I just got the info I need to start paying back my student loans. I have around $66,000 in SL debt. Ick. I am enrolled on the Income Contingency Program. What this means is they compare my income to how much I owe in debt and give me a reduced payment. So, instead of paying close to $1,000 a month, I am only paying $286.97. Much better, yes, but I am still struggling with where I am going to come up with an extra $300 a month! Here’s my breakdown right now:
Bring home pay per month:$1,500
Rent: $625
Car: $0
Electricity: about $50-60 a month, varies. In summer higher, but lower gas; in winter, lower, but higher gas.
Gas (home): about $75 a month, varies. In summer lower, but higher electricity; in winter higher, but lower electricity.
Cable: $40 (cheapest one)
Cell Phone: $30 (cheapest plan)
House Phone/Internet: $55 (cheapest plan, no long distance)
Groceries: about $300, but working to lower that greatly
CC payments: $200
Gas for car: $120 (ouch)
Student Loan #1: $40
Car insurance: $85
And that is it. Anything extra we put on the CC or we use to go out to eat once in a while (less now) or get clothes or a book, or whatever. And believe me, there isn’t that much extra.
Freelance work is great, but it is sporadic, and every time I submit an invoice, it takes 8-12 weeks to get paid.
OT is great, but it’s rare to get here.
Ebay and half.com, sure, they add a few bucks. But I need something that can guarantee me at least $300 a month.
The biggest help would be for The Boy to be working full time, but as we have seen, finding a job for him is easier said than done.
I suppose I could find a part-time second job, but I am already too busy to do anything I enjoy and completely wiped out every day.
Ideas anyone?
Finding another $300 a month – HELP!
June 26th, 2007 at 03:27 pm
June 26th, 2007 at 03:47 pm 1182872842
June 26th, 2007 at 04:46 pm 1182876404
Get groceries down to $200, saving $100
Combine cable w/Internet? I have Time Warner, and high-speed Internet is only 45.95 extra. If you can get by with no land line, that saves $9
Follow utility advice on this site, unplugging stuff not in use, keeping AC off when possible, maybe shave some off those bills? $20?
Do you use AC constantly in the car? I heard that uses more gas; maybe gas would be a bit cheaper if you didn't?
Obviously you still need almost $200 more. I guess I'd recommend putting gas and groceries on credit card when you have to, but whenever you have a freelance or ebay windfall, throw absolutely the whole thing at your credit card.
Credit card is the one bill you can shrink your monthly payments on just by paying off more than the minimum and not adding to it. Keep track of what you add whenever you have to put stuff on the credit card, so you're not just closing your eyes and swiping the card (as I've done in the past). Hopefully that will drive you nuts and motivate you to find creative income venues with which to pay it down!
As to your other comment: Your guy would only need to work about 10 hours a week at $9 an hour to make that $300 in a month. Is there nothing he can tack on? Coffee shop? Temping? Retail?
Hope this helps; I'm new to budgeting and this site, so I still have a lot to learn. I enjoy your blog: I'm a proofreader/editor too!
CJ
June 26th, 2007 at 05:27 pm 1182878844
* Look around for a cheaper place and/or craiglist for a roommate.
* Turn off thermostat when at work.
* Cut cable
* Cut cellphone
* Considering switching internet to dial-up, or cut it out completely (and use free sources such as libraries or universities, or even cafes)
* Hardship deferment (or is that forebearance? I always get them confused) with the student loan folks.
June 26th, 2007 at 06:41 pm 1182883282
Also, I think your rent seems high compared to your income. Your bringing home 1500 and 625 is going to rent.
$55 seems high for basic telephone & internet. Either you have high rates or extras on there such as calling features. Our basic phone is $14, and another $10 for the internet, plus about $12 in various taxes. (I can only compare it though to the states I handled when I worked for the phone co for 22 years-I know some states we did not have were much higher, so...)
I'd try to not use the credit card. You are now paying for what you already charged at a higher rate, so you need to break that cycle.
I don't see insurance or medical. You might want to break down everything and redo your budget, to get a better idea of what you can cut out.
June 26th, 2007 at 08:47 pm 1182890855
Phone and internet: we pay $14.95 a month for internet, which I need to have at my house for when I am doing freelance work. The phone has no extras, not even call waiting. The fee is the basic flat rate for where I live.
Rent: I actually live in one of the cheapest places here. My job is on the Cape and I live as close to it as I can get without paying upwards of $1,000 a month. Can't get a roomate: it's a one bedroom, and 2 bedrooms are around $1,200 anyways.
The Boy is my boyfriend (he's 27) that I live with. He just moved out here from Vegas and is having a hard time finding work. He doesn't have a college degree, so that adds to it. Even when he does get working, he has his own bills to pay, so he would need more than $300 a month.
I don't charge on the CCs. The $200 a month is a payment I make. I have 2 cards and that covers the minimum on each. Interest rates are ridiculous b/c I had some serious money problems a few years ago. Can't get a lower interest, and can't get accepted anywhere else for a new card w/a lower rate. Believe me, I'm trying.
As for the gas in the car, my commute is about an hour each way, each day, so I go through gas wicked cheap. I know, a long communte for very little money, but I love my job. Besides, to get more money in the field I work in, I'd have to commute into Boston and that is an even longer ommute (about 2.5 hrs each way; I've done it and it sucks) and the monthly train/subway fees is more than the gas I put in the car.
Oh yes, I forgot car insurance. $85 a month. Medical comes out of my paycheck pre-tax and is worth every penny, since I take 4 prescription meds daily.
So, as you guys can see, I'm stuck. Right now, Mums is loaning me money every month, but we figured my hopefully soon 6 month raise would cover it and I could be on my own feet again. Then BAM! Student loans kick in. Maybe I should just go back to school to defer them again. Ha!
Thanks so much for brainstorming and coming up with those ideas. I will definately look into cutting out cable/cell phone, and finding cheaper ways to live. Anything else you can come up with will be greatly appreciated!!
June 27th, 2007 at 12:47 am 1182905267
There are 2 sides to the equation: Income & Spending
Income - Yours: Are you being paid fairly? Are you in a position where you could ask for a raise? [I know this depends on company policy as some companies pay fixed hourly rates, some give raises only once a year, etc.] But if you are worth more than you are being paid and it is allowed, why not give yourself a couple days to come up with a plan and then go in and ask for a raise? The worst thing that can happen is they say no.
Income - The Boy: Gonna maybe tread on touchy territory here ... but is there any legitimate reason why he can't work? Could he just do odd jobs helping neighbors out (mowing lawns, etc) while looking for work? If there are legit reasons why he's not working, that's cool. Just make sure you're not being taken advantage of.
Expenses: You've already gotten some good suggestions. I'd add that the grocery category is I think a really good one to concentrate on, since it is the 2nd largest category after rent and since it is variable and there's lots you can do to reduce it. I would think that if your boyfriend is not working, he could really help out here, scouring the ads and coupons, shopping the sales, making things from scratch, etc. Would he be receptive to taking over the grocery budget and the cooking and making it his challenge to cut that expense in half? That would give you half of the $300 right there.
Good luck Koppur!
June 27th, 2007 at 04:40 am 1182919219
They're totally easy jobs; you just need to be able to dress sharp and show up on time, basically.
Good luck and keep us posted!
CJ
June 27th, 2007 at 04:29 pm 1182961770
June 27th, 2007 at 06:32 pm 1182969130
Good luck to you!!
June 28th, 2007 at 09:01 am 1183021306
Sometimes there are seasonal jobs available. Right now in our area, for instance the yellow book is hiring for telephone book delivery. It's a three week stint of delivering them on your own time, as long as they all get delivered. We also have once a week deliveries of little community papers.
Also in our area, the strawberries are being picked right now, which will be followed by the raspberries and then the blueberries.
There are also places like Labor Now, where you go down to the office in the morning and they'll give you a one day job. Since we are a port town there are lots of one day jobs unloading cargo ships and train cars, as well as regular temp jobs. Our office is "work today, get paid today."
We have a fish processing plant that is always hiring. It's dirty and stinky work but it pays really well. If you have any of these choices in your area they may be good places for him to look for work.