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Our financial situation; Debt, debt, and more debt - Stacking Pennies - A frugal life blog
Frugal Debt and paying it off

Our financial situation; Debt, debt, and more debt

Mr. Money Mustache was right when he said it’s difficult to expose yourself financially to the entire internet. I’ve already done so on the MMM forum so it’s a little easier now, but still nerve wracking. This post will list the details of our financial situation. The good, the bad, and the ugly. Hint: There is very little “good”.

It is important to note that this is our “starting” expense report. This does not include the changes we are making in our budget to become a frugal family. We are drastically cutting our food related expenses which currently come out to around $1,700 per month. Our goal is to get it down to around $700 per month. A $1,000 savings.

Other expenses, such as the car loan, only have 9 months remaining before it is paid off completely. Once this is paid off we will have an extra $393 per month to put toward bills.

We have also applied for New York State’s STAR program which should give us approximately $750 in tax rebate next year. A savings of $62 per month.

It’s easy to see how these things add up.  Simply reducing our groceries, paying off our car, and applying for STAR will net us an additional $1,455 per month that can be spent on paying back debt.

Our monthly expenses

With that being said, here is it is. All of our financials, listed below. I will cross items off on this chart as we pay them off, but will keep the original balances in place – for reference purposes later on.

ITEMMONTHLY  TOTAL INTEREST RATE
GARBAGE36
CALE/INTERNET114
WATER50
GEICO AUTO135
MASSAGE70
AUTO LOAN39335916.54%
MORTGAGE1761164,7175.125%
FUEL200
GAS/ELECTRIC150
GROCERIES1365
EATING OUT884
CAMERAS25
PARENTS030,K
CC119485625.24%
CC2134449524.49
CC32550523.24%
CC42545210.23%
CC52069218.49%
CC67579724.15%
CC7 (STORE CARDS)100202025.24%
Furniture Loan276195025%
 Property Tax Payment Plan535 11,365 18%
TOTAL$6,567$45,358

Breakdown of mortgage payment:

Principal and interest $908.86
Property insurance $72.42
Mortgage insurance premium (MIP) $115.44
City tax $167.57
Other tax $458.52
Late charges $38.66
Total $1,761.47

Assets:

Primary home – Owe $164,717, worth $175k
Rental – Owe $25k HELOC + $11k taxes, worth $70k to $80k
Car – Owe $3,500, worth $13k to $15k
Cash – $850
401k – $5,000

Liabilities:

Income tax – $40k
Property tax on rental – $11k

NET WORTH:

$0

5 thoughts

  1. Looking forward to the progress you will be making here. Groceries and eating out are two very obvious categories that can be easily cut dramatically. We are not frugal and spend on quality food, and I think we end up around $500-600/month on groceries for a family of three. Good luck!

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