Money Crisis- Help Me Figure Out a Budget!!

In My Humble Opinion
1

… so I won’t starve.

I just took a lower-paying job where I’ll be working less hours. It’s good, since I’ll be able to study more (which I desperately need to do). But in addition to working less, I have to commute, which I never used to (I could walk to work before). So unless I think of some great money-saving tips, I’m gonna be screwed really soon. Thankfully, I do get student loans and grants.

Here’s my money-saving strategy so far:

I have a very fuel efficient car- a little 4 cylinder Nissan. Worst case scenario, gas is only going to be $100-$125 a month. I could theoretically walk/bike everywhere except work and to do my laundry (which it looks like I’ll have to do- but no big deal, I like walking)

I am getting rid of cable and internet. I pick up a wireless signal in my apartment 95% of the time, and in a bind if I don’t get a signal it’s at most a 10 minute walk to somewhere that does. I’m keeping my $15 a month Netflix, because I can rent movies and TV shows that I actually want to watch, instead of sitting on my ass and getting sucked into some reality show marathon.

I don’t go out to bars or eat out much. Usually on the weekend I go to a friend’s house and we hang out on the porch and drink beer. I can get a 12-pack for less than $10. If we do go to a bar, the one we normally go to has $5 pitchers, so for $10 I can get totally wasted and stumble home. My only weakness is Indian food, which I do every couple of months- for $20-$30 I get enough food to make 4 or 5 meals.

The one place I can really cut back is on groceries- I don’t buy a lot of food, but I do get expensive stuff- soy milk and chai tea and relatively expensive (whole wheat, fiber-crazy) bread and veggie burgers and stuff. Health food. It can be really expensive, but I’ve always looked at it like I can wear cheap clothes and drive a crappy car but food has a direct impact on my health. I don’t eat steak but maybe 2-3 a year, I usually get chicken, pork if it’s on sale. Soda is the only junk food I allow myself on a regular basis. That I can get rid of, but I dunno about the other stuff. I like to cook, and try to cook a lot, because whole food is not only better for you but cheaper too. I don’t know how I can save a lot of money here without buying really crappy food. I do buy store brands/sale items whenever possible, but they don’t make Publix brand veggie burgers yet.

Another area I spend a lot on- toiletries. Specifically, face wash, sun block, and moisturizers. I have very sensitive skin that gets easily irritated. It breaks out at the drop of a hat if I don’t take care of it. They don’t make generic products for the ones I buy- they all have retinol and vitamins and alpha hydroxy acids. It’s the same reasoning behind the food- I want to take care of my skin. So other than obsessively clipping coupons, I don’t know how to cut back in this area.

My electric bill is fairly low. I have the fridge on a medium setting, I only run the A/C in the room I’m in at the time (I have 2 window units) and I don’t leave it running when I leave. I’m also pretty good about turning off the lights/TV, although I often sleep with the TV on (my remote broke, so I can’t set the sleep timer). I wish I could survive without A/C, but alas, I live in Florida and that would be hell and probably only save $15 a month.

I have the cheapest cell phone plan I can get (it’s $40 a month + tax, and I never go over my minutes). I looked into different phone plans before I renewed my contract, but based on how much I talk I have the cheapest plan I can get. I don’t often buy new clothes unless I have extra cash, and likewise for household items like furniture and decor. I only have liability insurance for my car. I only have 2 credit cards with very low limits ($300 and $250- medical bills screwed up my credit so I can’t get any more). Paying double the minimum payments is about $60 a month total.

I know the obvious- watch for coupons and sales, don’t make unnecessary purchases. I’m also keeping an eye out for a (very) part-time job that won’t interfere with work and school. I will also look into selling my plasma- I did that once before but that place closed, and the only other one I know of is about an hour away, so it would take a lot of time for not a lot of money when you account for gas.

Any other ideas? Where can I really cut back? Is there any way I can actually have a little money left over to knock back a few beers or see a movie on the weekends? Can I apply for food stamps?

HELP!

2

Here’s an earlier thread with a lot of good advice, especially about eating inexpensively:

So, I’d like a lesson in Living Cheaply 101.

3

The usual starting advice in figuring out a budget is:

Buy a small notebook and grab a pen. Carry the notebook and pen with you everywhere you go. Write down everything you spend money on – what it’s for, why it’s for, and how much. Every. Single. Purchase. Even rent.

After three months of this, go through the notebook and set up some categories. Be reasonably specific; some people separate “food at grocery store” from “snacks at work.” Then add up your expenses in each category, and put that into your spreadsheet. Multiply everything by 4, and there’s your annual expenses before tax.

Now include last year’s net tax payment.

Now add 10% to everything, and that’s your projected expenses for the next 12 months.

The next step is to factor in how much you earn, and what expenses to start trimming.

IANA financial advisor, this is all general advice, the budget should work for you and not you for it, etc.

4

Can you really function as a student without the internet these days? I’d consider hanging on to it. You might be able to save trips to the library and associated gas, bus fare, or parking costs. It’s also cheap entertainment when you have spare time.

Check with your phone company and see if they have a bundling deal where you get DSL access and your phone service all on one account. You may be able to save $10 or $20 a month that way.

5

Another mistake people often make is thinking there are exactly four weeks in a month, so if you get paid monthly or semi-monthly don’t make the mistake of mentally dividing your money by four and then running out at the end of the month.

6

Just thought of something else that’s helped me. Depending on what you are studying, look into joining whatever professional societies are applicable. There’s probably a discounted rate for students, and it may give you online access to many articles. If you’re studying computer science, consider joining the ACM; I’m sure other fields have similar organizations.

7

Scuba_Ben’s advice is good for general budget making, but if you’re worried that you’re going to run out of money, you probably want to work your budget in the opposite direction. Start with what you are making, list your financial needs first, then see how much is left over for wants. Make sure to include things that aren’t charged monthly like car insurance, and make sure to save some of your discretionary income for emergencies.

8

I think you can still save money in your food budget. Like the chai tea, for instance. The cheapest way to make it would be using regular black tea and spices, rather than the premixed teabags, or even the liquid concentrate. And I can’t imagine the whole wheat bread is that expensive, but you could buy flour and make your own.

9

Do you really need a cellphone? Can you cycle in to work? Don’t forget the running costs of your car - maintenance, tax, etc.

You say you can pick up a wireless signal at home. Is this a free service, or are you using someone else’s connection? The latter, of course, is stealing. Keep the internet connection.

Pay off your credit card balances ASAP.

You say you spend a lot on toiletries for your face. Have you considered buying a better hat? You do wear a hat, don’t you?

10

I always say “stop beaming it into my house and I’ll stop using it”. Ain’t my fault if my computer automatically hooks into it.

I am not female, but when I look at my wife’s toiletries I freak. There are dozens of products that you too probably have that could be combined into, say, a single moisturizer. One with a high SPF factor so you don’t need sunscreen. You don’t need the most expensive shampoo, either, since it rinses out, and especially not if you’ve got a good conditioner. Shower gel? Nah, soap’s fine.

Food-wise, making from scratch is engaging, cheap, and healthy. It also gives you a great feeling of satisfaction as you improve in skill. Learn to make your own bread; slice it and freeze the moment it’s cooled down. To get it to turn back into fresh bread rather than toast it, let it thaw for a few minutes in saran wrap. The other thing is seasonings: you can get by on staple food, but it’s so much nicer if it’s jazzed up a bit. Buy a selection of spices, soy, tabasco, balsamic vinegar, lemon juice, etc. If you can find an Indian store, they have a lot of spice packs for different meals that are tasty, nutritious and cheap. In particular I have “Chana Masala” mix, which involves an onion, a can of tomatoes and a can of garbanzo beans and some lemon juice. It’s easy to make, healthy, and absolutely divine.

Also, Lidl, Aldi, or those other low-cost supermarkets have really cheap staples - I just bought a bulk load of coffee and strained tomatoes for about $5.

11

The cellphone is unfortunately a necessity. I don’t have a landline, and as a young woman living alone in a not terrible but not great neighborhood walking to bars a night, yes I do need it.

As for riding to work, it is about 15 miles, and I don’t want to do that in the Florida heat.

The internet I pick up is free. The city has been trying to make all of downtown wireless. And I just found out today that the other network I pick up, which is password protected, is my neighbor’s, and he gave me the password. I’ll be baking him some cookies shortly.

It’s funny that you ask about hats. I don’t wear a hat, but I love hats and want to bring them back into style (fancy hats like fedoras and cloches, not baseball hats).

12

Ah, quite. Could you not get one of those Pay As You Go phones? One that doesn’t cost to receive calls? If you can’t, and personal safety is your primary worry, would a pistol be cheaper over the longer term?

13

Roses mentions being able to piggyback on a neighbor. And I share jjim’s view, it’s not like making the network secure is so difficult; I actually know people who’ve set up their home or business networks as open on purpose. Or that, like Roses’ neighbor, don’t mind sharing it so long as they know with whom.

I budget every time I move, and I move a lot. So much “a lot”, in fact, that often waiting for three months before making decisions wouldn’t make sense.

What I do:
-$S- is my after-taxes salary. It’s for a period of -Time-. That’s the period I do my basic budget for.
In a notebook or spreadsheet, write expected, known expenses (rent, insurance).
List the expected but unknown expenses, with an estimate in parenthesis if possible. This leaves me with an estimated amount for savings and entertainment.
Track my real expenses. All of them. Yes, that means writing down that bubble gum I bought off a machine. All is all. This will slowly-but-surely turn my estimated amounts into knowns.

The not-so-basic budget is when you expand that to a whole year.

I imagine you have by now, but locate all the dollar stores and charity stores in your area. So long as you don’t fall into “oh, but it was so cheap I just had to buy it!” they can be great. The clothing industry would go to hell in a basket if all customers were like me, but there are times even I need a new blouse.

14

I’m also living alone in Florida on a budget, and one thing I wanted to mention. In regards to food…don’t start buying a less healthy version (like your whole-wheat bread for example) to save money. If you go from Pepperidge Farm to Albertson’s Crapola White, you will end up throwing it away because you can’t stand to eat it. Same with soy milk and cereal and the like.
Most definitely try the store brands to see how they measure up, but don’t resign yourself to lesser quality or taste because it’s cheaper. Albertson’s has fantastic granola bars btw.

Publix and Albertson’s have weekly ads on their websites - so you can see what’s on sale and plan ahead. I borrow a friend’s Sam’s club card to buy certain things in bulk. A little here and there adds up.

15

You have very sensitive skin and you are using alpha hydroxy and retinol on it?

What I would do is visit every cosmetics counter in the area. Tell them you are shopping for new skin care and ask for samples. Most will hand them over. I know I hit the skin care luck lottery, but my routine is “avoid soap (I wash up with water only), use a drug store moisterizer with sunblock, vaseline once a week in winter, use baking soda as an exfolliant.” For the drugstore moisterizer, Walgreen’s supersaver program is pretty good - they have a lot of rebates and send you a gift card each month - and have a decent drug store moisterizer in there often enough to stay stocked.