The first step, according to Suze and Dave Ramsey is to make a budget. Gulp. I'm scared. I'm going to make a backwards-looking budget with some math and Quicken.
This time, I'll calculate my fixed costs, next time the variable.
My FIXED costs:
* rent 1300
* power 150
* internet 40
* phones 65
* car insurance 110
* renters' insurance 45
* Netflix 20
* maid 200
Total: 1,930
Whoa. *ponders* Good news is this is for me and fiance. Bad news is, I don't think it would be much cheaper if I were single.
Saturday, February 2, 2008
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10 comments:
If you're in so much debt, maybe you should consider getting rid of the $200/month maid and clean the place yourself.
I have to agree with howie. While you may love your maid, it's easy to see when you write out your fixed expenses how expensive she really is....
Car Insurance $110 ???? WOW I pay 68 a month for my 2006 4RUNNER!!
$110 is two cars, one is a ridiculous sports car. I also worked out fiance insurance not so long ago, which was not that easy.
you could eliminate/reduce the fixed expense by taking lower plan of netflix, increasing the deductable for the car
Maybe it's just me, but I don't think 1930/month is bad for TWO people. Shoot, my rent alone is 1825.
I can also understand why you're holding on to the housekeeper (I hate the term maid - don't know why). Time is money so why waste it on tasks you hate.
Renter's Ins is kinda high. I pay $80/yr. Is it combined with your car ins? When's the last time you shopped it around? And where are your ankle biter expenses? LOL
My neighborhood is not a high-crime area, but is high-income and therefore a target of thefts.
My car was broken into, and my neighbor's house was broken into when they were on vacation. I upped my renters' insurance to cover replacement cost of pretty much everything I own.
A lot of the policies, once you actually read them, are not all that great. As in, they cover market value, or they don't have enough coverage to actually replace all your stuff if the place burned down.
I pay $3k/month for my mortgage, I believe you are doing really well. And rent where I live was in 2005 $1400/month for a studio in the ghetto. So $1300 probably gets you better than where I rented.
My friends/classmates who rent pay on average $1800-2000/month for a 1 bedroom.
I, too, live in a wealthy community - very little crime though (0% bodily harm, <1% property damage). My insurance covers 95% of the ACTUAL replacement value regardless of when the item was purchased AND it has a ryder addendum to cover my pooch. I read every page and understand what I'm buying BEFORE I hand over a dime.
Similar terms (with more coverage) for my 2k sq ft house but still cheaper than the ins price you pay. I'm not sure what part of the country you live, but unless it's NYC or LA, I still think it's a bit much for an apartment.
Have you considered living in a better and cheaper neighborhood? Oh, and the maid is not a fixed expense. If you eliminated that and instead cleaned your house yourself, you would have a whole $200 a month to pay off debt. Also, do you go out to lunch or coffee every day or make your own and take it to work? Even the most cheap lunch where I live in a small midwestern town is about $5.00, which could come to over $100 per month if you eat out on weekdays. You said that one of your cars is a sports car. Why do you need two cars? Things like that can really eat right through your budget.
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