A lot.
The End.
Seriously, looking at the numbers makes my stomach sink and my heartbeat at a dizzying pace. But the only way to finish is to start.
Focusing on the Income first – let’s think positively.
Last month our income was ZERO. My husband was out of work for medical reasons for the entire month. His salary should have been paid in full, but the insurance company never processed his claim. Now, three weeks into a new month, they approved his claim, but will only pay for 3 of the weeks he was out – not the entire month. The 3 weeks were paid in 1 lump sum = great, right? Nope. They taxed that check that check so heavily we took home less than 1 week’s pay. So, I have 4 days’ worth of pay to cover 1 month without income.
I’ve made a lot of financial mistakes in my life, but I’m really thankful I was able to put aside enough money to almost go a month without a paycheck. I never want to be in this situation again.
Income this month is 4 weeks of standard pay from my husband and 4 weeks of pay from my part-time job. My husband’s income stays the same every week unless he can work overtime. My part-time job can fluctuate widely in terms of pay. I’ve been working a steady amount this month, so I will estimate what I will bring home.
Husbands take-home pay – 4 weeks x $1,150 = $4600
Husband’s short-term insurance pay = $1000
My part-time job pay for the month = $950
Total income = $6,350
What we owe
What you owe can be split into 2 categories – Bills and Debt. Bills include cable, phone, internet, subscriptions, rent / mortgage. I put my mortgage here because I have to pay it to not live in a van by the river. I have a 2nd mortgage (because I’m dumb) that I will also put here. Please, please, please – I’m begging you – do not take out a second mortgage. It is one of the dumbest things we ever did. I include pet insurance and health insurance here. Our health insurance is taken out of my husbands paycheck, so I will not include it in our numbers.
Bills
Internet = $95
Pet insurance = $75
mobile phone = $175
electricity = $280 (we live in one of the parts of the country with the highest rates)
water = $42
Spotify = $15
Mortgage = $1550
2nd Mortgage = $610
Total Bills = $3,017
Debt – We have too many credit cards. To keep them straight, I will name them by their color, and yes – these are my real numbers:
B1 = $15,267.10 – Minimum payment = $405
B2 = $2,338.03 – Minimum payment = $50
C1 = 11,853.97 – Minimum payment = $400
C2 = 21,246.66 – Minimum payment = $905
D1 = 19,469.14 – Minimum payment = $450
E1 = 6,832.12 – Minimum payment = $120
E2 = 3,645.57 – Minimum payment = $75
H1 = 227.60 – Minimum payment = $62
A1 = $2,980 – Minimum payment = $60
Total minimums $2,527
YUCK
Now, let’s add in variable expenses. Food / gas / tolls / parking / birthday’s – anything extra that you need to buy in the month
Food budget for a family of 4 people with 1 dog = $600
Gas for the car = $500
Tolls = $100
Daughter’s birthday – cake / presents /decorations / food for guests =$300
Total Variable Expenses = $1,500
Now, for some simple math to see where we are.
Total Income – Total Bills = X
$6,550 – $3,017 = $3,533
X-Debt minimums = Y
$3533-$2527 = $1006
Y-variable expenses = money left over (hopefully positive)
$1006 – $1,500 = -$504 Not positive
Now that we have our final number for this month, I can go back through and try to cut things we do not need.
I can cut down on my Daughter’s birthday spending by $75. By reviewing the food I currently have in the house, I can cut our food bill by $300. I can lower my gas bill by $50 by not driving to anything other than our appointments.
Looking over the budget, I have quickly lowered my expenses by $425, which leaves me $79 to go. However, I can’t lower any of my bills or credit card payments due as I have already received them. I will be short $79 this month.
I’m sure you were expecting me to be amazing and find a way to magically budget and fix my problem of being short for the month. But that’s not reality. Sometimes, we are in situations where the money just isn’t there.
Lets focus on the positive, I can lower my bills before they hit next month, cancel subscriptions we aren’t using, and try to work more hours in my part-time job for added income, and my husband can try to work any overtime that becomes available to add to our income.
I can celebrate that I have taken the time to write everything down. I now have a starting point from which to build a functional budget.
How did you do? Did you have any money left over? Or did you end up owing as well?
Rise to Calm 