Question

Need advice.  i make about $1700 a month.Need advice. i make about $1700 a month. my monthly bills are roughly $1000 a month. NOT including gas, car maintenance, groceries, vet, clothing, eating out etc. i have $270 left on my washer and dryer that i bought in May for $1200. i have interest free till june 2021 but i’ve been paying extra payments about twice a month. other debt is my car of just under $3900. (3. 2 interest rate) and just now have an additional dental bill of $500 (no interest) i have $12k in savings, and just started another savings account last week with only $50 in it rn. i keep an emergency $1500 tucked away in case of an emergency. so i’m always down to $100 or so the day before pay day and i apply that to debt/savings. i’m saving for a house and goal is $20k by august or so. what should i focus on paying off first? what are good saving tips? how can i save up quicker?  

Answer 1

Is there anyway to lower your monthly bills? They seem really high considering what you make

Comments

@marlyn3 i live in oklahoma, we currently have one income at the moment.  

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@marlyn3 i put $25 a week in one savings account, and $20 a month in another.  

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@cuthbertson85131 is this like rent/electricity/water/phone? Those can (almost) all be reduced to get more available money in your pocket! I would pay off those little bills even if they don’t have interest to just get them out of the way

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@marlyn3 rent, car payment, car insurance, water bill, sewer bill, electric, washer/dryer payment, and dental payment.  

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@marlyn3 i’m thinking so too! maybe so i can apply those small payments to my bigger ones?  

Answer 2

What are the payments on the washer/dryer and car? It seems like you would have better cash flow if those were paid. Your savings are amazing (good job) on so little income - because your expenses $1000 vs $1700 take home is  You will need to get them paid off before you qualify for a home Though, as your back end debt ratio is 58%. (But maybe 1700 is net? Instead of gross? ) Once you have those bills paid you should be able to save faster, even if it means using some of your savings to accomplish paying them.  

Comments

@saboteur washer dryer is $28 but i pay $50 and sometimes pay $100 extra if i have the extra money that paycheck. $1700 is after tax! i was considering using savings to pay off debt then just up my savings withdrawals to replenish maybe? could do $300 or so in savings a month if my car and washer/dryer is paid?  

Answer 3

You may need to adjust your savings goal of August. That’s 8k you’d need to save in 6 months and given your numbers, that’s just not possible.  

Comments

I won’t have the only income come 2 or so months from now i’m hoping things work out and i’m able to apply more to savings.  

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Heard. Just want you to set realistic goals and set yourself up for success!  

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@isochronous maybe i should set a smaller one first and go from there  

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@mcgovern49985 this is helpful. i get very overwhelmed sometimes but i’ve started this savings and debt pay off 6 months ago and it’s definitely shown results.  

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@mcgovern49985 seeee, ive considered dipping into the emergency fund a little to pay off the $270 loan and then replenish that back.  

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@mcgovern49985 the $1500!  

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$1000 covers a month of bills, and the $500 is car emergencies. i have great job security so i don’t worry about it too much.  

Answer 4

I would pay off all your debt with your savings which would decrease your monthly bills and you can put everything extra right back into savings. I'm guessing your savings account interest is less than 3. 2% so your car is losing you money. Once you no longer have debt payments you can get a realistic time frame for hitting your $20k goal.