This is my breakdown: How can I improve?
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Anonymous
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We are a family of three on one income right now. After we put 14 percent into 401k, pay for healthcare, put 200 bi weekly into a tax free account we take home 1,800.00 per 2 weeks/3600 a month. Here is our breakdown:
1800.00- Mortgage (this includes property tax and home insurance) 400.00- Food 400.00- Car payment and insurance and gas (one used Prius for household) 200.00- Household supplies/child supplies (cleaning products, diapers, shampoo- aka target trip) 330.00- Utilities which include gas, electric, water/sewage 45.00- Cell phone for me (DH's is provided by work) 200.00- Savings 225.00- misc expenses/entertainment- Last month they included things like shoes for toddler, went out for ice cream one day, two birthday presents, a medical co pay, etc. As you can see things are tight but do able. We use to have two incomes but we were blessed with a child who has severe disabilities and having a SAH parent is essential to our lives right now. We have put ALL gifted money (xmas gifts, bday gifts, CC point checks, ANY windfalls) into a 529 for DC but its still only at about 1700. (DC is 2) I worry about the lack of savings but we have cut out the following already: cable, JCC membership, 2nd car, haircuts, dining out, vacations, turning on air conditioning, hobbies (me spinning and DH league basketball) and countless other extras. We have 20K liquid savings from our "old" life and 10k in stocks. My old 401k has a balance of 8k and my husbands has a balance of about 42k. We are both 28 years old. I will realistically not be going back to work until DC is in kindergarden. DC has numerous medical expenses beyond our co pays and insurance but they are absorbed by a very generous family member. We do not come from money and will be getting inheritances. (I wanted to add that bc it seems like a culture norm on DCUM to be getting one). We no longer have student loans or credit card debit. We will not be having any other children. I am very happy with my life but worry about our lack of funds...any perspective from an outsider would be very welcomed. Thanks! |
Anonymous
| Your mortgage is way too high. How much equity do you have and can you sell and move to a cheaper rental? |
Anonymous
| You're doing great. Good luck. |
Anonymous
+1. |
Anonymous
What? If they live in this area, it's incredibly low. OP, can you cut from your household expenses? Diapers should cost less than $100/mo so what else are you buying that is $100/mo? I switched to the cheapo $3 shampoo and I clean with vinegar and baking soda (which is also better for everyone's heath in our household). I think you're doing pretty good, though. Any way you can make some money on the side? |
Anonymous
+2. |
Anonymous
| I don't think moving is a good idea. We bought for 370k with 90 k down (we saved all of my husbands combat pay throughout 5 yrs of service)...its at 3.5 percent and 30 years. Our payment is 1642.00 and the rest is insurance. We are in a decent school district and plan on staying here for the long haul. |
Anonymous
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- If you haven't applied for a Medicare waiver, you might consider doing so to pick up medical expenses.
- The JCC might work with you on membership fees. At least the Rockville location has excellent services for disabilities. On the whole, your budget looks sound. Good job! |
Anonymous
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Looks like you're doing really well already. To cut corners just a little more - cloth diapers might save you in the long run and you can get them second hand (Kawaii & Alva are $5-6/diaper if you buy new) and you can save on cleaning products by using mostly vinegar & baking soda for most things. You can also very cheaply make your own laundry detergent. None of these changes will revolutionize your finances - just save a little here & there.
Also, for your special needs child - you probably already know this, but your county and local school district may have free developmental activities for your child to participate in, so as your child gets to preschool age, you should have no cost, or low cost, options. All the best! |
Anonymous
I think your mortgage sounds very reasonable. I'd stay put. |
Anonymous
OP here again. We do all these things...although for the past month we switched to pull ups because we are potty training. It is expensive but I see it as a (hopefully!!) temporary cost! But from 0-27 months we cloth diapered! I should look into making laundry detergent though. Thanks! |
Anonymous
Don't feel badly. You're doing very well considering your income. |
Anonymous
| Put aerators on all your faucets. Get used to the lower water flow- payback on these is really fast. Will slightly lower water bill. |
Anonymous
| I also think you're doing great. You are young. If you keep doing what you're doing you guys will get ahead, particularly if you're willing/able to go back to work in a few years and funnel that all into savings. |
Anonymous
| I think you are doing great and should not worry. You are saving more than many folks I know that may WAY more $$. Good job with this! |