downsizing and getting rid of car

[jen2015]

Great. Thank you all for weighing in. I know what I need to do, get rid of the car and then I will reevaluate on downsizing.
I appreciate your help and encouragement.

[jmusic]

It seems like your best option is to bite the bullet and sell the car.  That would likely make a FAR bigger impact than moving farther away.  Moving farther would increase your reliance on the vehicle, and increase the variable costs of gas and maintenance.

[Drifterrider]

Hello,
This is my first post, but have been reading for a while. My finances are not good, despite a solid income and a job that I enjoy. Unfortunately, I did not have good role models growing up. I want to get things in order now.

I am not ready to type out all of my expenses, however, I do know that I have two main expenses with which I need to deal.

I have an expensive apartment and I have a car payment. Just on the side, I live in one of the most expensive cities in Germany.
The apartment is large and is walking distance to my work and to school for my young children. I have three bedrooms and two baths in a very pleasant family-oriented complex. I pay $1275 for rent with utilities. Getting a roommate for the guest room is not an option for me. It is a very fair price for the size and the location.
There are 1 bedroom and two bedroom units ($800 and $1050 respectively) here in the complex. Does it really make sense to go through the hassle and expense of moving for the smaller savings of the 2 bedroom? Or do I go extreme and give my twin boys one room and carve out a niche for myself in the living room and save a lot of money? There are a lot of units here and residents have priority. It is very difficult to get a place here, usually word of mouth.

Another option would be to move further from work and school to find something less expensive. This really does not resonate with me because I work a lot of hours and it is nice to be able to come home for lunch and being a single mom of twins is very stressful and living here makes life a little bit more manageable.

My second issue is my car. I made the mistake of financing a mini-van. Now that we live here I only use it about once a week. I could do without because of having public transportation nearby, bikes and there is car sharing. However, I am upside down. I pay $400 monthly with insurance and $65 for the parking garage.

Thank you for weighing in on this for me.

Berlin?

Can your children share a bedroom for the next 10 years? (or are they a boy and a girl)?

How much would public transportation cost for the three of you (monthly)? 

[Drifterrider]

I don't know that I'd downsize to a one bedroom but I would probably consider downsizing to a two bedroom.  Then I would probably see how to get out from under the car payment (that is 465 per month plus insurance). 

If you only need a car occasionally, think of renting one when you do need it.

[grundomatic]

Since you didn't give us all the details, it is hard to give a detailed answer. Speaking from a big picture strategic point of view, I would focus on the low hanging fruit. Eliminate waste without sacrificing your lifestyle.

$465 to drive 4x per month? That has go, especially since you live somewhere with an AWESOME mass transit system.

Since you seem to like where you live and it is close to work and school, stay there. I would go down to the 2 bedroom. Moving seems like a daunting task, but it it probably pays for itself in one month. Have some friends or family come help you pack, then I am sure you can find a couple young guys to move your stuff for what that extra bedroom costs you in a month. Living with a "roomate" will prepare the twins for life as young adults.

You might let us know what your goals are, and also remember that the more you share the more we can help you.

[Lyssa]

I would make selling the car a priority, this thing just has to go. A two bedroom sounds like a good idea as well. Only you can tell whether you can live without the privacy of an own bedroom. I probably could not. Also, maybe the twins desperately ask you for a room for each as teenagers, with a two bedroom you could set up a livingroom sleeping arrangement for a forseeable short period of time. How old are they?

I strongly recommend posting your budget and let the people here take the axe to it. It's not nice to get face-punched but just a few adjustments could move your savingsrate to the top 10% of the general population.

Congrats to you for abandoning the poor habits you've been taught as a kid and making good money as a single mom. Both are great achievements.

[WerKater]

I agree with the previous advice.
First, absolutely get rid of the car, this is where most of the possible savings are. You said that you are upside-down on the car loan. Would you be willing to give us numbers on that and more details on the loan? When you sell the car, could you use the money to pay off the loan early?
Second, I might move to a 2-bedroom place if I were in your situation since I would consider the car loan Hair-On-Fire-Debt. However, it depends -- if selling the car already eliminates most of the debt and gives you a substantial savings rate even while still living in your current place, that place would still be a bit of a luxury, but possibly an affordable one. It is impossible to judge this without knowing numbers.

Btw., are the numbers you gave actually in $ or in €?

[Lyssa]

I agree with you all that I need to get rid of the car. When I got the car I lived further away and had had to push a double stroller on and off metro and buses in inclement weather. I made a mistake financing an expensive car, listening to bad advice I still owe US$18,386.174. Yes, just plain stupid indeed. I own this decision. I just don't know how to get out from under it.
The numbers were all converted into US$

Find out how much you can sell it for and what the remaining debt would be. Better to be out of this debt in one than in four years. Implement just a few more cost cuts and you can be done in a matter of months. Those months of still paying but not even having a car will hurt most, but as the saying goes 'Besser ein Ende mit Schrecken...'

[larmando]

Hello,
This is my first post, but have been reading for a while. My finances are not good, despite a solid income and a job that I enjoy. Unfortunately, I did not have good role models growing up. I want to get things in order now.

I am not ready to type out all of my expenses, however, I do know that I have two main expenses with which I need to deal.

I have an expensive apartment and I have a car payment. Just on the side, I live in one of the most expensive cities in Germany.
The apartment is large and is walking distance to my work and to school for my young children. I have three bedrooms and two baths in a very pleasant family-oriented complex. I pay $1275 for rent with utilities. Getting a roommate for the guest room is not an option for me. It is a very fair price for the size and the location.
There are 1 bedroom and two bedroom units ($800 and $1050 respectively) here in the complex. Does it really make sense to go through the hassle and expense of moving for the smaller savings of the 2 bedroom? Or do I go extreme and give my twin boys one room and carve out a niche for myself in the living room and save a lot of money? There are a lot of units here and residents have priority. It is very difficult to get a place here, usually word of mouth.

Another option would be to move further from work and school to find something less expensive. This really does not resonate with me because I work a lot of hours and it is nice to be able to come home for lunch and being a single mom of twins is very stressful and living here makes life a little bit more manageable.

My second issue is my car. I made the mistake of financing a mini-van. Now that we live here I only use it about once a week. I could do without because of having public transportation nearby, bikes and there is car sharing. However, I am upside down. I pay $400 monthly with insurance and $65 for the parking garage.

Thank you for weighing in on this for me.

Berlin?

Can your children share a bedroom for the next 10 years? (or are they a boy and a girl)?

How much would public transportation cost for the three of you (monthly)?

Note that a boy and a girl can share a room for tens of years. I know brothers and sisters that did and they were no worse than same genders sharers. There is no strict rule on this: it's your choice.

[Argyle]

It's hard to advise when we don't know what your numbers are.  How much you make, how much you have saved, what debts you have, etc.  To me, it sounds like a lot of hassle to move, and I suspect your kids will be happier with a bedroom apiece.  So I wouldn't move unless money is genuinely tight.  But is it? Or are you just looking for ways to  cut expenses generally?  And are there other expenses you could cut with less pain?  You haven't given us enough information to know.