[USER]

Partner and I have a combined annual income of $113k. After health insurance, 401(k), FSA and taxes our combined bi-weekly pay is $2,700.

We have 1 child, 2 large dogs and 4 cats.

Monthly expenses below:
Our rent is $2,000
Car payment is $800.
Phone bill is $300
Internet $10
Streaming services $35
Pet Food $250

Minimum credit card payments together $160
Life Insurance $192
Utilities average $225
Car insurance $280
Affirm monthly payments $140
Gas for our car is about $280 a month.

That leaves us with $728 for groceries, essential items, savings, date nights, etc.

We seem to always be paycheck to paycheck or missing bill due dates because we are paid every other Friday and have zero clue how to get ourselves in a place where we aren’t scrambling or hustling to figure out how to pay a bill before our next paycheck.

What are we doing wrong how do we cut costs and follow the 40-30-20-10 rule when we hardly make it as is?!

Moving into a cheaper place is not an option at this point and neither is re homing pets. Those are non negotiatables.
Our car payment is high because of credit scores and only a $2k down payment when we made the purchase ($38k 2023 Subaru).

We want to retire modestly in 20yrs at 55…..we both grew up in sever poverty and never learned financial literacy.

Any suggestions?!?!

[Alisha]

Lower your phone bill. Ditch the streaming services. Pay off the cc and affirm asap. If you’re buying bougie pet food switch to something like pedigree if your pets will tolerate it (a cheaper but still ok food).

Lower your heat and try to be as energy efficient as you can.

Cut all fun spending until further notice and you get your debts paid off.

This isn’t a great option but lower 401k contributions so you have more to bring home. Unfortunatley your rent plus utilities are really what’s killing you-its like half your paycheck for the month.

Another possible option if you guys can would be to pick up second jobs.

[Kristen]

The biggest bleeds I see are the phone bill, pet food and life insurance.

They could probably be trimmed down.

[Zim]

4346 dollars by weekly
Check you tax deduction
Probably to much In 401k contributions 15 % gross
$700

Sell car buy a cheaper one in cash
Phone bill is high
Emergency fund
Make budget

[Yana]

I’d change cell phone providers, I’m assuming you have phones to pay off first – maybe ditch the phone insurance to lower the bill until phones are paid off, than don’t upgrade and get cheap service.

I’d cancel the life insurance asap and use these $ to pay the debt off.

Debt means money in the garbage on interest. Minimum payments are something that will reflect as paying almost 3 times what you borrowed.

After that don’t create more debt, live within your budget, while working more, doing side things to increase income and not change a thing in lifestyle but invest from there.

Maybe do some Uber to faster pay the debt off or anything else to make extra money.

You should write all bills AND due dates down – that way you can account for them from the checks before, not after. Can’t pay the bill- don’t go out on a date this week.

One thing I don’t believe you can do to make this work is change the car – you most likely owe more on it than you can sell it for. Due to the negative equity won’t be worth it.

GOOD LUCK!

[Francis]

Switch to a less expensive pet food brand or use coupons where possible. $250 seems high. You could sell your vehicle and get into something in the $20-25k range.

That should reduce your car insurance as well. If you buy something with better gas mileage that would be a savings too.

Switch phone providers to bring that bill down as well. Call your credit card company to see if you can get your interest rate lowered and where possible pay more than the minimum payment. Credit card interest is very high.

Not sure what type of life insurance you carry but whole tends to run higher than term.

Also call your car insurance and ask them if you qualify for any discounts or what you can do to decrease your monthly bill.

You can increase your credit score by making your payments 3-5 days early. Automate you fixed bills (they run the same amount each month).

Cut your food costs by eating at home more, keep meals more simple while you save… consumable items that don’t go bad (in bulk) when they go on sale.

Any time you have change in your checking account, move it to your savings. Little by little it will add up without you feeling the pinch.

[Sue]

I would sell the vehicle and get a used one with lower cost and payments. If that’s not an option, you should look at credit union to refinance the vehicle loan to help lower interest rates.

You should also look into getting a new cell phone carrier.

I’m using Verizon prepaid for years and only paying around $60 for two people. Shop around for new car insurance.

You can lower the dog food cost and look into making them the food at home.

If you eat out, try to pack lunch to work and cook at home more often.

[Ashley]

Your credit score should be a focus – pay off cc and affirm.
If you can be disciplined I’d temporarily reduce the 401k contribution to the match and knock out debt/build a small emergency fund. Then bump it back up.

That’s alot for a phone plan. Don’t get sucked into new phones, and reduce your current plan.

Talk to the vet about other food options. It’s not always possible to cut here.

And as a fellow animal lover I would suggest future you trying to reframe thinking into having fewer animals that you can absolutely afford the best for.

Pets are expensive and many people are one emergency visit away from a financial disaster or hard decision. You have that times six.

I agree that you can’t afford that car right now. Do what you can to lower that payment as quickly as possible.

[Molly]

Sadly, it seems like you can’t really afford your pets… consider rehoming some of them

[Pomare]

Refi the car payment!
Do a Velocity Credit plan to pay down the CC it will raise your score and loosen up that 160.

A month for other things.

[Ataloa]

I think you have opportunity to improve your situation but you have some debt that needs to be resolved. 160/cc payment. And 140/ affirm payment is $300 / month.

I’m curious what the interest rate on these are and what is the total debt owed.

You probably shouldn’t have purchased a new vehicle considering you have this debt. You are paying over 1k for a car. Get rid of the car. Get something that is cheaper for now.

Make other changes and use that money to pay off debt.

In order to get out of debt you have to find a way to not create it. Don’t borrow money unless absolutely necessary- like when people borrow to buy a house.

But when getting a new car or even new phones if that’s what you did u have to look at it differently.

Can you pay for a new phone today? / 2023 car off today? If the answer is no..m that u can’t pay it today because u don’t have the money then u shouldn’t borrow money to get that new car, phone, thing.

It’s a mindset change that will help you no longer be paycheck to paycheck.

Everyone else above has great advice.
After you have tackled making sure u don’t get into more debt, trying to pay off debt then u also have increasing ur income.

Then at least once u increase ur income you will be living way below ur means and can invest any new income.

Job wise u both can seek more challenging positions at work to try for promotions. Or find another company to try for raises.

You can take on side hustles for 10 hours a week to give you some money.

Listen to Dave Ramsey and/or ramit sethi on YouTube. Peiple have great advice above but it really seems that taking on debt is a contributing factor.

No judgement of course… just it truly is a mindset change to no longer take on debt and get out of it in my personal experience.

Edit: if u get a refund plan to pay off debt.

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