Author Topic: Case Study - Mustachianism in the Third World  (Read 2912 times)

k_ryan

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Case Study - Mustachianism in the Third World
« on: January 03, 2015, 01:52:06 PM »
Hi everyone,

Long time lurker, first time poster. I was wondering if the principles espoused by MMM would be applicable in third world countries like the one I live in where average incomes are lower. I present my case to you in the hopes that you can offer some insight.


Below is my annual budget. The figures below are shown in Trinidad & Tobago (TT) dollars.


Income    208,800    
After tax income
      
      
Savings    $82,800    
House Fund: $72,000 - savings towards a mortgage down payment,
Annuity: $10,800 - towards a Government approved annuity that's tax deductible
        
Mother    $36,504    
Debt   : $24,504 - Repaying mother's loan for home repairs. $91,727.71 @ 1% per month on the unpaid balance. Payment is $2,042 per month. Started June 2013
Misc: $12,000 - Utilities, groceries, random expenses
        
Food and Dining    $34,600
Groceries: $26,400    
Alcohol: $1,000    
Restaurants: $4,800    
Fast Food   : $2,400    
        
Healthcare    $1,500    
Doctor visits, prescription medication not covered by company insurance
        
Auto and Transport    $11,700    
Gasoline: $1,200    
Insurance   : $6,000    
Car Search (Lo Jack): $1,500
Service & Parts   : $3,000    
        
Other Expenses $24,905
Utilities: $3,785
Cell Phone: $2,760    
Internet Access: $2,760    
        
Social Expenses: $3,600    - Self Defense Class, Dance Class
        
Misc: $ 12,000    


TOTAL    EXPENSES $192,009    

TOTAL EXPENSES less SAVINGS $109,209



The major issue here is that I'm assisting 2 households. My parents are separated. I live with my father. He currently has no income so I'm responsible for the expenses of that household. I'm also assisting my mother with the repayment of a loan and any other expenses that may occur. The loan is my biggest concern, as it hampers my ability to save. Any suggestion on how to get rid of it quickly, or any other tips would be greatly appreciated.


Thanks in advance for any feedback you can give.



surfhb

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Re: Case Study - Mustachianism in the Third World
« Reply #1 on: January 03, 2015, 02:17:08 PM »
How do you have time to go to dance and self defense classes when you spend all your time eating and drinking?   :)

Thats almost %20 of your income bro.  Why do you pay for your father? 

Maybe its your HCOL in Trinidad? 

« Last Edit: January 03, 2015, 02:21:44 PM by surfhb »

mozar

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Re: Case Study - Mustachianism in the Third World
« Reply #2 on: January 03, 2015, 08:44:11 PM »
I can understand from a cultural perspective that you need to help your mother. 32k USD isn't bad at all for income. But if you cut back on restaurants (and you shouldn't be buying fast food AT ALL) you could pay off the loan a lot faster. And what is this Misc category? Can you break it down? That's a major problem there. If you cut "Misc" restaurants, fast food, and alcohol that's 20,200 TT all together.

Adventine

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Re: Case Study - Mustachianism in the Third World
« Reply #3 on: January 03, 2015, 11:13:46 PM »
Hello and welcome to the forums! I'm also from a Third World country (although on the other side of the globe). I can understand the pressure to support both your parents. Are you responsible for ALL their living expenses?

Have you considered cutting out either the dance or self defense class so you can put more towards loan payments? How feasible is it to sell your car and get rid of all the car-related expenses?

k_ryan

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Re: Case Study - Mustachianism in the Third World
« Reply #4 on: January 05, 2015, 09:00:06 AM »
Hi Guys,

To answer the questions so far:

How do you have time to go to dance and self defense classes when you spend all your time eating and drinking?   :)

Thats almost %20 of your income bro.  Why do you pay for your father? 

Maybe its your HCOL in Trinidad?

My father's finances are in a mess. He is servicing a debt (the details of which he refuses to share) that chews up his entire salary. The situation is made worse given that he's retiring this January. Since I live with him I have to maintain the house. It's either that or rent.



I can understand from a cultural perspective that you need to help your mother. 32k USD isn't bad at all for income. But if you cut back on restaurants (and you shouldn't be buying fast food AT ALL) you could pay off the loan a lot faster. And what is this Misc category? Can you break it down? That's a major problem there. If you cut "Misc" restaurants, fast food, and alcohol that's 20,200 TT all together.

"Misc" is just cash at hand for one off expenses (clothing, minor electronics, etc) or in the event something comes up. It's not a mandatory expense and usually just gets funneled into savings.



Hello and welcome to the forums! I'm also from a Third World country (although on the other side of the globe). I can understand the pressure to support both your parents. Are you responsible for ALL their living expenses?

Have you considered cutting out either the dance or self defense class so you can put more towards loan payments? How feasible is it to sell your car and get rid of all the car-related expenses?

For the most part, I am responsible for their expenses. My father's income is being used up to service his debt. My mother's income is that of a typical public servant's, so she needs that assistance.

I think the car is necessary. I work late hours when public transportation isn't accessible (or safe), and our climate is such that for half the year we have heavy rain on most days. I may be able to cut back on car expenses by switching from a fully comprehensive plan to a third party one and save ~$4,000. That and servicing it myself.



A common suggestion is to cut back on miscellaneous expenses $12,000, and the social expenses (restaurants, alcohol, fast food, dance class, etc) ~$11,800. That and the car insurance gives me ~$27,800 to play with.

Thanks for all the responses. Any clarifications please let me know.

ShoulderThingThatGoesUp

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Re: Case Study - Mustachianism in the Third World
« Reply #5 on: January 05, 2015, 09:41:54 AM »
It's not fair for your father to expect you to subsidize him while he services his mysterious debt. Are you sure he doesn't have a gambling problem or something else like that?

Also, do you have any siblings you could get to help with your parents?

Adventine

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Re: Case Study - Mustachianism in the Third World
« Reply #6 on: January 06, 2015, 09:48:26 AM »
OP, looks like you're on the right track regarding minimizing your personal expenses. But I strongly advise you to have a heart to heart discussion with your father about the nature of his debt and where exactly his income goes.