Millennial making 45k - how feasible does this budget sound?

[Anonymous]

My 2017 New Year's resolution is to get my finances under control. I'm starting off by looking at the cold, hard numbers. How feasible does this sound to you?

Paycheck (after 10% auto deduct to 401k) = about $2200

Fixed expenses:
Rent + utilities: $775
Health Insurance: $116
Blowouts: $148 (includes tips for extremely curly hair I can not otherwise manage)
Car Insurance: $80
Netflix: $10
Phone Bill: $66
Brad Traverse: $5
Dental Insurance: $28
Car Payment: $500 for next 8 months (actually $240, but trying to pay off aggressively)
Cash savings: $100

This leaves only $372 for all of my food, gas, misc expenses. I know this is going to be really tight.... but not sure what else to do. (And unfortunately according to my employee manual, I can't work a second job because I'm often needed to travel for work.)

[Anonymous]

I should mention that this is a monthly budget.

[Anonymous]

Very tight, can you get your rent down and I would not push paying the car off.

[Anonymous]

Do you have a roommate? Especially if you're going to be traveling a lot, this may be a way to cut down expenses and actually have someone around to check on things for you when you're away.

You might also want to embrace your curly hair and stop the blowouts -- find a good cut and shampoo that works for you.

[Anonymous]

Is this 2200 per month post tax?

Everyone has different priorities, but I could not stomach paying that much for hair. Maybe you can look up some new techniques or watch YouTube videos to find some strategies, or at least to reduce the frequency of that payment. Everything else looks pretty understandable.

[Anonymous]

What is your interest rate on car? Unless it's very high I wouldn't pay that aggressively.

I would really try to work on the blowouts cost...would even permanently straightening your hair be cheaper in the long run? Or figuring out a cut that works for curly hair?

What are your long term prospects for increasing your income? Can you babysit for extra cash on the weekends? I did that when I was in my 20s and made an extra $200-$500 bucks a month that way.

[Anonymous]

Anonymous wrote:Is this 2200 per month post tax?

Everyone has different priorities, but I could not stomach paying that much for hair. Maybe you can look up some new techniques or watch YouTube videos to find some strategies, or at least to reduce the frequency of that payment. Everything else looks pretty understandable.

Yes, post-tax.

Thank you!

[Anonymous]

Anonymous wrote:Do you have a roommate? Especially if you're going to be traveling a lot, this may be a way to cut down expenses and actually have someone around to check on things for you when you're away.

You might also want to embrace your curly hair and stop the blowouts -- find a good cut and shampoo that works for you.

$775 is really cheap for this area. I assume she has roommates.

[Anonymous]

Anonymous wrote:My 2017 New Year's resolution is to get my finances under control. I'm starting off by looking at the cold, hard numbers. How feasible does this sound to you?

Paycheck (after 10% auto deduct to 401k) = about $2200

Fixed expenses:
Rent + utilities: $775
Health Insurance: $116
Blowouts: $148 (includes tips for extremely curly hair I can not otherwise manage)
Car Insurance: $80
Netflix: $10
Phone Bill: $66
Brad Traverse: $5
Dental Insurance: $28
Car Payment: $500 for next 8 months (actually $240, but trying to pay off aggressively)
Cash savings: $100

This leaves only $372 for all of my food, gas, misc expenses. I know this is going to be really tight.... but not sure what else to do. (And unfortunately according to my employee manual, I can't work a second job because I'm often needed to travel for work.)

You may not be able to work a 2nd job that requires your physical presence, but why not supplement your salary with work-from-home freelance opportunities? Services like writing, editing, proofreading, etc. are always needed. And that doesn't even take into account any special skills you have like creative suite skills, translation services, etc. I'd personally focus my efforts on some sort of work-from-home opportunity so I can save even more and supplement my "fun" funds.

[Anonymous]

I would get rid of the car! Especially if you're in DC.

Spend 250 on looking good and save the other 250 in an emergency fund.

[Anonymous]

Anonymous wrote:What is your interest rate on car? Unless it's very high I wouldn't pay that aggressively.

I would really try to work on the blowouts cost...would even permanently straightening your hair be cheaper in the long run? Or figuring out a cut that works for curly hair?

What are your long term prospects for increasing your income? Can you babysit for extra cash on the weekends? I did that when I was in my 20s and made an extra $200-$500 bucks a month that way.

Interest rate is very low at 1.49% APR. Just hate the debt.

You're right, I need to start giving up my weekends for babysitting.

[Anonymous]

That $148 / month for blow-outs is out of control and entirely unnecessary at your salary level. Go to a stylist and ask them to teach you how to manage your curly hair and embrace your curls. There's no need for you to be spending that much on something so frivolous.

[Anonymous]

Can you drive for Uber/Lyft and just not inform your employer? Because you could do that anytime.

Otherwise, eat the same basic foods daily. Beans and rice for lunch and dinner. Read Dave Ramsey. Extend your blowouts.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My 2017 New Year's resolution is to get my finances under control. I'm starting off by looking at the cold, hard numbers. How feasible does this sound to you?

Paycheck (after 10% auto deduct to 401k) = about $2200

Fixed expenses:
Rent + utilities: $775
Health Insurance: $116
Blowouts: $148 (includes tips for extremely curly hair I can not otherwise manage)
Car Insurance: $80
Netflix: $10
Phone Bill: $66
Brad Traverse: $5
Dental Insurance: $28
Car Payment: $500 for next 8 months (actually $240, but trying to pay off aggressively)
Cash savings: $100

This leaves only $372 for all of my food, gas, misc expenses. I know this is going to be really tight.... but not sure what else to do. (And unfortunately according to my employee manual, I can't work a second job because I'm often needed to travel for work.)

You may not be able to work a 2nd job that requires your physical presence, but why not supplement your salary with work-from-home freelance opportunities? Services like writing, editing, proofreading, etc. are always needed. And that doesn't even take into account any special skills you have like creative suite skills, translation services, etc. I'd personally focus my efforts on some sort of work-from-home opportunity so I can save even more and supplement my "fun" funds.

I would love to do this - I'm just not sure where to start. Do you have any websites or resources you recommend I check out? Thanks!

[Anonymous]

Anonymous wrote:

Anonymous wrote:What is your interest rate on car? Unless it's very high I wouldn't pay that aggressively.

I would really try to work on the blowouts cost...would even permanently straightening your hair be cheaper in the long run? Or figuring out a cut that works for curly hair?

What are your long term prospects for increasing your income? Can you babysit for extra cash on the weekends? I did that when I was in my 20s and made an extra $200-$500 bucks a month that way.

Interest rate is very low at 1.49% APR. Just hate the debt.

You're right, I need to start giving up my weekends for babysitting.

Don't give up your weekends but babysit 1-2 nights a month. That will help build a small cushion.

With that low interest rate I would wait til the end of the month and split half your leftover funds between savings and paying off the car loan.

Are you planning to stay at this job? How are your prospects for raises, bonuses etc?

What is your savings like?