Anyone Willing to Look at Our Budget?

[hollyvangogh]

Wow, it's been so long since I've posted on MDC (though I've been doing my fair share of lurking). Too bad I'm speaking up again for less-than-awesome reasons. I apologize in advance for the length. If you don't want to read it, please don't. :)  I guess I'll get right to it:

Spouse has an interview for University of Calgary Med School on Saturday. He wasn't invited to interview at UofA so UofC is his only chance. :( If he doesn't get in this year we still need to move to Calgary so he can transfer as a regular student because our local college has no more classes to offer him. Main point: we're moving from our current city to more expensive Calgary in about May/June.

I'd planned on being a SAHM for years. But I recently went back to work part time to pay my student loans. I make <$800 a month. I'm desperate to SAH again but can't figure out in our budget where on earth to find $800 a month (budget below). I read a lot of frugality books and blogs so I'm familiar with all the usual cost-cutting ideas. My current job is great work but I got lucky getting it. I'm not super qualified so I have serious doubts that I would find a job that pays as well (which isn't saying a lot, as I'm paid $10 p/h) and that was anywhere near as enjoyable (I like my boss, the work is nice, etc.). But, then, I don't want to be working anyhow. Main Point: How the h*#$ can I make it possible to be a SAHM again...and if I can't, how do I deal with the grief? 

Our car recently died and is likely not fixable. We're looking into an interest-only LOC (that my in-laws had to co-sign *shudder*) but haven't heard back from the bank yet. I was recently informed that I probably qualify for income-based student loan payments (which the office rep told me would probably be $0 p/month) and I'm applying for that now (though I probably wouldn't qualify anymore if I did the SAHM thing again). But I recently learned that the university I went to screwed up my financial aid several years ago and I have to pay them $200 a month for 24 months starting in March. Hopefully things will go OK with the bank and we can use part of the LOC to pay for a new-to-us car and part to make payments to the university. It's stressful. And while I would say "well, this year we won't go visit Grandma" I'm fairly sure she is dying and this year will be my last ever chance to see her/take my daughter to see her. Main point: When it rains it pours.

Spouse works part time, attends school full time. Main Point: We're living on a mix of income/grants/loans, but mostly student loans.

I just hate our situation. I don't like wracking up all this debt due to school. I think, if we're smart, we'll be able to pay off the loans fairly quickly once spouse is done with school/residency. But it's super stressful now while we're still not even sure if he'll get in this year or next or, you know? The uncertainty is killing us. I never finished my degree because I didn't have something I wanted to study/do and I wanted to start a family and be a SAHM. I've been wracking my brain for weeks and weeks and weeks trying to figure out how on earth I can make that happen again (especially because I want to homeschool when the time comes). But I can't think of any at-home income generators that I could depend on for $800 a month. Anyhow, here's our current monthly budget (this doesn't include all our periodic expenses such as moving truck rental, but it does include some, such as travel costs, which we put aside a little at a time for).

Monthly Budget:

rent: $700

utilities: $40 (we're lucky to only pay electric right now, this likely will change when we move)

coin-op laundry: $16 (average 1 load p/week)

phone: $19 (this is an internet phone that comes with free long distance, useful for calling my very ill mom- we have no cell phones)

internet: $30

cable: $0

groceries: $370 (we're in Canada, so our food prices aren't the greatest...but our health care sure is!  I'm making every effort to bring this down, using a price book, meal planning, no eating out, almost no prepared foods except when it's on sale for cheaper than whole ingredients, that sort of thing - very receptive to more ideas)

car insurance: $80

gas: $100 (obviously, not paying that ATM since we have no car - but when we do it's mostly used for errands, taking DD to the sitter, and spouse working as he is required to provide transportation for his client, he rides the bus for school)

body care: $10 (haircuts, grooming supplies, that sort of thing - spouse usually cuts his own hair unless it's important he look good for pictures or interviews or something)

clothing: $100 (I am so, totally willing to slash this, we bumped it up because I lost a lot of weight and nothing fit)

gifts: $20 (this is for all occasions other than Christmas - I think it would be quite doable to slash this lower as I sew and craft and have a lot of supplies on hand already for making homemade gifts)

date night: $30 (we are happy doing cheap/free dates, but still need to pay a babysitter as it will be a while before we make friends with whom we can trade babysitting when we move - open to ideas on getting around this)

allowance: $40 (twenty for spouse, twenty for me)

debt: $200 (student loans and a loan from my parents - about to another $200 a month)

bank fees: $13

life insurance for spouse: $27

emergency fund saving: $150

travel: $200 (cost of daughter and myself getting from Alberta to Ohio using the cheapest airfare I've been able to find and flying during non-peak season/days - have considered pricing out cost of driving, which will be moot if we can't replace our dead station wagon)

hobbies: $15 (this could be dropped completely)

childcare: $35 (we're low income so it is subsidized)

other: $325 any and all other expenses (we went over budget on this last year and are getting back on track...I think now that I'm doing a better job with our budget/receipts I'll be able to bring this down)

Anybody see $800 hiding in there somewhere?  Seriously though, I'm open to pretty much any idea that is legal/ethical if it means being at home. 

[zebra15]

Sometimes you just cant cut anymore and you need to increase income.

You can cut the $200 travel budget, IDK what 'other' is for $325,   but honestly that looks like a pretty bare budget as is and while you may want to SAH, it looks like you need the income.  Id keep the PT job for now, espicially since rent wiill be going up, and there is a move coming.

[hollyvangogh]

You can cut the $200 travel budget, IDK what 'other' is for $325,   but honestly that looks like a pretty bare budget as is and while you may want to SAH, it looks like you need the income.  Id keep the PT job for now, espicially since rent wiill be going up, and there is a move coming.

Yeah, I have no plans on quiting my job until we move and I have to. I like my boss and would hate to leave her before she's ready with my replacement. I'm just trying to figure out if there's any way to avoid getting a new, crappy job once we're in Calgary.

If I cut the travel budget I will probably never see my mother again. I'm not sure if I could live with that kind of guilt and grief for the rest of my life, but if I can find a cheaper way to see her before she's gone that would be awesome.

Other is for everything else that isn't food (so diapers, household goods, spouse's monthly bus pass, OTC medicine, repairs/replacement for broken things...though we decided not to replace our broken toaster since we have the toaster oven too, that saved us $10, lol- those sorts of things).

[mama to B]

I use to live in Calgary and I have a feeling your groceries could end up going up depending on where your coming from. What are you interested in doing, and how old is your child? When I lived there I was a live in nanny making 1800 a month with no living expenses. I'm sure you could find a family to go to their house bring your child and you'd make well over your 800$. Or try taking in children into your home, I'm not sure what the Childcare prices around there are now but I'm sure you could make 800 taking in a child Monday-Friday. Another option is going to work at a clothing store, I did that and since they are so hard up for GOOD employees who will stay around they usually offer incentives. For every hour I worked I got a dollar to spend in the store, if I hit my goal sales that doubled. I was getting over 300 a month to spend on just clothes, I think I also made 10/11 an hour.

[mama to B]

One more thing have you found a place in Calgary? Because 700 rent seems low for Calgary.

[ilovemygirl]

Your budget does seem pretty stretched already and I also wonder if the rent and food will be higher when you move. Do you need a car where you are moving to? Cutting that would save you a lot on the payments, gas and insurance. 

I know this might sound confusing but can you work and still be a sahm? You could babysit or work outside the home when your dh isn't in school. I do both and while it's really hard and exhausting, it's so worth it. We've covered our bills, paid down debt and I still get to be with my child all day.

In the end, I'm sure you'll find something that works for you. 

[hollyvangogh]

Originally Posted by mama to B 

One more thing have you found a place in Calgary? Because 700 rent seems low for Calgary.

Not yet, but we're planning on renting a home together with my brother-in-law (we're very close, he lives in the apartment next door and eats most dinners with us already, DD adores him). I've seen houses for rent that would house the four of us well without either him or us paying more in rent, just more in utilities. It's too early to rent what we find now b/c we can't afford two rents at the same time, but hopefully there will continue to be places available that are similar. What I've seen are also fairly close to the Foothills Hospital/Health Sciences campus. So, fingers crossed.

[hollyvangogh]

Originally Posted by ilovemygirl 

Your budget does seem pretty stretched already and I also wonder if the rent and food will be higher when you move. Do you need a car where you are moving to? Cutting that would save you a lot on the payments, gas and insurance. 

I know this might sound confusing but can you work and still be a sahm? You could babysit or work outside the home when your dh isn't in school. I do both and while it's really hard and exhausting, it's so worth it. We've covered our bills, paid down debt and I still get to be with my child all day.

In the end, I'm sure you'll find something that works for you. 

Spouse will either be a medical student and pretty much on campus all hours in class or studying or will be a science student and working when not in class. There won't really be time for him to trade off with me. But I am trying to look into taking on a child for babysitting. It looks like a class I took at university might qualify me for my level one childcare certification, and I'll need to renew my first aid/CPR, and get a police check. I've been thinking about that option all day as it seems like the best way to "have it both ways." I just don't know how much to charge for care as no-one seems to say what they charge in their ads (they all just say "rate negotiable"). I don't know what a fair price is.

We just found out today that the bank approved us! So that's a relief. We need a car to get us through the next few months in our current city so I can keep working and so can my spouse. But we are talking about selling whatever car we buy once we're in the big city. I'm not sure if that would affect my ability to get a child care client or not (I know I wouldn't like leaving my DD with someone who couldn't get her to the doctor/hospital in an emergency) but maybe there are people who wouldn't care. WDYT? I would very much be interested in going car-free if possible. Walking/waiting for the bus during the winters here can be brutal, but maybe in Calgary they're not as bad with the chinooks and all.

[gumshoegirl007]

With your current budget, I don't see lots of places to cut.  The thing that jumps out at me is have you accounted for all expenses?

What about expenses related to tuition and books for your DH and the new car loan?  My SIL is currently a 4th year med student in Ontario and in addition to her tuition, she has lots of placements and travel that she's expected to cover (ie, she just dropped a couple of grand doing electives - which are required - and her cross-country CARMS tour - which is where you try to get matched for your surgical residency).

[hollyvangogh]

Originally Posted by gumshoegirl007 

With your current budget, I don't see lots of places to cut.  The thing that jumps out at me is have you accounted for all expenses?

What about expenses related to tuition and books for your DH and the new car loan?  My SIL is currently a 4th year med student in Ontario and in addition to her tuition, she has lots of placements and travel that she's expected to cover (ie, she just dropped a couple of grand doing electives - which are required - and her cross-country CARMS tour - which is where you try to get matched for your surgical residency).

We account for tuition and such on our yearly budget.

[Drummer's Wife]

If/when your DH gets into med school, will you be taking out huge loans to pay for housing and such?  I just ask since obviously he won't be able to work, even part-time, and if you are a SAHM, that seems like it would be beyond tight.  I know it would only be temporarily, but then you have to figure the 3-7 years of residency and the low pay and long hours that come with that; not sure if his student loans can be in deferment during that time, but I'd look into it if you haven't already so you can plan ahead. 

Doing childcare at your home sounds like a great option to me.  Good luck figuring it all out.

[crazyms]

Not sure I can help since I have no idea what things are like in Canada so my suggestions may not apply there but I'll try.

Monthly Budget:

rent: $700

utilities: $40 (we're lucky to only pay electric right now, this likely will change when we move)

coin-op laundry: $16 (average 1 load p/week)

You have a budget for extra expenses listed below. I'd check into getting a small portable washer/dryer set up if possible so this could go. I have seen portable washers here for about $200 and then line dry if possible. I would think that would be feasible with 1 load a week average.

phone: $19 (this is an internet phone that comes with free long distance, useful for calling my very ill mom- we have no cell phones)

I have seen here where some places advertise the internet phone for $20 or so a year instead of a month so that may be something to look for. Also have heard things about the Magic Jack being extremely cheap too and have heard some good reviews for it.

internet: $30

cable: $0

groceries: $370 (we're in Canada, so our food prices aren't the greatest...but our health care sure is!  I'm making every effort to bring this down, using a price book, meal planning, no eating out, almost no prepared foods except when it's on sale for cheaper than whole ingredients, that sort of thing - very receptive to more ideas)

This seems like a good amount for groceries but if you are low income does Canada offer something similar to the US WIC and Food stamps programs that you might qualify for? I'd check into that.

car insurance: $80

This is about what we pay for car insurance currently too but I would shop around and see if there is maybe a better price somewhere. Ours is best price for now but will lower in 4-5 months though so that is less in the future. Might be something to think about.

gas: $100 (obviously, not paying that ATM since we have no car - but when we do it's mostly used for errands, taking DD to the sitter, and spouse working as he is required to provide transportation for his client, he rides the bus for school)

body care: $10 (haircuts, grooming supplies, that sort of thing - spouse usually cuts his own hair unless it's important he look good for pictures or interviews or something)

clothing: $100 (I am so, totally willing to slash this, we bumped it up because I lost a lot of weight and nothing fit)

This is the one thing I see that can make a significant change. With thrift store and sale shopping you can save a lot. That budget is $1200 for the year and I would go with no more than $600 for the year. I would think you could even get by on much less than that if you have good thrift possibilities available in Canada.

gifts: $20 (this is for all occasions other than Christmas - I think it would be quite doable to slash this lower as I sew and craft and have a lot of supplies on hand already for making homemade gifts)

date night: $30 (we are happy doing cheap/free dates, but still need to pay a babysitter as it will be a while before we make friends with whom we can trade babysitting when we move - open to ideas on getting around this)

allowance: $40 (twenty for spouse, twenty for me)

debt: $200 (student loans and a loan from my parents - about to another $200 a month)

bank fees: $13

Is this necessary in Canada? I'm not sure what the bank fees are for but we have a free checking account that has no fees even for the debit cards. I would consider finding a different bank if possible to cut fees. (Sorry don't know anything about Canada banking so may not be possible)

life insurance for spouse: $27

Not a bad price here either but again shopping around for insurance might could lower it. Also combining this and the car insurance policies through the same company may save money too since most give a discount for multiple policies. That may save you some on both if you aren't already doing that.

emergency fund saving: $150

travel: $200 (cost of daughter and myself getting from Alberta to Ohio using the cheapest airfare I've been able to find and flying during non-peak season/days - have considered pricing out cost of driving, which will be moot if we can't replace our dead station wagon)

This is one I see that 'could' be cut although I completely understand why you don't want or need to. One thing I will say though is this is monthly? Could you possibly go to see your mother every 2-3 months or so? That would save quite a bit over the year by not going every month.

hobbies: $15 (this could be dropped completely)

Could be dropped.

childcare: $35 (we're low income so it is subsidized)

other: $325 any and all other expenses (we went over budget on this last year and are getting back on track...I think now that I'm doing a better job with our budget/receipts I'll be able to bring this down)

You listed this as being for diapers, household, misc. I would try tracking spending in this budget to see how much is really needed. Try to find ways to cut out things that are in that budget - use cloth diapers, reusable items instead of disposable, etc. I would think this could go way down.

[purslaine]

Get a Presidents Choice card and you should have no bank fees.  I think ING direct is fee less as well.

The utilities seems really low.  Heat alone can be 200$ a month in winter (cheaper in apartments).  I am in Ontario and in a house, but my costs are:

natural gas - 1400 per year

electric - 1200 per year.

I need to stress that I am at the low end of the $$$ amounts - most of my friends pay more.

Check out airfare from nearby cities (including american cities).  flight from Ottawa to Orlando?  $400.  Flight from Syracuse (3 hours away) to Orlando?  $275.  Nice chunk of change for my family of five.

I think my car insurance is $60.  I get the minimum I can get and I look online to make sure I am getting the cheapest price (they do not always advertise their basic price and they include "extras" (like "one crash free") in basic without explicitly telling you.

Why not call and ask what the going rate is for childcare? I bet it is 30-45$ per day for in home care of multiple children. 

You are getting child tax credit, Universal child bonus, and any provincial money for your little one, right?

[Logan]

There are plenty of things that I would cut in here, but may not be in your comfort level to do so.....

Monthly Budget:

rent: $700

utilities: $40 (we're lucky to only pay electric right now, this likely will change when we move)

coin-op laundry: $16 (average 1 load p/week)

 For starters I would say start doing cloth diapers and get a washing machine when you get there. If you go for something like prefolds or flats it can be super cheap and just get a really basic washing machine, or even rent a place which has one included if that's common there.

phone: $19 (this is an internet phone that comes with free long distance, useful for calling my very ill mom- we have no cell phones)

internet: $30

cable: $0

groceries: $370 (we're in Canada, so our food prices aren't the greatest...but our health care sure is!  I'm making every effort to bring this down, using a price book, meal planning, no eating out, almost no prepared foods except when it's on sale for cheaper than whole ingredients, that sort of thing - very receptive to more ideas)

Your grocery budget is amazing, food in Australia is so expensive. I try to budget $200 a week but always ends up around $300. Especially if we want to eat anything healthy. So I'm really impressed you can keep it this low! 

car insurance: $80 I would not have got the car that's for sure, but a bit too late on that one. Im sure there are buses where you are moving especially with a college in that town (ie. lots of students who need public transport). You're adding $45 a week in expenses just for the insurance and gas, plus however much the loan repayments are and the interest on that- how many hours away from your kids is that? In a true emergency most people would call an ambulance for their children. A car is convenient, but not essential. Exception would be if you lived very rurally, which is not the case here.

gas: $100 (obviously, not paying that ATM since we have no car - but when we do it's mostly used for errands, taking DD to the sitter, and spouse working as he is required to provide transportation for his client, he rides the bus for school)

body care: $10 (haircuts, grooming supplies, that sort of thing - spouse usually cuts his own hair unless it's important he look good for pictures or interviews or something)

I would personally try to keep this in with the general grocery budget but if it helps to have it separate so you don't overspend then its a really reasonable amount.

clothing: $100 (I am so, totally willing to slash this, we bumped it up because I lost a lot of weight and nothing fit)

What??? How much clothing do you need? That's $25 a week! Even if you dont buy second hand that could still buy you around 3 brand new shirts here at Kmart. And I know the prices for things like that are even cheaper in the US. That is an awful lot of clothing to be buying every month. Buy a wardrobe that will last you the week til you do washing and then wear it out. 

gifts: $20 (this is for all occasions other than Christmas - I think it would be quite doable to slash this lower as I sew and craft and have a lot of supplies on hand already for making homemade gifts)

Do you have a lot of gifts to buy each month? 

date night: $30 (we are happy doing cheap/free dates, but still need to pay a babysitter as it will be a while before we make friends with whom we can trade babysitting when we move - open to ideas on getting around this)

This one I don't understand, can't you and hubby have special time together after the kids are asleep? Maybe later on when your husband is a doctor there will be plenty of time for fun nights out. But right now you are students and you need to live within those means. When you have someone who you can swap babysitting with then I don't see a problem with it, but I dont think at the moment it is something you can afford to be doing. 

allowance: $40 (twenty for spouse, twenty for me)

debt: $200 (student loans and a loan from my parents - about to another $200 a month)

bank fees: $13

I also think you should find an account with no fees. Here if you tell the bank you are thinking of closing the account and moving to a bank with no monthly fees, they will drop their fees. But most banks have automatically dropped them now to keep up with the competitors. Unless this is for some other type of fee?

life insurance for spouse: $27

emergency fund saving: $150

Is all your debt at the moment student loans with low interest/repayments, or do you have CC and loan debt to pay off as well? Because if you have other debts, I would get the emergency fund to $1000 and then put that money onto other debt instead. If you use the emergency fund for anything then obviously repay it back up as quickly as possible then keep funneling all that money onto the debt again. If you only have low repayments on the student loan then I say use this money to stay home with your kids rather than build an enormous emergency fund. But I know some people would not be comfortable with this. To each their own, they are only little for such a short time!

travel: $200 (cost of daughter and myself getting from Alberta to Ohio using the cheapest airfare I've been able to find and flying during non-peak season/days - have considered pricing out cost of driving, which will be moot if we can't replace our dead station wagon)

Do you travel each month or is this just the funds to save to allow you to travel a couple of times a year? At that rate you could probably have your mother live with you for less than that, have either of you considered it? Especially as it sounds like you love her dearly and her health isn't the best. 

hobbies: $15 (this could be dropped completely)

I'd say drop it since you already have an allowance in the budget. 

childcare: $35 (we're low income so it is subsidized)

What times do you need day care? Can you work it out so that you are working when hubby is home? Then they would always be with a stay at home parent as well. And you would probably save on meds and doctors appointments for them not catching every bug too. This expense would be gone if you weren't working any longer, correct? So thats another to add to get to the $800. 

other: $325 any and all other expenses (we went over budget on this last year and are getting back on track...I think now that I'm doing a better job with our budget/receipts I'll be able to bring this down) $325 A MONTH!?!?! on miscellaneous stuff and that's not even including the $100 on clothes- wow! That much on miscellaneous stuff is crazy expensive to me. In a normal month what would you spend this on? I would raise the grocery budget to $400 a week and include the body care and other in that. But I have no idea what the 'other' is, maybe some of it is essential needs? 

So if my calculations are right (which they may very well not be ) ....your budget total was: $ 2520 And after taking out the expenses I would cut, it is: $1906. That's $614 more per month, so not quite $800 but getting there. I didnt take out  the emergency fund saving, in case there was other debt than the student loans, but I would personally use that as well once the emergency fund was built up if there weren't any other debts. That would be $764, and pretty darn close to being a stay at home mom full time!

[colsxjack]

Yeah. I would cut the clothing to $25/month tops. And shop second hand or buy a few outfits and wear them often.

I am also in Canada, so I understand the bank fees. I have not seen a bank with zero fees, not for a chequing account anyway.

The misc fund is a bit outrageous. Ours is $100/mth and we dont usually spend it.

You could apply for loan forgiveness.

Cut out the car. If your dh needs a car for the occasional client, you can do autoshare. You don't pay gas or insurance and they have pretty low hourly fees.

For traveling to see your Mum, try searching for flights from the US. You can drive over the border. This is usually MUCH cheaper.

You could also look at taking in a child, or even a couple of school aged kids. Then you still have all day with your child and just have a couple of kids for an hour before school and a couple hours after school.

Good luck.

[pianojazzgirl]

Re. getting around bank fees in Canada...  Our checking account is a joint account with FIL.  He's over 60 so the fees are waived.  (Dh had a joint account with his dad from his student days.  Later we added my name to the account when we started a mortgage at that bank and we were going to take FIL's name off the account when the friendly bank guy pointed out that since FIL was over 60 it meant no fees!).

[purslaine]

Originally Posted by colsxjack 

I am also in Canada, so I understand the bank fees. I have not seen a bank with zero fees, not for a chequing account anyway.

We have no fees with our Presidents choice chequeing account.

[Kyamo]

Originally Posted by colsxjack 

I am also in Canada, so I understand the bank fees. I have not seen a bank with zero fees, not for a chequing account anyway.

Others already mentioned PC, but even without switching banks, I think all the banks waive fees if you keep a minimum balance in the account. The OP mentioned an emergency fund, so keeping that in the chequing account could save the fees. Yeah, you won't earn interest in the chequing, but with the low interest rates right now, you aren't earning $13/month on the amount you'd need to move anyways.


Your car insurance may increase when you move into a larger city. I understand car insurance rates vary widely by postal code, with cities usually higher. I WISH I could pay only $80 for car insurance!


Cut the clothing budget. You should be able to get some basics that fit at goodwill.

For groceries, not sure how many kids you have and what ages, but you are probably already doing well. But since you asked for more ideas, just wanted to say that the biggest cost saver for groceries in my opinion is to shop the sales. Read all the flyers, and choose your store each week depending on the sales. For fresh veggies and other stuff that won't keep, plan your meal plan based on what is on sale. For things that will keep, buy large quantities when it is on sale. Many items go on sale regularly enough that I ONLY buy those items if they are on sale (meat, cheese, bread, toilet paper, tissues, toothpaste, peanut butter, pasta, canned tomatoes, etc). The meat and bread are kept in the freezer until used. Since sales can be up to 50ish% off, shopping mostly sales saves huge amounts of money.

For the "other" category. That's a lot of money to not really know what it's being spent on. I recommend breaking that down into all its parts, that may shed light on what parts of it could be cut.

[colsxjack]

Originally Posted by kathymuggle 

We have no fees with our Presidents choice chequeing account.

Something I am unsure of...can you hold a credit card with a bank without having an account with them?

We have our credit card with CIBC because it collects aeroplan miles, which we can then use to fly across the country every two years to see family. We have definately benefitted more from our aeroplan miles than we have spent in bank fees. We would get a PC chequing account, but do not want our credit card with them. We have a joint account, that way we only are charged for bank fees for one account. Our savings account is with ING, which does not have any fees.

[Kyamo]

Originally Posted by colsxjack 

Something I am unsure of...can you hold a credit card with a bank without having an account with them?

Yes.