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Learning, Sharing, and Teaching => Case Studies => Topic started by: davepac7 on July 07, 2017, 08:44:47 AM

Title: Expense sheet
Post by: davepac7 on July 07, 2017, 08:44:47 AM
My pregnant wife and I just made an expense sheet and I'm hoping to get some feedback on what could be missing on there and any ideas to improve our financial situation. I currently have exactly $0 dollars after having been unemployed for a month. The income below is after taxes with my new job that's starting next month.

We live in the suburbs in the Washington DC metro area in a 1 bedroom apartment. Unfortunately, we are stuck in one of the top 5 most expensive areas in the US where any type of enjoyment costs a bunch of money.
D's Income   5300
A's Income   0
Other Income   0
Income totals   5300

Mortgage/rent   1530
Electricity   100
Water + Sewer   45
Gas   0
Internet + TV   80
Cellphone   50
Renter's Insurance   12
Groceries   450
Home totals   2267
D's Fuel   120
A's Fuel   100
Ford Car Payment   340 (two months left)
Car Insurance   90
Car Plates Renewal   2
Car wash/detailing services   2
Parking Tickets   2
General Parking   2
Property Taxes   17
Maintenance   100
Transportation totals   775
Disney Pass   0
Dining Out   200
Movies/plays   60
Other   80
Entertainment totals   340
Health Deductible   100
Insurance   360
Prescriptions   13
Over-the-counter drugs   15
Co-payments/out-of-pocket   5
Life insurance   0
Veterinarians/pet medicines   0
Health totals   493
Accommodations   100
Food   55
Souvenirs   5
Rental car   5
Vacations totals   165
Clothing   50
Gifts Savings   100
Salon/barber   15
Spa/Nails   50
Professional Development (Wix)   15
Charity   50
Personal totals   280
Financial obligations   
Student Debt   331
Friend Debt   200
Supporting family member   420
Our Retirement   318
Emergency Savings   150
Child support   250
Financial obligation totals   1669
Total expenses   5989
Cash short/extra   -689.00
Title: Re: Expense sheet
Post by: DarkandStormy on July 07, 2017, 09:12:52 AM
Well, that's clearly not going to work for you.

Movies/plays   60
Other   80

You are now only searching for free entertainment.  No "other," no "movies/plays."

Friend Debt   200
Supporting family member   420
Our Retirement   318

Not to pry, but you may consider options around the first two so you can actually fund the third one.  I don't know the circumstances around the first two, but you mentioned you are broke and are projecting out to not meet all your financial obligations for the coming month.  Something's gotta give.  See if your friend will let you delay payment.  See if your family member can live on less money coming from you guys.

Dining Out   200

This is zero until you can find a way to have positive net cash flow.

Car wash/detailing services   2
Parking Tickets   2
General Parking   2
Property Taxes   17
Maintenance   100

Don't get your car wash/detailed.  $24/year?  Just wash it by hand when you want to.  $24/year budgeted for parking tickets and general parking?  I don't quite understand.  And you have to pay $204/year in property taxes?  For travel?  Or is that on top of your rent payment?  $1,200 in maintenance??  What is that?

Accommodations   100
Food   55
Souvenirs   5
Rental car   5
Vacations totals   165

Almost $2k/year on vacations?? You can't take any right now.  You just said you're broke.  Sorry.  You can start taking vacations when you get things under control and have positive net cash flow.

Internet + TV   80

Cut cable and just get Netflix for $10/month.  Internet should be less than $50/month (we can get it for $30-$35/month for 10-15 Mbps).

If you use credit/debit cards for most everything, I'd look at Personal Capital or Mint to track your spending by category.  It'll give you a better idea of sticking to the budget.

That said, if you stop taking vacations, stop eating out, stop going to the movies, stop giving to charity, and stop saving for gifts you'll break even.  That's without addressing some of the other points above. 
Title: Re: Expense sheet
Post by: Proud Foot on July 07, 2017, 09:44:13 AM
Dark and Stormy gave some good suggestions to start with. The good news is in two months you will be 340 closer to 0.

For the Friend Debt and Supporting Family Member, without knowing the family member support situation, try to work something else out for either pausing payments or reducing payments on account of you not having a job.

Are the student loans for you or your spouse? If they are for you, while not optimal, look into a hardship deferral on account of being unemployed.

How far along is your wife? I don't see any expenses on here related to preparing for the birth of a child. Cut out everything in your entertainment section, your vacation section, anything that says "savings" other than the emergency savings.  You need to focus right now on saving as much as you can to prepare for birth and post birth expenses. 

Does your wife work or is she planning on quitting work once the baby is born? See what she can do to help bring in some income.
Title: Re: Expense sheet
Post by: davepac7 on July 07, 2017, 09:53:00 AM
Thanks both of you for the detailed notes, and yes, baby costs will be an additional expense that we haven't factored in yet.

Again, I appreciate the quick replies.