I am getting a new, potentially lower paying job. I want to trim some fat out of my budget to accommodate this so I can still put 10k/yr into savings/investments

Submitted by tidyshark12 t3_10pfqr2 in personalfinance

Link to pics of my current expenses:
https://imgur.com/a/YRQKVUb

Currently making about 1300/wk (67,600/yr) average plus im putting around 180/wk into a roth 401k with 5% company match (brongs total up to 76,960/yr. New job lowest amount I could be making would be 1100/wk (57,200/yr). Idk what benefits they will offer. All of these numbers are post tax aka usable money.

As the post says, I am taking a pay cut at a new job. The reason for this is so I can be home daily, live healthier, and see my daughter much more often.

Unfortunately, the pay cut could be quite significant, up to $13k less/yr post tax. On my current budget, I can save 16k/yr and spend 5200/yr on anything I want (100/wk) and i would use that to buy extra stuff for my daughter, taking gf out to dinner, gaming equipment for myself, etc.

I need to pre-emptively trim some fat so I can ensure I will still be able to put money (at least 10k/yr) into my savings. I just re-signed my lease, but I will be moving to a cheaper place next year, hopefully. I'm also considering selling my car and getting a cheaper one. I don't want to reduce my amount going towards high interest debt bc I want it all to be gone asap, but I need to save up at least 10k first (currently at $400). I will reduce it if you think it's necessary, though. I just started this budget this month and I've never had one before, which is why I have so little right now. Any help is greatly appreciated.

Edit: I've moved all of my extraneous expenses into personal and 0'd them out. So, now they will all come out of my personal funds instead of acting like they are bills. Also, lowered my internet speed so its only 55/mo now and I'm using an app that gives me free wifi from my phone instead of paying extra for the hotspot. Saved me over $200/mo so far.

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AuraofBrie t1_j6k6psc wrote

Some things that stand out to me that are definitely on the high side - the car payment and insurance (plus you don't include gas in your budget) and your phone. Selling and getting a cheaper car makes the most sense, but it's also worth checking if you can refinance the car and shop around for cheaper insurance.

Could you cut down to either Pandora or Spotify but not both? Even better, pick one from Pandora, Spotify, or YouTube.

Car wash is a luxury, not a necessity, so I'd definitely cut that one. (I did the same myself when trimming my budget.)

I would also see if you could shop around for cheaper internet. You might even save more if you change to a phone plan that also includes internet too.

Just some basics to get you started.

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BouncyEgg t1_j6k6sf2 wrote

So the way to do this next is to go through each of the expenses that you have listed and ask yourself:

  • Can it be cut?
  • Can it be reduced?
  • Is it necessary?

What I consider necessary for me, may not be necessary to you (and vice versa).

You have to decide what you can do without. For example, Pandora/Spotify seem like overlapping services. Can you really not tolerate ads? Youtube. Same deal.

Is the WoW a need?

Is the Six Flags a need?

Why is the phone so high?

Have you ever tried calling your internet provider and asked to cancel? (to get a deal from the retentions department)

Rent is a big expense. Is taking on roommates or moving to a lower cost place realistic?

Is selling the car and using public transit realistic?

Does the car need all the washing? Is this something you can do for yourself?

No one can answer these type of questions for you. You have to be the one who discusses what you are actually interested in changing/adjusting/eliminating.

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tidyshark12 OP t1_j6k8dmu wrote

Replying to AuraofBrie (#1,631,045)

Oh yeah, i currently only drive about 600 miles/mo which is maybe $100, but it will increase significantly when i get the new job since i will be commuting daily instead of once/mo. I was considering dropping from the 1000 mbps plan to a lower one that is cheaper since its only 2 people living there, me and my gf. If I'm able to register my car and then sell it for more than I owe, that'd be a good route for sure, but it will be close to $2700 to register it. I don't think I'll be able to get a lower rate as it's only 2.2% apr right now, so refinancing may not be an option. Obviously drop the car wash, maybe just pick it up in the winter for the underbody wash so my car doesn't get rusty from the salt. I still owe on my phone, so i can't really change phone plans and the internet is included with my att plan. I also forgot to include 100/mo from tmobile which is from my old phone plan. I never had any service and they constantly were raising my costs and going back on the deals that I got when i signed up and spent around 10-15 hours/mo on the phone with them.

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tidyshark12 OP t1_j6k9uh2 wrote

Replying to BouncyEgg (#1,631,059)

Phone bill is high bc I need hotspot on my phone to play wow while I'm away and i have my tablet for watching tv and such. Usually I'm gone for the entire month except for a couple days. My roommate is moving out and i just re-signed the lease or I'd be moving for sure. I've only had the internet for a few months, but I will likely reduce the bandwidth it since I'm paying for it alone now. Public transit is definitely not an option, unfortunately. But i am thinking of selling my car and getting a much cheaper one. Six flags I'd say isn't a need, but they don't offer the plan I'm on anymore, so if I get rid of it, I'll never get it back. Plus, I only live about 20 minutes from one, so we go there all the time. I am considering dropping the car wash to maybe 10/mo or even 0 most of the time, especially if I get a different car. I cant stand ads at all, I cant use YouTube, spotify, or pandora with ads, but I will likely drop pandora and maybe YouTube, too and just stop using those services entirely.

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BouncyEgg t1_j6kavbj wrote

Replying to tidyshark12 (#1,631,825)

> I need hotspot on my phone to play wow

You state this as a "need."

Like I said, we're going to have differing values.

You ultimately decide what you "need."

You ultimately decide what you are willing to do differently.

That goes for everything else in your response.

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Lollc t1_j6ltcjv wrote

Get your priorities in order and license your effin' car before you worry about anything else.

What are you paying $373 to Mutual of Omaha for? Please don't let it be whole life insurance.

How much do you owe Ashley furniture? What's the interest rate? If it's high interest it may make sense to pay more money on it.

And last, it's only 144$ a year, but you tube? They give that stuff away, why pay for it?

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tidyshark12 OP t1_j6mg0x5 wrote

Replying to Lollc (#1,647,928)

My and my daughters IULs and critical illness insurance.

Ashley card is 0% apr until it's paid off if i pay 110/mo to it. 109/mo and I get charged all the interest, probably a couple hundred bucks or so.

No ads is why i pay for it, but once I get the new job, I think I won't use it nearly as often, if at all.

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