Author Topic: Reader Case Study - Hair on Fire Debt Emergency: What Do?  (Read 23576 times)

Wasdramer

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #50 on: August 31, 2016, 07:56:54 PM »
Congratulations!  That is such a big step - you more than doubled your income and slashed your expenses.

Now that your are a full-time employee, does your employer offer manager-track training or tuition reimbursement?  I know others have said it before, but you have serious skills with communication and writing, and you have no idea how rare that is even in the professional world.  Even at $9.20/hr your talents are being wasted.

The problem is that the gas station I work at is hardcore franchised out. They've been expanding rapidly, and have bought out another gas station chain entirely very recently. The most positions they have available for anything in my career area is a whole state away. I can't drive yet (I know, the main thing keeping me from doing a lot of things, but at least I don't have the expenses of insurance/fuel/car maintenance/etc.) but there's no easy way I can just pick up and move with the little amount I've just now been able to save up. Nor would I want to put my boyfriend through that, since he is in a much worse position than I am (his father is the neediest adult I've ever met, and I despise him for it, but there isn't much I can do until I can save up enough to move into an apartment with my boyfriend).

So, while I could go into something along the lines of a writing career, my most passionate dream is to either establish a computer repair/maintenance shop, or work for such a place, building computers/repairing them/whatever else that could entail. I have enough college experience for it, despite not getting a degree (there's not too much of a need for a piece of paper for my kind of living), but establishing a business like that would be a train wreck when I'm still working on getting my life completely situated.

Wasdramer

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #51 on: December 29, 2016, 12:15:58 AM »
So, I've been silent, but things have changed a bit again! I just quit my gas station job this month after starting to work at the same place my boyfriend is working at (a restaurant that functions similar to fast-food, but the pay is $10 an hour). When I quit the gas station job, I had $9.20 an hour and 16-24 hours because they took away my full time status. That also cut my insurance and 401k. So now i'm at the restaurant working at least 30 hours at $10 an hour. I don't get insurance or a 401k (or direct deposit, for that matter) but it's still better as far as a work environment! Oh, I don't take a car to work at all. I just walk for 20 minutes, and as if by magic, I'm at my workplace!

Since I'm sure you guys are curious, here's an update as to what my money looks like. Please note, as there are three different incomes, I don't have to pay for everything alone. Mainly, I just pay my debts and (used to) pay my phone bill. Now my phone bill is added into the family phone bill, so in January, the phone costs should go down.

I also know that this isn't nearly as optimized as it could be. For example, my boyfriend's dad spends a LOT of money on things like alcohol/cigarettes/whatever pleasures he wants. At the same time, he'll probably not be alive for more than a couple years, so since I'm budgeting for everyone, I've taken this into consideration and I've been working around this. Unlike at my mother's house, I actually have the assets that allow me to work around with this kind of thing. Granted, I know I'm not saving nearly as much as I want to, but that should definitely change in January once I get some things figured out (like my boyfriend and I having a joint account and sending money into his other account for bills). We only have that account really just in case something happens to his father, he can at least make sure things are taken care of on that end. Otherwise, it's just bills.

So, household budget for this past month!

December:

Required Spending:
  Phone: $214.20 (exact, split between one plan of $182.15 and $32.05) (guess which is mine!)
  Rent: $509.14 (exact)
  Electric: $117.63 (exact)
  Natural Gas: $28.52 (exact, expected with winter weather)
  Internet: $155.05 (exact)
Total: $1,024.54

True Expenses:
  Transportation: $30.02 (One good thing is we don't drive too much except for certain errands and shopping)
  Groceries: $816.49 (average, still have one more shopping trip this month. Excessive, but most of it is because soda/easy prep meals)
  Expenses - BF's Dad: $694.65 (I lump all his transactions together because I know better than to try to change his spending habits)
  Auto Maintenance/Insurance: $80.25 (This rarely fluctuates)
  Medical: $100 (for my medical debt, I have it put to where I pay $100 a month, and that debt is down to only ~$384)
  Subscriptions: $22 (My boyfriend and I have a couple subscriptions we pay into. Still relatively cheap)
  Work Food/Drink: $66.34 (I work at a restaurant now and food is half-off for me. My boyfriend also works there, but he's low-tier manager, so his is free)
  "Oops, I Didn't Budget Everything!": $208.09 (Christmas was kinda forgotten about in budgeting. Oh well.)
  Interest/Fees: $26.61 (I accidentally paid my credit card late. I'm making sure to never have that issue again. The strange thing was, it was automated until they mysteriously dropped my payment account info, during the busiest shopping season. Huh...next time, they get a check mailed to them through my bank automatically.)
Total: $2,044.45

Credit Card
  CC1: $39.10 (Next month it will jump because the late fee will go on there, but that is already factored in. Yay precautions!)
Total: $39.10 (there is no CC2+)

Student Loans: (Amt per mth/total on acct)
  Stafford 1: $50.58/3,698.33
  Stafford 2: $37.37/3,217.58
  Stafford 3: $75.04/4,635.09 (Highest % interest, and $26.10 is extra not required)
  Stafford 4: $35.55/3,060.74
  Stafford 5: $40.74/3,697.63
  Stafford 6: $0/0 (Closed, paid in full Oct. 25th, $27.52 was the balance)
  Direct 7: $32.99/2,834.80
  Direct 8: $46.14/4,623.05
  Direct 9: $31.59/2,714.02
Total: $350/28,455.14 (Once my medical debt is gone, I will be paying $450 instead of $350 into the student loans.)

Quality of Life:
  Investments: $30.37 (Through Acorns)
Total: $30.37

Just For Fun:
  Dining Out: $83.60 (This is mainly when I'm with my family, not usually on my own)
  Gaming: $37.30 (This was after we got a Steam gift card for $50. After this, we probably won't be getting games for awhile)
  Fun Money: $48.52
Total: $169.42

Grand Total: $3,657.88



Income:
  SSI: $1,362 (This is how much my boyfriend's dad gets each month)
  Restaraunt Payroll: $1,993.46 (between me and my boyfriend)
  Gas Station: $431.29 (I just quit there this month, doing so just before the end of the year because I wasn't going anywhere with it)
Total: $3,786.75




This past month left very little margin of actual money, but I've been compensating and January I'll be cutting out a lot of big spending (mainly food at work and various little things). Plus, once the joint account is official, we can hopefully make a lot of progress financially. I'm not looking at the joint account being the only thing that will make this better of course, but it will allow so much more automation than managing multiple bank accounts would otherwise allow.

So, that's what I have currently. Thanks to everyone who has given me advice in the past! I know this isn't completely optimized, but I'll gradually be optimizing this as time goes on.

Ebrat

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #52 on: December 29, 2016, 07:33:52 AM »
I hadn't seen this thread before, but great job making progress! If you haven't been late on a credit card payment in a while, I'd recommend calling them and asking if they can waive it.  You can just say something like, "I paid late because I had automatic payments set up in the past and something went wrong there. I wanted to see if I could get the fee waived since I have a history of paying on time."  Most companies will waive the fee if you're not a repeat offender.

Wasdramer

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #53 on: December 29, 2016, 04:19:58 PM »
I hadn't seen this thread before, but great job making progress! If you haven't been late on a credit card payment in a while, I'd recommend calling them and asking if they can waive it.  You can just say something like, "I paid late because I had automatic payments set up in the past and something went wrong there. I wanted to see if I could get the fee waived since I have a history of paying on time."  Most companies will waive the fee if you're not a repeat offender.

Normally, I would. The problem is, I didn't exactly get a good credit card. Their interest rates are 36% APR (I got this because I couldn't find any other better one at the time but I really wanted to build my credit). They have an annual fee, and the worst part is, if I want a credit limit raised, I have to pay them 25% of the amount to be raised. It's a very, very ridiculous card to have.

My credit score was in the mid 400s when I got the card (there's two huge dings on my credit, one isn't even my debt) and now it's actually in the mid 500s. I've only put two things on my card, one a bill and the other a subscription (YNAB, at $5 a month) and I've paid it off entirely every month. I tried applying for another credit card through someone else, but they declined me. So, I guess I'll just end up dropping this entirely, waiting at least 2 years so I can build up my credit through paying my student loans, and then see what I can do.

Ebrat

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #54 on: December 29, 2016, 04:34:10 PM »
That sounds like a good plan :)

frugaldrummer

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #55 on: December 30, 2016, 11:35:32 PM »
Quote
  $350/28,455.14 (Once my medical debt is gone, I will be paying $450 instead of $350 into the student loans.)

I would recommend that once you have the medical debt paid, that extra $100 a month needs to go into an emergency savings account. I know you're anxious to pay off those bills but you NEED an emergency fund first before you start paying extra on them.  As precarious as your position is, you need to save up 3-6 months living expenses.

Also you still have an income problem. You and your boyfriend should be looking for second jobs to boost your total income. Online stuff or mowing lawns or whatever it takes. Sure it's hard to work 60 hour weeks but not as hard as being poor! Medical residents work 80- 100 hours a week; it can be done. You are going to need to eventually learn to drive so that you can get to a higher paying job. You have intelligence and computer skills, you need to be looking around for an even better job.

Meanwhile my son has made some nice spare change claiming class action refunds online. Sometimes as much as 75 or $100 in a month. Add that to your emergency fund.

Focus on that emergency fund first. If boyfriends father was to die suddenly, you and boyfriend would need that money to cover the rent.

Also, are you on an income based repayment plan for your student loans? If not, is that an option?

You are going to get out of this hole, you are making progress, but you and bf both need to boost your incomes.

Wasdramer

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #56 on: January 02, 2017, 12:24:30 PM »
Quote
  $350/28,455.14 (Once my medical debt is gone, I will be paying $450 instead of $350 into the student loans.)

I would recommend that once you have the medical debt paid, that extra $100 a month needs to go into an emergency savings account. I know you're anxious to pay off those bills but you NEED an emergency fund first before you start paying extra on them.  As precarious as your position is, you need to save up 3-6 months living expenses.

Also you still have an income problem. You and your boyfriend should be looking for second jobs to boost your total income. Online stuff or mowing lawns or whatever it takes. Sure it's hard to work 60 hour weeks but not as hard as being poor! Medical residents work 80- 100 hours a week; it can be done. You are going to need to eventually learn to drive so that you can get to a higher paying job. You have intelligence and computer skills, you need to be looking around for an even better job.

Meanwhile my son has made some nice spare change claiming class action refunds online. Sometimes as much as 75 or $100 in a month. Add that to your emergency fund.

Focus on that emergency fund first. If boyfriends father was to die suddenly, you and boyfriend would need that money to cover the rent.

Also, are you on an income based repayment plan for your student loans? If not, is that an option?

You are going to get out of this hole, you are making progress, but you and bf both need to boost your incomes.

We are working on a solution for that, actually. The biggest thing is, his father spends over $600 a month on meaningless things. Cigarettes and booze, not to mention whatever his father fancies. If you take his father's income and that extra $600 out, that's $700 left to factor in for covering. However, we can easily cut down the cellphone bill down to just two phones (instead of four), sell the ones that are unused to get their value, and then keep that for savings. We could also drop car insurance entirely since we both don't drive and just walk to and from work anyway, and we can easily change our eating habits to ensure we don't dine out nearly that much and just buy our groceries from the store that is also within walking distance (the prices aren't that bad either).

Additionally, we can get overtime at our workplace to boost our incomes to ensure we can afford whatever else might happen. I can always cut off the subscriptions if needed, and I can cancel the credit card whenever I want, ensure that it's paid off, and by the time most of those savings have kicked in, I can additionally just pay the minimum on the student loans until our financial life improves. Worst case, I can find another job to supplement if needed, but I doubt I'll really need to do that at this point in time.

As for the student loans on an income-driven payment plan, I really don't want to do that since it will lengthen the life of the loans. I want these as gone from my life as possible. I don't want to suffer with this debt any longer than I have to. That's why I'm trying so hard to get it paid off as quickly as I can.

As much as there may be an income issue, it's because there's a spending issue. Most of that is created by his father, actually. If his father was no longer in the picture, then most of the income expenditures would also disappear. The biggest case for this I can make is with our Internet bill. We spend over $150 a month for internet, cable TV and a landline phone we don't even use. His father decided it would be fine to add on a phone for just $10 more a month. He makes decisions like this because he doesn't care about saving back anything because in his mind it's irrelevant.

So, it's not an income problem so much as a spending problem. I can't convince his father otherwise (trust me, he's a raging drunk so it's not the easiest to deal with). I am also saving back whatever isn't spent for an emergency fund. In fact, I have over $400 stored up for this, and considering I didn't have that a month ago, I think I'm doing fine on that end. Ultimately, we are going to get a joint account (still waiting on them to verify his identity) and then we can split our money 75%/25%. 75% goes to bills/emergency fund, 25% goes to whatever we want (those aren't the final numbers, I have to see what I can get away with first for that to work).

Anything that we have in the shared pool of money will go to bills, groceries, and the emergency fund once that is taken care of. Anything left over from our personal accounts each month will also roll over into the emergency fund. It sounds complicated, but I do know it will work. Also, we're finally getting direct deposit, so I won't have to worry about photo depositing before 5 PM just to get $200 the next day!

I do thank you for your concern and advice! I probably haven't thought of every single thing, but I have been thinking on these for awhile and I've been working on figuring out what I can do to minimize the shock of losing such a big income for the household.

Proud Foot

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #57 on: January 04, 2017, 10:30:17 AM »

We are working on a solution for that, actually. The biggest thing is, his father spends over $600 a month on meaningless things. Cigarettes and booze, not to mention whatever his father fancies. If you take his father's income and that extra $600 out, that's $700 left to factor in for covering. However, we can easily cut down the cellphone bill down to just two phones (instead of four), sell the ones that are unused to get their value, and then keep that for savings. We could also drop car insurance entirely since we both don't drive and just walk to and from work anyway, and we can easily change our eating habits to ensure we don't dine out nearly that much and just buy our groceries from the store that is also within walking distance (the prices aren't that bad either).


How does your BF's Father get the money to spend?  Could you make it so you gave him that $600 a month in cash so that is all the money he has access to?

Quote
As for the student loans on an income-driven payment plan, I really don't want to do that since it will lengthen the life of the loans. I want these as gone from my life as possible. I don't want to suffer with this debt any longer than I have to. That's why I'm trying so hard to get it paid off as quickly as I can.

I totally understand not wanting to suffer with the debt any longer than you have to.  However, just because you change to income-driven payment plan does not mean you cannot pay more than the minimum each month. Having the lower minimums will allow you to get your emergency fund filled and then you can pay more but also have the flexibility to pay the minimum if you need to use the extra for something else.

This is the first time I saw this thread so congratulations! It seems like you are making progress and have a plan to better your financial situation!

Wasdramer

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #58 on: January 04, 2017, 01:16:29 PM »

We are working on a solution for that, actually. The biggest thing is, his father spends over $600 a month on meaningless things. Cigarettes and booze, not to mention whatever his father fancies. If you take his father's income and that extra $600 out, that's $700 left to factor in for covering. However, we can easily cut down the cellphone bill down to just two phones (instead of four), sell the ones that are unused to get their value, and then keep that for savings. We could also drop car insurance entirely since we both don't drive and just walk to and from work anyway, and we can easily change our eating habits to ensure we don't dine out nearly that much and just buy our groceries from the store that is also within walking distance (the prices aren't that bad either).


How does your BF's Father get the money to spend?  Could you make it so you gave him that $600 a month in cash so that is all the money he has access to?

Quote
As for the student loans on an income-driven payment plan, I really don't want to do that since it will lengthen the life of the loans. I want these as gone from my life as possible. I don't want to suffer with this debt any longer than I have to. That's why I'm trying so hard to get it paid off as quickly as I can.

I totally understand not wanting to suffer with the debt any longer than you have to.  However, just because you change to income-driven payment plan does not mean you cannot pay more than the minimum each month. Having the lower minimums will allow you to get your emergency fund filled and then you can pay more but also have the flexibility to pay the minimum if you need to use the extra for something else.

This is the first time I saw this thread so congratulations! It seems like you are making progress and have a plan to better your financial situation!


He gets it through his Social Security income. I have no access to it. I only know what he gets because I have access to my BF's checking account which also has access to his father's account. I can't take that money from him, since he's worked for that money all his life.

I didn't think about the income-driven payment plans in such a way, so maybe it would be in my best interest to change it like that if only so I can get some more things established. Then I can shift back up to $350.

Thanks for letting me see that differently! I'll see what I can do on that. And thanks for your kind words!

With This Herring

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #59 on: January 04, 2017, 07:41:22 PM »
When you are looking at income and spending, why are you including your BF's father's income and expenses?  If you and your boyfriend have not yet decided that you two are together for life (can't tell based on your posts), why are you including his income and expenses?

I would suggest that you take a spreadsheet and work out a little budget with five columns.
You (just Wasdramer)
Boyfriend's incremental increases
You + boyfriend (total of first two columns)
BF's father's incremental increases
Total of all three of you

Then make your rows:
Gross income
Less taxes
Net income
Less:
Share of Phone (what you would spend on your own if you weren't part of this family plan)
Share of Rent (what you would pay per month to rent a room in an apartment or house or get a studio apartment)
Share of Electric
Share of Natural Gas
Internet (what you could get this for on your own)
Share of groceries
Your work food/drink
Fun money
Subscriptions
Your debt payments
Etc...
Net Savings/Deficit

In your column, fill out the cost if you were to cover these expenses alone, if Father and BF had to move to Alaska and you couldn't go with them (or whatever situation would take their finances and Father's home out of the picture).  So, if the lowest promotional rate for internet is $50 a month, you would put $50 in your column for internet.  If the cheapest reasonable room-share you could get was $400, you would put $400 in the rent column.  If you would only have $12 of subscriptions on your own, you put down $12 in your column.

In your BF's column, fill out his income and the expenses that he would cause to rise, the marginal increases that come from living with him.  He wouldn't add more to internet costs, so put $0 for internet in his column.  If you two were to get an apartment together, you might choose to get a $500 studio instead of a $400 room-share, so put the $100 difference in his column.  He might be okay with a cheap phone plan, so you and he might each have $15 in your two cell phone entries.  Put down the remaining $10 in subscriptions, because the two of you pay $22 together.

In Father's column, put his income and the incremental increase for any expense that he makes higher.  He gets the full amount of $700 BF's dad spending.  He gets any rent currently paid on his home less what has been put into the columns for you and BF (so, Father's portion of rent might be a negative number).

When you look at this information, are you personally able to cover your share?  Is your boyfriend able to cover his share?  Are you two being subsidized by Father's social security income?

So, I've been silent, but things have changed a bit again! I just quit my gas station job this month after starting to work at the same place my boyfriend is working at (a restaurant that functions similar to fast-food, but the pay is $10 an hour). When I quit the gas station job, I had $9.20 an hour and 16-24 hours because they took away my full time status. That also cut my insurance and 401k. So now i'm at the restaurant working at least 30 hours at $10 an hour. I don't get insurance or a 401k (or direct deposit, for that matter) but it's still better as far as a work environment!

I don't think work environment should be your big worry right now.  You need to make more money.  You mention that you can cut expenses here and work overtime there.  Why not work overtime now?  Will the restaurant pay you time-and-a-half for overtime hours?  How much overtime will they let you work on a long-term basis?  If they will let you work overtime, try to get up to 50+ hours per week.  It won't be fun, but it is do-able.  30 hrs per week on straight time (normal hours) is around $14,400 per year, but 50 hrs per week with the last 10 of those at time-and-a-half is $26,400 per year (each using a year based on 48 working weeks, to allow for illness, vacations, and what-have-you).  The more you work, the better a savings cushion you can build.  You don't want to wait until things get bad before building a much larger safety net.

You can probably find a better-paying job if you look around.  You should re-read the first page of this thread for ideas.  One poster mentioned Aldi.  The Aldi stores in my area are paying $12+ per hour for new employees.  They have 401(k) plans, medical, and more.  They are also regularly hiring manager trainees, which requires more hours but pays REALLY well.

You still need to learn to drive and get your license.  Yes, it is cheaper to bike and walk, but if you miss out on a job that would pay you $10,000 more per year because you don't have the ability to drive a $1,500/yr car, that would be a pretty expensive choice.  Look up driving schools in your area, if that is what it takes.  Start the process now, because many states have a waiting period of 6+ months between getting your permit and getting your license.  You can get your license and not own a car immediately.  Having your license means that you can borrow a friend's car or rent a car when you need to do so.

And yes, you should get those student loans put on income-based repayment.  If you keep making the same payments, they will go away just as quickly, but that way if the restaurant goes under or something else happens that cuts your income, you will have more breathing room before going into default.

Wasdramer

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #60 on: January 11, 2017, 12:07:37 AM »
When you are looking at income and spending, why are you including your BF's father's income and expenses?  If you and your boyfriend have not yet decided that you two are together for life (can't tell based on your posts), why are you including his income and expenses?

My BF and I have decided that we are together for life. We met over 9 years ago and got together officially almost 4 years ago. That's why I include his income and expenses. We just got a joint account as well, which streamlines a lot of things, and since he's allowed me to take charge of the money between us (of course I always tell him what I'm doing with it and ask for his input when I want to make sure he agrees), everything works out. I live with him and his father, and because his father doesn't really plan much of anything out in spending, I have to make sure that, in case his father does pass away, we can still make it.

I would suggest that you take a spreadsheet and work out a little budget with five columns.
You (just Wasdramer)
Boyfriend's incremental increases
You + boyfriend (total of first two columns)
BF's father's incremental increases
Total of all three of you

Then make your rows:
Gross income
Less taxes
Net income
Less:
Share of Phone (what you would spend on your own if you weren't part of this family plan)
Share of Rent (what you would pay per month to rent a room in an apartment or house or get a studio apartment)
Share of Electric
Share of Natural Gas
Internet (what you could get this for on your own)
Share of groceries
Your work food/drink
Fun money
Subscriptions
Your debt payments
Etc...
Net Savings/Deficit

In your column, fill out the cost if you were to cover these expenses alone, if Father and BF had to move to Alaska and you couldn't go with them (or whatever situation would take their finances and Father's home out of the picture).  So, if the lowest promotional rate for internet is $50 a month, you would put $50 in your column for internet.  If the cheapest reasonable room-share you could get was $400, you would put $400 in the rent column.  If you would only have $12 of subscriptions on your own, you put down $12 in your column.

In your BF's column, fill out his income and the expenses that he would cause to rise, the marginal increases that come from living with him.  He wouldn't add more to internet costs, so put $0 for internet in his column.  If you two were to get an apartment together, you might choose to get a $500 studio instead of a $400 room-share, so put the $100 difference in his column.  He might be okay with a cheap phone plan, so you and he might each have $15 in your two cell phone entries.  Put down the remaining $10 in subscriptions, because the two of you pay $22 together.

I do admit that is actually a helpful exercise for figuring out what I can and cannot cover on my own. I know there wouldn't be any way for me to cover all those expenses on my own, but I also don't own the trailer we live in, nor is my name on any of those bills relating to it. I have my credit card (which I am cancelling tomorrow), a couple other subscriptions (one will be dropped in favor of a cheaper annual subscription), and that's pretty much it. My boyfriend only has the gas bill in his name, which was done to build his credit. That would be the best thing that's ever happened to him, since he has credit history (better than my own, in fact, since mine has a few dings from before I learned about MMM).

I'll be more able to make that kind of chart once my tax forms roll in (I've not been keeping the best record, admittedly, though now I am scanning everything including receipts and pay stubs), but this year I should have roughly $14-16k. I earned income from two different jobs, and the first one fluctuated so much that it was hard to figure out what hours I would be working. The one I have now is a lot more consistent.

I'll probably work on that kind of spreadsheet in the next couple days just to see where that all really does lie, then maybe I can get more things figured out. Thank you for that kind of perspective, it always helps to have another set of eyes on things!

In Father's column, put his income and the incremental increase for any expense that he makes higher.  He gets the full amount of $700 BF's dad spending.  He gets any rent currently paid on his home less what has been put into the columns for you and BF (so, Father's portion of rent might be a negative number).

This part kinda confuses me. I suppose you're meaning to divide the rent by 3, or even by 2 if it were just between me and my BF (which would probably be easier in case we're trying to figure up what would need paid in his father's death/absence/whatever). In that case, I could just create a column of amounts that would not change if his father wasn't paying in. Or just lump that into Column 3 or something. Not sure how I'll plan that one out just yet. I'd honestly rather get an apartment if his father died, but I'm not sure how my BF would do with that. He wants to have something he can actually own, but we're nowhere near getting a house yet (at least financially...I'd rather pay off my student loans first).

When you look at this information, are you personally able to cover your share?  Is your boyfriend able to cover his share?  Are you two being subsidized by Father's social security income?

Without running those numbers, I cannot say positively for sure, but I like to think that since I'm able to have more money saved back each month that we are actually making it on our own. But again, I can't ignore that possibility, so I'll run those numbers.

So, I've been silent, but things have changed a bit again! I just quit my gas station job this month after starting to work at the same place my boyfriend is working at (a restaurant that functions similar to fast-food, but the pay is $10 an hour). When I quit the gas station job, I had $9.20 an hour and 16-24 hours because they took away my full time status. That also cut my insurance and 401k. So now i'm at the restaurant working at least 30 hours at $10 an hour. I don't get insurance or a 401k (or direct deposit, for that matter) but it's still better as far as a work environment!

I don't think work environment should be your big worry right now.  You need to make more money.  You mention that you can cut expenses here and work overtime there.  Why not work overtime now?  Will the restaurant pay you time-and-a-half for overtime hours?  How much overtime will they let you work on a long-term basis?  If they will let you work overtime, try to get up to 50+ hours per week.  It won't be fun, but it is do-able.  30 hrs per week on straight time (normal hours) is around $14,400 per year, but 50 hrs per week with the last 10 of those at time-and-a-half is $26,400 per year (each using a year based on 48 working weeks, to allow for illness, vacations, and what-have-you).  The more you work, the better a savings cushion you can build.  You don't want to wait until things get bad before building a much larger safety net.

Actually, my BF is actually starting to get some of that simply because he's a low-tier manager. Because we're having five different managers transfer to a store about to open up in the next month or two, our current management will probably even out because of this. Honestly, I wouldn't be surprised if he gets promoted to a higher tier of manager, which if that's the case, someone will have to replace him on that lower tier. Not sure who it would be, but if that does in fact happen, I'd push myself into that role. I'm one of the few that has actually picked up on things a lot faster there than anyone else new there, so it is possible. Plus management likes me (outside of my BF). So I'm going to see what I can do once that stuff happens. Also, my 90 days are up, so at the end of the month, I'll ask the store manager for a raise (since he already said something about that last month, but I hadn't quite gotten past the 90-day mark at that point). Even if it's 25¢, it'll help me build things up quicker.

You can probably find a better-paying job if you look around.  You should re-read the first page of this thread for ideas.  One poster mentioned Aldi.  The Aldi stores in my area are paying $12+ per hour for new employees.  They have 401(k) plans, medical, and more.  They are also regularly hiring manager trainees, which requires more hours but pays REALLY well.

Where I currently live, there aren't many options for where to work. I'm in between two small areas for shopping, both a minimum of 3 miles away. What I have around here are a gas station (that I quit because they were not being reasonable on my hours or wage); another gas station that is attached to a McDonald's; another gas station attached to four other types of businesses that will literally rotate you around each business, and won't pay crap for it; a Denny's; a "casual dining restaurant" that I work at now; and a little strip mall that has a laundry/tan store, a liquor store, and a Metro PCS. Which leads to the next thing...

You still need to learn to drive and get your license.  Yes, it is cheaper to bike and walk, but if you miss out on a job that would pay you $10,000 more per year because you don't have the ability to drive a $1,500/yr car, that would be a pretty expensive choice.  Look up driving schools in your area, if that is what it takes.  Start the process now, because many states have a waiting period of 6+ months between getting your permit and getting your license.  You can get your license and not own a car immediately.  Having your license means that you can borrow a friend's car or rent a car when you need to do so.

You are right, absolutely, on that. I have my permit, and it hasn't quite been 6 months since I got it renewed, but I should definitely look into something. I'm not sure where there is a driving school, but maybe I can find one around here.

And yes, you should get those student loans put on income-based repayment.  If you keep making the same payments, they will go away just as quickly, but that way if the restaurant goes under or something else happens that cuts your income, you will have more breathing room before going into default.

While I highly doubt the restaurant will go under (it's franchised for one, and for two, the store owner is about to open a second store, and the franchise itself has a few hundred stores in multiple states), I actually went ahead and started that process of switching to income-based repayment. I'll just have to wait and see if they need any actual documentation, and if all goes well, they'll probably help on that end. Then I can pay it off without too much worry.


Again, thank you very much for your thoughts! I'm working on taking action on these things, and I know it's slow, but of course it's not a quick fix. I'm doing what I can to minimize things more, and I have a feeling it will only get better from here on out!

kms

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #61 on: January 11, 2017, 06:32:23 AM »
Required Spending:
  Phone: $214.20 (exact, split between one plan of $182.15 and $32.05) (guess which is mine!)
I haven't read the entire thread and maybe this has been covered already but WTF? How did you end up with $182 on one plan and $32 on the other?

With This Herring

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Re: Reader Case Study - Hair on Fire Debt Emergency: What Do?
« Reply #62 on: January 11, 2017, 12:46:23 PM »
In Father's column, put his income and the incremental increase for any expense that he makes higher.  He gets the full amount of $700 BF's dad spending.  He gets any rent currently paid on his home less what has been put into the columns for you and BF (so, Father's portion of rent might be a negative number).

This part kinda confuses me. I suppose you're meaning to divide the rent by 3, or even by 2 if it were just between me and my BF (which would probably be easier in case we're trying to figure up what would need paid in his father's death/absence/whatever). In that case, I could just create a column of amounts that would not change if his father wasn't paying in. Or just lump that into Column 3 or something. Not sure how I'll plan that one out just yet. I'd honestly rather get an apartment if his father died, but I'm not sure how my BF would do with that. He wants to have something he can actually own, but we're nowhere near getting a house yet (at least financially...I'd rather pay off my student loans first).

Nope, I very specifically DON'T mean to divide the rent by 3.  The exercise should now be simpler, as you have stated that you and BF are permanent (thanks for the timeline of your relationship; I didn't have that perspective before).  I wanted to know, if, say, the father kicked you out, what happens.  Are you actually paying cheaper rent at Father's place than you would be in a normal apartment?  In that case, Father's column will have a negative number.

It doesn't matter who is currently paying for which item.  It doesn't matter whose name is on what bill right now.

So, say you go on CL and look at apartments.  Say a studio that would be okay for one person would be $450 per month.  Say that, if you and BF were to move to an apartment together, the smallest you could go would be a one-bedroom apartment at $550 per month.  The current actual rent/mortgage on the trailer is $509.14 per month.

EXPENSE
Wasdramer
BF
Total WD & BF
Father
Grand Total
Rent
$450
$100
$550
-$41
$509
.
______________
______________
______________
______________
______________

This way you would see that, for the two of you, you are paying lower rent than you would at market rates.  In effect, Father is subsidizing your rent.  (This is just an example; I don't know what normal rent is in your area.)  Doing this for every expense item might show that, while you might be saving money right now, you two may find that you would be in the red every month if you weren't living with Father.  Or maybe you will find out that it is costing you more to live with him than to get an apartment together.  I don't know.

Which leads to...

When you look at this information, are you personally able to cover your share?  Is your boyfriend able to cover his share?  Are you two being subsidized by Father's social security income?

Without running those numbers, I cannot say positively for sure, but I like to think that since I'm able to have more money saved back each month that we are actually making it on our own. But again, I can't ignore that possibility, so I'll run those numbers.

You can probably find a better-paying job if you look around.  You should re-read the first page of this thread for ideas.  One poster mentioned Aldi.  The Aldi stores in my area are paying $12+ per hour for new employees.  They have 401(k) plans, medical, and more.  They are also regularly hiring manager trainees, which requires more hours but pays REALLY well.

Where I currently live, there aren't many options for where to work. I'm in between two small areas for shopping, both a minimum of 3 miles away. What I have around here are a gas station (that I quit because they were not being reasonable on my hours or wage); another gas station that is attached to a McDonald's; another gas station attached to four other types of businesses that will literally rotate you around each business, and won't pay crap for it; a Denny's; a "casual dining restaurant" that I work at now; and a little strip mall that has a laundry/tan store, a liquor store, and a Metro PCS. Which leads to the next thing...

You still need to learn to drive and get your license.  Yes, it is cheaper to bike and walk, but if you miss out on a job that would pay you $10,000 more per year because you don't have the ability to drive a $1,500/yr car, that would be a pretty expensive choice.  Look up driving schools in your area, if that is what it takes.  Start the process now, because many states have a waiting period of 6+ months between getting your permit and getting your license.  You can get your license and not own a car immediately.  Having your license means that you can borrow a friend's car or rent a car when you need to do so.

You are right, absolutely, on that. I have my permit, and it hasn't quite been 6 months since I got it renewed, but I should definitely look into something. I'm not sure where there is a driving school, but maybe I can find one around here.

Once you learn to drive, you will open up new possibilities for jobs.  Does BF have a license?  He could even teach you, if there is a vehicle available to use.  Once one or both of you can drive, you can even look for jobs in other areas.  You could move to a neighboring town or city to find good jobs.

While I highly doubt the restaurant will go under (it's franchised for one, and for two, the store owner is about to open a second store, and the franchise itself has a few hundred stores in multiple states)...

I'm glad to hear that the owner is expanding, as that is a good sign.  Restaurants do close, and this is the primary job for both of you, which is why I asked.  A friend had seen that the chain restaurant where he worked was having trouble paying vendors.  Then, one day he got to work to find a sign on the door that the restaurant was closed.  That was it.

Again, thank you very much for your thoughts! I'm working on taking action on these things, and I know it's slow, but of course it's not a quick fix. I'm doing what I can to minimize things more, and I have a feeling it will only get better from here on out!

Good luck, and keep working at it!