I’ve been lurking in these forums awhile. My financial situation is not ideal at all and I’m ready for the change. Trying to keep up with the Joneses has left me in a situation I do not want to be in. You are all so darn inspiring so I know you’ll help me get back on track.
Life Situation:
I’m 32, divorced with joint custody of a child and have a dog. I file single this year, file with one dependent child every other year. Live in NYS (high taxes).
Gross Salary/Wages: Gross $2953.49 every two weeks (26 pay periods)
Individual amounts of each Pre-tax deductions – all every two weeks
Health - $57.33
403(b) - $5.00
Taxes – all every two weeks
Fed Withholding - $413.46
Medicare - $42.00
Social Security - $179.56
NY Withholding - $152.97
After tax deduction – every two weeks
Union Dues (pays for dental/vision) - $29.53
Other Ordinary Income:
Child support - $100 (every two weeks)
Adjusted Gross Income: 2173.64 every two weeks (26 pay periods)
Current monthly expenses (just made this new budget – new to budgeting):
Mortgage (P&I) - $974
Real Estate Taxes (I save this, no escrow) - $532
Savings (I dip into this more than I should like for home stuff and just bad spending) - $700
Daycare - $228
Food and Household - $425
Car Payment - $218
Home Expenses/Repairs - $200
Gas and Electric (average)- $150
Entertainment - $100
403b loan (paying myself back) - $95
Vacation Fund - $75
Hair cut account - $60
Healthcare acct (son on high deductible plan plus my copays) - $80
Car insurance - $72
Clothing/shoes acct - $50
Child college fund (mandatory per divorce) - $50
Miscellaneous - $50
Internet - $42
Dry Cleaning - $40
Gifts - $40
Pet Account (grooming/vet) - $40
Spotify/Netflix/Moviepass - $30
Garbage - $27
Car Maintenance - $25
Life Insurance - $21
Water Bill - $6
Monthly total: $4330
Assets:
House (purchased in 2017) - $229,000
Car (purchased in 2016) - $15,000
403(b) - $23,000
Savings (basically the 403b loan I owe back to myself) - $14,400
Total Assets: $281,400
Liabilities:
403(b) loan paying back myself in interest: $11,400
Mortgage (29 years left): $197,800
Car Loan: $8,750
Total Liabilities: $217,950
Net Worth: $63,400
Retirement Info:
I’m 10 years into a pension system. So, even if I left service now, starting at 55 I would get something each year.
Specific Question(s): I want to get on stable ground (getting a real emergency fund) and then start working towards saving for retirement. I would consider downsizing my home or car even though I just got both quite recently – within the last two years). I don’t want to repay my 403b loan yet because that is my emergency fund should I ever lose my job. What would you do if you were in my situation? This is kind of embarrassing to put it all out in one document but I needed it. I want to do something now before it gets worse. Thank you all!