Personal Finance 101

19 Feb

Hello, I wanted to start a new topic on my blog addressing both personal finance and rental investments.  I love personal finance.  I wish I could volunteer  to help people budget and organize their finances.

Personally We (hbbynand 8) did not come from money and when we graduated college, we both had student loans and hubby got a job that didn’t pay well and I went to graduate school after being in another low paying job.  Hubby made in the high $20k and I made in the low $20k and once I was in school, we only had his $20k to live on and had a baby on the way.

I learned to live frugally and even now that we make more, I still live frugally.

So how much does one need to live comfortably?

What are the essentials you need to live on?  While some people msyndefine the list differently, I will work with the goal of living on $6100 month, this will be our NET pay som we have already had ntaxes taken out, paid for our medical insurance, put money in a flex accoutnro cover the rest of medical, and paid for our 401k.  So overall, we are assuming, a total annual salary of $75,000.  The area you live in dictates how much things costs as well as the size and needs of your family.

Here s a general dea of my budget for $6100 per month: (*This is hypothetical to some extent and also uses some,of my own personal expenses either now or in the past).

Housing costs $2300. (I chose  a 15 year loan to pay off early but with the cost being 1/3 my total monthly pay, it makes things tight and a 30 year would have given me more breathing room).  * Note in CA, this covers a 1 bedroom apartment but in NC, you can have a 3000 SF 5 BR house.

Utilites will include heat, gas, trash, sewer, recycling, phone, cell phone for six people, internet, direct tv : $800  *would be less with smaller houses, less people in house…

Car costs: includes car payments, insurance, repairs, gasoline for three cars : $500

* For me, this is low, we have three cars but all are paid off, so I pay for gas insurance, repairs, and save some for my next new car as I don’t like having car payments.  Others, however might have all these expenses and two car payments.

Life Insurance (outside of work policy), :$ 200

* For two people, important while you have kids

Saving for college :$200

* with 4 kids that is a lot f college money, some people don’t save and just leave the thing up to the kid but, it is important to us, so we are paying and they are going


credit card debt :$61

* This may be a lot higher for others but I don’t keep balances, interest is too high, this balance is at 0%.

eating out: $250  * see notes below

Groceries: $1500 * depends on number and of people too

Purchases $100 * we all buy stuff, even if it is just stamps or makeup

savings (future problems fund)  : $100  * sh be in every budget

vacatation savings : $50 * always save to give yourself a break, you deserve it.

Misc :$64  * what s left?


*Things to notes, many other typical expenses are already being taking directly from my check before I get my $6100, so I am not paying for medical costs, 401k costs, and even prescriptions many eye glasses I have prepaid for with a flex spending account.

This budget overall makes me uncomfortable, I have very little buffer and am living month to month without building a savings.  I did this for a long time.  So… what would you suggest changing ?  The money is average and I don’t have to pay extra medical and I am saving for my 410k.


I would tell myself to reduce eating out to once per month and only order water for drinks (never got sodas or beers when was low n money mwhen wemwneout to eat), also try sharing a plate, they give big portions, one dish is  often enough for two (can help you lose a few pounds too) and never get dessert.

i would also look at what grocery store I shop at, some are more pricey, switching mstores ormbrands can save you a ton.  Look at what you buy and the cost and see if you can find more affordable dinners for two days a week to cut down the grocery bill.  Buy big bags of things and let kids make there own snack size bags rather than buying the snack size bags, thing like that can save a lot of money.


Refnance to a 30 year loan if your bills are tight, having extra money each month is worth it.  If you get a bump in salary later, go back to the 15, planning for a debt free retirement is great.

Continue and always have the emergency savings fund and don’t use it for other stuff, when your AC breaks or you suddenly need a water heater, you will have the money and won’t be in a panic. Plus it feels good seeing that add up, knowing you can save.


Feel free to share your budget or for more security, email me at and I can give you feedback free.  Learning how to get ahead financially is easier than you think.  It takes some desire and discipline but can be done.

i have lots of other tips,on how to get extra cash too…

… there is mystery shopping f you have time, pay outs are small but they add up and if you have time, why not?

…; open accounts at banks, they will often give you free money

…. get a side job…. but be your own boss, do you clean well?  People always need people who clean well with attention to detail, it can be really easy to pick up just me or two side,clients for extra money.  Have a skill?  People always need people who are good at skills that work hard…Make a webpage or face book page and get second job going, just get some insurance.

Once you save enough, getting involved in rental properties can be very lucrative, tune in for more on that later.









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