Author Topic: to move or not to move, to sell car... what to do  (Read 2358 times)

Lovey

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to move or not to move, to sell car... what to do
« on: October 18, 2013, 02:42:38 PM »
Can you study our current position and predicament and give us input into how to curb spending/live on hubbies income? What might you do if you were in our shoes? Any ideas? Thanks in advance!!!

We are new to MMM. We took a Dave Ramsey class in April and got on a budget then. Other than the mortgage we have no debt. The immediate "emergency" is that my (wife's) business (an event twice a year) has lost its 54,000 sf space we were renting for a mere $30,000/yr (just using space for 2 months of the year actually - twice each year for one month each time or event) for the past many years and we cannot find a space now for under $100,000/year. No empty stores will rent short term. UGH. So the 100,000 is rental year-round of a warehouse space in a very bad area of town that happens to have enough parking for the twice a year event that we run. So we would lose ALL of wife's income if we rent the space we have found (since it costs that much more per year) or if we just quit the business. We are frantically searching, but simply haven't found anything cheap despite the help of many commercial realtors and friends. We have till December to find a space or lose the business unless we find a location for it. We would lose some momentum if we skip the first round of the business and only do the 2nd, but we could do this if it takes longer to work out a space for the business.

Another key (emotionally at least) piece of info is that for many years we have desired to move to current city and live next door to wife's sister. Our children and hers are very close as are we. We were finally in a financial position to do so 5 years ago with wife's income included. To move would be very hard for wife and children. But if it is what we'd have to do, we understand.

One option would be renting a room in our home (or two) at a potential rent of $400 each room/month. This is tricky. How do people do this with 4 kids upstairs and us downstairs. Do you just trust the strangers? Stick to only females? Seems hugely invasive on life. We homeschool and are home all day. This wouldn't cover all of our expenses.

We could sell our vehicle. Wife must travel twice a year via car with all 4 kids and stay in another city for a month. So van is required for vehicle size. She drives in morning, must be there early. Cannot be late. Therefore vehicle emergencies would cause her to lost all income. That is why we bought such a new car. We could buy a slightly older one, but don't want to position ourselves to have something break on her way to this job if we can work out a location.

If we choose to sell home, it would take probably $10,000 of work to make it fully sellable in our area. I can't imagine us being able to save much on our mortgage without downsizing considerably. Since we homeschool and are home all day, this isn't so appealing. And since we live next door to sister. Gas expenditure would definitely increase to visit them. All after school play with cousins would stop. Total bummer. But we will if we have to.

Family of 6.
      
Wife's Income variable paid every 6 months (2 events per year). Average last two yrs 6500/mo after additional taxes this costs us. We have been living on this in a very antimustachian way. We did tons of renovations to our home and a huge landscaping to the backyard. Ate out a lot. Crazy presents to my family of 9 siblings.

We would still like to renovate the girls bathroom and our bathroom. The flooring will be free but we'd need custom cabinets as the sizes are weird. Our cabinets are laminated and peeling away and need replacement someday, certainly if we wanted to move and make more money off of the house as those two bathrooms are not to par with the rest of the house.
         
Spouse's Income Net 3020/mo Field Superintendent Commercial Tile. They supply vehicle and all of its expenses/gas in addition to this income. He is on the road every day and used to buy lunch. When he realized he had high blood pressure he stopped this habit. YAY!

Assets
$54000 in bank account from wife's last 6 month paycheck plus $30,000 in business bank account needed to run business/pay rent.
$10,000 IRA
$115,000 401K
Equity in home:$200,000
Mortgage balance: 165,000 with 15 years left on a 20 year loan at 200,000 4% interest.
2011 Toyota Sienna paid for.
Maybe a couple thousand dollars in books, china and other junk around here that we could sell that we don't use.

September actual budget #'s, with last column being ongoing balance from previous months.

Groceries goal 1200 mo   $1,450.00    $1,658.52    ($208.52)

Try to eat paleo and organic because adopted son has leaky gut syndrome and is allergic to dairy, eggs, dry beans. Husband has high blood pressure and high cholesterol which we have controlled through this diet without medications. So groceries is a hard area for us to reduce. We did just get Azure Standard in our area so placed a huge order of bulk foods (hence over in this category this month but will then be under in future months). Does anyone have experience in controlling high blood pressure without meds and keeping the budget down? Especially when one kid can't eat eggs, dairy, and dry beans?

Fuel 160 mo on average. Wife's biz 2x/year involves traveling a long distance.    $160.00    $115.76    $40.90
We live in a large city. We cannot bike to stores.

HSA Medical Expenses 511.44/mo   $511.44    $50.00    $2,937.14.
Hubby's grandma died of melanoma and his mom has melanomas. He has cancerous spots cut off every 3-6 months. The money comes out of our HSA to be pretax.

Restaurants 400/mo$150.00    $157.15    $46.66
-now trying to eliminate this entirely! Our siblings eat out often and we were joining them. I invited them over this month and fed them all (family of 7) and it was still cheaper than eating out.   

Home Maintenance 200/mo   $200.00    $0.00    $718.45
Obviously we won't be doing any maintenance for now unless it is an emergency.

Clothing $85/mo    No clothing spending for now!

Education fully funded!  sell stuff to add more! 1250 per 6 mo   ($1,114.73)   ($135.39)   $88.39
We homeschool 4 kids.

Vitamins 200/mo   ($151.53)   $0.00    $200.00
For the kid with leaky gut. Not sure how to heal him without vitamins.

Piano 27.69/wk 120/mo   $0.00    $90.00    $30.00
2 kids taking piano. We can quit if we have to, but...

Lawn 100/mo   $100.00    $62.83    $362.17
I guess we can learn how to do the spraying of the lawn. Have always used a service. Tips anyone? Lots of weeds where we live and HOA requires we keep up with lawn.

Household Goods 100/mo   $100.00    $32.23    $341.00
Hmm... I don't even know what this is. I think it is for towels and sheets and anything non-grocery for the house.

Home Improvement goal is to save up 1000 for a project- 100/mo   $100.00    $191.68    $780.98
In the midst of adding a pond. Half done. Must finish if we want to sell house.

Mortgage 1212/mo   $1,212.00    $1,211.96    $0.20
Our father-in-law owns our mortgage. 4% interest. $35000 purchase price. $200000 mortgage. $165000 balance with 15 years remaining.

Verizon Cell Phone 74/mo 8th of month-just reduced this to $45/month!   $74.00    $74    0

Duke Energy avg=160/mo-neg balance reflects going over last 2 months. But now not running a/c in fall $160.00    $187.79    ($131.62)

City of Charlotte  90/mo =water bill   $90.00    $103.66    ($2.13)

Piedmonth N. Gas (higher in winter) 60/mo   $60.00    $43.01    $115.80

TWC Internet 27th (no cable-just internet. realized we rent modem. will buy one)  54/mo   $54.00    $30.37    $2.68

bank fee 1/mo 15th   $1.00    $1    $0.00

HOA fee 52/mo 156/qtr -    $0.00    $0.00    $156.00 only way to ditch this is to move.

Life Insurance 161/mo 1930/yr   $1,273.00    $81.12    $1,768.61
We have $1million policy on each of us. With 4 kids, 1 with special needs who will never work, we don't know that cutting this is wise.

Car Insurance 52.50/mo $314.81/6mo   $2.60    $0.00    $105.00

Insurance Umbrella Plan   $154.08    $154.08    $0.00

Drama 100/mo $1200 each Sept   ($300.00)   $0.00    $0.00

Tithing on spouse 128/wk 555/mo 3330/sale 6660/yr   $2,816.00    $2,944.00    $0.00
Tithing on 2nd Income   4250/6mo

ID Theft Protection 99/yr 8.25/mo   $8.25    $0.00    $8.25

Real Estate Tax 400/mo $4500/yr    $0.00    $0.00    $4,500.00

Homeowners Insurance  100/mo 1147/yr    $672.00    $1,147.00    $0.00

Property Tax on Car 25/mo  $300   $133.00    $0.00    $125.20

Tax Prep 40/mo 480/yr    $160.00    $0.00    $240.00

Car Repairs 60/mo 720/yr    $60.00    $292.95    ($52.95)

Birthdays 50/mo 600/yr    $50.00    $123.17    $206.87

Christmas 85/mo 1000/yr $85.00    $9.00    $522.38

Sports team for boys 20/mo    $20.00    $0.00    $120.00

Hair 40/mo  - just found a $12 haircut lady for me!   $40.00    $0.00    $150.20

Family Fun 30/mo   $170.00    $44.14    $0.24

Roth spouse 417/mo 10%+ or $5000 min   $3,749.00    $0.00    $3,749.00

Roth 2nd Income 417/mo or $5000 min   $0.00    $0.00    $4,000.00

Emergency $ ??? GOAL=6 mo Charlie's 30k Gail 50k   $0.00    $0.00    $3,281.83

Car Replacement 300/mo 3600/yr 300/mo goal 36k in 10 yrs by 4/2023   $300.00    $0.00    $1,500.00

Vacation 85/mo $1000 initial   $85.00    $201.29    $777.71

Orthodontia 12000 j&b-no one has to have braces, but if we could we would for the boys   $6,000.00    $0.00    $6,000.00

HVAC fully funded-our HVAC units are leaking freon and need replacing soon   $10,000.00    $0.00    $15,000.00