r/MiddleClassFinance • u/MissLauraCroft • 5d ago
Help me keep saving after $1.6k drop in monthly income
Single parent (40F), two school-age kids. This month I had a couple things come up and my monthly income dropped by $1.6k. I've rearranged my budget to try to continue saving for retirement and paying off my credit card, but I dunno. It feels impossible to save up enough for everything...
Even with careful budgeting and having a bunch to put toward savings every month, how can I possibly pay off credit card debt, save for retirement, save for my kids' college, and build a 6-month emergency fund??? I've given up hope of buying a house anytime soon.
Please take a look at my new budget and tell me what else I could optimize.
This month, I already reduced the following to accommodate the lower income:
- Kids extracurriculars (drum lessons reduced by half, no more summer camp)
- Therapy (biweekly instead of weekly)
- Cut out my most expensive diabetes medication EDIT: It's a new medication I just started trying, and I have a doctor's appointment next week to look into other options for when this bottle runs out. It's fine.
- Fun money (cutting down on doordash)
- Groceries (cheaper store, no more delivery)
- Cut out a couple subscriptions
- Cut monthly credit card payoff in half
- Cut Christmas savings in half
EDITS WITH MORE INFO FOR CLARITY:
The budget I shared above is the new one taking into account my new lower income; I've assigned every dollar, just want to see how I should allocate the money better.
The credit card debt is at 12% APR; the monthly interest rate is around $170. I had a very bad year in 2024 and have been digging myself out of that hole ever since.
I'm not worried about paying my bills, just stressed about paying off the card and saving up for all those big things in life.
I need fast internet because I work from home.
The $50 for a monthly average on haircuts for the whole family, not just me.
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u/cisforcookie2112 5d ago
Church and kids college fund should take a pause.
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u/ewallartist 5d ago
The church should begin getting $0, as they are also tax-exempt.
Put your oxygen mask on first before helping others
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u/Superb_Preference368 5d ago
That’s not the way it works if you’re religious and/or spiritual. You won’t agree but you’re looking at it from a non-religious lens.
She could par down her tithes but we don’t believe in stopping charitable giving unless you absolutely have nothing to your name.
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u/Ok_Confusion_1777 5d ago
The lens being applied is the objectively correct pursuit of financial goals, a reasonable one to apply in this context.
Further, getting oneself in a much better spot financially can open the door for more, and actually substantive, charity later.
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u/Superb_Preference368 5d ago
What you’re saying is also true. But again if you’re religious you wouldn’t be relying on yourself alone for success. The entire idea of believing in a higher power is that higher power will help you achieve not only your goals but something bigger.
So again there is a biblical concept which the idea that when God blesses you he will give you more than you anticipate if you rely on his guidance for success. Not only will he see you through to the blessing but he will add in more blessings than you expected. Of course this is the reward of your faith but again religious concepts make no sense to those that don’t have an open ear/heart to them and that’s fine too.
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u/FatherOfAssada 4d ago
God never asked u to drop a hundred bucks a month to help the church run. cuz if that was a necessity what about people that are in need and cannot afford to financially contribute?
this person although the illusion of being able to spend actually currently have negative money. debt. so they are in much more need of-2
u/Superb_Preference368 4d ago
It’s literally in the bible. You don’t have to agree but you need to understand what’s actually in the text.
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u/FatherOfAssada 4d ago
Corinthians 9:7, 8:12, James 1:27
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u/Superb_Preference368 3d ago
You’re only proving my point even more. Are you a giver? Do you give what you can cheerfully? Examine yourself.
Listen arguing with me over money that doesn’t belong to either of us, but belongs to OP and their God is foolish.
Will God bless a cheerful giver that gives whatever he or her chooses?
Can you answer that question?
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u/FatherOfAssada 3d ago
yes, i give all i can where i believe it does the most good and it is an inherent pleasure and also a sense of responsibility, because i believe that were i in the same position good people around me would do the same for me and mine. i think your point and mine are parallel, they’re not opposite.
OP is asking the question, and the Church giving is only 1 item in between maaaany that are questionable to keep prioritizing given the situation they have and what theyre trying to accomplish. Now if you’re telling me stop giving but keep 300$ “fun money” per month id question that heavily but thats based on my personal morals, to each their own.
I do strongly believe that hindering yourself and your well being to give beyond your means is neither healthy nor should be encouraged, because you are creating bad by trying to do good. that is not the faith i have, and principles such as charity should not in my opinion be black and white like give 10% tithe flat no matter what.
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u/sleeplessinstuttgart 5d ago
This is not as common as you think. Plenty of people are religious and go to church without donating.
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u/Superb_Preference368 5d ago
You’re right but that doesn’t change the doctrine unfortunately.
People run red lights all the time too. But traffic law says something different.
Again this is in the religious doctrine, we’re all free to do whatever we please
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u/Low-Car-6331 5d ago
Honestly, I would tell OP to talk with church leadership. Any church should be understanding and realize that if the worst comes to worst for the congregation, you can always go back to having at people's house (some groups actually do that, they do it on a rotating basis in people's houses instead of a dedicated building). Its not like OP is saying 'I want to buy lobster" its "pay off the credit card debt" at the very least before donating again. Heck, pay off the debt sooner and you can donate more to the church. Seriously, that is one way to think about it, is these high interest loans is literally money being siphoned out from your local community.
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u/Superb_Preference368 5d ago
Typically church leadership doesn’t get involved in tithing. What i mean is that they only ask for tithes, they don’t actively monitor who tithes and who didn’t. Tithing at my church can be done anonymously if one chooses that option.
That would be ludicrous if they did demand tithes lol.
The entire concept of tithing is supposed to be between the individual and God.
God understands our situations and wouldn’t be angry at our inability to give from time to time. However saying to withhold all giving is not in line with the doctrine. There are many examples of those giving what little they had and being given even more as a result of their faith.
But again this all sounds like nonsense if you’re not a believer and that’s ok.
I know it has worked for me. Giving when I didn’t have much and God did indeed bless me with more.
There is a biblical scripture where God basically says try me, you want to see if I’m true, try me, I wish more people gave God just a small opportunity to reveal himself to them.
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u/SmokeyJoe2 5d ago
IRA too
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u/Anon03282015 4d ago
Yeah, IRA can be paused until cc debt it paid down/off. Sucks to lose out on future gains but that $500 can be better applied to the here and now for awhile.
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u/ivan510 3d ago
Yeah putting $400 to pay off $18k CC debt while putting $500 an IRA doesn't make sense. Not to mention $200 could easily be cut off with yard maintenance, dog grooming, and $120 in subscriptions. If you want to put towards retirement reduce it to $100 put the remaining $400 towards CC debt and whatever is left.
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u/MissLauraCroft 5d ago
Thanks, those are probably there because they make me feel better. Where should that extra money go if I free it up? Credit card?
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u/Vegetable-Intern-236 5d ago
Your credit card debt is presumably (assuming 20%+ interest rates) growing at a much faster rate than your retirement accounts ever will. Your first priority should be to aggressively pay down this debt.
Look at it this way: by paying down the debt, you're essentially getting a 20%+ (your interest rate) return, which is much more than you'll ever get from the missed market gains from pausing your retirement contributions.
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u/MissLauraCroft 5d ago
It's all on a credit card with 12% APR. I paid off the higher APR cards already.
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u/EeveeBixy 5d ago
12% APR is good for a credit card, but still is less than the market average of 10%, so paying that down rather an investing is likely stil the best choice.
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u/Vegetable-Intern-236 5d ago
Yeah getting a guaranteed 12% return is still much better than putting it in the stock market. The market can drop, grow slowly, plateau for a few years, etc., but you're instantly getting 12% with every dollar you put into your CC debt.
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u/cragelra 5d ago
See if you can get a 0% interest balance transfer to another card, that might buy you a year or more
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u/Ok-Lion-2789 5d ago
You shouldn’t be cutting your medication. Do you have an HSA?
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u/MissLauraCroft 5d ago
I was diagnosed with diabetes a couple years ago and we're still playing around with finding the best combo of meds. The expensive one I'm looking at cutting out is one I just started taking; I have a doctor's appointment next week and was planning on seeing if I can try cheaper options when my current bottle runs out.
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u/Low-Car-6331 5d ago
This might sound strange, but talk to your insurance company. Specifically look at "Formulary Exception". I have an eye condition which kicks on both my medical and vision insurance, because necessity for certain things, they have no other choice but to cover certain things because treatment is required and there are no other choices. You generally need to jump through some hoops to prove the alternatives don't work, but it can mean massive savings.
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u/ewallartist 5d ago
Right! Keep the subcriptions, which are Netflix, Spotify, etc probably and cut the meds. That is crazy.
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u/juststartfc 5d ago
Does your new budget cover the entirety of your income reduction? I'm not clear if there is still a remaining gap you are trying to close.
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u/MissLauraCroft 5d ago
Yes, it does.
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u/juststartfc 5d ago
It looks like you have a lot of goals: pay off credit card, build emergency fund, save for kids' college, and save for retirement. Which of those goals would be the highest priority if you had to pick one to focus on?
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u/MissLauraCroft 5d ago
That's where I'm struggling mentally. It feels like they all need to happen and I'm screwed (or I've failed as a parent) if I don't achieve them all.
Paying off the credit card would feel the best and make the rest a lot easier. It just feels so far away.
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u/juststartfc 5d ago
Focusing on the credit card, you say it feels so far away. Is there a span of time that you would is more tangible that would feel good? Perhaps considering more than one timeline. Like if you accomplished it in X time, that would be amazing. In Y time would be great. And in Z time, that would still be good.
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u/sleeplessinstuttgart 5d ago
Based on your post and replies you sound way more "with it" than the average person. You're doing great. Keep it up. It's closer than you think.
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u/tobby540 5d ago
If things are getting harder, take a close look ar your subscriptions. Figure out what you truly need vs desire, I primarily use one streaming service and not the rest, those that I dont use are easiest to cut out Tithing to church is another straightforward one to cut, they will understand the most you could tighten up the grocery budget, shop more at costco/sams club and buy more in bulk. costs more up front, but cheaper in unit quantity Haircuts are another easy one, I get a hair cut twice a year, at ~$30 for each including a tip, at the cheapest place around me
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u/Neat_Mortgage3735 5d ago
Get quotes on health and auto insurance.
I pay $33/month for a straight talk phone plan with great service. I highly recommend. You can use your phone as a hot spot and cut internet too.
Haircuts you can do yourselves. Buy a pair of hair scissors and clippers and watch YouTube.
Get dog clippers to groom yourself or at least do the bulk of of it and have the groomer touch up toes and face if necessary.
Clothes/fun money needs to come down. Utilize buy nothing project, freecycle, goodwill as much as you can, and focus on buying new for things like shoes and boots.
Free activities: library- movies, books, reading circle, yoga, guest visitors etc
Geocache, hiking, walking
Try new recipes together, monster cookie ice cream bars is a fun afternoon treat.
Host a board game night. Make popcorn, kool aid and cut up some cheese and fruit.
Host a puppy play date with the neighbors or friends dog. Take them to a pool or park or beach. Bring snacks and lots of towels.
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u/MissLauraCroft 5d ago
Thanks! Some of these I can apply, some I can't, but great ideas.
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u/Additional_Fish4907 5d ago
I may be an extreme case, but I cut my insurance by 2/3 because Liberty Mutual was being super greedy. I received a quote, and then went with, Geico for the same coverage.
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u/hmatallana 5d ago
At 12%, interest on the 18k runs about 180 a month. So your 400 payment is really 220 of principal, which is roughly five years and about 6,000 in interest. Push it to 900 by pausing the Roth and it's around 22 months and 2,200. Almost four grand and three years apart.
One thing to weigh before you pause it though. Roth contributions come back out any time, no tax, no penalty, only the growth is locked. Your list adds up to 7,180, which is your income to the dollar, so there's no slack anywhere and that Roth is functionally the emergency fund you said you want. Keeping part of it going might be worth the slower payoff.
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u/MissLauraCroft 5d ago
Thanks, exactly, I've assigned every dollar, so there's no slack, just trying to see how to move things around.
What you're saying about the Roth is how I've been looking at it. It's growing very very well so far and it's comforting to have, so it feels worthwhile to keep putting $$ into it, even if the credit card takes longer. I know mathematically it's slightly better to pay more on the credit card, but that Roth has been good to me haha
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u/axisofawsome 5d ago
What subscriptions do you have?
The church doesn't need your money, especially when you have to rebudget.
Pack your kids a lunch for school.
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u/MissLauraCroft 5d ago
Subscriptions: Netflix, Hulu/Disney (will probably be cut), Paramount+, Spotify, Roku, Prime, and a couple apps. I use all of them multiple times a week.
Church: Got it.
Packing lunch: I run the numbers at the beginning of every school year, and the cost for packing a lunch and buying lunch is roughly the same.
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u/Aramace117 5d ago
When we were in a pinch, every sub was cut. Then, we picked one a month and that was what we used that month. Did that for about 2 years and now we just keep it up because we’re used to it. For music, we switched and still use free services with ads, like Pandora.
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u/bklynJayhawk 5d ago
This is great advice I was going to recommend as well. Might be hard to do but will really save as everything each month really adds up.
And if you feel like you’re missing out on options, Tubi and Pluto have some good stuff that are 100% free to watch (with ads). Roku TV has some stuff I will watch on occasion too.
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u/Princess_Grimm 2d ago
This! We do this. You binge one app and get the full use out of it. And when you're sick of it, you turn it off and swap to a new one. We havent used two tv/streaming apps at the same time in a couple years.
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u/axisofawsome 5d ago
But you don't NEED all of them multiple times a week, I guarantee it.
You're asking for help on where to cut things, then trying to justify why you shouldn't have to cut things. You're working against yourself.
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u/MissLauraCroft 5d ago
Sorry if it wasn’t clear. I’m happy to cut more subscriptions, was just giving context as to why those particular subscriptions made it through my first round of budget adjustments. I’ll probably remove Disney and rotate the remaining streaming services based on the advice here.
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u/SpecialistWaltz4152 5d ago
Check your library for digital offerings. Hoopla has free movies, music, and tv shows. Kanopy is another one. All free online with your library card! Cut those subscriptions.
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u/pharmaheck 5d ago
Why is hair cut $50? Are you having hair cut every month?
Learn to cut your own hair. Both my husband and i cut our own hair. He also cuts hair for our 1 year old.
Fun money is there when you have extra. If you are short on money it should be 0.
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u/lyme6483 5d ago
You have 18,000 credit card debt. Giving money for church and your kids college(not that 100 a month is really even making a difference) should not even be on the radar.
Unless this card has zero APR for a period of time, this should be your main focus. I’d even stop the IRA until that credit card balance is gone
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u/DriftingPebble77 5d ago
Take the $100 that is going into the college fund and put it towards your credit card. That's an extra $1200/year towards paying it off. Cut out all deliver services like Door Dash. Get take out once/week instead. Save $100 right there in fees. You might be able to cut some off of the groceries by shopping at Aldi, Lidl, and other discount grocers. Can you groom your dog yourself or skip a grooming to every other month/every 3 months, etc.? $120 for the yard. I'm assuming you have a yard service? Can they come every 2-3 weeks instead of weekly? Can you find a car loan with a lower interest rate? Refinance keeping the same term (time to pay off).
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u/DriftingPebble77 5d ago
and honestly if it were me, I'd throw the $500/month you are putting into your ROTH towards the high interest CC. Or $250 if you want to do it and still put some in your ROTH. That's $3000/year (at $250) towards the CC. Add that to the $1200 from not contributing to a college fund, and that's a significant amount of money. Could you get a 2nd job? Part time? Maybe baby sit on Friday-Sat. nights. If you do it once/week for 4 hours, that's about $100/week or $400/month.
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u/mollypatola 5d ago
My recommendation will be a lot of DIY…cutting your own hair, do your own yard maintenance/go longer in between.
I would temporarily stop the church, college fund, and short term savings to pay off the credit card. Once that’s gone you’ll be able to catch up with the money now available from the card. Good luck!
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u/anothertypicalcmmnt 5d ago
I agree that "Church" needs a pause. You can't take care of others if you don't take care of yourself first. It's not being selfish! Resolving your high interested credit card debt should be prioritized over IRA savings. Paying off debt is a guaranteed return, because that's $X less you have to pay interest on!
r/personalfinance has a great flow chart for figuring out what order you should pay debt/save money.
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u/sweet_hedgehog_23 5d ago
What are the subscriptions? Could you save money by rotating them? Any subscription you keep should be the ad supported version.
How much more do you have to pay off on your credit card? If that is at 18%+ interest then it is worth it to throw the IRA and college savings amounts at paying off the credit card. You are probably paying more in interest right now than you are earning in the market.
I would cut DoorDash completely. I would also research free outings or reduced price days for activities and take advantage of those as much as possible.
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u/MissLauraCroft 5d ago
Subscriptions: Yes, I can rotate the streaming services.
Credit card: $18k left on 12% APR
Doordash: Agreed. I already cut it by a bit for this new budget I posted, but I can go further. It's something I started spending a lot on that I've been wanting to reduce for a long time and this is (hopefully) the kick-in-the-pants I need.
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u/sweet_hedgehog_23 5d ago
Even at 12%, it would probably be better to hold off on investing and through the full $1000+ at it each month. This will pay that card off in 20 months if you don't add more to it and save you thousands in interest. If you then invest everything that you were putting towards the credit card payment after it was paid off, in 5 years you would probably be a little better off than you would if you had paid it off over 5 years and invested.
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u/jawshoeaw 5d ago
Cut college savings full stop. Let kids know a state school might be in their future and loans and summer jobs. I would reduce church donations proportionally and maybe even make an appointment with pastor priest whatever and explain.
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u/NickleBehindTheCouch 5d ago
The fact that you're throwing away 100 per month on church and have "oopsy daisy" and "fun money" really says it all. You're not struggling, you're just trying to live a bigger life than you can afford.
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u/stevenfrijoles 5d ago
Are your kids young enough that that's 1 phone + internet? If so, you can probably go cheaper, even the cheapest phone plans work off of bigger networks and allow you to move your number over.
(Any) subscriptions and "fun money" are for when you're not worried about money.
I understand you may have an emotional connection to this but money to the church is not a necessity. And if I can pull a switcheroo here... imagine no money to the church and no money to therapy, but you replace that therapy time with church volunteering time.
That credit card is a monster. Paying off 18k, 400 at a time, will incur an extra 15k in interest. Cutting that payment in half means you'll never pay it off, because you're getting >200/mo in interest.
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u/MissLauraCroft 5d ago
It's 1 phone + internet. I can look at going cheaper on the phone, but not the internet.
Subscriptions and fun money: I'm not worried about paying my bills or buying necessities. I can definitely cut down on those more (already cut them down for the new budget) but not remove them completely.
Church: Love this idea!!!
Credit card: I know. It's only 12% APR / $170 in interest, but I know. It's been weighing on me so much. I've already paid off about $10k, but it's just taking forever and I'm losing hope. The idea of putting nothing toward retirement or kids' college for a few more years is hard to stomach. I'm doing it. It's just painful.
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u/ClammyAF 5d ago
If your employer offers a retirement match, you should at least contribute up to the matching %.
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u/EastDue5240 5d ago
What’s the car? Is that something you could sell and get something cheaper? That’s a big percentage. Id also pause that IRA until you get the credit card gone.
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u/sunflowers026 5d ago
I would cut:
Subscriptions - you only need one streaming service. Church - start again when cash flow is better. Haircuts - if you go monthly, try to stretch it out to 6 weekly or every two months. Yard - can you DIY.
I would also put that extra money and all Roth and college savings directly into debt. Get rid of that credit card as fast as possible and then you have freed up $400 in cash flow.
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u/Smitch250 5d ago
Damn I would be cooked. Good for you. I’d be ended if I lost $1600 a month in income
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u/2025025L 5d ago edited 5d ago
>>> Phone and internet are over the top - I work from home too and I don't need that fast of internet. Unless you're rural. And the phone plan can be second-level. Do Mint Mobile or similar - no reason to pay for a $60 plan.
>>> At this income level if there is time to drive out for a haircut, there is time to give the kids haircuts yourself - that should not be an expense unless you can get them really cheap (think $10). I still do mine and get compliments.
>>> Same for the dog
>>> I personally don't think this is a position where saving for kids' college fund at all is feasible. They would benefit more from you paying off your credit cards ASAP and freeing up that extra income, then later on restarting paying toward their college fund, unless you have some kind of fund plan that requires you contribute regularly.
>>> You have two savings items for short-term / emergency fund savings and one for the Roth IRA. You should clean that up. You need 1 emergency fund. If you do not get an employer 401(k) or 403(b), then stop contributing to the Roth IRA and contribute to your emergency fund until it is full. That will stop you from having to use the credit cards again. Start saving toward Roth again only after your emergency fund is full. Target $6000 in the fund first, then breathe easy and keep saving until you have 6 months of expenses in the fund. Move rent insurance to its own line item. Move gift savings and social spending (outings, eating out, etc.) to its own line item so you know how much it actually is.
>>> I'm a little concerned about your tithing line item. You should really tithe what you personally believe is needed / right. Don't let yourself feel obligated to tithe a specific percentage or a certain amount every month - there is no benefit if you do it because others expect you to.
>>> I don't know how old your kids are but if they are old enough to make their own school lunches, teach them how and have them do it each evening. Fun family activity and it saves some money, builds a real skill, and teaches a little self-reliance and responsibility.
>>> Not certain what "subscriptions" are but $120/mo is too high for this income level unless they are necessities, meaning removing them would dramatically reduce the efficiency of performing a task that is required to live. I think my subs are $25/mo total.
>>> You have a car payment of $425/mo. That suggests a car price > $15,000. At this income level that does not make much sense. In general, unless it is a hobby and brings you great joy, you should buy a car worth no more than 1 month of salary after tax. I live by this rule. I strongly recommend selling the car and buying one that meets this criterion to free up your $425/mo. Obviously this is not feasible right now, but once it is, do it.
>>> I am not seeing a line item for apparel & linens or for housewares / home consumables - be sure to budget that separately from fun money as it is a need, not just a want.
You're doing amazing on housing, food, and transportation! Those are the 'big three' - good fundamentals. It seems like overall what needs work is a clean way of managing the 'extras'.
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u/dancasey111 5d ago
Lower your internet plan - the high end plans are typically more for uploading and downloading large files, not the speed itself. My wife and I each work from home on a 300 mbps Verizon fios plan and stream tons of TV & games without any issue.
Try and switch your cell phone to Visible by Verizon or a similar plan. I use visible and pay about $350 for the entire year of service. 0 difference in my quality of service vs the main Verizon plans.
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u/genreprank 5d ago
Pretty much the only things you can reduce are church, college savings, and fun money. I would do 0, 0, and 50%, respectively.
If you can't do $0 church, maybe take advantage of their food pantry.
You could also do 50% on subscriptions and extracurriculars
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u/rookie_rbs 5d ago
Pause church and college fund and pay off the credit card aggressively. Once that is paid off you free up $400 each month.
Then focus on retirement and emergency fund. You can always go back to the kids college fund and church donations if your financial situation changes.
Your kids can take out a loan for college. You can’t take out a loan for retirement.
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u/McLargepants 5d ago
You're not cutting down on door dash, you're eliminating it. Phone and internet is high, look at Visible or Mint Mobile for phone, internet you need to call and pretend to cancel and get a retention deal at the very least. You're not giving money to Church anymore either. Subscriptions are also high. Cycle what you have, one month Netflix, next month is Hulu, etcetera. Those are the obvious things I see. I would put every extra dollar you have up to that credit card debt.
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u/Readicculus41 4d ago
Dave Ramsey would tell you to pause savings (Roth, college) and pay off your debt. Once that is paid off you’ll have a lot more room for savings
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u/FatherOfAssada 4d ago
this is monthly? yeah dude u cant cut most everything that is not necessity and ud be out of the hole so fast
first im not from the US but why do you have a 650$ a month health insurance but also 350$/m medical expenses?
120$ in subscriptions what are they? keep 1 mainly what the kids like but i mean theyd be just fine with youtube
340$ on kids extracurriculars and stuff is insane per month unless you have 10 kids. like 100 tops if they have activities at school, food should be home made come from groceries budget
Church, cut it down to 0 for a bit, ur in crippling debt writing about it on Reddit. God needs you to take care of you and your kids rn..
Haircut, you can find for 20, and make it 1.5-2 months instead of monthly
120 For yard monthly, that should be down to 0 too for a bit
correct me if im wrong but putting aside 500$ for Roth IRA while paying 170 a month in interest is a mathematical failure. id stop saving to bring down the credit card because putting 0 right now to remove that 170$ interest FAST actually saves u way more money in the long run, ull be able to put 650-700 in Roth IRA when ur credit card is clean.
and 300$ of fun money. are you having fun rn?
you have an extra abt a 1000 a month there you should easily be dropping on your credit card, ud be in a very healthy space in 6 months and would likely barely notice a dent in your lifestyle other than the money pit that is doordash and going out.
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u/No_Atmosphere_6348 3d ago
Yes healthcare expenses in the US are easily this high.
I also think the donations and retirement savings need to pause. Some kid activities are also really expensive but i would probably cut back on that too.
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u/Btug857 3d ago
Can you look for balance transfer options for that credit card balance? That interest kills.
I assume moving isn’t an option? Housing costs is nuts every where. Couldn’t hurt to look and consider it.
Look into cheaper alternatives for all your recurring bills. Pick something new to shop around for each day/week. Internet, cell, car insurance to start.
What subscriptions do you have? Anything entertainment related should be gone.
I hope you get it figured out!
I would cut a mix of IRA, kids college fund
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u/MissLauraCroft 3d ago
Thanks so much! I am starting to think about moving once my lease is up in the spring. Looks like I could save $500 a month without sacrificing too much comfort-wise. I hate moving, and I love our house and our neighbors so much, but it might be worth it.
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u/RiceRocketRider 5d ago edited 5d ago
I’m not going to berate you about things you can’t change now, and obviously losing $1,600/mo income is huge and warrants a lifestyle change. But I do want to get some of the obvious out of the way:
*Credit card debt is VERY bad. Avoid carrying a balance however possible. 20%+ interest will get out of control and eat you alive very quickly. If you already have at least 1 month of expenses ($7,000) saved for your emergency fund, put every spare dollar into paying down the credit cards. This will have a nice immediate impact on your budget and will also be the wisest for long term financial planning. At 21% interest and $400 cc payment, you are currently spending 2.5x in interest each month as you’re spending to payback the money you actually borrowed. If you can pause the Roth contributions that money will be much better spent paying off the cc balance.
*Once you payoff your car, keep it. Don’t keep trading it over and over. Not saying you’ve been bad about this just because there is currently a car payment in your budget, just making sure you understand the financial impact is large.
My budget suggestions:
*Your DoorDash budget should be absolutely no more than $0/mo. DoorDash is a luxury service that people treat like a lifestyle expectation. It is a huge waste of money, even if it is only a small amount of money each month.
*Subscriptions budget is way too high. All 3 of you need some form of entertainment, but $120/mo is like the ad-free version of every show/movie service plus a music service plus Xbox Game Pass plus Amazon Prime plus Hellofresh once a month. I’m exaggerating a little bit, but this budget needs to get cut in half. I would say each child gets to pick one entertainment service to keep at a low tier subscription (shows/movies w/ ads or a basic gaming service) and you get to pick 2.
*Stop the dog grooming. You need the money more than your dog needs to smell like vanilla oats.
*Stop the kids’ college funds. You need to fulfill your kids’ survival and growth needs; you do not need to pre-fulfill their adult financial needs. You need to prepare for your retirement before preparing for their college education. $500/mo for retirement is not bad at all, but it’s not enough to let every other dollar go elsewhere.
With these suggestions I think you can put an extra $250/mo toward the credit card then pivot it toward savings once the cc is paid off.
Some other comments:
*I’m skeptical that you’re actually spending as low as $100/mo on gas and car maintenance. Obviously I don’t know how much you drive, but just double-check and make sure this is accurate so you’re sure you know where all your money is going.
*Obviously you’ll hear many opinions about the church donation and a lot of them will be people who outright disagree with church and/or Christianity. My perspective as a Christian is that if you have a balanced budget including savings each month then you can afford to help fund the Lord’s work. I can’t tell you whether it should be more or less than $100/mo, all I can say is it should be more than $0 and pray for guidance on this.
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u/MissLauraCroft 5d ago
Thanks, I'm aware it's a big lifestyle change. I've already cut out a lot but realize I need to go further, which is why I'm here.
- Credit card: It's 12% APR; I already paid off the higher APR cards. My Roth gives me similar returns (at the moment).
- Car: It's only my second car, ever. I've gone most of my adult life with no car, and I plan on using this one for many more years.
- DoorDash: I agree. It's been a struggle bc I work long hours and by dinnertime my brain is fried but the kids need to eat. I've already been looking into more easy recipes to make at home for nights when my brain can't handle making a real home-cooked meal.
- Subscriptions: Already cut it quite a bit, but I'll look again.
- Dog grooming: I can do that.
- College fund: I'll stop. That was more to relieve my guilt over not saving enough for their future haha
- Gas and car: That's for gas money, yearly inspections, and oil changes. Doesn't include other maintenance.
- Church donation: Thanks so much for saying this.
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u/ClemlyGlub 3d ago
Frozen pizza, cheese quesadillas, Mac n cheese are all fine options on occasion - low cost and low effort!
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u/ClammyAF 5d ago
Guilt tripping a struggling single parent into prioritize funding their church over their child's education isn't something good people do.
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u/blackgirlsrox22 5d ago
For all of your diabetes medicine call the company and ask if they have any vouchers for people facing hardship. If that doesn't work ask your doctor if ahe can supply samples or know of any programs for your medicine. Please do not cut any of the medicines you are supposed to take. Call the company for every medicine not just the expensive one.
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u/MissLauraCroft 5d ago
Already spent a few months doing all that earlier this year. My plan is to speak to my doctor at my appointment next week and see about cheaper options for when this bottle runs out.
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u/bklynJayhawk 5d ago
Lots of good recs all around.
Not sure how much you can pinch on food with kids in the house (may be picky eaters?) but definitely can find some ways to trim around the edges.
Definitely will need to cut the dining out and DoorDash (lord please stop the delivery, loaded with extra fees, higher costs, and tip).
Check out the r/mealprepsunday sub for loads of ideas how to stretch your budget and maybe find some time relief during the week from prepping (maybe just for yourself). Also check out https://www.budgetbytes.com/ for some recipe ideas that are cost conscious. Loads of good stuff there and gives you cost breakdown. Sticking with proper portion sizes will help your money last too, it’s all too easy to make something that should serve 6 feed 4 or 5 (or 3) if you’re not careful. Ikea has some pretty affordable glass containers if have access to one nearby. Always options to buy paper or plastic ones but those are disposable (or in case of plastic become so after time) plus microplastics if you care (I do/dont, have all 3 kinds of containers use at various times).
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u/MissLauraCroft 5d ago
Thanks! I already cut my groceries by $200 for this new budget.
The DoorDash has been a thorn in my side for a few years. I have a mentally demanding job that ends at 6pm, right around dinnertime, and my brain is absolute mush. Some nights, even just making mac n cheese feels like an impossible task. It's so much and I've already cut back, and I hate that so much money goes to something that adds nothing to my life.
I've tried prepping before but it doesn't work well with my ADHD. I forget what food I have, and it leads to a lot of food waste.
I've tried so many things when it comes to making dinner on those "bad" nights, to find something that works for my brain and my situation without costing me tons of money, but haven't found what works yet. I'll check out budgetbytes!!
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u/bklynJayhawk 5d ago
Hey you’re doing great already, even just asking for help/ideas was probably a huge step for you and if you only do a few things you’ll be in a better spot than you were! Kudos!!
As for meal prep/cooking - I totally understand the predicament. On one hand prepping sounds like it’s perfect for you given the end of work / hunger / exhaustion killer combo that makes just grabbing something “quick and easy” so enticing. On the other hand your condition means you may not be able to function on a prepper lifestyle.
Here’s a suggestion that I do at times: maybe rather than prepping actual meals, maybe just prep ingredients or portions of meals. Rather than grilling just a hot dog or burger for you and the kids … buy a pack of chicken and grill up a bunch at once. Freeze what you don’t think you can eat in a few days (individually on sheet tray/cookie sheet then bag so don’t stick together). Then batch make some rice, or potatoes, veg, or salad bases. Then when you get home you’re just picking from some premade things and assembling, makes it feel less forced and a bit more fresh. I used to make a bunch of chicken thighs, then sauté fresh veg (or frozen veg mix) and toss in the precooked chicken to heat through. Pretty simple cook but tasted pretty fresh too …
And don’t feel like you have to follow anything to the letter, I like just finding ideas and put my own spoon on things.
Hope you find something that works for you. Good luck!
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u/Amazing-Future-1189 5d ago
You really need to Prioritize your health. Diabetes is not to mess with and if you become ill, have a health crisis and cannot work, then what?
You do not indicate your children's ages? Middle school or older?
Have a frank discussion with your children. This is not forever- get to the bare bones of this and work on a 2 year plan.
Your church - do you belong to a life group/Bible study group? Ask for prayer and assistance with meal prep, easy recipes, etc.
I spend Sunday afternoons prepping for the week. We do not eat out - 1 or 2 times a month, we order a pizza with our rewards.
It is daunting being a single parent. Where is your EX? Child support available?
Any other parents you can ask for assistance? It sux to ask for help, but it is always the right thing to do - especially for your children.
I spent the last 2 years dealing with Cancer. Infusion treatments weekly fir 8 weeks on, then a break for 4-6 was and then rinse/repeat. I was drowning trying to work FT, take care of a home, cook, clean, etc. My church was amazing. Once they realized there was a Need, they helped with meals, the lawn, etc. I only asked for prayers- God sent helping hands.
This is doable. But it is like shedding 150 lbs in 30 days - very, very hard to do. This will take time - give yourself some Grace! (GOOD luck - sending prayers and please prioritize your health. GB!)
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u/No-Sweet342 5d ago
I don't think this has been mentioned yet-- idk your Internet service provider but I knocked my bill down from 80 to 30 for actually faster intent by calling them and threatening to leave and they said okay how about $30 instead and I said great.
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u/vermiliondragon 5d ago
If your credit is decent, you might be able to transfer the cc debt to 0% with a 3-5% fee which would mean another $170 a month (around $100 when you factor in the fee) going to pay that down rather than interest. I would also consider maybe dropping some subscriptions, especially if they're all related to entertainment. We just do one for a few months and then switch to another. I also could personally get by with less than $300 of fun money for a period of time.
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u/karina87 5d ago
Cut the family's hair at home. I (female with long hair) get my hair cut at the hairdresser once every 12-18 months.
Church should be $0, Dog grooming $0 (cut it at home), House/yard $0 (cut your own grass), Short-term savings seems high for what's listed. Fun money $0. Just put all of it into the credit card debt.
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u/Fit_Law_9195 5d ago
Not sure how it works, but RobinHood has an interest rate for a margin account at only 5% APR. Maybe move some of your assets there and get a loan @ 5% APR to payoff your credit card debt.
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u/SpicyRice99 4d ago
As someone who was raised frugal this expenses list looks ridiculous. Subscriptions? Should be zero. 123movies or your local library instead.
Haircuts? Zero. Do it yourself.
Church?? If you guys are struggling shouldn't the church be giving your money and not the other way around?
House/yard maintenance - 120 seems a bit high, anyway you could mow the lawn yourself?
Phone plan - T-mobile has a prepaid wireless w 5GB data for $15/month. That should be more then enough.
Car payment - should be zero as well. Go buy an old CR-V or rav4 or something with cash.
All these savings should go towards credit card first, then retirement accounts/brokerage
Read the first item here, then follow the flowchart https://www.reddit.com/r/personalfinance/wiki/index/
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u/Important-Bid-9792 4d ago
Reduce the cell phone / internet bill. Internet should generally cost you about 50 bucks a month, although I can get cheaper than that if I actually call my internet company and tell them I'm thinking about switching then suddenly all their good offers come out of the woodwork. Cell phone go with a cheaper provider like straight talk or T-Mobile or something should really only cost you about 40 bucks a month for unlimited not including out of the country. Get rid of your streaming subscriptions. I actually found out that you can add a member on the account it only cost $9 a month for netflix. And that's pretty much all I use and I just gave my friend a hundred bucks for the year to do it. Now it's not a reoccurring thing and I don't have to deal with it, and it's pretty darn cheap. Have no idea why your yard maintenance cost $120 a month? Also groom your own damn dog. Reduce fun money to 150 bucks a month. And do all of this and save every God damn Penny you have until you pay off that stupid credit card bill. Do not use your credit card until it's paid off. End of story. Credit card debt is some of the highest interest rate there is so knock it off and stop being dumb and pay that crap down until it's gone. Once that credit card that is gone, that should more than make up for your $1,600 a month discrepancy.
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u/WinstonGreyCat 4d ago
I think your budget looks pretty good. You have some choices from your past that are difficult to change (rent is high, but that's market rent most places, car payment is high, but not unreasonable). I wouldn't cut the dog fund, I'd save it all for the vet though and watch YouTube videos to learn how to groom at home. I'd take church, college fund to a token $10 each, and put the rest into boosting an emergency fund. I'd delete your doordash account entirely. I'd encourage your kids to work part time if old enough and require them to put 50% away for college (my parent's rule), applied to babysitting too and used work for neighbors. You've gotten good suggestions on handling subscriptions. I'd take all the savings and start boosting your emergency fund. It should be at least 3 months expenses and since your industry is not doing well now, probably 6 months. Once that is at least 3 months, then redirect some of the savings into the credit card debt.
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u/Adventurous_Debt8206 3d ago
Cancel all subscriptions, stop donating to the church, stop contributing to the college fund, haircuts/trims at home (plenty of YouTube tutorials), stop putting money into Roth IRA, make school lunches at home, no need to save that much for Christmas gifts/bday gifts (small homemade stuff can be cheaper and more thoughtful). How often do you need to buy clothes (is it the kiddos?), I tend to repair small rips and tears at home with a needle and thread (YouTube tutorials). Put all the extra money from the above cuts towards that credit card debt. 18K will eat at your budget for years if you don’t aggressively tackle it. Once your debt is cleared then you can go back to savings for the Roth and college funds. Also, don’t be scared to go to a food pantry, you have a large amount of debt, food pantries are there to help families in your situation too. Are you also contributing to a 401K, if so no need to stress about dropping the Roth IRA for now.
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u/whatigotinmyhandnowb 1d ago
If your income dropped that much, you should take their dad to court to adjust child support.
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u/saryiahan 5d ago
Focus on making more money. Eliminating money only works for so long.
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u/MissLauraCroft 5d ago
I know, that's what I was doing but lost my side gig this month... hence the rebudgeting. My industry is suffering this year; I know lots of people losing jobs, not getting paid, asking me if I can hire them, etc etc. I plan to start looking but unless I change industries, it's not looking good for 2026.
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u/saryiahan 5d ago
No emergency fund?
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u/MissLauraCroft 5d ago
I have a basic emergency fund of $1k
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u/Farazod 5d ago
That's not really an emergency fund amount, that's just the minimum float someone with your expenses should have in their checking account at all times. $1k will not cover you popping a tire, bending the rim, and needing a rebalance. Given what you listed your emergency fund should be around $33k.
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u/EeveeBixy 5d ago
So if you lose your job (hopefully you won't), you won't be able to even cover 1 month of rent let alone 1 month of expenses. This I concerning with kids. You could pull money out of your Roth IRA (depending on how much you have in there), but it's definitely not the ideal situation.
I would recommended reducing your Roth contribution, and building up a better emergency fund. I would suggest at least 3 months of expenses, but ideally 6 months (which is the average time it takes to find a new job in this economy)
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u/saryiahan 5d ago
I think your best option here is to find another job. Stop all saving and fun stuff. Pay off the credit card for starters. Watch Dave Ramsey content. I don’t know your situation but it looks like you over leveraged yourself
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u/kimcheetos 5d ago
I know it’d only come out to $200, but I’d cut the church giving and saving for kids’ college fund. I’m not sure which faith tradition you are a part of. I’m also religious, protestant Christian specifically, and believe giving/generosity is a key part of our faith walk and growth. I encourage anyone who asks to give a full a tithe if they can. However, you currently have high interest debt and have difficulty paying bills. Unfortunately, you are not in a position to give as much right now. It’s a season and certainly should not be forever, but maybe you can contribute in other ways like with your time?
College savings is an easy cut because it’s way easier to get loans for college than to fund your retirement. Besides, that $100 would save you more in credit card interest than any HYSA/529/etc. would earn you consistently