What's your budget looking like lately?

[LucyParsons]

I think we are in SERIOUS trouble, folks. While I don't want anyone to starve to death or lose their homes, I think a depression would improve American culture immensely. We seem to have gone totally off track, and have no sense of community, frugality, solidarity... There are few good jobs, and almost no job security. There is a massive gap between our "leaders" in politics and business and so-called culture and the mass of the rest of us (95% of the population). Basic livings costs are climbing out of reach, nevermind the American Dream (tm) of owning your own home and giving your children more opportunities than you had.



Background

I am almost 29, have a master's degree, 14 years total working experience, 7 years postgrad working experience. The jobs I have held, in chronological order, are:

(US)
record store clerk
convenience store clerk/deep-fryer
tour guide

(UK)
waitress
bookseller
literary events manager
freelance proofreader
temp secretary
secretary
residential construction project planning assistant
project planning manager-in-training

(US)
bank teller
freelance proofreader
library assistant
higher ed admin assistant


My parents attended but did not graduate from the local junior college. One was a state employee and Army reservist, and the other is a secretary (who currently has no retirement, no health insurance, and no savings). My grandparents on one side were a TV repairman and his stay at home wife, who managed to support four children; on the other side, cotton sharecroppers. I am not from a privileged background, but I am white, had a comparatively decent public education, and a mother who was willing to sacrifice so that I could have access to opportunities she didn't, such as childhood piano lessons. So I recognize I did have some advantages.

I graduated from our large state university with a useless liberal arts degree, then went to Europe (for cultural and political reasons, as well as the fact that an MA program is short there, so, all things considered, at the time, it was financially comparable to doing one here in the US) and completed a master's in the same useless liberal arts subject. I worked 20 hours per week the entire time I was in college. I had $24,000 in loans after my BA and $43,000 in loans after my MA.

I went through a very nasty break-up with my partner and moved back to the US with no money and, despite living with my mother for nearly a year and saving most of my money, couldn't accrue the capital to finance a move to our state capitol, where the "good" jobs, as well as the more liberal political culture, are. So I moved here without a job in May 2006. I ended up working two part-time state jobs far below my ability (thus earning no health benefits) for a year. During this time, to make ends meet, I had to use credit cards for unexpected costs (as many, many Americans do). Since 2005, my student loans, which I had previously paid about $4,000 on, have been in "hardship forbearance". Last fall, I entered a debt management program to pay off my credit card debt, realizing that with Bank of America's arbitrarily-raised interest rates and fees (at 33% when I entered the debt program!), I would literally NEVER get out of debt.

Ten months ago I finally landed a full-time admin job at the same state university from which I graduated eight years ago, so I now have health insurance and retirement, although, like many Americans, I put off going to the doctor because I can't afford the office visit fees unless I am really sick. I also live in a very small apartment (with a TV from 1980 and a stove from 1955), walk to work, have no washing machine or dishwasher, do not subscribe to cable TV or internet service or landline, only have electricity to pay (on my lighting and window AC unit) in the way of utilities, am vegan, and buy local/independent whenever possible. I can't really downsize my life any further. By all expectations, or to listen to lying GOP assumptions, I should be middle class. I am not. I am worse off than my parents, and cannot forsee being in a financial position in which I would choose to have children, nor could I under any circumstances even THINK about affording a mortgage on even the most modest home in my county.

I am not whining. I've made mistakes: choosing to study a subject I loved rather than a lucrative subject; choosing a partner with the type of personality to defraud me and leave me with nothing to show for four years of putting 100% of my income into the shared household; moving to this city because of feelings of cultural claustrophobia, knowing I might not be able to get a "good" job and avoid resultant credit card debt; etc., etc., etc.

As far as I can see, particularly for those of us under 30 or so, the middle class is something from history books. And if I am in this much trouble, and feel this hopeless, with all the advantages and education I have had, I cannot imagine how people with two kids, working low-wage jobs can make it AT ALL. If people in my position, or double-income households in a better position than myself, feel like we are spiralling head-first into poverty, what's going to happen to the working poor? The ignored people who actually drive our whole economy?


I have $250.00 in my savings account.

Here is my budget for this month:

1804.28 salary after tax

550.00 rent
50.00 electricity
175.00 car payment
82.49 car insurance
45.00 cell phone
15.14 netflix
20.00 laundry
30.00 gas
335.00 debt repayment*
3.00 bank fee
51.31 medications
250.00 groceries
50.00 household/miscellany
108. dental work (with insurance)

1764.94 total ougoings
39.34 savings


I hope I don't need another filling, or have car trouble, or want to go out for a beer.


*if I wasn't in a debt repayment program for my credit card debt, I'd be paying $308/month toward student loans, so this still wouldn't be savings.



edited for spelling

[bbinacan]

1. What are your degrees in. n/t

[LucyParsons]

5. English

Not totally useless. I stupidly didn't get a teaching certification while I was in college, and now cannot afford to go back to get one, though I would otherwise strongly consider teaching high school. Unfortunately, they're only really looking to give big incentives to recruit new science, math, and ESL teachers. In Texas, there is no problem recruiting English teachers.

I can, however, write pretty decently and think critically. ;)

[angstlessk]

2. We are about to lose our home for want of $250.00...

we spent all our cash fixing up the house for the appraisal and thought we had about $400 in the bank, in comes the appraiser at 7:00 am Monday morning...and I was to call in my debit to him but turns out our electric, which I thought I had stopped in time, came out two days earlier and we ended up with only $74 in bank and husband does not get paid for almost two more weeks, pawned 3 rings got $30.00 have nothing else, no close friends and the BALLOON is due June 1, for $40,000 on a house now worth between $130,000 to 164,000...we are so screwed..and it is my fault. We thought we could sell our land but have not had as much as an inquiry...

Our bills are not enourmous..

$456 Current Mortgage
$350 Land payment
$100 Taxes
$ 90 Insurance
$350 Electric - high month
$ 60 Water/Sewage
$ 50 Phone/Internet
That does not include things we have control over like food, gasoline, etc.

We never eat out, do not have cable,
Taxes

[Selatius]

3. If you can squeeze in a room mate to split rent, that's what I'd suggest.

I know, it's not the same having an apartment that isn't entirely yours anymore, but where I go to college, a lot of students are basically forced into getting a roommate to split the cost of rent and utilities. Socializing the cost of rent and so forth is pretty common.

[LucyParsons]

7. I don't want a roomate

My apartment is too small for that, and, frankly, at nearly 30 years old, I would rather move back in with my mother than get a roomate. Living with my current boyfriend and thus having a double income would be nice, but that's not possible at the moment.

I am not really looking for ideas about how to save more money. I was just stating my budget and interested in seeing other people's in light of my feeligs that the middle class is dead.

:)

[Selatius]

9. I'm currently unemployed student, looking for summer work, already got an Associates.

My cash flow is essentially zero at this point. My lease just expired at the end of April, so I don't have to deal with rent anymore, and I'm living in my old bedroom at my mother's house until I find work. It's fine though, I'm still in college trying to finish up a Bachelors in Management.

All I gotta say as far as paying the bills go is you gotta do what you gotta do to save cash. You may not be willing to entertain the idea of splitting rent with a roommate, but for me, I'd be willing to do it, just to have more cash flow at the end of the month. Anything to defray the cost of living.

[searchingforlight]

4. I think one of the most telling statistic in your budget is savings.

The long-term effects of this economy won't be recognized until your generation starts to retire. I believe that has been the picture historically and it will be the future.

[HereSince1628]

6. Hey, you have money left over.

Not bad considering the times.

From my point of view it seems once you get control of your debt this looks like a pretty reasonable set of bills. You could even be saving/investing 10%.

For poor persons, no insurance on the car and no health insurance of any kind are pretty common. You've got that covered and still have netflix. It ain't good but it could be worse.

You obviously know how to make do. Hang on and things will get better.

[LucyParsons]

8. Once I pay off my debt, I'm looking at 30 years of student loan repayments

at more than $300/month

I can't really forsee any savings, considering the inflation we're seeing on basic goods and services.

[HereSince1628]

14. Hmm. I thought the loan period on student loans was 10 years.

When did 30 years become possible?

[LucyParsons]

15. About the same time

people owing $45,000 in student loans qualified unconditionally for platinum cards.

[Juche]

16. Depends on the loan

I have 24k and mine is a 20 year plan.

I think in America we are going to have to start getting used to declining standards of living. Sharing a car, living more than 1 family or person to a residence, only getting basic healthcare (generic prescriptions, fillings, seeing a PA when you have a cold), etc. That is where we are headed. I don't know what to do about it either.

And I still can't figure out why its happening. Worker productivity is far higher than it was in the 70s, about 50% higher. Why are we struggling when we are much more productive than ever before?

[Juche]

10. My situation is ok for the time being

After graduating college and looking for 9 months I found a job as a lab technician. Because it is near where my parents live I can live here w/o paying rent, food or utilities. So that saves me about $700/month. Right now I'm saving most everything I make because I have no idea how long it'll be before I find another contract position after this one expires.

When I was in college w/roommate it was more like

300.00 rent
100.00 utilities
130.00 gas & insurance
300.00 groceries
100.00 household/miscellany
$40.00 health and dental insurance
$30.00 various medical (6 month dental visits, OTC meds)
$200.00 whatever else came up



The American middle class is dying. During the Bush 'expansion' of 2001-2007 incomes for the middle class declined while expenses went through the roof. Only the top 5% and corporate profits emerged better off from the Bush economy. Healthcare, higher education, energy and fuel, food, real estate increased dramatically. Fewer jobs offer healthcare or benefits. Imagine what the bust cycles will be. The US can't survive another 10 years of declining wages because the costs of real estate, healthcare and higher education will be 50% higher by then. The only good part (define Good I guess) is that this is pushing the US public farther and farther to the left on political issues. Universal healthcare, which cost the congress control in 1994 is now going to be a major reason dems get elected in 2008. And renewable energy (which can be and will be cheaper than gasoline) now just makes economic sense aside from the environmental impacts.

The sad part is supposedly now it is happening in Europe too. At least they have politicians who respect and represent the public, but it is happening in other OECD nations as well.

[ayeshahaqqiqa]

11. A bit slimmish

no rebate check yet, and the bank balance is running low.

[Kitty Herder]

12. In a word: Gone

[eilen]

13. Take heart

When I was your age, I felt the same way. I was married, had a baby, no big degrees--just a diploma from secretarial school and an associates degree in humanities from community college. My husband had his Bachelors in English. He was working as an electrician's apprentice (he graduated in the Bush 1 recession), I worked for a while as a deli help and occasionally worked a banquet as a server for $50 a shot. When I finished my secretarial school, I had my son. I worked as an assistant for a nfp arts organization making about $7.00/hr prior to my son's birth. I stayed home with him for 6 months and got a job as a legal secretary. Good thing, because I just paid my rent with a Discover card cash advance check.

I made about $8.00/hr as a legal secretary. My husband made about the same as an apprentice except he received 50 cent raises every 6 months. Our health benefits were not very good and we had no savings.

As time goes by, new opportunities come around. I eventually returned to school for nursing, my dh got into the union, our credit cards were eventually paid off and we got by; every year had its challenges but also its benefits. When we were where you are, Clinton was president and gas was a little over a dollar a gallon and coffee was often $1.99 a can. (1992-1996). The economy was not so great for all everyone's rosy memories, at least for us. We were in the Hudson Valley which IBM had decided to close down their plants.

Things will get better. I suggest you enroll at a writer's group (the libraries sometimes have free ones, and the YMCA sometimes have groups) and do some writing? You have a strong background of education in an area you love, why not take your free time that is not being used by your soul eating day job and work on the stuff that feeds it? Someday that may pay off the debt that it incurred.

I regret not going after the stuff I loved. The world still needs writers, artists and poets. They just don't get paid well at it. I have a friend who has the same degrees as you do and she started out with a part time job at the town's rec dept. Now she is full time and runs Shakespeare for kids in the summer as well as her own off-hours production company. You are young yet, just starting out in the world with still a bright future. Don't buy into the fallacy that pervades society that your bank account is a barometer of your talent, success and worth as a person.

What I learned is that it does not all come at once. For some reason, they don't tell you how life works. You are given an invalid road map that looks like this: school, college, grad school, great job, life partner, house, kids, promotions, great works, disney vacations and retirement. We somehow think that after we finish school we get a good job (esp. if we did everything "right") and then poof! we create homes like the ones we left when we went to college. We forget it took almost all of our parent's married lives to create them.

I don't know why we think that is how things go but it almost never does. (and for you over achieving financial whiz kid eagle scout scholarship millionaire wunderkinds out there.... fark you.)

The trick is is to pay off your credit cards (cut them up if you haven't already) and stay living at your current budget, live as cheaply as you can so you can pursue your creative endeavors without a large worry of overhead. Some states would love for you to teach there with the education you have and will allow you to take your education coursework while on the job... if that is what you want to do. My opinion is to only go that way if you have an affinity for it, truly want to work with young people and feel the need to teach others and gain great satisfaction from it. If you are not sure, try to teach an adult community course in the evening on literature, writing cover letters, english as a second language, literacy volunteers --whatever your interest is and see how you like it. The money will work itself out.

This is still the place in the world to develop creativity and ingenuity.

[MissB]

17. I know you're not looking for advice in particular.

But if you can walk to work, can you ditch the car for a bit? I realize that it may not be possible to do so for a variety of reasons - maybe you owe too much to sell it outright. But if you could, you would have nearly $300 extra each month. That would help you build an emergency savings fund, and help you pay off your debt faster.

Your food bill seems high, though you're vegan. I spend less than $400 for a family of four and do buy some organics (like soy milk and fruits/vegetables) but still buy meat. I cook a lot from scratch, but that wasn't a skill that I really utilized until I was in my 30s and trying to stay at home with my kids on only dh's salary. For example, we do flaffels nearly every week - and I make my own whole wheat pita bread for about 15 cents for 12 small pitas.