Welcome to the ECA (economically challenged association)

[maryalene]

Karin:

http://forum.catholic.com/images/smilies/frown.gif

I was always taught that you should have a budget and you should have a savings account (with approx 3 months of wages in it) for emergencies (or a money market account or somehting that earns interest that you can have easy access to) .
It is hard to get the savings account built up but it is possible and this will help when those unexpected things come up.

This is our biggest problem - we have zero savings. It’s about 90% of our credit card problem. Every time an emergency comes up, we’ve had to pull out the card to pay. I’m hoping that now that we’ve refinanced, we can put away a little bit each month in our savings. Our other big problem is that I make the budget with little or no (name removed by moderator)ut from DH. He has no interest in reviewing it with me, and I really doubt he even knows what our monthly bills are. He’ll check the checking account balance on an atm, and if it says there is money in the account, he feels free to spend it. He agreed to attend the Financial Peace University program with me as my Christmas present. I am crossing my fingers and toes that it will help us get on the same page as far as finances are concerned.

 

[Karin]

maryalene:

This is our biggest problem - we have zero savings. It’s about 90% of our credit card problem. Every time an emergency comes up, we’ve had to pull out the card to pay. I’m hoping that now that we’ve refinanced, we can put away a little bit each month in our savings. Our other big problem is that I make the budget with little or no (name removed by moderator)ut from DH. He has no interest in reviewing it with me, and I really doubt he even knows what our monthly bills are. He’ll check the checking account balance on an atm, and if it says there is money in the account, he feels free to spend it. He agreed to attend the Financial Peace University program with me as my Christmas present. I am crossing my fingers and toes that it will help us get on the same page as far as finances are concerned.

Yeek…trying to keep a budget with only one person working on it is hard! You dh needs to realize that not sticking to the budget or putting any (name removed by moderator)ut into it is just keeping you guys in debt…so unless he wants an “allowance” each week he better get on board …I hope for your sake that this program you guys attend changes his outlook on this!
In regards to the refinance the money that you save each month should automatically be put into a savings account. Say old payment was $100 new payment is $80 the difference is $20…this amount should go into the savings and any extra that you can spare. The money will accumilate VERY quickly!

 

[LSK]

I just started paying back my student loans this month (made my first payment - it’s due on Christmas Eve). I have knee replacement surgery on 1-5-06 and will be on disability for 3 months. I have a pension, but am at least 3 years away from retirement and will only be retiring from one job to look for another closer to where I live - which is why I went back to school to get the business degree. I didn’t want to be a middle-aged woman hitting the job market with a 30 year old liberal arts degree (in Rhetoric and Dramatic Art…oh, that’s been real helpful, let me tell you.).

I am budgeted within an inch of my life…and thought I was pretty smart until I got conned out of 30 grand 5 years ago. I just paid that loan off, in time to start paying my student loans.

oy vey.

 

[maryalene]

Thanks for your comments Karin! I appreciate them (and you type in such pretty purple letters).

 

[Karin]

maryalene:

Thanks for your comments Karin! I appreciate them (and you type in such pretty purple letters).

Your welcome…and I really hope that this program helps you guys out!

 

[bapcathluth]

In reference to BLB’s question, I have read Rich Dad, Poor Dad. It was a few years ago so the specifics are a bit vague. I do remember him saying that a house was a liability. I thought his basic premise was that you need to own a business in order to get rich. You can’t be a wage slave. His father, a school superintendant, wasn’t really poor, but he didn’t know how to make his money work for him.

I also remember him saying that owning apartments or houses for rent is a big pain. I remember feeling very bummed out after reading that book since I don’t have an entrepreneurial spirit.

I have read several of Suze Orman’s books and watch her on PBS sometimes. She says you should get out of debt first–especially credit card debt. Then pay off your car and mortgage while the returns from the stock market aren’t so great.

 

[mommyjo2]

We’re trying to make it so that I can be home with the kids. I’m trying to convince my husband that we can live without cable t.v. and I’m trying to figure out if I can commit to walking/running outdoors so we could give up YMCA membership and save $73 per month.

I just turned my cable box in today. I’ve been trying to convince DH for a few months to do without it, but I am on maternity leave now (I make more than he does, so we are earning about 40% of our income the month of Christmas- and we were barely scraping paycheck to paycheck before!)
It actually took our boys age 6 and 7 getting in trouble at school for using bad words to convince him. Actually, I don’t think it was necessarily OUR boys, all the boys in the class were busted, but still. I started pointing out how even if we are not watching bad shows, just the ADS contained bad words/pornography (thanks, Victoria’s Secret!) and you can’t parent lock out the ads.
So now we will save $50 a month

BTW, this is one of my favorite ‘frugal’ website: www.stretcher.com
Check out their library- simple living, homeschooling, one-income living, ways to save money on everything.

 

[Karin]

mommyjo2:

BTW, this is one of my favorite ‘frugal’ website: www.stretcher.com
Check out their library- simple living, homeschooling, one-income living, ways to save money on everything.

Great website:thumbsup: …thank you for sharing!

 

[KathyA]

I’m so glad this thread came up again. I’m sooooooooo qualified for membership. As I’ve read through this thread, I’ve really felt a connection with all of you here.

A few thoughts…

A few posts back, there was a question about the spiritual aspects of this problem and whether or not we have prayed about being less materialistic. I have been doing a Christmas novena since November 30 (St. Andrew’s Day) that goes…
“Blessed by the hour and moment,
In which the Son of God was born,
of the most pure Virgin Mary,
at midnight,
in Bethlehem,
in the piercing cold.
In that hour vouchsafe, I beseech thee, Oh my God,
to hear my prayer and grant my desires
(state petitions)
through the merits of Our Savior Jesus Christ
and his blessed Mother. Amen”

This prayer is said 15 times a day until Christmas.

Sooooooo, one of my petitions is for “a release from the slavery of worldly wants” and another is for “a resolution to financial difficulties”.

I have felt that I’m pretty conservative in my spending. I understand very clearly that “stuff” can’t make me happy and I try to emphasize things we need as opposed to things we want with my kids. Still, I find myself “wishing” for things I know are just extras. For example, we recently did a bit of a facelift to the entryway in our house (we painted and changed the light fixture, woo-hooo!). Well, now we have this nice bright “new” space with this really terrible carpet. We tossed around the idea of getting new flooring, but of course, we would need to replace the flooring in the kitchen too–to make it all flow nicely from room to room. I wanted this soooooo bad, but we have no money and $13,000 in credit card debt! We decided against replacing the flooring (I think from the grace of my prayer), but it took me a week to get over the temptation to just “do it and worry about it later”. We had also planned a short trip to visit my brother this weekend, but things came up with DH’s job. He suggested postponing the trip and I was disappointed because I was looking forward to the trip even though we would be financing it on our credit cards. Again, only through the grace of God was I able to get beyond my disappointment and realize that this really means we will save at least $200.

I haven’t seen Phil Linehan’s program “Personal Finance for Catholics” listed here as a resource. He’s got some great ideas and a wonderful workbook. Wish I’d implemented his budget ideas 4 years ago when I bought the program!!

On the plus side, I have a good job, with great benefits. My husband has a job…one that brings in a steady paycheck, but that he doesn’t really enjoy. He has had two back surgeries in the past 5 years. We have 2 teenagers (who can now pay for their own “extras”) and a 10 month old baby. We are living paycheck to paycheck…especially now that our winter heating bill is $500 per month!

Let’s keep this thread going again…it helped so much to know there are others out there like me!

Kathy

 

[Karin]

KathyA:

especially now that our winter heating bill is $500 per month!

you know there are things you can do to not have it so high…my lord…we only pay about $100.00 per month in the winter and $50 in the summer

 

[mommyjo2]

I know the savings is important, but how do you do it? We have no credit cards- a plus is, no credit card debt, a minus is, we have NO cushion for emergencies. We couldn’t qualify for a credit card now anyway- our credit gets worse (mainly due to medical bills); we can’t get a credit card or mortgage so we have to pay sky high rent (40% of our income goes to rent, and we are lucky we found the place we did), so when anything happens, back to racking up medical bills we can’t pay. We have insurance, but deductible/coinsurance are so high… it certainly is a catch-22.
I forgot to post about myself. Just had baby #6. Married for 8 years, my DH owned a business that went bankrupt about 5 years before we got married. And then there was a car accident and he couldn’t work for several months… and the cycle started there. I am currently on maternity leave, my baby is 3 weeks old. But I have been going in to the office/calling in/telecommuting 10 hours a week so I can pay for the health insurance.
My husband was laid off (oil and gas industry), no work for 8 months so he went back to school, got a computer certification, and is restarting his career.
We are able to “split shift”- he works noon to midnight on Thurs, Fri. and Sat; I go in to the office Mon Tues Wed and work at home Thurs and Fri. which is good, with 4 little ones at home. Once I checked into daycare- for my 4 little ones (age 4,3,20 months, 3 weeks) it was $133/ a DAY! And that was the ‘bare bones’ one, not the one with the field trips/snacks/programs.
Currently our situation is fairly pathetic- I’m not bringing in any income. My husband took on a second job, it will last until around the time I have to go back to work.
I live in Denver, where the “experts” estimate that a family of 4 has to earn at least $22/hour to pay for rent, etc.
Although it has been a good exercise in humility. My sister’s family, and brother make 6 figures- when they asked what the kids would like for Christmas, I was embarrassed but asked for shoes, and coats for the older two. They are still wearing their sandals from summer, and it is December in Colorado! Also my Christmas wish list is a lot more interesting than theirs is- I don’t want perfume or jewelry or bath products. I want a new toilet seat! LOL
It has done me good though, I have a tendency towards vanity, so it is good that I can’t go have my nails, hair etc. done or spend time shopping at the mall. God is good about helping me avoid the occasion of sin!
Another frugal tip/working mom tip:
Make a menu. I write 5-7 dishes down, based on the grocery store circulars. I also have a list on the fridge of meals that can be made in 15 minutes or less (otherwise we would BLOW the budget on pizza and Chinese takeout!) Make sure you have the ingredients to make those 15 mintue suppers on hand- stocked. Mine use bacon, eggs, or link sausage for the meat, because they keep for a long time in the fridge, so I don’t have to have fresh meat or thaw something out first. Don’t be ashamed of the macaroni and cheese based casserole especially if you can get it for 25 cents a box!
I spend about $500 to feed 9 people (ok, the baby nurses. But I eat more! ) and two in diapers. That’s our household spending, includes TP, laundry soap, light bulbs, etc.
How much do other families spend?

 

[Karin]

mommyjo2:

I know the savings is important, but how do you do it? Set aside a set amount each month that I then invest in a money market account or in something that gives a good return but allows me easy access to it.
We have no credit cards- a plus is, no credit card debt, a minus is, we have NO cushion for emergencies.
Credit cards are not a “cushion” and should never be thought of that way, IMHO
so when anything happens, back to racking up medical bills we can’t pay. We have insurance, but deductible/coinsurance are so high… it certainly is a catch-22.
THere are programs usually through your state that will either pay or exempt you from medical bills if your income etc. qualifies. It is known here in NJ as “Charity Care” and all hospitals that take federal funds usually have to participate.
I helped a senior couple look into this after several open heart surgeries and they could not afford to pay the bills after insurance paid their share…

And then there was a car accident and he couldn’t work for several months… and the cycle started there.
I dont know what state you live in but usually your Auto insurance will cover medical bills due to an accident or the person that was at fault pays and their insurance pays…and if you are hurt and not at fault and are injured you could always sue the person to get medical treatment paid.

That’s our household spending, includes TP, laundry soap, light bulbs, etc
You can go to a food pantry to tide you over till better times. Or perhaps something through the Church?!?! **
How much do other families spend?
We own our house and the mortgage is only $400/month plus (spread over 12 months $8900 in property taxes)…my youngest at two is at home with me and my eldest at 14 is a freshman in highschool where tuition is approx. $8000 per year.(Catholic school)…we have two cars that are paid for so we only pay insurnace and maintenace on them. My DH works 40 plus hours a week as a Chef…his company offers great benefits (medical/dental) that covers the whole family even my eldest who is his step-son. We spend about $450-500 to feed the four of us a month it seems that the 14year old is constantly hungry must have a hollow leg.
So how do we do it…we live on a BUDGET!**

 

[mommyjo2]

maryalene:

Our other big problem is that I make the budget with little or no (name removed by moderator)ut from DH. He has no interest in reviewing it with me, and I really doubt he even knows what our monthly bills are. He’ll check the checking account balance on an atm, and if it says there is money in the account, he feels free to spend it.

Wow, we married the same man!
About 4 months ago in desperation I started cash budgeting- it took about 6 weeks of nagging, 3 overdrafts, and my refusal to go out to eat to celebrate MY promotion at work (instead of a nice dinner, I spent $90 on HIS overdraft fees!) for him to agree to try it. Still working on the $5 a day that gets piddled at 7 Eleven on Cokes, chips, munchies- giving each of us an “allowance” didn’t work, he blew his and still used the debit card, I spent mine on ‘conveniences’ that there was not any money in our budget for, like oil changes and crayons.
I do all the money stuff, balance checkbook, pay bills, etc. He is a combo of unable and unwilling to do it. I use Quicken, which I really like cause I’m a nerd and can run all kinds of nifty pie charts and graphs.
Anyway, we use cash for household bills ($120 a week spent mainly at WalMart LOL!) and gasoline ($140 a week; I drive about 100 miles/day; DH drives 80 round trip to work and back)
I wish we could move to decrease our auto expense, but we live in the CHEAPEST place in Denver area. Ok, not the absolute cheapest, but the cheapest place that doesn’t require bulletproof windows or a welfare voucher. My DH works in Douglas County, Colorado- the average home price is $400,000! And that’s for a tract house.
Oh, but because I am married, we make too much for food stamps. If I was single I’d get $700 a month for food and daycare.
What a way to encourage intact families.

 

[Karin]

mommyjo2:

giving each of us an “allowance” didn’t work, he blew his and still used the debit card,**TAKE AWAY HIS DEBT CARD…BUT IT IN WATER FILLED CONTAINER AND FREEZE IT! WHEN HE CAN LEARN TO USE HIS ALLOWANCE LIKE A BIG BOY AND NOT WASTE MONEY THAN HE CAN GET IT BACK ** .