deleted

[yukookoo]

d

Edited by yukookoo - 6/26/11 at 5:09am

[cristeen]

Well, some of what I'm going to say has to do with the fact that we're in the same area and less to do with the exact question asked.

Does your DH's employer offer commuter checks? Does he not have Fastrack (none of the bridges cost $6 if you have Fastrack - that's the cash cost for the GG) or is he driving a 3 axle vehicle? Either way, you should be able to save a little money there (either getting FT or contemplating another vehicle). What part of the city does he work in? Honestly, if his employer offers commuter checks and the office is anywhere near the BART corridor, I'd suggest considering a move to the E. Bay.

My DH was making a similar commute every day (E Bay to Peninsula), so when he was offered a position that was BARTable we jumped at it even though it meant a pay cut. In the end we come out ahead because of the commute costs (his company does commuter checks, but even without that we'd be coming out ahead, since round-trip BART=one-way toll). He's saving almost $10K/year by being able to BART into work instead of driving, and that doesn't include the fact that we went down to 1 car, so we're saving on insurance/registration/upkeep fees too. So the $1500 pay cut he took isn't even noticeable.

I would also respectfully suggest not taking your DH's word for it on the income levels. Yes, some have dropped, but some haven't, so it really depends on his field. Do the research, and if it doesn't hold up to scrutiny, you may have to "encourage" him to look for another job. I had to do the job search for my DH, he flat-out refused. It took me about 6 months, but I finally landed him his current job (less than a year ago, so at the height of this recession) when I was about 6 mos pregnant. Again, depending on the field, but in my DH's field there was/is quiet a bit available. And considering the income levels you're used to, you may want to check out the Ladders.com, which only lists jobs over $100K (although we found his on CL).

Ok, beyond my possibly entirely pointless advice above - I'd say it doesn't look like you have a whole lot of choice. If you can get your private practice up and running and bring in some income that way, then I would do that ASAP, but to bring in $3K/mo, it's going to take some time to get up to that level, and that doesn't include any possible childcare costs, does it? It's definitely not something I would recommend as a first choice, but as a last choice, yeah. Sometimes I wish we had done that when we were both out of work - instead we wiped out our savings down to nothing and it's taken us 5 years to recover.

If you would like more details, or to discuss any local stuff, please feel free to PM me.

[JTA Mom]

3k short a month is a lot. What are you short on?

Can you post your budget?

It definitely is expensive here, but I'm wondering how much of your overage is due to debt vs actual living expenses.

To me, it would be better to renege on some debt and be able to cover existing bills rather than going deeper and deeper into the hole. If you add up how much you will be adding to debt in a year, plus interest, it can be a very, very large amount. And having a huge amount of debt is just as bad as reneging on some of your debt. People are going to see you as a risk, etc. Also, how much open credit do you have available? Is your plan even feasible?

How much are you spending on food/gas? What industry does your husband work in that doesn't comp tolls? I agree with Cristeen that we need a lot more info before giving specific advice.

Ami

[yukookoo]

dh is self employeed The bridge toll thing is just a vent really.

We used to live in the east bay, but decided to move to sonoma co where we love it, its a bit cheaper than where we were but obviously not cheap but we love it here and that is important to us.

here is just a basic budget:

health insurance 420 (doesnt include maternity and im pregnant, we also need to save for hb and we have a deductible as well, im not even sure how that works, but i know i jsut had to pay 115$ for my annual exam which was 200s omething and the insurance wouldnt cover it all) so i ad about 50$ a month to this amount for copays etc
so 470 health insurance, its a blue shield private plan that ig ot through an org i belong to. The kaiser plan we were on was 1000 a month

710 for my car a month, yeah it was an incredibly stupid buy, we regret it but there is not much we can do about it at this point. We owe about 10,000 more i think on it.

375 dh's prius

gas about 400 a month dh needs his car for work so he cant take other transportation in, and even with the prius its still alot of driving.

car insurance 160
cart maintanance 150 (dh drives a lot and needs new tires at least once a year and i have to take my car to the dealership) Dh also needs an oil change around once a month or so.

bridge tolls are realistically around 100$

sewer and water 200 (i have no clue why our water bill is so high, we dont even flush toilets, but this is a rental house and its old and inefficient, we are in a lease and have 3 dogs so probably wont be moving till we buy)

rent 1700 (modest 3 bedroom, in a nice area this is a mistake as well but even a one bedroom apartment around here is probably 1200 and we have 3 dogs so it just wouldnt work)

dd's preschool 300 a month (debating taking this expense out since its not that necessary but its our waldorf parent/child class and we love it)

homebirth 500 a month (5000 in about 8 months)

pge 120
comcast 60 (thats internet and basica like 8 channel cable on 1 tv that gets used only at night when i cant sleep and get unplugged during the day)

cell phone 120

taxes 1000

student loan in forbearance or whatever its called for a year

dh's bussiness expenses about 600 a month this includes software, an office, internet in the office etc etc

vet bills and dog stuff about 30 a month

food 600 or so (but t his includes household stuff too, shampoo, tp etc)


last time i posted a budget i got a whole lots of "there is no way you are paying such and such for such and such when we only pay this much here in middle america" but im not making anything up.

I guess the main thing was that we dont want to sacrafice THAT much for the next 2 years and then be in a good position its 2 years off our lives. So how does the money change t he present for us?

the total of what i mention is 7415. We are not 3000 short of that, but there is the extras also, we have no savings so something breaks down, someone needs some big ticket item, we go out to eat a few times cause we have a lapse in judgment, birthdays, holidays, illness (no sick pay when youre self employeed) etc etc etc

Im just really overwhelmed with it

[shayinme]

My dh is self employed so I understand the issue of having work related expenses. My dh has seen his own work decrease, he is a journalist by trade who 8 years ago became a freelance writer/editor. Past couple of years things have changed in his field.

Looking at what you wrote for expenses and knowing your dh's field is changing, I would look to go back into a practice or work. Over the years I developed a decent consulting practice but in 2008 when the economy really crashed I took a regular job that while part time brought in enough to cover some of the smaller bills we had.

I would not plan on supplementing my income for 2 years with credit cards, for starters many cc companies are decreasing lines and in some cases closing accounts and this is happening to folks with good credit. So it would not be wise to count on this as strategy.

In the short run since I see you are expecting can your dh pick up a pt job? I am familiar with the COL in your area so I won't judge that though I will say $700 for a car payment is a tad high...is there anyway to get rid of this?

I guess at the end of the day I would probably change my standard of living, I have done it and while its hard sometimes you do what you have to do. Good luck!

[yukookoo]

yeah the car payment is ridiculous its from the pre kids days when we both made over 10k a month before the recession and a nice car was our only luxury and we justified it by saying its for the future kids :its s tation wagon. But we have paid so much into it now it doesnt make sense to do anything but pay it off and drive it forever and ever and ever!

[Shellie]

I don't think it's realistic to plan on using CCs to get by. My parents have excellent credit and have had all their credit cards (they have about a dozen) cut back to balance and/or the interest raised severely. They had about $30k in available credit a year ago and have only about $3k available right now...and they haven't charged anything new. My mom is freaked out because my dad doesn't make enough and they'd always considered available credit to be e-fund or savings. We also have had all but one of our cards reduced to current balance--that started a couple years ago when we had a damaged house that wouldn't sell and were barely making ends meet. As our debt:income ratio went up, our limits went down and rates up.

[Magelet]

Personally, I'd cut cost of living before I'd consider using credit cards.

My DP's parents were both sick for a few years, and his dad couldn't work, and his mom might have been able to work, but was used to being a sahm, so they put everything on credit cards for a few years. It's been years and years, and they still aren't anywhere CLOSE to out of the hole.

I would think about how much debt you are going to rack up that way, and what will be left of your inheritance after paying your debt. will it still be a house and emergency fund? or will it be a lot less. Even if it will pay it, I personally think it is better to reduce expenses than go into more debt.

Going back to work, at least part time, since it seems you can't cut your expenses a HUGE amount (or enough).

I live in the bay area as well, so I completely understand the crazy high COL. We pay 1200 for a studio apartment!

I would say that you probably could find ways to reduce your food bill a little bit for two years, and still eat decently, though not as well maybe.
I'd ditch the cable TV. We pay 30 dollars a month for DSL. Yeah, it's slower than I'm used to, but it's affordable.
Can you get a better cell phone plan when your contract ends (I know it costs too much to do it in the middle of a contract). I would call them up and say, this costs too much, I'm leaving your company, unless you can do something for me. they will. (same for the cable, even if you keep the TV)
Can you go down to one car? if you want the stationwagon, ditch the prius?
Can you maybe find a waldorf play group that doesn't cost money or something else you love that doesn't cost as much? That is a lot of money, given your circumstances.

I guess the main thing was that we dont want to sacrafice THAT much for the next 2 years and then be in a good position its 2 years off our lives. So how does the money change t he present for us?

I'd say you don't have a choice. It's two years vs. the rest of your life. (I know you have the money coming in, but personally, I wouldn't count the money til it's in your account. You can't count your chicks before they hatch.) Debt is not a sustainable way of living.

[EFmom]

I would do everything I could to cut expenses and bring in more income. I would not put this on credit cards. In addition to wracking up big debt, as the pp mentioned, it's pretty common for cc card companies to slash people's credit limits with no warning.

I'm a little confused as in one breath you say you are overwhelmed by it and in the next you say you aren't willing to make any serious sacrifices.

[woodchick]

Is there any chance your husband could start working from home? He could cut the cost of his office and commuting. Even setting up an office outside the city or working from home a couple days a week might help bring costs down.

It seems like some of your expenses are 'emotion' based and not 'need' based. Personally, I would sell the wagon and buy an older model sedan. Then when I came into the money I could budget to buy a 'dream car'. Right now it doesn't seem to be a true necessity.

Same goes for the house. A smaller place for a couple of years might be worth not racking up the interest payments on your credit cards.

[yukookoo]

the house is a rental that we are in a lease on, i've considered getting a condo or 1 rm for 1200 a month that also cuts water/sewer and electricity bills but we would pay a hefty penalty for breakign the lease

The car was a 40,000$ car we bought it about 3 year ago and have paid 800 a month so with intrest, which we got a good rate, we still owe about 15000 but after paying so much into it, how do we get rid of it? Sell it for the 10,000 its worth owe 5000 and then what? We owe 5000 paid however much and end up with nothing? That makes no sense either.

The money is a sure thing. its money i already inherited its just in a trust fund type thing until i turn a certain age.

[JTA Mom]

Originally Posted by yukookoo

dh is self employeed The bridge toll thing is just a vent really.

We used to live in the east bay, but decided to move to sonoma co where we love it, its a bit cheaper than where we were but obviously not cheap but we love it here and that is important to us.

How important? Right now I'm living in North-east San Jose. A downgrade from both Santa Clara and South San Jose, where I used to live. It's still an okay neighborhood (people walk around freely at night, etc), but not as 'nice'. But we're saving in rent and there's tons more inexpensive grocery stores around and other services within walking distance.

here is just a basic budget:

health insurance 420 (doesnt include maternity and im pregnant, we also need to save for hb and we have a deductible as well, im not even sure how that works, but i know i jsut had to pay 115$ for my annual exam which was 200s omething and the insurance wouldnt cover it all) so i ad about 50$ a month to this amount for copays etc
so 470 health insurance, its a blue shield private plan that ig ot through an org i belong to. The kaiser plan we were on was 1000 a month

With expenses, how much does your dh bring in? I can't remember the name of it, but California Medi-cal will pay for out of pocket insurance cost for an income under $3900 a month. After that, there's another program that has much higher income level allowances. Just show them last years tax return. Nice way to get coverage for pregnancy only. My ds2, I gave birth at the public hospital, had all my prenatal care there, and my OB was excellent. So it's not a 'downgrade' at all. You could do that as a 'backup' in case you need to transfer to a hospital. Also, maybe talk to your hb midwife about hardship case? Or depending on what field you are in, maybe trade services for a discount?

710 for my car a month, yeah it was an incredibly stupid buy, we regret it but there is not much we can do about it at this point. We owe about 10,000 more i think on it.

The one thing I've learned is to NEVER, NEVER throw more money after bad. Just because you put a lot into the car, doesn't mean you can't get rid of it. Consider it an expensive mistake. If you can sell it for what it's worth, or even a little less, do it. Think about owing 2k instead of 10k plus is a HUGE burden lifted. A Mazda van (MPV is the older model, newer one is 5, I think) is super safe and reliable. You bought this car when you had a bunch more $$. You don't have that money anymore. You need to downgrade. Not fun, but doable.

375 dh's prius

gas about 400 a month dh needs his car for work so he cant take other transportation in, and even with the prius its still alot of driving.

How far from his job does he live? Honestly, $400 a month for a Prius suggests a ton of driving. Maybe moving somewhere near BART like Cristeen mentioned is worth it, budget wise.

car insurance 160
cart maintanance 150 (dh drives a lot and needs new tires at least once a year and i have to take my car to the dealership) Dh also needs an oil change around once a month or so.

See above

bridge tolls are realistically around 100$

See above. I mean, if your dh commutes to work on BART you just cut $1200 a year for tolls, $300/month or $3600/year for gas (keeping $100/month for grocery trips, etc), and dropping maintenance down to $50/month or $600 yearly (for tires, maintenance for a used van for you), and dropping your vehicle payment completely at $8520/year, you just saved $13920 a year. A savings of about $1100 a month. Even including BART tickets in the cost, it's a LOT of savings.

sewer and water 200 (i have no clue why our water bill is so high, we dont even flush toilets, but this is a rental house and its old and inefficient, we are in a lease and have 3 dogs so probably wont be moving till we buy)

How long till the lease is up? Is there any way you can find new tenants and have them assume your lease? That's super high water bill can be cut down, and if you move somewhere on a BART line, it's worth it. Even if you pay a bit more for a house there, you'll still come out ahead in terms of commuting/water savings.

rent 1700 (modest 3 bedroom, in a nice area this is a mistake as well but even a one bedroom apartment around here is probably 1200 and we have 3 dogs so it just wouldnt work)

That's pretty good for a 3 bedroom. I don't know where your husband works, but try looking on craigslist in an area closer to BART and put a cap on the amount of rent. It's how we found this place. We're paying $2000/month for a 4bdrm townhouse with a small patio.

dd's preschool 300 a month (debating taking this expense out since its not that necessary but its our waldorf parent/child class and we love it)

Love it or not, you can't afford it. Try subbing in some other free thing to do. Ds and I have a routine where we go to Goodwill or other thrift store once a week. We wander around, he gets to play with the toys, watch people, etc. I generally don't buy anything (only if I need it, like some new pants) and ds views it as the 'big toy store' in that he is actually allowed to touch them.

homebirth 500 a month (5000 in about 8 months)

See above about possibly trading services)

pge 120
comcast 60 (thats internet and basica like 8 channel cable on 1 tv that gets used only at night when i cant sleep and get unplugged during the day)

Not bad. We pay $46 total for just internet.

cell phone 120

taxes 1000

Again, why so high? Is your husband bringing in a lot of profit? Or do you guys get a HUGE refund check each year? Perhaps paying less will work better?

student loan in forbearance or whatever its called for a year

dh's bussiness expenses about 600 a month this includes software, an office, internet in the office etc etc

vet bills and dog stuff about 30 a month

food 600 or so (but t his includes household stuff too, shampoo, tp etc)

How old is your little one? Put out an ad on craigslist asking if there are any produce stands near you. You can get good, inexpensive produce there, since that's mostly what they focus on. You can also see if you have any ethnic stores near you. They have excellent, fresh produce, cheap spices, etc. Right now it's just dh, ds and pregnant me, and we do well on $400 a month, but right now I'm trying to keep it to $300 a month. You can eat well in the bay area on $400 a month. I shop sales and stock up on items we use a lot of. So when tomato paste, for example, goes on super sale, I buy cases. This gives us a good size pantry and freezer to shop from when sales aren't that great.

last time i posted a budget i got a whole lots of "there is no way you are paying such and such for such and such when we only pay this much here in middle america" but im not making anything up.

Yea, sometimes I look at posts where people pay $500 for their mortgage and dream how lovely it would be. But I like it here too much. Our families are here, I love the ethnic mixing and immigration here (being first generation, I relate a lot more to them), being able to get real Vietnamese or Mexican food, for inexpensive, etc etc.

I guess the main thing was that we dont want to sacrafice THAT much for the next 2 years and then be in a good position its 2 years off our lives. So how does the money change t he present for us?

Never, EVER count on something you do not have. EVER. I don't know what your inheritance is in, but what is the economy keeps going south and the family business tanks or is barely holding up, leaving nothing for you? Etc, etc. The thing is, you guys have been living above your means for a while. And it has to stop. If you live on credit cards and they effect HUGE interest rate hikes, your inheritance could, on 3k/month x 2 years, be eaten up, leaving you exactly where you are right now. By cutting out extraneous stuff, you might actually find what you enjoy and what was just filler, forcing you to spend more money/life energy to maintain.

the total of what i mention is 7415. We are not 3000 short of that, but there is the extras also, we have no savings so something breaks down, someone needs some big ticket item, we go out to eat a few times cause we have a lapse in judgment, birthdays, holidays, illness (no sick pay when youre self employeed) etc etc etc

Im just really overwhelmed with it

The fact that you have NO savings is a big sign: you've been living above your means for a while. It doesn't feel good to not have a cushion and huge debt.

Also, as a good part time job (in terms of money to time ratio) is pizza delivery. I've heard of people making an extra 1k a month doing that. It's not a lot, but it's a nice source. You can also do a newspaper route. It's early in the morning, but it's something dependable.

Ami

[Lucy Alden]

Originally Posted by yukookoo

I do not receive access to much of that for almost 2 years.

We are about 3000 short a month if we keep our current standard of living.

Just doing simple math it looks like you would need $72,000 available in credit. I can't imagine you having guaranteed access to that for the next two years. Limits change, interest rates increase. I would be nervous making that my plan A.

It looks like you've received a ton of advice on how to change your budget or increase your income. In your position, I'd be looking into those options not using credit.

[shayinme]

Originally Posted by JTA Mom

The fact that you have NO savings is a big sign: you've been living above your means for a while. It doesn't feel good to not have a cushion and huge debt.

Also, as a good part time job (in terms of money to time ratio) is pizza delivery. I've heard of people making an extra 1k a month doing that. It's not a lot, but it's a nice source. You can also do a newspaper route. It's early in the morning, but it's something dependable.

Ami

Setting aside $1000 a month for taxes seems reasonable. Before my dh's work dropped we were paying about $8500 in fed taxes and 2000 in state so setting aside $1000 a month is definitely realistic being self employed. Its better to have set aside too much then to find yourself short a few thousand.

[Mulvah]

I would truly weigh the cost of moving closer to your DH's office to cut down on several things (gas, tolls, car maintenance, etc.). You may spend more initially, but what will your savings be within the two years? Can you find someone to sublet? After the two years, you could surely return to the area you love.

Also, I would find out what it will actually (not a guess) cost to get rid of the wagon. Depending on the reality of the situation, I would probably get rid of it and either use the money to help pay bills or I would buy something outright (used) to get you by for the next two years if you really need the second car. Lastly, if it were me, I would cut out the $300/month childcare class. You can resume that when things are better.

I would not spend the next two years putting things on credit cards.

[Irishmommy]

Would you be able to get a consolidation loan for at least the cars and other debt (and maybe even extra to cover the shortfall) using the inheiritance as collateral? Assuming you can prove it will still be there in 2 years (as in, not invested in something that could tank).

[sunnysandiegan]

Credit cards are a really risky plan A for two years with your financial situation. Compounding interest works both ways. Check out your credit card statements the next time they arrive in the mail. The new laws spell it out in dollars and cents.

People win a million dollars on TV shows and they're back going for another mil because it just doesn't go that far these days.

Between your initial post and subsequent posts, I didn't quite catch what your financial intuition is in the given situation. I'm hoping that the plan to live on credit cards to cover the monthly deficit of $3K is what you are against. If so, I completely agree. Reducing expenses, even hard ones, is always my first choice because I value family relationships more than money. However, increasing income is only a hair's breadth below reducing expenses.

Is there anyway for you to bring in income (any avenue) without incurring childcare costs?

Is there anyway for your DH's biz to reduce expenses? Being self-employed has certain costs, for sure. He has fixed location expenses and yet spends a lot of time driving around. We own a Prius and DH commutes 50 miles a day in it. We don't spend nearly that much in gas per month. (Our total auto fuel bill for two cars is less than $100/month. We live in San Diego, which isn't that much lower than the Bay Area COL. I lived in the Bay Area for years and still have friends there.) Our Prius is paid, though, and our auto insurance is probably less than yours (guessing based on inheritance age statement more than anything). Would a Smart Car or other small car be more cost-effective overall?

The bottom line is you are living beyond your means (and have been for awhile) and two years of sacrifice with a known end-date is minor in the big picture. Two years of continuing to live as you are is very likely to land you in serious financial trouble even with a large inheritance.

My advice is to head over the spirituality forum on MDC and read up on Treasure Maps ASAP. Do one in the next few days (before 4/28) and put yourself in a good mindset to handle all that comes your way with grace and ease and financial security in the next year. Best wishes!

[TiredX2]

Originally Posted by Irishmommy

Would you be able to get a consolidation loan for at least the cars and other debt (and maybe even extra to cover the shortfall) using the inheiritance as collateral? Assuming you can prove it will still be there in 2 years (as in, not invested in something that could tank).

Also, is there any way to get an advance from the inheiratance? Is there some reason it will take two years for you to get any money?

[basje]

Honest, gentle advice.

It's wonderful that your father was generous to leave you a trust. What a blessing with the impending expansion of your family. I also live in the bay area, in Berkeley so I understand the high cost of living here. From reading your budget, I think that you might benefit for a gentle nudge that you are living significantly above your needs.

Although you got a good price on your rental house, three bedrooms? Do you an your husband not share a room? It's nice to have the extra space, for a playroom or office or guest bedroom but you don't have the income. The cost of living is high here, but even higher is the price of keeping up with the Jones' Having the extra space is a want not a need. You're swimming in debt, so responsible spending means wants go on hold.

Your grocery bill is exceptionally high for the number of people in your household. I shop at Whole Foods and by exclusively organic food, and adjusting what I spend to the number of people in your household, I am confident that you could cut your food budget by at least a third. If you are eating fresh veggi's, fruit, and non-processed foods there is no reason for the price to be so $$$, if you need to make changes to what you are feeding your family it's a perfect time as your pregnant. I recommend that you check out the farmers market now that summer is coming, which will get you high quality for a surprisingly low price. You may also look into getting a CSA membership for a weekly box, another great low cost/high quality option. I really think that it's reasonable to spend 400 a month, even with your dog food!

You should definitely sell your car. Even if you take a loss on it. After you sell it see what would happen if you tried to share a car with your DH for a month. You can do grocery shopping after he get's off work or weekends if it's too far to walk, ride your bike or take the bus. If it doesn't work out after a month buy something else, used!

If you want to keep pre-school I think it's a good idea. It give you the childcare you need to get back to work and consult. Having a second income should help significantly to get you out of the red.

It seems as though your DH also has unrealistic understanding of how to handle money. If it's not possible to take BART, then he should be looking for a ride-share to carpool with (even if he's driving) which will lower his gas and toll bills. CL is a good place to start for that one.

As for your energy/water bill check out http://www.fypower.org/feature/lowin..._programs.html and see if you might qualify for any help. Swap out light bulbs for CPF. Try adding a timer to your bathroom to see how much time you are really using to shower or take more relaxing bath's! Keep in mind, the "great deal of a house" your renting isn't as good of a deal when you factor in the extra utilities expense.

Switch your cell phone service. Until you've got a different income, you can start paying $80 a month instead of $120 by switching to metro PCS, you can switch back in two years when you have a larger income.

Most of us didn't learn growing up how to manage money. I know my parents didn't do a good job teaching me. I've had a monthly budget of 4,000 a month and as little as 250, and learned it doesn't matter how much you have coming in, it matters how much you spend. Your father choose to protect the trust until you became a certain age, likely in hopes that you will have learned to live within your means and how to manage money with your spouse. So do your father that, take these two years to learn how to me financially healthy. Start with making changes to your spending, then increase your income by working (even if part time) and maybe most important start learning about managing money including the large sum you're going to be getting. Putting your spending on your credit cards is the worst thing you could do.

Make a goal to read on book a month on money management for the next six months. See if you can get your DH on board too! Here's my suggestions (and be sure to borrow them from the library or by them USED online). You can learn how to do this, and here are my carefully suggested choices to get you started. I've put them in the order that I suggest you read them.

Smart Couples Finish Rich: 9 Steps to Creating a Rich Future for You and Your Partner

Get Financially Naked: How to Talk Money with Your Honey

http://www.amazon.com/Money-Book-You...ef=pd_sim_b_29

The Millionaire Next Door

Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: Revised and Updated for the 21st Century

The Complete Tightwad Gazette

I bet after six months, you'll be in a totally different place ... and feeling really great about it.

[CarrieMF]

dh's bussiness expenses about 600 a month this includes software, an office, internet in the office etc etc

This should NOT be coming out of a household budget, this should be coming out of dh's business finances. IF the business can't cover it then there's something majorly wrong.

cart maintanance 150 (dh drives a lot and needs new tires at least once a year and i have to take my car to the dealership) Dh also needs an oil change around once a month or so.

An oil change with filter should be $30. Are you really spending a further $120/MONTH on maintanance. Is that $$$ being set aside for tires? Why does your car need to go to the dealership?

bridge tolls are realistically around 100$

Again this should be coming out of business finances.

In fact, a good portion of the car maintenance, gas, tires, Prius payments should be coming out of it too.

dd's preschool 300 a month (debating taking this expense out since its not that necessary but its our waldorf parent/child class and we love it)

want vs need & it's a want you can't afford.

homebirth 500 a month (5000 in about 8 months)

for the future this is a payment that should have been saved up for when your dh was bringing in more money. That aside, 8months & you'll have this $$$ back, right. Put that into a savings account when the time comes.

pge 120

what is this?

cell phone 120

taxes 1000

Any portion of the cel phone that is business related should be coming out of the business finances. The taxes for the business should be coming out of that too, even if it's just a portion - at least half.

There are too many business expenses being paid out of the household funds. ALL business expenses need to be separated from household. If the business can't cover them then DH needs to get a job where he isn't the owner otherwise by the time the inheritance comes in you won't have any income.

You have AT LEAST $2400 in business expenses that you should not be paying for from the household.

I wouldn't be counting on that inheritance in 2 years either. What happens if something happens to you and you aren't around? Is there a provision for the inheritance in that case? Even if there is & dh would still get the money, with huge CC bills & having to put 2 kids into daycare alot of the plans for the inheritance would fall through.