Well, tomorrow is the 1st which means I can start tracking / recording actual spending. When I made my budget, I of course had to do alot of estimating. My budget though is really a cash flow spreadsheet and it only shows my monthly spending. My 2nd spread sheet shows debts and upcoming expenses that aren't part of my day to day expenses. As I start this, I see a few positives and a few negatives. The positives are that some of my larger debts will be paid off within a year. For example, the IRS will be paid off in March and the bike only has 11 payments left. That will be alot of extra money. In addition, some of the reasons I got behind were due to lack of steady work by me, no work or part time work by my wife, high cost of living in the DC area and the move down south. Now that my wife is starting to work full time and my contract seems steady and the COL is alot cheaper in Fla, I expect to be able to knock some of this other debt off.
The downside is that it will be about a month before my wife gets her first check, and some of these expenses have to be taken care of now. I will be able to meet my current day to day living expenses this month with just my checks but I won't be able to get caught up on anything ( well mabye a few smaller things) until next month. The other negative is the upcoming holidays, as a contractor, I do not get any paid time off so for me thanksgiving, christmas etc mean forced days off.
I think things will be alot better next year but I also hope I can at the very least tread water till after the holidays.
It starts tomorrow
October 1st, 2012 at 01:28 am
October 1st, 2012 at 01:58 am 1349056698
October 1st, 2012 at 02:22 am 1349058135
I wholeheartedly agree with the point that you cannot afford any more debt until you clean up some of your current loans. The bike repairs and anything that is not safety, health, or absolutely necessary spending should be cut back. Housing (that includes utilities), food, and medical should be your priorities. Good luck! Just remember to ask yourself, "Do I really need this?" before you buy anything.
October 1st, 2012 at 04:07 am 1349064465
The next few months will be tough on everyone until rent, utilities, mortgage & IRS are caught up. Every dollar will need to work hard and justify spending. Everyone in the house needs to pitch in cutting expenses and earning income at whatever jobs they can find baby sitting, slinging burgers, cleaning offices on contract, washing dishes etc. Nothing is too menial for the short term.
You need to adjust your thinking, understand and accept the fact that Thanksgiving and Christmas will be limited to free, no spend, no cost, simple pleasures. Perhaps you could all go help prepare and serve dinner to those even less fortunate than yourselves who have little hope of getting past their current circumstance. It will make you all feel grateful for what you do have and memories of past pleasures.
Do your best to keep to basics. Plan all driving to limit costs as much as possible. Check on-line to learn how to do your own oil changes and monitor tire pressure to get the best possible mileage from 2 vehicles. All meals need to be prepared at home forgoing as much convenience foods as possible since they offer so much sodium, fat and unpronounceable chemicals. Create a meal plan of what everyone will eat and stick to it. Restaurant/take-out/fast food costs too much. This is a good time to quit smoking since it's too expensive, so unhealthy and sets such a bad example for your children.
Start organizing & planning how to solve the problems with the Atlanta house whose occupants rent is not covering the mortgage and costs. Can you change your cell plan to prepaid? Cancel cable, it's an unaffordable luxury at present.
You're a smart guy with lots going for you once you get past this bad patch. I know you can put on your 'big boy' pants and diligently work through each of these situations.
October 1st, 2012 at 10:28 pm 1349130537