Author Topic: Case Study:Nearly 40 and have F All  (Read 7091 times)

Hudson

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Case Study:Nearly 40 and have F All
« on: August 21, 2014, 07:26:51 PM »
I have decided to go to university part time while I work full time. I wanetd to go full time to universoty and work full time but too many advised against it. We are a 2 person household relying on my income.

Monthly income: $3120

Fixed Current Expenses:
Rent   $1560
Family Investment $140 (somethign we are all in on)
Insurance $90
Current health related expenses (physiotherapry treatment and gym) $140
Loan Repayment $330

Variable
Power $ 200 ish
Phone (mobile and internet) internet $ 110
Credit Card $110
Food $240 ish
Gas $45
Family events $45


Total for all expenses: $2900

That leaves me a surplus of $220...the weird thing is when I work this out as a fortnightly payment (as I actually get paid fortnightly) things appear different .?? I'll have to look further into that.

Currently the surplus is funding my trips away to university courses over the next two months.


Assets: Car maybe worth $500 -$800

Liabilities :
Student loan $1800 ( I am only half way through my studies so this will increase although I want to try and save for my studies so I can pay as I go. Currently $300 comes out fo my pay a fortnight befoire I get it and goes towards the loan)
Credit Card $4000
Personal loan $3000

Total loans : $8800


I see my only real hope is to take onbaord a night job, pay off my student loan  as it is the lowest debt and then start using that money to agresively attack my other loans.

I want to be debt free by end of June 2015 and worked out I need approx an extra $100 in the hand per week.

Really unsure if I'd ever be able to buy a house and retire before 65 in all hoensty...other that working 2 fulltime jobs for the next 10 years or so.

G-dog

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Re: Case Study:Nearly 40 and have F All
« Reply #1 on: August 21, 2014, 07:33:29 PM »
Person #2 has no options for income?

Do not despair! It is not too late! It is never too late.

You'll need a bit more resolution and data on your costs and cash flow to get to your best advice and options.
No benefits/401k at work? Other savings/ investing opportunities?

Hudson

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Re: Case Study:Nearly 40 and have F All
« Reply #2 on: August 21, 2014, 07:51:54 PM »
In theory the 2nd person could earn an income but I am unsure if they would ,and if they did would any of the funds get put towards the living expenses??.

 Personally I am a stand on your own two feet kind of person so I'd rather take matters into my own hands and deal with it...even if it means I have to bust my butt in doign so....at least i know it's done.

usmarine1975

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Re: Case Study:Nearly 40 and have F All
« Reply #3 on: August 21, 2014, 07:58:44 PM »
Why is number 2 not contributing?  Young child or what?

tccoastguard

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Re: Case Study:Nearly 40 and have F All
« Reply #4 on: August 21, 2014, 07:58:53 PM »
Why wouldn't the second person get a job?  Any additional income would make this budget much less tight. What are we missing here?

usmarine1975

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Re: Case Study:Nearly 40 and have F All
« Reply #5 on: August 21, 2014, 08:01:33 PM »
Is your rent comparable to other places? In my area an apartment for 2 can easily be had for under $1000/ month with some including utilities.  Could cut back on cell phone and internet.  Utilities seem a bit high.

lizzzi

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Re: Case Study:Nearly 40 and have F All
« Reply #6 on: August 21, 2014, 08:03:37 PM »
With a full-time job and part-time school, I don't think you're going to be able to work a second job. And your debts are not all that humongous, as these things go. Will you be able to earn more money when you finish university? And how long will that take? What is your major; is it something marketable?  I would definitely not incur any more credit card debt, nor take out any more personal loans. I'm not clear on what the situation is regarding the second person in your home; if they can contribute, why wouldn't they? (Don't mean to sound nosy…sorry.) Your rent seems high for a place for just 2 people. Any thoughts of moving to a cheaper/smaller place? Not sure what the family investment means, but is there any way it could be leveraged into helping you out?

surfhb

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Re: Case Study:Nearly 40 and have F All
« Reply #7 on: August 21, 2014, 08:06:10 PM »
Well  this phantom person living with you is killing your plans for early retirement and part of your well being whether you admit it or not.     Also what is the $140 for a family investment?   

Id also cut the gym and  get a cheaper cell phone....thats about $200 right there.    Cut the food down to $150.    Look! I  just saved you roughly $400 a month!  :)
« Last Edit: August 21, 2014, 08:08:08 PM by surfhb »

Cpa Cat

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Re: Case Study:Nearly 40 and have F All
« Reply #8 on: August 21, 2014, 08:38:21 PM »
The hard truth is that it's difficult to get ahead when you're supporting two people on one income AND going to school. Dollars can only stretch so far and there are only so many hours in your day.

Your options are to get more income - which realistically would have to come from the second person. Or reduce expenses. Since you don't have a ton of line items to work with, you'll probably want to look at reducing rent and groceries.  Oh, and family events. Cut that to between $0- $20 a month. Tell your family you're broke.
« Last Edit: August 21, 2014, 08:41:07 PM by Cpa Cat »

neophyte

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Re: Case Study:Nearly 40 and have F All
« Reply #9 on: August 21, 2014, 08:51:55 PM »
Your rent is killer!  It's 50% of your income before you even consider utilities. You really need to find a cheaper place if at all possible.

swick

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Re: Case Study:Nearly 40 and have F All
« Reply #10 on: August 21, 2014, 09:08:45 PM »
In theory the 2nd person could earn an income but I am unsure if they would ,and if they did would any of the funds get put towards the living expenses??.

 Personally I am a stand on your own two feet kind of person so I'd rather take matters into my own hands and deal with it...even if it means I have to bust my butt in doign so....at least i know it's done.

Honestly, with your rent -  and it sounds like you are fulling supporting person #2? You will have a very hard time ever getting ahead. Of course it depends on your relationship with person#2. Will you be supporting them long term? Into retirement?

If you are supporting person#2 and you are unsure if they could earn an income, and you feel you have to "stand on your own two feet"  and are not being supported it doesn't sound like a very healthy or mutually beneficial relationship.

Also, if person #2 can't work, and it is an option you might want to look into some sort of public programs or subsidies that could help, either with financial, social or even career counseling assistance.

I don't know what your "Family Investment $140 (somethign we are all in on)" is but you probably need to stop it, you can't afford it.
« Last Edit: August 21, 2014, 09:11:34 PM by swick »

SingleMomDebt

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Re: Case Study:Nearly 40 and have F All
« Reply #11 on: August 21, 2014, 09:41:07 PM »
Well we look to share similar boats/age.. Except I take home close to 900 more per month. Rents are comparable.
I know my situation is tight due to the housing costs.
So I would think yours is mighty tight situation.

Start keeping track of expenses every day. Log them as soon as you make them. You'll find where your surplus is going.
Good habit to get into to help you set foot on the right track.

Don't worry about 65 or buying a house. Recommend you work on what's right here in front of you now. Deal with the other items when your foundation is built.

Welcome Hudson. You have an A for coming to MMM and learning how to grow some 'staches. ;)
 

Hudson

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Re: Case Study:Nearly 40 and have F All
« Reply #12 on: August 22, 2014, 08:34:12 PM »
A number of people have mentioned rent. I live with 15 mins of walking to work and within 30 mins of a supermarket. Shifting further away would reduce the rent but would increase travel costs.

The second person (adult)works on occasion, I think if we averaged it out they'd bring in between $10-20 per week and it usually just goes on their own stuff.

The gym itself is only $1 per day, it is the physiotherapy that I have regularly have  that is the biggest portion of that particular expense.

university is about 3-4 years away from being completed.

Utilities (power in particular) are standard for where I live form he research I have done.

CommonCents

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Re: Case Study:Nearly 40 and have F All
« Reply #13 on: August 22, 2014, 10:10:35 PM »
Work in cutting down the power bills. Check your library for a kill a watt and see what devices that are plugged in are drawing.  Turn off lights. Unplug what you can. Tolerate heat/cold more and don't turn on the heat/AC as much.

Also get a cheaper phone/internet.

And know you can't do much else w/o having the second person step up and get a job. Your schoolwork and primary job will suffer if you take on another.

horsepoor

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Re: Case Study:Nearly 40 and have F All
« Reply #14 on: August 23, 2014, 12:00:28 AM »
The rent is killing you.  Think seriously about some sort of roommate situation, renting a room in a house near your location or something like that.  This can have added benefits of splitting internet/utility bills.  If that won't work, maybe you can split a wifi connection with a neighbor to at least decrease that bill. 

Will the "family investment" start bringing in money in the near future?  If it's risky and won't provide you positive cash flow, you can't afford it right now.

Other person needs to step up the earnings and at least contribute to utilities/groceries if humanly possible.

plainjane

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Re: Case Study:Nearly 40 and have F All
« Reply #15 on: August 23, 2014, 05:32:08 AM »
Monthly income: $3120
[...]
That leaves me a surplus of $220...the weird thing is when I work this out as a fortnightly payment (as I actually get paid fortnightly) things appear different .?? I'll have to look further into that.

Since nobody seems to have replied to this part, you are probably getting different numbers because there are two times a year that you get 3 paychecks in a month (26 pay periods in a year).  If you are able to live on the two paychecks each month, then these "extra" paychecks are a great way for you to get ahead with lump sum debt payments or money towards investments. 

Have you calculated your monthly income as two paychecks, or something else?

Thegoblinchief

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Re: Case Study:Nearly 40 and have F All
« Reply #16 on: August 23, 2014, 05:47:56 AM »
Stop supporting a deadbeat. If they are able bodied, they need to get a job. Hell, I take care of and homeschool 3 kids during the week, have my own side business, AND work weekends.

Keep in mind 15 minutes walking is barely even 5 on the bike. Ditto for the supermarket distance. If you can save a couple hundred dollars or more in rent, the transport costs of using a bike are minimal after the first year.