Author Topic: Budget advice  (Read 3690 times)

FastStache

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Budget advice
« on: December 26, 2013, 09:15:29 PM »
I'm working on my new budget for the next year.

Income will be about 6K post taxes.

Below is what I have.

Category   Budgeted
Primary Home PMI   $94.09
Primary Home Property Tax   $320.00
Primary Home Insurance   $100.00
Primary Home Mortgage Interest   $560.00
Student Loan Interest   $29.00
Escape Interest   $40.00
Primary Home Mortgage Principal   $300.00
Student Loan Principal   $67.00
Escape Principal   $387.00
Groceries   $250.00
Fuel   $150.00
Restaurants   $10.00
Clothing   $10.00
Tolls   $100.00
Education   $10.00
Home Repair/Maintenance   $200.00
Car Repair/Maintenance   $40.00
Copays/Doctor Visits   $100.00
Contacts/Glasses   $35.00
Baby   $150.00
Gifts   $30.00
Cell   $75.00
Internet   $55.00
Alarm   $37.00
HOA   $78.00
Car Insurance   $150.00
Water   $45.00
Garbage   $18.00
Electricity   $150.00
Total    $3,590.09

A couple of things that jump out at me are the car expenses, but I am currently working with a realtor to move much closer to work so there should be a nice reduction there. Also, we are learning to be more efficient with out electricity usage but have more work to do with the ac.

Am I missing anything or is something obviously wrong?

FastStache

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Re: Budget advice
« Reply #1 on: December 27, 2013, 08:17:18 AM »
DW likes the "security" of it, and the only benefit I see is if a fire breaks out when we are not home it will notify the authorities.

Cell phone is with Ting and it's for 4 people. I pay for my parents.

Food cost is for two people and a baby. Plus, we do get visitors and we buy food and cook it at home for them.

At the moment, I'm not sure what I am going to do with my first house, and I'm looking at another home to hopefully avoid PMI.

Savings with the move
Goal is 1300 for prinicipal, interest, insurance, HOA, property taxes
It will be an older home so don't know if electricity will be higher.
Gas - easily 100
Tolls - 100 gone
Car repairs - will be reduced
Best of all I get about 45 minutes back each day.

gooki

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Re: Budget advice
« Reply #2 on: December 27, 2013, 03:06:43 PM »
Cellphone, car insurance, and alarm expenses would be prime places where I'd look to trim some fat.

How long until proud no longer have to pay PMI?
« Last Edit: December 27, 2013, 11:14:51 PM by gooki »

FastStache

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Re: Budget advice
« Reply #3 on: December 27, 2013, 04:03:00 PM »
PMI would need another 18 K to reach the 80% point of the original loan.

Now, if I got the house reappraised with the boost in the property value, that may change. My understanding is I would need to do some sort of upgrade in order for them to come out again and I would need to pay approximated 400 but very likely higher appraisal value.

Car insurance has been a thorn in my side and I also shop around when it comes time to buy. Really looking forward to being close to work and possibly getting rid of a car.

Milehimama

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Re: Budget advice
« Reply #4 on: December 27, 2013, 09:50:25 PM »
Getting rid of tolls and reducing gasoline will go a long way.

$150 for baby seems high - what does that include?  $250 for 2 adults also seems high to me, I think you could trim 20% off that with menu planning, shopping sales, etc. 

Contacts at $35 per month, all year round? $420 a year? This also seems high.  Do you use the disposable dailies?  If you are unable/unwilling to switch brands, definitely shop around.  I love love love Zenni Optical for glasses, and you can reorder your contacts online (or from Costco I think) at a better price maybe.

No car payment? Well done, there.  Can you reduce your insurance expense- get collision only?  Have you run the numbers on what your car is worth vs. what you could possibly get after deductible if your car was totaled, etc.?

FastStache

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Re: Budget advice
« Reply #5 on: December 28, 2013, 10:21:18 AM »
Getting rid of tolls and reducing gasoline will go a long way.

$150 for baby seems high - what does that include?  $250 for 2 adults also seems high to me, I think you could trim 20% off that with menu planning, shopping sales, etc.

Contacts at $35 per month, all year round? $420 a year? This also seems high.  Do you use the disposable dailies?  If you are unable/unwilling to switch brands, definitely shop around.  I love love love Zenni Optical for glasses, and you can reorder your contacts online (or from Costco I think) at a better price maybe.

No car payment? Well done, there.  Can you reduce your insurance expense- get collision only?  Have you run the numbers on what your car is worth vs. what you could possibly get after deductible if your car was totaled, etc.?

The groceries bill includes toilet paper, paper towel, soap, shampoo, etc.

I am using dailies, and definitely shop around a lot. I had a lot of years in the sun and the optometrist told me to get dailies.

Unfortunately, I do have a car payment and it is the escape loan. The payment is so high due to rolling in the DW's old car loan at a much lower interest rate. Once we settle the house situation we will look at the possibility of selling it and downgrading, etc. It is a big money sucker.

All in all, I think once we overcome our mistakes from our younger years, we will be well on the road to financial independence. We are both right around 30 and with some luck we can think we can retire around 40ish.