Money budgeing HELP!!!?

Question

I am in the same situation as many people I make enough money but still somehow have none let over for cushioning

Auto-$442
Insurance- $127
Rent-$733
Cell-$60
Cable-$35
Home Phone-Basic Service-$10
Gas-$40 week
PGE (Gas and Electric)-$20
Credit card (consolidation program)- $256

I make $1200 a paycheck (two times a month) and am still constantly overdrawing my account to pay my expenses causing my next check to be 1200-the overdrawn amount.

Any suggestions are welcomed

-I would also like to add that I discontinued cable
-My car insurance is with AAA and is higher than normal because of an no-fault accident in 2005
-Although my car payment is high it's because at the time I had bad credit (score of 599)-I am not sure if I can refinance

From what you know where can I save

Answer 1

How much do you spend on groceries and how much do you give yourself for spending money? If you eat out alot that can be very expensive. Try taking your lunch to work and cook your meals at home as much as possible. Also, I've found the AAA Insurance can be very expensive, try Progressive or find a local agent who can find you the best rate.

Your credit card bills are quite high. I would work to pay them off as soon as possible. Almost 10% of you income is going toward them and the sooner you can pay them off the better.

Other than that I don't see anything else you can cut back on, unless you trade in your car for something cheaper and more fuel efficient.

Answer 2

Okay first thing is to breathe. If you have a honey give them a hug. Then breathe some more. There is nothing that is complicated about your issues. You already have a semi budget done here. The line that got me was that your electric and gas bill was only 20 dollars. That looks odd. Anyway do your budget for this month. Not a generic month not a perfect month, this month right now. I break mine down into weeks so that I know which weeks that I will pay what bills in. The definition of crazy is doing the same thing over and over again and expecting that same result. So the next thing to do is to get your check book balanced. Go to the bank and have them help if you have problems. Then set it to the side and pay only the few bills that you have to with it. Next get some envelopes go to your budget and label each envelope with each expense. Then when you put money in your budget for the expense such as food and entertainment and general spending put cash in the envelope. This does two things. When you spend cash you actually realise that you are spending money and you will not be tempted to go ahead and write a check for whatever it is that you are overspending on. So when the envelope starts to get empty you know that you have to slow down and when it is empty then you know that you are out for that period untill the next time when you have added money in your budget. This way you are proactive in your spending, you are hands on in your spending. It becomes real and not just numbers in a register or numbers on a spreadsheet.
Cut up any of the credit cards that you have and close those accounts from any further charges. Fico score jockeys will cry foul at this but don't worry getting out of debt and staying out is most important. You can't get out of hole if you take a shovel with you and fill on one side and dig on the other.
With the money between what you make and what you spend the problem isn't where can you save but rather where can you control you spending. Get your spending under control and get rid of that car payment and then you should be all right. Good luck

Answer 3

There doesn't look like much room is available for improvement, however, you could try and find cheaper rent and save maybe $50-$100/month, try refinancing your auto to save money. If neither of those is even possible I would think about taking on a part time job. For example where I live in northern California 1 day a week I can deliver newspaper for a magazine company and make an extra $350/month. Not bad for 4 days a month and 6 hour days. Hope this helps a little.
God Bless You and your family.
Rudy

Answer 4

The first thing you should do is take a week or two and write down everything you spend money on.
Do you buy a paper on the way to work? write it down. Do you buy a coffee at lunch?
write it down.
Have your wife and kids do the same thing.
At the end of the week or two. add up all
the things you spent money on.
Don`t forget if you paid a bill or your rent to
write that down also. Food eaten in or out?
write that down also.
This will give you an idea of exactly where every penny has gone and you will be able
to take an honest look at your spending and then see what needs to be changed.
Sometimes an extra part time job is needed
for a period of time to get caught up.
Who needs a social life when you want to
be financially stable.

Answer 5

You make $2400 a month and spend only $1843 on bills. You have $557 left over every month. Of course I noticed you didn't include food. Which is possibly it. You just need to discipline yourself. You're in this trap of over drafting which is really killing any cushion you have. BUCKLE down even if it is for one month, and monitor your account daily so that you don't overdraft this month. Cut back on gas if you can (get rides, take the bus)? Get another job just to payoff that horrible car loan (and don't go and buy yourself another new one), and credit card debt. Then you can reduce your full coverage on car insurance to liability only and then SAVE the difference. This will be a plan in progress. But it takes what everyone hates to hear...deny yourself. Just say no! Good luck

Answer 6

You need to get you car payments down. Either refinance or sell your car and buy something cheaper. I also suggest the book Young Fabulous & Broke by Suze Orman. You can check it out at the library and it will help you figure out ways to help your tight budget. I notice that you did not include food or entertainment in your budget, but I am sure that you spend money on those things. The book will help you figure out a realistic budget.

Answer 7

After checking everything out, this is what I would do. Start by adding up all your bills for the month.Yours comes to $1,719.00
divide that by 2 for the two pay checks you receive, Now that comes to $859.50 add $30,00 for Misc. that is 889.50 This must go into your check book to pay your bills. Total pay is$2.400.00-$889.50 each pay day
leaves you $621.00 for the month.
You might want to see if the Auto Insurance can do something for you. And see if the credit Co can lower your payment. Hope this helps.

Answer 8

I am CHEAP. I have not driven for 10 years to save money. I buy a monthly bus pass.)Can you cut your home phone service or buy a prepaid cell phone?
Another suggestion I have is writing down each day what you spend on what. You may be surprised!! I would also suggest some sort of debt counceling. Try to say"the best things in life are free" they really are. Make out all areas of your budget. i.e. entertainment, food, misc., charity, church, gifts. then cut where you can. try not to stress too much, money is difficult for many people. Try to pin down what your spending habits are impulsive? peer pressure? and work on it like fixing a bad habit. I am a terrible impulse shopper. I try not to go "shopping". I go to one store at a time and list specifically what I need. I have my boyfriend keep me accountable. Have a mentor who manages their money better than you do. Take their advice. Also try to SAVE and INVEST if you can.

Answer 9

If you think that you are paying a higher repayment amount for your existing car loanyour monthly costs. Secondly, you may avail a competitive interest rate. Thirdly, you could be getting a flexible repayment period. Overall, you will be managing your loan a lot better.

Answer 10

If possible get rid of cell phone and use only home phone. Otherwise, get rid of home phone service and use only cell phone. You do not need both.

Sell car. Ride bicycle for local shopping. Either carpool or use mass transit (bus, train, etc.) for commuting. Save on car insurance, save on gas for car, and save on car payments. Also, use money from selling car to pay down credit cards.

Move to somewhere where rent is less.