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Wednesday, December 3, 2008

Finances...

Ok so I want to be debt free. So I’m going to use numbers that aren’t real and lay out our “budget” and would like some suggestions…so here’s our “budget”

Income:
VA $755
Todd $1800-2400
Lynne $1600

Total $4155-4755
(Todd used to make more like $2400 but his runs have been cut lately)

Payments:
Church $280
House $715
Electric $200
Heat $69
Cars $601
Insurance $165
Credit Cards $175
Gas $250
Medical $250
Phone $170
Cable $40
Day Care $200
Food $600

Total $3715

Difference $440.00-1040

Again these figures aren’t accurate but let’s pretend…so we have a difference of $440 to play with…our debt break down is this:

House $88500 still owed
Truck $15700 still owed
ATV $6300 still owed
Credit Card $2700 still owed
Credit Card $2500 still owed
Credit Card $2400 still owed

Total $118’100

Ok, so we almost always pay $800 on the house but the house is the one bill that I’m not worried about paying off right now…So I’m thinking that if we pay minimum payments (the $715) and take that extra $85 and put it towards the first credit card listed, when Todd’s income is more than $600 we put that amount towards the first credit card, and when our medical bills are less than $250 the extra goes to the credit card. I would like to have all of our credit cards paid off by October 2009, a very obtainable goal. Then I will concentrate on the ATV and finally the truck payment…but my problem is this…Todd’s income is way lower than it used to be (as almost everyone’s is) so when do I start saving, we’ve always known that if necessary we can live off of my income or his because we would cancel the extras and make all of our food from scratch…it would be tight but it would work. We’d make it work! But it would be so much easier if we had those credit cards paid off. If we didn’t have $7600 sitting over us in debt…that debt is dental expenses and Todd’s truck driving school so it’s not like we put Christmas on the credit cards or a new big screen TV…his job has made us more money than it cost us, so it was worth it, but I hate having it over us! I would like for one to be paid off by our tax return and one to be paid off by March, and the third to be paid off by October…but again, with his diminishing income, it makes me nervous not to have it done now! So, I’m open to suggestions. What do you think? I want honesty and if you think my feelings will be hurt, first of all, it’s VERY hard to hurt my feelings and second, just leave your comment under anonymous
!

3 comments:

Sarah said...

In the same boat here, except for we only have the one income, except for the very little bit I make babysitting. Matt is using his check to pay all the bills, except for my credit cards and student loan (which I guess college was a waste since I stay at home now). I'm using my babysitting money and paying on a different one each week. We are hoping it won't take too long to pay it all off. I don't know if there is any better way to do it, other than what you have already stated. You seem to be very good with money and managing debt, it just takes time to pay it off. It doesn't take much time at all to rack up the debt, but seems like forever to get rid of it.

Jenna said...

Pay the debt that has the highest interest rate first (for most people, this is a credit card). Once you pay that off, snowball what you were paying to that credit card toward the next credit card. But, during all this time, you definitely should be saving. Even if it's only $50/month at first, at least it is something. I use this http://www.whatsthecost.com/snowball.aspx to calculate attainable pay off dates for debt. Good luck! I will look more closely at number crunching when I get to work for you!

Jessa Fee said...

I hope you are not paying anyone to help you get out of debt! The very fact that you know your numbers and are willing to lay them out on the table, or screen, shows that you can manage your finances yourself.

I like the book PAY IT DOWN, but deeper than that are Your Money or Your Life and Getting a Life. We are in the same boat and while sometimes it feels like we have a slow leak, I try to remember that "financing the gap" for me to stay home has given our children a foundation that money can't buy. We may be paying for it for a while but we aren't material people and want nothing more in life than a happy, healthy family.

And to Sarah: I also have a college degree and massage therapist certification program that is not completely paid off, but I do not feel like it is a waste. I would like to encourage you to think about the advantages of being an educated mother, and consider the fact that if you have to find work outside the home you may be able to get a better job with a degree than without one.

ALL THE BEST to you both!