Author Topic: Help (Read 27330 times)

halseyskates33 · « **on:** December 04, 2015, 02:48:08 PM »

Help

I am 32yrs. old and work in a commission based job that does not allow for side work. I have no idea what I will make in any given month. Have been averaging around $2-3k. My monthly expenses are 2k including paying down debt.

I have $44k in student loans
$7k in medical bills
$4k car loan (it is my first car loan ever, please be nice)

Without knowing that I will be able to cover my monthly expenses, I have been rolling over any additional money towards the next months budget. I use YNAB (I am use the money from the last month to pay for the next).

Have a 401k a work that is tiny. Other than that not really investing.

I feel trapped, I do not go out to eat or buy fancy things. I am staying at my job to gain the experience to move into a higher paying career. I want to live on half my income, but I don't even know where to start and it is making me feel like I am losing at money. Please help and please be kind, I am here to make my life better. Thank you.

Bracken_Joy · « **Reply #1 on:** December 04, 2015, 03:00:59 PM »

Help and please help are unfortunately too vague for much feedback. I think you will find if you do the case study template and ask specific questions you will get a lot more feedback.

Frankies Girl · « **Reply #2 on:** December 04, 2015, 03:03:00 PM »

Suggest you review this post: http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/

Even with an uncertain income, if you are able to break down your spending and liabilities, we can help try to target areas that you could improve in. Don't forget to put in any interest on loans/debts as well, as sometimes that plays a factor on what is priority.

norabird · « **Reply #3 on:** December 04, 2015, 03:04:09 PM »

2k-3k is not bad. What are your loan rates? Can you consolidate some of these perhaps? You have to walk before you can run so don't worry too much about saving 50% (paying down debt goes into the savings category btw). What are your other expenses? Do you have a roommate or can you change to a place with lower rent? Also I hope you have some cheap/free hobbies to enjoy while you're feeling stuck in this way. Saving and paying down debt shouldn't mean being miserable.

halseyskates33 · « **Reply #4 on:** December 04, 2015, 03:33:58 PM »

Topic Title: Where can I do better? Aka how can I work towards becoming a mustachian?

Life Situation: IRS filing single status, only me, live in CT with a roommate. I like reading and watching Netflix. I have a pretty minimalist social life.

Gross Salary/Wages: Varies between 2k-3k montlly

Pre-tax deductions: Health insurance $200 monthly contribute 4% to 401k every week

Current expenses: Monthly
Rent:497.50 - Share with a roommate and is VERY cheap for my state.
Phone:63.48
Ultilties 87.51
Car Insurance $120- have a Umbrella policy since I drive a lot for work
Renters Insurance $23.59
Food $200
Gas $150
Haircut $16
Misc $50
Work Expenses (Mainly eating on the road) $60

I pay combined $253.73 a month to 3 different medical bills(0% interest), $50 a month to a credit card (0% interest) and $300 month (0% interest, private sale) for my car.

Student Loans are 6.8% interest and are government loans. Am not currently paying on them

Have $2k in an emergency fund (I am not willing to liquidate this, if I have a bad month at the job I HAVE to be able to pay my bills)

JZinCO · « **Reply #5 on:** December 04, 2015, 03:59:39 PM »

It seems getting debt under control will provide more of a boost to your cash flow than any expense tweaking.
At first glance though, these are my thoughts:
-Slow down on the 0% loans if you can, you need to pay either the minimum payment or, if the 0% is not for an indefinite period, the amount such that when the 0% period ends, the debts are paid off.
- What payment program are on with the student loan? Can you get those lower? Can you refi with, say, SoFi to lower the interest?
- Keep that emergency fund! Add to it regularly until you get to the amount you are comfortable with.
-Make sure you are getting reimbursements from your employer for the insurance and gas. If you aren't claim them come tax time. Then take that mini-windfall and throw it at debt or the emergency fund. If you are entitled to per diem, claim that or get reimbursements from your employer.
-Last, go job hunting. At your income, you don't have tons of wiggle room.
-oh, also keep up with the 401k contributions!

JZinCO · « **Reply #6 on:** December 04, 2015, 04:05:54 PM »

Maybe the most important tidbit. Don't be so hard on yourself. The most important thing you can do right now is to recognize your situation, make a plan, and follow through.
You aren't a spendy pants, you know your debts. I bet you're already doing better than your most of your peers.
It's going to seem like a long slog uphill. And you may not feel financially comfortable for a couple of years. But you'll get there with a plan that ultimately only you can craft. Just don't be too impatient :)

Yankuba · « **Reply #7 on:** December 04, 2015, 04:10:09 PM »

I think you're doing great - you're only spending $1200 per month excluding debt repayment. You are a true Mustachian!

halseyskates33 · « **Reply #8 on:** December 04, 2015, 04:15:38 PM »

Thanks so much.

Unfortunately I have to stay at the job to get some licenses I need. The 0% rates will be there forever which I am VERY grateful about. Great tip, I had no idea I could claim my insurance!

SoFi would not refinance my loans. Does anyone know another company?

Great motivation to keep going!!

firewalker · « **Reply #9 on:** December 04, 2015, 04:21:52 PM »

How long before your lic. is possible? What is your expected pay increase when you're there, low ball estimate?

JZinCO · « **Reply #10 on:** December 04, 2015, 04:27:55 PM »

Quote from: halseyskates33 on December 04, 2015, 04:15:38 PM

Thanks so much.

Unfortunately I have to stay at the job to get some licenses I need. The 0% rates will be there forever which I am VERY grateful about. Great tip, I had no idea I could claim my insurance!

SoFi would not refinance my loans. Does anyone know another company?

Great motivation to keep going!!

Maybe look up Earnest? I'm no expert in student refi lenders, so you'll have to do some digging.
I'll refer you to the IRS re: insurance https://www.irs.gov/uac/Car-and-Truck-Expense-Deduction-Reminders

halseyskates33 · « **Reply #11 on:** December 04, 2015, 05:26:31 PM »

There will be no pay increase with the additional licenses, but they are required in the field. They will allow me more opportunity to engage in different ways of doing business, so I would imagine maybe some additional money.

With This Herring · « **Reply #12 on:** December 04, 2015, 06:05:18 PM »

Additional thoughts:

You eat on the road a lot. Are you home every night? If so, consider things that you can cook/prepare ahead that will let you eat more cheaply (maybe chili in a thermos, PB sandwiches, anything that will survive ~6 hours between leaving home and eating).

I'm sure someone else will suggest it soon. Consider getting a hair trimmer (http://www.mrmoneymustache.com/2011/05/30/get-rich-with-the-universal-mens-grooming-device/) (as by the price being only $16 I am guessing you are male). Trade haircuts with your roommate or a friend.

Also, MMM recommends cheaper cell phone services. I don't know which ones would be appropriate for your job.

bigstack · « **Reply #13 on:** December 04, 2015, 06:14:21 PM »

anyone else think it odd that he can't work a side gig?
I mean i can understand if he cant do a side gig for a competitor. or same industry but i doubt he cant go get a part time job for 10-15$ an hour at like best buy or whatever...

halseyskates33 · « **Reply #14 on:** December 04, 2015, 06:41:01 PM »

Will def look into the hair clippers. Full disclosure I work for a very large finance firm and they do not want us working on things that may take our focus away OR may cause us to lose credibility in customers eyes. I do sell on Ebay, that is allowed, but lately haven't really made any $$.

Just found out we can downgrade our TV and save $30/month and still get the channels we watch (also have Netflix), but the roommate (who doesn't pay for it??!!) says he has to "think about it". Is it totally a jerk move if I make the switch without his approval?

Paul der Krake · « **Reply #15 on:** December 04, 2015, 06:52:53 PM »

Quote from: halseyskates33 on December 04, 2015, 06:41:01 PM

Will def look into the hair clippers. Full disclosure I work for a very large finance firm and they do not want us working on things that may take our focus away OR may cause us to lose credibility in customers eyes.

Take a closer look at what the exact policy is. I work for a finance behemoth too and thought I couldn't do anything either, but it turns out I am to do pursue whatever ventures I desire as long as it's not outrageously close to what I do for them and nobody can reasonably construe that there is a reputational issue.

Think about it this way, what are the odds that nobody in your company owns a rental property?

Bracken_Joy · « **Reply #16 on:** December 04, 2015, 06:53:16 PM »

Quote from: halseyskates33 on December 04, 2015, 06:41:01 PM

Will def look into the hair clippers. Full disclosure I work for a very large finance firm and they do not want us working on things that may take our focus away OR may cause us to lose credibility in customers eyes. I do sell on Ebay, that is allowed, but lately haven't really made any $$.

Just found out we can downgrade our TV and save $30/month and still get the channels we watch (also have Netflix), but the roommate (who doesn't pay for it??!!) says he has to "think about it". Is it totally a jerk move if I make the switch without his approval?

If he doesn't pay for it? Not at all. Just tell him you're at a point in the financial journey where the options are "less, or none".

firewalker · « **Reply #17 on:** December 04, 2015, 07:00:42 PM »

Keep the peace with the roomie. You have a good thing going. Re: The job... You indicated that staying with the job would mean advancing to a better position and pay. Since the lic. is just a requirement, how long before any advancing is possible and with what income benefit?

halseyskates33 · « **Reply #18 on:** December 04, 2015, 07:11:27 PM »

Firewalker

Right now I am being told stay for 1 yr to get the line item on your resume and all the license which financial firms look for (ie 6,63,7). I am 6 months in right now. Hoping to get an analyst job with a salary and freedom to pick up work on the weekends.

With This Herring · « **Reply #19 on:** December 04, 2015, 08:50:01 PM »

You're getting paid $24-$36K per year by a "big financial firm," travel a lot, and your company can dictate whether you take on additional work in your personal time? I had thought you meant that you didn't have time/energy for additional work.

My firm (public accountants) has a similar policy (no second jobs) but:
1) We get paid more.
2) There isn't much travel.
3) People ignore it anyway (one lady taught swim lessons, some people do additional tax returns on the side, one partner [read as: owner of our firm] runs a group of high net worth people who make loans, and another partner is the CFO of his lady-friend's small business.

I guess I'm not sure how a business can limit what you do outside of work as long as you aren't going around murdering people or being "a discredit to the profession."

enki · « **Reply #20 on:** December 04, 2015, 09:06:59 PM »

If your roommate doesn't want to lose the channels you presumably don't watch, they can pay half. I always thought it was fair that utility costs were split evenly.

How bad are the payments on each debt? Can you squeeze your monthly expenses below your lowest month's income? Everything earned above that should be thrown at savings. Some math shows that you're spending 1,811/mo. currently which means on one of those good months you should have an extra $1000 or so. If I was in your shoes I would be doing a debt snowball so that I could free up more of my income.

Quote

Student Loans are 6.8% interest and are government loans. Am not currently paying on them

This scares me. I would want it gone. Even with my own student loan at a fraction of that it grows substantially each month. What helped me was to stop looking at the small picture and look at my overall net worth. I keep cash on hand for an emergency fund and I agree it should not be touched. Paying off that student loan is a risk free way to earn 6.8% on your money. You would have more money to do this each month if you didn't have other expenses in the way.

If a side hustle isn't an option, how about overtime? I've been working 50 or more hours each week since August and I'm loving the extra cash. It has made almost as much of a dent in my situation as disciplined spending.

Jakejake · « **Reply #21 on:** December 04, 2015, 09:20:18 PM »

Your food bill is high for one person. I know I am extreme on this, but as a point of reference, in 2015 I've averaged $92 per month for groceries (including toilet paper, toothpaste, etc). And that's for two adults.

halseyskates33 · « **Reply #22 on:** December 05, 2015, 10:20:10 AM »

I get paid commission only so no overtime. I agree my food bill is very high, I need to learn how to cook some meals that will travel or I can eat for several days (hello crockpot). In saying that I have no problem eating the same thing multiple days in a row. Lowering my food bill will be the focus this week.

2ndTimer · « **Reply #23 on:** December 05, 2015, 02:31:49 PM »

When you buy the crockpot, don't buy a new one. Get it at the thrift store. And while you're there take a look at the clothing. I dress the Hub from thrift stores and he does everything in them from report to the Mayor of Seattle (previous job) to appear in court as an expert witness.

halseyskates33 · « **Reply #24 on:** December 05, 2015, 04:16:28 PM »

Thankfully already have a crock pot and am very lucky to live near a grocery store that does a lot of buy 1 get 2 free sales on meat. Tomorrow I will be picking up two months worth of meat for around $35. Going to check out Aldi for produce on a weekly basis and learn some easy crockpot meals. I am gluten sensitive and no dairy for me.

Also, very thankful I have not really grown in about 10yrs so I am all good on clothing. Picked up a indoor bike trainer to avoid gym costs. Going to check if I am able to tutor as an outside business.

After I pay off the $300 a month for a car (should be in less than a year) should I keep putting that aside to build up so next car I can pay cash?

The not knowing of what next month paycheck will be is a constant source of stress for me. I think it would be a lot easier to budget if I knew exactly what I was getting every two weeks.

somebody8198 · « **Reply #25 on:** December 05, 2015, 04:24:20 PM »

Your renter's insurance is more than $20 a month? I think I paid about $80 for a YEAR. You may be over-insured.

TomTX · « **Reply #26 on:** December 05, 2015, 05:16:14 PM »

Is your work reimbursing mileage? Have you asked? If you drive 25 miles a day to clients, that's about $300/month you should be getting reimbursed.

Bracken_Joy · « **Reply #27 on:** December 05, 2015, 05:58:34 PM »

Quote from: halseyskates33 on December 05, 2015, 04:16:28 PM

The not knowing of what next month paycheck will be is a constant source of stress for me. I think it would be a lot easier to budget if I knew exactly what I was getting every two weeks.

You're living on future money, not past money. DH and I are both contractors, and our income can vary from 3k-7k/month. We make it work by making sure we can live on the lowest case scenario, and by living on money we have already received.

firewalker · « **Reply #28 on:** December 05, 2015, 09:50:14 PM »

When the 300 per mo car payment is done, target that money on your next debt, probably the college loan with 6.8 % int. would be the best.

halseyskates33 · « **Reply #29 on:** December 18, 2015, 12:40:07 PM »

Trying to focus on the positives.

Lowered car insurance bill
Sold $68 worth of items on Ebay
All of January's bills are paid for
Started shopping at Aldi (big change in price)

Have committed to not going out for lunch at work AT ALL.

Headed to the library to pick up some DVDs for tonight and will probably check out the resale shops for items to flip.

Little bit everyday goes a long way..

norabird · « **Reply #30 on:** December 18, 2015, 01:11:17 PM »

This is awesome! Those little behavioral changes may feel like nothing, but they're how you win in the long run--by changing your habits and your mentality.

halseyskates33 · « **Reply #31 on:** December 20, 2015, 09:45:43 AM »

Goals for January

Lower Grocery Budget to $100/$120 (has been over $200)
No eating at restaurants
No impulse spending
Start setting aside cash for car repairs/future car purchase
Extra savings towards debt

Stay accountable/positive.

reginna · « **Reply #32 on:** December 20, 2015, 11:48:01 AM »

Quote from: halseyskates33 on December 20, 2015, 09:45:43 AM

Goals for January

Lower Grocery Budget to $100/$120 (has been over $200)
No eating at restaurants
No impulse spending
Start setting aside cash for car repairs/future car purchase
Extra savings towards debt

Stay accountable/positive.

Great and completely attainable goals Halsey! Check out "Brothers Green Eats" on youtube for cheap and tasty food ideas.

RysChristensen · « **Reply #33 on:** December 20, 2015, 12:41:06 PM »

Quote from: reginna on December 20, 2015, 11:48:01 AM

Quote from: halseyskates33 on December 20, 2015, 09:45:43 AM

Goals for January

Lower Grocery Budget to $100/$120 (has been over $200)
No eating at restaurants
No impulse spending
Start setting aside cash for car repairs/future car purchase
Extra savings towards debt

Stay accountable/positive.

Great and completely attainable goals Halsey! Check out "Brothers Green Eats" on youtube for cheap and tasty food ideas.

or http://freenortherner.com/2013/11/15/paleo-for-5-a-day/ for a good template for super basic gluten-free/non-dairy no-real-cooking-skills meals.

PhrugalPhan · « **Reply #34 on:** December 21, 2015, 08:55:26 AM »

Quote from: bigstack on December 04, 2015, 06:14:21 PM

anyone else think it odd that he can't work a side gig?
I mean i can understand if he cant do a side gig for a competitor. or same industry but i doubt he cant go get a part time job for 10-15$ an hour at like best buy or whatever...

Some jobs expect you to get permission to work any side jobs (no matter the type), but they are usually reasonably paid salary jobs, not commission work. I have that where I work, though thankfully I am not interested in other work at this point.

Frugalman19 · « **Reply #35 on:** December 21, 2015, 10:08:07 AM »

Quote from: halseyskates33 on December 04, 2015, 07:11:27 PM

Firewalker

Right now I am being told stay for 1 yr to get the line item on your resume and all the license which financial firms look for (ie 6,63,7). I am 6 months in right now. Hoping to get an analyst job with a salary and freedom to pick up work on the weekends.

Not sure if they are just making you work more for less, but if you have your series 7 you don't need your series 6.....

halseyskates33 · « **Reply #36 on:** December 22, 2015, 12:11:11 PM »

Awgolfer just confirmed that I can take my 7 and bypass the 6 and 63!

Had to share a story with everyone. I have medical bills in collections from two surgeries that occurred when I did not have insurance. Anyways the numbers didn't seem to be adding up and I was getting really really frustrated. Just got a call from the head of one of the collections companies to tell me that they had accidentally added $1000.00 to a bill, they took it off asap, but he called (bc he knows how much I like to keep track of things) to personally tell me I owed 1k less.

It sounds so small, but he could have just sent a letter, heck he could have just left it alone and had me pay on it. I was blown away and what an awesome Christmas gift 1k less in debt. So many smiles over here : )

thd7t · « **Reply #37 on:** December 23, 2015, 06:57:18 AM »

Quote from: halseyskates33 on December 20, 2015, 09:45:43 AM

Goals for January

Lower Grocery Budget to $100/$120 (has been over $200)
No eating at restaurants
No impulse spending
Start setting aside cash for car repairs/future car purchase
Extra savings towards debt

Stay accountable/positive.

In addition to your good news on the debt reduction, I have to say that this goals post is one of the better posts that I've seen in one of these "requesting help" type threads. You've pretty carefully laid out the conditions you're living under, but you've been very responsive to suggestions. Laying out your goals is a great step. Just reading through the thread and the way you've responded, I am optimistic for you.

Papa bear · « **Reply #38 on:** December 23, 2015, 07:37:58 AM »

Get the heck out of financial services and into a different sales gig where you get a decent salary plus commission. There are tons of places that love to hire you road warriors because you've been trained to do tons of work.

Sent from my iPhone using Tapatalk

Frugalman19 · « **Reply #39 on:** December 23, 2015, 07:57:45 AM »

Quote from: Papa bear on December 23, 2015, 07:37:58 AM

Get the heck out of financial services and into a different sales gig where you get a decent salary plus commission. There are tons of places that love to hire you road warriors because you've been trained to do tons of work.

Sent from my iPhone using Tapatalk

You might want to take Papa's advice, it sounds like you aren't very well versed in the field. It's a very complicated field and hard to get your salary up if you don't have the proper education. I graduated with my masters in finance and started with a $50k salary and no sales, in 5 years I was making $100k salary, again no sales.

Also, with all the DOL changes that are happening to commission based financial salesmen right now, you might want to steer clear.

halseyskates33 · « **Reply #40 on:** December 23, 2015, 08:02:11 AM »

I would love to get into a salary based job, but with my background people have been very hesitant to give me a chance. My background is in athletic coaching (blew the knees out so that's gone), so people just think I was able to use a whistle. Any suggestions on jobs, because I have been trying and looking. Just hitting walls every time.

pbkmaine · « **Reply #41 on:** December 23, 2015, 08:57:12 AM »

So, how to take what you are doing now and what you have done before and combine them? I think you should look into financial planning. Fee-only financial planning is all about coaching. You don't need to "hide" your coaching background. Put it front and center on your resume. Join your local Financial Planning Association group, which you can look up on fpa.org. Also check out NAPFA (the fee-only planner group) for planners in your area. Many planners are heading to retirement and are looking for a younger generation to take over. You would fit right in.

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Papa bear · « **Reply #42 on:** December 23, 2015, 12:05:00 PM »

Quote from: halseyskates33 on December 23, 2015, 08:02:11 AM

I would love to get into a salary based job, but with my background people have been very hesitant to give me a chance. My background is in athletic coaching (blew the knees out so that's gone), so people just think I was able to use a whistle. Any suggestions on jobs, because I have been trying and looking. Just hitting walls every time.

How much time do you have in sales currently? Once you have some experience, you can usually move to something similar pretty quickly. Most positions titled "account manager" are basically sales and customer service roles, that would be a good place to start looking.

Are there any sports equipment or apparel businesses nearby? You could work with one of those groups in sales as well - you already have contacts in the industry.

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halseyskates33 · « **Reply #43 on:** December 30, 2015, 08:08:15 AM »

I have a job interview (salaried) for Weds. Fingers crossed!!

JLee · « **Reply #44 on:** December 30, 2015, 08:34:53 AM »

Quote from: halseyskates33 on December 30, 2015, 08:08:15 AM

I have a job interview (salaried) for Weds. Fingers crossed!!

Good luck! I definitely think you should find something else - a company paying $24-36k/yr and not allowing other jobs doesn't sound very friendly or accommodating. :)

NoStacheOhio · « **Reply #45 on:** December 30, 2015, 09:42:41 AM »

Quote from: halseyskates33 on December 23, 2015, 08:02:11 AM

I would love to get into a salary based job, but with my background people have been very hesitant to give me a chance. My background is in athletic coaching (blew the knees out so that's gone), so people just think I was able to use a whistle. Any suggestions on jobs, because I have been trying and looking. Just hitting walls every time.

If you're familiar with physiology and sports medicine at all, take a look at orthopaedic medical sales (i.e. Stryker). They'll do a lot of the training specific to what you're selling, and it's solid salary + commission.

woopwoop · « **Reply #46 on:** December 30, 2015, 09:51:59 AM »

Quote from: halseyskates33 on December 30, 2015, 08:08:15 AM

I have a job interview (salaried) for Weds. Fingers crossed!!

Good luck on the interview! I agree that your best bet is to move into a higher-paying job if you can. You've done a kickass job at reducing expenses, but the best way forward from here will be increasing your income.

onlykelsey · « **Reply #47 on:** December 30, 2015, 09:57:36 AM »

Quote from: NoStacheOhio on December 30, 2015, 09:42:41 AM

If you're familiar with physiology and sports medicine at all, take a look at orthopaedic medical sales (i.e. Stryker). They'll do a lot of the training specific to what you're selling, and it's solid salary + commission.

My neighbor does something like this and I think earns about ~100K annually in his early 30s. Definitely something to look in to.

NoStacheOhio · « **Reply #48 on:** December 30, 2015, 10:54:02 AM »

Quote from: onlykelsey on December 30, 2015, 09:57:36 AM

My neighbor does something like this and I think earns about ~100K annually in his early 30s. Definitely something to look in to.

For someone with experience in the field, $100k is a pretty typical base salary.

halseyskates33 · « **Reply #49 on:** December 30, 2015, 08:09:32 PM »

wow 100k as a base. Will look into it!

News:

Author Topic: Help (Read 27330 times)