Help me grow a mustache!

[FastStache]

Hello everyone. I have been working on getting more and more frugal over the years, but am struggling to get more and more out of my budget without some big life changes.

Below is an idea of where I am.

Mortgage = $1,385.00
Cell Phone = $100.00
Garbage = $18.00
HOA = $75.00
Lawn Care = $45.00
Alarm = $38.00
Loans = $569.00
Internet = $55.00
Insurance = $300.00
Car Insurance = $155.00
car maint. = $100.00
med/Dent/Vis = $60.00
Home maintenance = $100.00
gifts = $25.00
Education = $15.00
Business = $20.00
Groceries = $550.00
Gas/Tolls = $300.00
dining out = $20.00
Haircut = $12.00
Electricity = $150.00
Water = $50.00
Baby = $250.00
Misc = $0.00

Debts
House - 187k (3.625%)
Car - 26.5K (2.6%)
Student Loan #1 - 5.5K (6.5%)
Student Loan #2 - 1.2K (6.5%)
CC #1 - 2.6K (0%)
Bill - 700

Assets
House - 215K
Car #1 - 20K
Car #2 - 3K
401K - 56K
Checking - 5K

Income - 4.7K
with overtime about 6.5K

This year I have paid down about 5K in loans and I should have student loan paid off by the end of the month. I would have been able to pay off more this year, but I had a daughter and had some big bills from there.

The car situation sucks since I took a hit on an upside down trade-in, but the only good news is I have a low interest rate.

Plan of attack - within the next year
1. Student loan #1
2. Student loan #2
3. Credit card
4. Medical Bill
5. Pay off car

After pay off the house until I have 80% ltv and reduce the payment by $95 by getting rid of my PMI.

I am working 55-65 hour weeks already. I am also getting another masters which is being paid for, and I have a newborn at home. So, my time is limited to say the least.

It would difficult for me to have time to cut the lawn myself, and the rate is about 17 per cut at the moment for 1/4 acre lot.

What have I done so far?
Swtiched over to Ting, and I typically pay 65-86 dollars for 4 people.
I cancelled cable.
I don't eat out and have been shopping at Aldi's.
I stopped contributing to my 401k for the time being.

After the next year, I would be willing to relocated closer to work and bike. But, this would be difficult as prices tend to be higher in that area.

Any ideas and help would be great.

[Rebecca Stapler]

I see your $250/month baby category ...

Do you cloth diaper your newborn? It requires a high up-front cost ($800 or so) but pays off over time -- especially if you use cloth wipes too. I recommend a one-size-fits-all diaper so you don't have to buy new ones when you little one grows. This site has some great info on where to start: http://www.kellyscloset.com/Cloth-Diaper-Information_ep_34-1.html

Do you shop bi-annual consignment sales? They are great places to get baby gear at 70% off. The younger your baby, the better the supply and better the deal you'll find. (like, activity tables and singing stages for $7 each, strollers for $20, jumpers for $25, push toys for $5, etc.) These aren't consignment stores. They're bi-annual events. To find one near you: http://consignmentmommies.com/

[FastStache]

Good thing, you sent this now. There is one coming up in July.

[FastStache]

What kind of insurance are you paying $300/month for -- that is incredibly high for life insurance, I hope it isn't whole life...

Baby costs seem very, very high -- bring those down as suggested already by considering cloth diapers and buying most everything else second hand (or getting it free from friends and family who have outgrown their baby stuff).

Car maintenance seems very high to me, but I don't have a car so maybe it is justified.  But you are spending $555/month PLUS whatever your car loan payment is which seems insane to me.  Again, I don't have a car so maybe I don't get it, but there should be ways to bring that down even without relocating.

Do you really need the alarm service?  I've heard the stickers are almost as much a deterrent as the actual service.  I'd consider cancelling. 

Electricity seems a bit high to me.  Are there ways you can conserve there?  Line drying clothes can make a big difference, as can setting the heat/AC at lower/higher temps.   I survived a summer in NYC without AC with a baby when we had several heat spells of 100+ F temps.  Wasn't fun, but it can be done.

The insurance is health insurance. I shopped around for a bit, and was the best rate i could find, but I could look at raising the deductible to save some money.

The car was a high estimate for me, but I will be needing some new tires soon, so I estimated 100. Realistically it is lower.

The alarm is high and I have called ADT and they already reduced it. There are options for around 10 bucks a month with an initial investment of 100. I need to pull the trigger on this.

You are right about the electricity, and I will look into reprogramming the thermostat. The house is 2400 sq ft though. I could line dry some of my clothes in the back patio. Thanks for the suggestion.

The loans are hurting me, but I am pumping about 1500+ extra a month into them. They include student loan payments and the car payment. I am treating them as my emergency!

[tomsang]

If you get a 401k match then you may want to fire that back up. It is the best return on investment. Sounds like you are doing great. Just keep plugging away and the flywheel will be humming in the right direction.

[FastStache]

If you get a 401k match then you may want to fire that back up. It is the best return on investment. Sounds like you are doing great. Just keep plugging away and the flywheel will be humming in the right direction.

Thanks tomsang. I get a 50% match up to 8% on my 401k. Essentially I would be saving 12%, but I already get 4% from my employer. I was thinking of firing this back up once I have some equity in the car, while still making extra payments. In case something happens, I can sell the car and have some cash. I'd assume once the car loan is down to 15k would be a safe time.

[tomsang]

If you get a 401k match then you may want to fire that back up. It is the best return on investment. Sounds like you are doing great. Just keep plugging away and the flywheel will be humming in the right direction.

Thanks tomsang. I get a 50% match up to 8% on my 401k. Essentially I would be saving 12%, but I already get 4% from my employer. I was thinking of firing this back up once I have some equity in the car, while still making extra payments. In case something happens, I can sell the car and have some cash. I'd assume once the car loan is down to 15k would be a safe time.

Is it a match or do they just give you 4%?  If it is a match, stop paying down debt and make sure you get the match. Paying down your car loan at 2.6% would be one of the worst things to do if you are losing out on the match. None of your interest rates are that bad. Are you getting tax benefits on your student loan interest?  If so what is your effective net interest rate. You may want to hold off on that as well if it brings it down low enough. Good luck.

[FastStache]

If you get a 401k match then you may want to fire that back up. It is the best return on investment. Sounds like you are doing great. Just keep plugging away and the flywheel will be humming in the right direction.

Thanks tomsang. I get a 50% match up to 8% on my 401k. Essentially I would be saving 12%, but I already get 4% from my employer. I was thinking of firing this back up once I have some equity in the car, while still making extra payments. In case something happens, I can sell the car and have some cash. I'd assume once the car loan is down to 15k would be a safe time.

Is it a match or do they just give you 4%?  If it is a match, stop paying down debt and make sure you get the match. Paying down your car loan at 2.6% would be one of the worst things to do if you are losing out on the match. None of your interest rates are that bad. Are you getting tax benefits on your student loan interest?  If so what is your effective net interest rate. You may want to hold off on that as well if it brings it down low enough. Good luck.

I am given 4% into one 401k account with a limited number of stock/mutual fund options.

I am also matched up 50% up to 8% of my income in another 401k account. This is what I am currently missing out on.

I will not be getting any student loans breaks due to my income this year. So, 6.5-6.8% is my effective rate.

[tomsang]

Stop paying down debt until you fund 401k by 8% to get the 4% match. You are getting a 50% return on investment vs the 6.8% by paying down student loans. This is a math no brainer!!!!  Great benefits by the way. 

Good luck and don't miss out on free money ever!!

[FastStache]

I have adjusted my 401k contributions. So I don't give up on free money.

Man, I didn't realize my toll situation was that bad. I just checked how much I paid last month, and it was 119!!!!! There were a few extra trips that I normally wouldn't take, but this brings it down to about 110 every month!

I am giving some thoughts to moving closer to work, but I can't find anything in my price range, but that is a crazy amount for tolls.

[Rebecca Stapler]

Good thing, you sent this now. There is one coming up in July.

Awesome! The best way to shop these sales is to shop the pre-sale, which is when the highest quality / best priced items are sold. Some sales allow pregnant / new parents to get in by registering in advance. Some require that you consign or volunteer. As a new parent, you don't have anything to consign. But volunteering is usually easy.

[unpolloloco]

Also, shop around on car insurance - that seems rather high (but might be due to your location)!

[FastStache]

Also, shop around on car insurance - that seems rather high (but might be due to your location)!

I shopped around, and part of the rate is due to a bad driving record for one of the drivers on the plan. But, it does drop a few bucks every month. Geico ended up being the best rate for me.

Next go around I will comparitively shop again to make sure I'm getting the best rate.

Do you guys recommend an insurance agent with access to lots of companies or doing the shopping around myself?