Author Topic: Looking at the budget  (Read 11764 times)

blackjack

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Looking at the budget
« on: July 18, 2015, 04:23:51 AM »
Any help would be great....
Income 80-100k+); take home around 1050 a week is a good average (depends on the hours i get; Anywhere from $800 to $1400 would be doable) Making over 1100 requires over 50hr work weeks and is very demanding), I make decent money but it doesn't seem like it when the bills add up
wife income 55K (but not going back to work until next year)
This year since it's my income alone I had to lower my retirement and savings funds a lot...
I have around $50 going into ROTH IRA and $50 going in to roth 401k
Monthly expenses:
Mortgage: $1640
Comcast cable: $50
MetEd: $75
water/sewer: $75
ATT(Phone): $107
insurances (car+life): $165
UGI: $23
Water: $45
percap: $30
Car: $300
Groceries: $570
Gas/Car: $175
Toiletries/cosmetics: $30
House/Cleaning: $30
Eating out: $30
Medical/health: $300
Baby stuff: $40
Clothing: $30
Charity: $50
Gifts: $30
Entertainment: $30
Other: $30

Total: Around 4,000
« Last Edit: July 18, 2015, 04:32:40 AM by blackjack »

Monkey Uncle

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Re: Looking at the budget
« Reply #1 on: July 18, 2015, 05:07:08 AM »
Any help would be great....
Income 80-100k+); take home around 1050 a week is a good average (depends on the hours i get; Anywhere from $800 to $1400 would be doable) Making over 1100 requires over 50hr work weeks and is very demanding), I make decent money but it doesn't seem like it when the bills add up
wife income 55K (but not going back to work until next year)
This year since it's my income alone I had to lower my retirement and savings funds a lot...
I have around $50 going into ROTH IRA and $50 going in to roth 401k
Monthly expenses:
Mortgage: $1640
Comcast cable: $50
MetEd: $75
water/sewer: $75
ATT(Phone): $107
insurances (car+life): $165
UGI: $23
Water: $45
percap: $30
Car: $300
Groceries: $570
Gas/Car: $175
Toiletries/cosmetics: $30
House/Cleaning: $30
Eating out: $30
Medical/health: $300
Baby stuff: $40
Clothing: $30
Charity: $50
Gifts: $30
Entertainment: $30
Other: $30

Total: Around 4,000

Your income numbers are confusing.  You say you make 80-100k/yr.  Taking the midpoint, that would be about 7,500/mo.  But then you say you make 1,050/wk take-home.  That works out to 4,500/mo.  Are your payroll deductions really adding up to 40% of your income?

blackjack

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Re: Looking at the budget
« Reply #2 on: July 18, 2015, 06:09:19 AM »
Here's how my pay breaks down exactly from this weeks pay: NET amount = $ 1,177.56
                 Wage          Hours        Amount
 REGULAR  33.700         40.00  = 1,348.00        FICA                   112.16   
- OVERTIME 50.550        6.05   = 305.83           FICA MEDICARE   26.23   
- PROD BON 50.550        3.07   = 155.19          FEDERAL TAX       360.90   
- TOTAL HOURS WORKED             46.05            ST TAX- PA          55.54   
- CURRENT TOTALS                      1,809.02       SUT EMPL DEDCT 1.27       
                                                                      Town                   18.09     
-                               
-                                               TOTALS       575.19
-                                               DEDUCTIONS
-                                               ROTH                   54.27   
-                                               UNITED WAY'15    2.00     
-                                               TOTALS                56.27
« Last Edit: July 18, 2015, 06:12:18 AM by blackjack »

MDM

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Re: Looking at the budget
« Reply #3 on: July 18, 2015, 12:23:02 PM »
This year since it's my income alone I had to lower my retirement and savings funds a lot...

It appears you are having too much federal (can't comment on state) tax withheld.  Instead of giving the IRS an interest-free loan, you could submit a new W-4 and put the increased take-home pay back into your retirement and savings funds now.

frugally

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Re: Looking at the budget
« Reply #4 on: July 18, 2015, 02:01:49 PM »
Why do you have water/sewer listed @ $75 and then water listed @ $45?

Groceries look high unless you have special dietary needs or have a whole heap of children.  What's the breakdown there?

Monkey Uncle

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Re: Looking at the budget
« Reply #5 on: July 18, 2015, 02:18:18 PM »
This year since it's my income alone I had to lower my retirement and savings funds a lot...

It appears you are having too much federal (can't comment on state) tax withheld.  Instead of giving the IRS an interest-free loan, you could submit a new W-4 and put the increased take-home pay back into your retirement and savings funds now.

+1.  If you're MFJ with 3 exemptions, your effective federal tax rate should not be anywhere near the 20% that is being withheld.

As far as expenses go, your mortgage is the elephant in the room.  Assuming that includes insurance, have you reviewed your coverage and shopped around to see if you can save?  Also, do you have the option of downsizing to reduce your P+I and property taxes?

RWD

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Re: Looking at the budget
« Reply #6 on: July 18, 2015, 02:19:46 PM »
Mortgage: $1640

This is a bit high for your income. Depending on your interest rate it might be worth refinancing or looking for a cheaper house. Depends a lot of what is available in your area though.


ATT(Phone): $107

There are cheaper alternatives.
http://www.techmeshugana.com/theguide/


Car: $300
Gas/Car: $175

Does this include maintenance? Still seems a bit high for just one car (this category seems fine if you're accounting for two cars). I assume you have a loan on your car? Getting this paid off or switching to a cheaper car that you can buy outright could save you a lot. Consider moving closer to work. I could make more accurate recommendations for this category if I knew your commute distance, remaining loan balance, and what the vehicle is (year/make/model/mileage).

RWD

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Re: Looking at the budget
« Reply #7 on: July 18, 2015, 02:21:27 PM »
ROTH                   54.27

Consider switching to pre-tax retirement contributions.
http://www.madfientist.com/retire-even-earlier/
http://www.gocurrycracker.com/roth-sucks/

blackjack

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Re: Looking at the budget
« Reply #8 on: July 18, 2015, 03:07:28 PM »
Car loan at 300, when my  wife goes back to work her income will pay the car  which is 2013 rav4 , $17000 @ 5%. The separate water is spring water delivery; I have a 5 mile commute . My federal is high but I get a nice check back at end of year

blackjack

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Re: Looking at the budget
« Reply #9 on: July 18, 2015, 03:15:44 PM »
Also have 14k cash savings and 20k retirement

MDM

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Re: Looking at the budget
« Reply #10 on: July 18, 2015, 03:38:40 PM »
My federal is high but I get a nice check back at end of year

Appears you understand the "what".  Would you explain "why" you choose to give the IRS an interest-free loan instead of putting increased take-home pay back into your retirement and savings funds now?

BrickByBrick

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Re: Looking at the budget
« Reply #11 on: July 18, 2015, 03:41:37 PM »
Car loan at 300, when my  wife goes back to work her income will pay the car  which is 2013 rav4 , $17000 @ 5%. The separate water is spring water delivery; I have a 5 mile commute . My federal is high but I get a nice check back at end of year

Car Loan - Well there's an issue.  How long will your wife's commute likely be (in what conditions)?  Can't you sell the rav4, eliminate the loan, and get a cheaper commuter vehicle?

Spring Water Delivery - Huh? Is there a special reason you need "spring" water delivered?  Poisoned well?  If you at least have tap - shouldn't you cut that out?

My federal is high but I get a nice check back at end of year

Meanwhile your monthly savings is less?  Wouldn't having more money now make more sense?  I understand the excitement of getting a big check but its a crutch that so many people unfathomably rely on.  The Federal government thanks you for the interest free loan.  Once you get serious about investing their is simply no rational argument for not adjusting your Ws.

Also have 14k cash savings
Great - keep an emergency fund in cash and use the difference on the car loan if required after you trade the rav4.


Mrs.LC

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Re: Looking at the budget
« Reply #12 on: July 18, 2015, 11:25:58 PM »
$600 for groceries and eating out. Is this for the two of you plus a baby or are there more? For two + this is quite high. Are you calculating the cost of daycare when your wife goes back to work? that can take a huge chunk of income.

RWD

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Re: Looking at the budget
« Reply #13 on: July 19, 2015, 12:47:33 AM »
Car loan at 300, when my  wife goes back to work her income will pay the car  which is 2013 rav4 , $17000 @ 5%.

The RAV4 isn't the least efficient vehicle you could own, but 5% is a higher interest rate than I would be comfortable paying ($850 in a year in interest). Especially when you aren't upside down on the loan. You're also looking at a lot more depreciation over the next few years. If you sell you should be able to recover a couple thousand or so dollars in equity and then take some of your savings to buy a vehicle outright. I'd recommend something in the $5-10k range. Your insurance should get cheaper too.

My rough estimate is that you could save $100-200/month in this category once you've factored in interest, depreciation, insurance, and potentially fuel savings (depending on the replacement vehicle).

blackjack

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Re: Looking at the budget
« Reply #14 on: July 19, 2015, 03:37:40 AM »
My federal is high but I get a nice check back at end of year

Appears you understand the "what".  Would you explain "why" you choose to give the IRS an interest-free loan instead of putting increased take-home pay back into your retirement and savings funds now?

I havet even thought of that i should change the amont
By redoing my w-4 forms? Can I do this right now and make the change?
« Last Edit: July 19, 2015, 03:45:14 AM by blackjack »

blackjack

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Re: Looking at the budget
« Reply #15 on: July 19, 2015, 03:40:31 AM »
$600 for groceries and eating out. Is this for the two of you plus a baby or are there more? For two + this is quite high. Are you calculating the cost of daycare when your wife goes back to work? that can take a huge chunk of income.

3 people, yes the food bill is a big problem for us , we buy all organic
The water is because our tap water is awful
Our parents will watch the baby when the wife goes back to work
Wife has same commute 5 miles
« Last Edit: July 19, 2015, 03:44:29 AM by blackjack »

1967mama

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Re: Looking at the budget
« Reply #16 on: July 19, 2015, 03:50:28 AM »
A Brita water filter jug that sits in your fridge might do the trick for your water that tastes bad. Maybe pick up one of those personal Brita water bottles to try out the filtered water. One of the first things we cut when I decided to stay home with my first child after my mat leave was over was water delivery. Its a luxury.


Monkey Uncle

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Re: Looking at the budget
« Reply #17 on: July 19, 2015, 04:04:14 AM »
My federal is high but I get a nice check back at end of year

Appears you understand the "what".  Would you explain "why" you choose to give the IRS an interest-free loan instead of putting increased take-home pay back into your retirement and savings funds now?

I havet even thought of that i should change the amont
By redoing my w-4 forms? Can I do this right now and make the change?

Yes, you can change your withholding at any time by submitting a W-4 form to your HR department.

MDM

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Re: Looking at the budget
« Reply #18 on: July 19, 2015, 04:06:56 AM »
I havet even thought of that i should change the amont
By redoing my w-4 forms? Can I do this right now and make the change?
Yes.  How quickly it will take effect depends on your employer's payroll department, but you can change your withholding any time you want.

blackjack

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Re: Looking at the budget
« Reply #19 on: July 19, 2015, 05:36:49 AM »
Thank you everyone for the great advice

Rezdent

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Re: Looking at the budget
« Reply #20 on: July 19, 2015, 08:35:44 AM »
$600 for groceries and eating out. Is this for the two of you plus a baby or are there more? For two + this is quite high. Are you calculating the cost of daycare when your wife goes back to work? that can take a huge chunk of income.

3 people, yes the food bill is a big problem for us , we buy all organic
The water is because our tap water is awful
Our parents will watch the baby when the wife goes back to work
Wife has same commute 5 miles
Water, I used to buy water.  Every time I have moved, the water tasted awful at the new place.
And then I realized that water is the same as anything else.  People prefer what they are used to having.
Buying bottled water is very expensive, and it was a crutch preventing me from getting used to the different water supply.
So I quit buying water.  I did not get a Britta, either.
I did need some way to bridge the gap, though.
For drinking water, I put a lot of lemon or lime juice in it and gradually tapered the amount down.
It took about a month before I got used to it and no longer noticed it.
This could be an easy win for you.

blackjack

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Re: Looking at the budget
« Reply #21 on: July 21, 2015, 07:47:17 AM »
This year since it's my income alone I had to lower my retirement and savings funds a lot...

It appears you are having too much federal (can't comment on state) tax withheld.  Instead of giving the IRS an interest-free loan, you could submit a new W-4 and put the increased take-home pay back into your retirement and savings funds now.

+1.  If you're MFJ with 3 exemptions, your effective federal tax rate should not be anywhere near the 20% that is being withheld.

As far as expenses go, your mortgage is the elephant in the room.  Assuming that includes insurance, have you reviewed your coverage and shopped around to see if you can save?  Also, do you have the option of downsizing to reduce your P+I and property taxes?

Sorry what is MFJ

MDM

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Re: Looking at the budget
« Reply #22 on: July 21, 2015, 07:50:12 AM »
This year since it's my income alone I had to lower my retirement and savings funds a lot...

It appears you are having too much federal (can't comment on state) tax withheld.  Instead of giving the IRS an interest-free loan, you could submit a new W-4 and put the increased take-home pay back into your retirement and savings funds now.

+1.  If you're MFJ with 3 exemptions, your effective federal tax rate should not be anywhere near the 20% that is being withheld.

As far as expenses go, your mortgage is the elephant in the room.  Assuming that includes insurance, have you reviewed your coverage and shopped around to see if you can save?  Also, do you have the option of downsizing to reduce your P+I and property taxes?

Sorry what is MFJ

Married Filing Jointly

themagicman

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Re: Looking at the budget
« Reply #23 on: July 21, 2015, 08:18:38 AM »
This year since it's my income alone I had to lower my retirement and savings funds a lot...

It appears you are having too much federal (can't comment on state) tax withheld.  Instead of giving the IRS an interest-free loan, you could submit a new W-4 and put the increased take-home pay back into your retirement and savings funds now.

Married filing jointly
+1.  If you're MFJ with 3 exemptions, your effective federal tax rate should not be anywhere near the 20% that is being withheld.

As far as expenses go, your mortgage is the elephant in the room.  Assuming that includes insurance, have you reviewed your coverage and shopped around to see if you can save?  Also, do you have the option of downsizing to reduce your P+I and property taxes?

Sorry what is MFJ

blackjack

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Re: Looking at the budget
« Reply #24 on: July 22, 2015, 05:12:57 PM »
I'm married but i still think I'm filed as single...

I just don't know if i feel like paying taxes at the end of the year?

RWD

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Re: Looking at the budget
« Reply #25 on: July 22, 2015, 05:28:34 PM »
I'm married but i still think I'm filed as single...

I just don't know if i feel like paying taxes at the end of the year?

Is your W4 set to single (or married but withhold at single rate) or are you actually filing your taxes separate? The former just results in receiving a big refund but the latter would mean you're likely paying more taxes than you need to.

blackjack

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Re: Looking at the budget
« Reply #26 on: July 22, 2015, 05:39:46 PM »
my W-4 is set to single and we file jointly

RWD

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Re: Looking at the budget
« Reply #27 on: July 22, 2015, 08:25:55 PM »
my W-4 is set to single and we file jointly

Okay, that should be fine. Just typically results in a big refund.

I also have my W-4 set to withhold as single even though we file jointly, but that's because we both work and have similar incomes. In my case if I withheld as married it wouldn't be enough.

blackjack

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Re: Looking at the budget
« Reply #28 on: July 25, 2015, 04:26:41 AM »
Quote
There are cheaper alternatives.
http://www.techmeshugana.com/theguide/

Im not sure I can get a cheaper plan since i use my phone for work ( truck driver)

blackjack

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Re: Looking at the budget
« Reply #29 on: August 09, 2015, 11:58:55 AM »
I canceled the water delivery and will just fill my own jugs up at local market where they offer pure water for .25 a gal which will save us about $35 a month although i know have to fill up the containers every few weeks

1967mama

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Re: Looking at the budget
« Reply #30 on: August 09, 2015, 04:24:03 PM »
I canceled the water delivery and will just fill my own jugs up at local market where they offer pure water for .25 a gal which will save us about $35 a month although i know have to fill up the containers every few weeks

Great!

Taking lots of steps in the right direction! That's $420 a year or $4200 in 10 years!!

blackjack

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Re: Looking at the budget
« Reply #31 on: August 09, 2015, 07:51:16 PM »
It's amazing how little things do indeed add up and you don't really miss any of those things in the end

dess1313

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Re: Looking at the budget
« Reply #32 on: August 10, 2015, 01:19:53 AM »
Quote
Car loan at 300, when my  wife goes back to work her income will pay the car  which is 2013 rav4 , $17000 @ 5%. The separate water is spring water delivery; I have a 5 mile commute .

Unless you have bad water cut this cost out.  Buy a britta filter

Cut the cable.  get netflix or a HD Tv antennae

Any savings possible on the phone bills?  no home line that could be cut away?  Cheaper plans while on one income?

1967mama

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Re: Looking at the budget
« Reply #33 on: August 10, 2015, 02:05:08 PM »
We got an HD Antenna for under $40 a year and a half ago and can't believe how GREAT the reception is .. it really is HD. Between online viewing and this antenna, we have no need for cable at all. There are many types to choose from:

http://www.bestbuy.com/site/tv-video-accessories/tv-antennas/abcat0107004.c?id=abcat0107004

Pick a cheaper one and give it a go. If it doesn't get good reception, return it and try the next level up. That's what we did. We watched all the Women's FIFA games recently. Its amazing! Really!

blackjack

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Re: Looking at the budget
« Reply #34 on: August 10, 2015, 07:01:29 PM »
Quote
Any savings possible on the phone bills?  no home line that could be cut away?  Cheaper plans while on one income?

we both use AT&T.. i need a good plan for work...

themagicman

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Re: Looking at the budget
« Reply #35 on: August 10, 2015, 07:15:13 PM »
Quote
Any savings possible on the phone bills?  no home line that could be cut away?  Cheaper plans while on one income?

we both use AT&T.. i need a good plan for work...

Plenty of good plans that don't cost an arm and a leg. Many use Att network and function the same way without the high cost

blackjack

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Re: Looking at the budget
« Reply #36 on: August 23, 2015, 02:57:46 PM »
Which ones use the same network at half the price?

RWD

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Re: Looking at the budget
« Reply #37 on: August 23, 2015, 08:18:10 PM »
Which ones use the same network at half the price?

Take a look at Airvoice Wireless, Pure TalkUSA, and Consumer Cellular:
http://www.techmeshugana.com/theguide/cellular-providers/

blackjack

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Re: Looking at the budget
« Reply #38 on: August 30, 2015, 09:00:42 AM »
thank you i'll look into air voice wireless

blackjack

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Re: Looking at the budget
« Reply #39 on: August 30, 2015, 09:04:24 AM »
Gross: 1,855.36      Net:  1,204.09

hr wage 34.40 this is a .70 raise so this should help  little

Cassie

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Re: Looking at the budget
« Reply #40 on: August 30, 2015, 01:31:47 PM »
cricket also uses AT & T since AT & T bought them.