anyone they might've missed who are looking for a job.

4. I would highly consider looking into getting traveled to ATL for your next show if that's any possibility. Obviously it's not that simple, but on my current show our housing allowance is $1500/mo plus car allowance or rental car if you don't bring your own. Plus weekly rate. You can really pack in the savings if you're able to secure that and live with a roommate to pocket the residual of that $1500.


I agree with the other replies here that paying off that CC debt is most important. Laura33's action plan (#3) is pretty spot on.  However, I also get that our hours suck and a side hustle is difficult, but we do have the advantage of very wealthy people who need side jobs done. I've gotten paid $100 to sit at my APOC's house to wait for a mattress to arrive, and there are a lot of opportunities if you're willing to add just a few more hours of work to your week (I will say I seldom do this because I get too burnt out).

Another thing--I didn't see much of anything beyond your extra money that points to how much you go out and/or network. I know I had to cut down a lot once I actually started tracking how much I was spending on "one beer" etc. Granted usually events I go to are hosted by film people and have an open bar etc. this is important to take note of and cut down costs on. Even if you aren't spending a lot on it, in general you should be closely tracking your budget each month to see where you can potentially cut costs to get rid of that CC debt. Having a detailed budget tracker will also allow you to see what you spent money on in past months and if there are any trends. Not just for going out, for everything.

noplaceliketheroad

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Re: Treading Water
« Reply #8 on: November 05, 2017, 06:20:26 PM »
Are you working freelance in the industry? PA on a TV show? If so, I suggest saving a minimum of 3 months of expenses in your EF, especially with the holidays coming up (that usually means 2 unpaid weeks in December) and hiatus not far behind that (noticed you said 'next season', so I'm guessing you're in TV - hiatus could be a couple months without steady work). I just know after working years of freelance in the industry, nothing has made me feel safer than having a padded EF. Also, start working your contacts to try to book some commercial jobs on the weekends or over the holidays. Commercials usually pay more, but of course are less reliable. Good luck! It's a crazy industry, but if you have the talent and stubbornness to stick it out, you'll prob be making much more money soon enough.

Ummm

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Re: Treading Water
« Reply #9 on: November 08, 2017, 12:27:06 PM »
Cazio

Yes on the mileage reimbursement, typically $20 a week.  Currently a writers' PA, there may be room to move up next season. 

I have considered ATL, my sister actually lives out there.  Just wasn't sure how much writing is done out there vs filming.  I have experience on set, in post and in the writers' office.  Looking to be a writer so where I am now is a good spot. 

Great to see fellow production people here!

noplaceliketheroad

Trying to build up that 3 months EF, just a little slow going.  I am in TV and my hiatus will be a little over a month.  It looks like I'll be able to bartend again at an old job.  Going to hit up a few contacts to see if I can snag some production jobs before everyone is on break. 

Thanks for all the suggestions gang.  Feel like I've been stuck in a loop of "just getting by".