What financial situation is everyone in? Is it a major stresser in your life?

Question

Between my husband and I we bring home $3600 a month. We are 25 and have a 1 yr old son. We pay out $2650 a montrh in bills. give or take a few bucks. Which on paper leaves us approx. a grand every month to work with but we are still paycheck to paycheck. How can this be? Our credit scores are between 680-720 at all times and we are both really concerned with keeping them there but I swear some months I dont know how we are going to make it. How many of you are feeling financial burdens?

We put fifty in a college fund for my son and fifty in our savings a pay (twice a month) so we have $150 going towards that per month. So I guess its more like $850 a month to work with.

Answer 1

I think that most people do, at some time or another. Your credit score is decent, but your monthly expenditures seem high. $1000 is not a lot to work with for a month. Is there any way to get those bills down? Where can you cut back? Are you saving anything? Too many questions, I know. But, that is how you need to look at it, pick it apart, see where you can trim, and figure out how to start putting money away. Good luck.

Answer 2

Put it in perspective, you have roughly 250 dollars a week after paying your bills. Diapers, food, gas and misc expenses, holidays etc leave you with less money than you would think. The answer to your question however is it doesn't really matter how much you make most people would go bankrupt if they were out of work for a month. This is due to the good ol american way of life that has been the way we have worked for the last 50 years. Truth is that unless you can cut back on your bills to where they are only 50% of your total income financial problems will persist. Good luck to you.

Answer 3

Your expenditures seem a bit high. I assume you have:

-mortgage
-maybe car payment?
-student loan payment?
-credit card payment?
-other misc. living bills (electricity, etc.)

First, I would suggest going through your monthly expenditures with a fine tooth comb. Reassess what is "necessary" and what is "convenient." For instance, you may have cable. Is it really necessary? You'll need to decide what is more important - cable or savings. Do you have both a cell and home phone? You only need one. The list goes on.

Second, scrutinize every bill to make sure you are not being charged additional fees for services you don't utilize.

The goal is to get your expenses down and fast. If you have credit card debt, you need to assess it and pay it down as fast as you can.

Student loan interest is tax deductible up to $2500 a year.

Everyone has financial burdens. I speak from experience. Prior to my husband and I marrying, we consolidated our finances and discovered, much to our chagrin, that we had $32K in combined credit card debt and around $60K in student loan debt. We had just relocated, I was a freelancer, and he didn't make that much money in general. The credit card payments (not to mention interest and fees) wiped us out every single month. However, once we took that long hard look at our financial situation and realized that we could not have a baby for the next five years, we cracked down. We moved in with my in-laws for 9 months, each got two jobs, through every penny we had at the credit card debt, and within a year paid it off. It didn't seem possible but somehow we managed to do it. In the meantime, we also saved some money on the side so that two years after we combined our finances, we got married, bought a house, and have been steadily saving money in an emergency account, IRA accounts, and every other retirement account we can find. We are now 32 years old and make a combined income of $60K - not much really but we know exactly where every penny goes and, through our "vacation fund" that we save for every month, can take trips to Taos and New York. We are still paying off our student loans but in three years, they'll be gone as well. It's possible to get yourself into a better financial situation. You just have to make hard decisions and sacrifices if you want to get there.

Answer 4

Goodness I can relate to your pain. My intrest alone is $300 per month let alown to repay my debts and still have money to go to school. But you have a loving husband and a beatiful child so you should count your blessings. Remeber that as long as there is love there will always be a way out of the hardest situations. This is a mojor stress for many people and the best thing to do is to live better on less. I hope in time you can get a brake and make a bit more. My hart goes out to you. Be well.

Answer 5

Sad but true...I am a single parent at 43 with my first that is 8 months old. I figured out about 2 weeks ago that it cost me $80.00 a day to live in a 2 bedroom 2 bath duplex in Tulsa. This includes the electric bill, gas bill, phone bill, cable and internet, groceries and gas in the car. There is no car payments, formula, diapers, insurance, medical, dental, maintence on home or car, clothing, entertainment, pets, toiletries and so on and I don't even pay the water and trash it is included in my rent. As you know we have been 100 degrees for several days or weeks now so my electric bill has tripled. Just today I get to pay my rent for August only after borrowing $300.00 from a friend and giving my 14kt, 50gram necklace as colladeral, mind you my rent is $500.00 which my landlord lowered by $95.00 when I had my baby in November. Never has he charged me a late fee either. My electric bill is $360.00 past due and my gas bill is $100.00 past due 2 months and my cable and internet is $276.00 at 3 months past due. It has been like this for months. I need diapers and formula even after being in the WIC program. I am a licensed Cosmetologist that works everyday but after being off for the baby and having surgery 9 weeks later I am rebuilding clientele. My credit score is about the same as yours but being self employed borrowing money is almost impossible. I desperately need financial help right now or will be in the streets before long but I have nobody to turn too. I have family but they can't help. I have been to state agencies for help for the first time in my life and they are so burdened with people that it takes forever and I lose money waiting and then they can only help so much. My story could go on beleive me but I must stop to go to a church to try and get help on my electric by 11:30 and it is 10:45am. Count your luckey stars that you have a good husband or partner that is willing to jump on the band wagon so you guys can work together. Jump for joy about that grand you have every month left because thats all I need to pull me out of this hole I am in. Life can always be worse if your health is gone and I am not BULLSHITTING about any of this. Be Happy I am most days I have a beautiful baby boy who brings joy to my heart everytime I hear, see, touch or even smell him...ha! ha! 43 Just me

Answer 6

i think i am way better than average. i am still single. don't carry any credit card balance. i pay off every month whatever i spent and i still have enough to put away for saving.....