I’m 41, divorced, and a mother of four (ages 16, 12, 8, and 5). My youngest has significant special needs and is unlikely (IMO) to ever be able to live independently as an adult. Our home’s mortgage was paid off as part of the divorce settlement (2010), and our one and only car was purchased with cash (2005 Ford Freestyle with approx. 164,000 miles on it). My parents moved to Michigan from Colorado after the divorce, and they have given sacrificially of their time and money to help us. I use my car to commute to work (about 7 miles away, 3-4 days/week), get groceries (3.5 miles away, usually on the way to or from work), and take my kids to and from their father’s house, school (the older three go to public charter schools, no bus service), appointments, and church. My kids each have a bike (except for the youngest), but only the oldest knows how to ride (gonna force the other two to learn this summer!). I’m fine with them biking into town (about 1 mile away), but they do need to be careful since we live off a 45mph main road. I have a bike as well, but don’t currently use it. I don’t have a trailer for my youngest, either. [Edited to add: I live in a rural area with paved roads but no bike lanes or sidewalks on my normal routes (and sometimes no shoulder!)]
Income:
• Child support – $2442.09/mo (will start to diminish as the kids each graduate from high school—oldest just finished 9th grade)
• Part-time self-employment – approx. $650/mo (10-12 hrs/week at $15/hr, cleaning our church buildings)
• Family Support Subsidy – $222.11/mo (state subsidy for low-income families of disabled children—I use this for my disabled daughter as needed, and don’t include it in my budget)
• NOTE: my youngest has, in the past, received SSI funds from the feds and the state, but is currently ineligible because I have “too much money” in my account (the maximum allowed is $2000, and this number hasn’t changed since 1989!!!). Also, I screwed up and didn’t report things like I should have, so I may have to pay back about $5500 to the SSA. :P Talk about a “stupid tax”….
Current budget (NOTE: I have been budgeting a slightly higher number than the actual expense, in most cases):
• Giving to my church – 10% of my income each month (currently on hold because of my debt emergency)
• Giving to Compassion International – $38/mo for sponsoring a child in Bolivia (I have $166 saved up in this category, so I could stop budgeting for this for a while if necessary)
• Church cleaning supplies – $100/mo (usually spend between $50-100 during the month, reimbursed by the church)
• Memberships -- $20/mo (saving up for annual $55 Costco fee)
• Taxes/Fees -- $50/mo (trying to save up; I just started this job last November, so I don’t know how much income tax will be for this year)
• Personal – varies, currently on hold because of debt emergency
• Auto insurance --$140/mo (actual expense is $134.72/mo)
• Electric/Gas -- $190/mo (actual expense is $186/mo on BudgetWise program, but I usually use more than that—I can dig up a statement and break things down better if anyone wants)
• Healthcare -- $200/mo (actual expense is usually $150/mo; I am part of a Christian healthcare cost-sharing ministry at the highest level with the lowest deductible—if I change to the lowest level/highest deductible, it would be $50/mo) plus $42/qtr catastrophic care
• Internet/cell -- $115/mo (one smartphone at $51/mo that I greatly depend on, two pay-as-you-go TracFones (talk/text only), internet at $30/mo until March 2015)
• HELOC -- $350/mo (this is more than the minimum monthly payment)
• Everyday expenses – varies, this is a catch-all for groceries, gas, storage unit ($76/mo, gotta get rid of this!), pet expenses, etc. Whatever child support and income aren’t already spoken for goes here.
- Edited to add: Home insurance -- $688.81 saved up, budgeting $100/mo (transitioning from annual September payment of about $900-1000 to monthly payments of ???)
Non-monthly expenses that I’m trying to save up for:
• Property taxes -- $150/mo (taxes are a little less than $1800/yr)
• Water/Sewer -- $30/mo (billed quarterly)
• Driving expenses -- $15/mo (includes maintenance and license fees, but not gas)
• Gifts -- $25/mo (birthdays and Christmas for four kids)
Debt:
• Bank credit card -- $43.60 current balance (% interest)
• Care Credit card -- $0 current balance (ongoing 6-12 month 0% promotional period when used for kids)
• Discover Card -- $4440.24 current balance (0% interest thru July 2015)
• HELOC – approx. $12,000 current balance (3.99% interest, comes due in December 2022)
• Potential SSA repayment -- $5500 (see last bullet point under Income above)
I’ve been able to save a little here and there by budgeting more than the expense actually is, but I’d like to do more. I have no investments or retirement fund. My youngest will probably be eligible for special education all the way through age 26, but after that I’m guessing that she’ll have to live with me (or one of her siblings) full time. I’m glad that the house and car are paid off, but I have a feeling I’ll want to downsize after the older kids are grown up (1/3 acre property and 5-bedroom house are too much for me!). I do wonder, though, if I’ll be able to keep that up as the kids graduate and the child support starts going bye-bye.
Some of the things I’ve changed in recent months:
• Stopped buying fast food
• Bumped my a/c up to 73 (I usually keep it at 68-70, so this is an improvement)
• Started eating more simple, home-cooked meals (rice, chicken, veggies, fruit) so I depend less on “convenience” items
• Stocked up on pantry basics
• Continued to learn how to enjoy my small life!
I guess my question is, have any of you successful Mustachians been through something like this, going from serious poverty to FI? How about with a disabled child? How long did it take? Will I be able to do it? What should my first step/focus be (the debt, I assume)? I always want to do more, and do better, but I have a hard time seeing how I will ever be able to take care of myself, much less my special needs baby girl too. I don’t want to have to depend on the government for help. :P
(P.S. I use YNAB as my budgeting software—so thankful for it!)
(P.P.S. If you need any more information, please ask. I know that the pinned Case Study thread above says I should subtotal each category, so if I really do need to go back and edit this post, please let me know!)