Hard times, seeking financial advice, plz help

[RobPaulson]

When I bought my AC, I had just graduated college with a very (what i thought at the time) solid job. I was so excited to able to afford a brand new car. That is until reality hit me like a ton of bricks. Slowly but surely over the next year, all of my student loans reared their ugly heads, along with a few other necessary monthly expenses that I was NOT prepared for when buying my car.

After a salary cut at work, it has just become too too tight to keep this up. I fully planned on making MORE after a year+, not taking a cut =(. Saving was slow before, but now it's non-existent with no hope in sight for a raise anytime soon.

I currently rent an apartment in one of my parents houses. The way things are going, it doesnt look like i will be able to begin saving to move out until AFTER the car is paid off, which is a serious issue with me. I always said i'd move out by the time I was 25, so hitting almost 30, still living under my parents roof (whether i'm paying rent or not, which i do) and just beginning to save for property is pretty unacceptable in my eyes.

Also, penny pinching is getting VERY old. I am realizing that almost any/all stress in my life can be tracked back to a lack of money now. I am seriously considering just cutting my loses now, buying a reliable car to drive for the next 2 years and not have to make a car payment, while i get my masters, and take life from there ...

so my question here is, does anyone see any other reasonable options for me here? i feel like my car is a ball and chain keeping me at home and keeping me OUT of grad school. I realize I went a bit beyond my means now and am trying to make it out of the situation without becoming a 30-somethin who still lives with mom and dad

EDIT: I've decided to hold onto the car, the idea of getting a used car full of problems while still having a car payment (as low as it may be) just is not worth the loss at this point, i'd rather just tighten my budget a bit (which i've done), and come to peace with the fact that i'll be renting for a while hoping the economic situation changes. stuck between a rock and a hard place here, just gota dig my heels in and go for it.

Modified by RobPaulson at 1:32 PM 6/11/2009
Modified by RobPaulson at 1:32 PM 6/11/2009

[LongBeachCoupe]

Welcome to the economic recession...

If your parents arent in dire need of the cash, save it... The economy will rebound soon enough and your plans will be on their way... you gotta make it thru the valley to reach the peak!

[Rob.Vegan]

Sorry to hear about your struggles. I just finished my first year of college and am now on the verge of getting kicked out.

Hope you get the feedback you need but I'm still a youngen and can't offer any reliable advice

[RobPaulson]

Welcome to the economic recession...

If your parents arent in dire need of the cash, save it... The economy will rebound soon enough and your plans will be on their way... you gotta make it thru the valley to reach the peak!

hhmm think u may have misread that, my parents are far from in dire need of cash. They are all set. I on the other hand, bit off more than I can chew, am stuck at a job with no potential movement with only a bachelors degree and an impossible job market. Currently not able to save a damn dime.

The program I want to enroll in is a masters program thats going to cost me 26k. Not to mention, its in education, so I would need to spend 3-4 months student teaching with no income, and still have to cover AAALLLLL of my bills. Which i can barely make with my current salary, let alone bank enough to cover a 4 month unemployment.

I pay rent to my parents because they require it, because they own the property. I got a great deal on the rate from them, but its still rent, and still on my parents property.

[Marisha]

Is getting a second job an option for you? This way you can take whatever you make there and put it away as savings.

[mcheddadi]

why don't you just sell the car? it's a car afterall, not worth stressing and penny pinching over. sell it in canada you can get arround 28K to 32K $ CAD for a mint low millage one and since the canadian dollars is really high, thats like 28K to 32K USD$ straight to your pocket. i'm being optimistic but there are lots of opportunities now.

[RobPaulson]

Is getting a second job an option for you? This way you can take whatever you make there and put it away as savings.

That is sort of a bandaid, i need surgery LOL. It would work until I decided to begin my masters program, than there would be no way i would be able to work full time, a part time job, and take classes.

And the only part time work i can think of would almost not even be worth my time. I mean, at that point i would be working what, 15hrs/wk on the weekends (essentially i would be working 7 days a week, considering i alrdy work 40hrs/wk) to afford this car. Like i said, i enjoy my social life and would like to live it, the car is not worth sacrificing my social life.

[RobPaulson]

why don't you just sell the car? it's a car afterall, not worth stressing and penny pinching over. sell it in canada you can get arround 28K to 32K $ CAD for a mint low millage one and since the canadian dollars is really high, thats like 28K to 32K USD$ straight to your pocket. i'm being optimistic but there are lots of opportunities now.

hhhmmm ... could that seriously work dude? only thing is i have 15k right now on my 08, and will be continuing that mileage pace until i get rid of it, i have a 30min commute to/from work every day =(

private party for mine according to KBB is ~22k, retail is about 25. I would love to come out of this with a few grand if i could to put towards something else

[Curtieson]

Second job seems out of the question...he wants to quit to find time for grad school, not take more time away.

But...wow, it is tough, isn't it. I will give a bit into my background: Done with school in 06 at 22, married at 23, laid off at 24, now 25.

Here is the easiest way to look at your budget and what to cut out...About 1/3 of your wages go to taxes...goodbye money. 1/4 should go to your house/rent, 1/4 on living (food) and bills (elc/gas/water/cable/car/cell) and savings and the rest is fun money/misc. (leaving 1/6)

Basically...if you are stealing from one for another...that is going to cause problems...but the best way to do things is make saving "a bill". Put $50 a paycheck into an account you can't touch, and re-look at your situation...if you can't HELP but get a negitive number...the first step are BIG cuts.

Big Cut #1 ...taxes. Is Canada an option? No...

Big Cut#2 ...Rent...you have already cut...not an option

Big Cut #3 Bills...can you cut your cell phone (go pre-payed) Basic Cable instead of satelite? CAR!?! Bar time? THIS category is were you will make or break yourself, and where you need to set out your priorities.

When I was laid off last Aug...I was lucky in the fact that my wife could pick up something part time within a week, so we didn't get far behind...I got a job within 3 months and we are clawing our way back! It just takes sitting down and really thinking things out...seriously...write it down, and STICK TO IT! When you make a budget you need to get your big ticket items in place and then fit the small budget in to fit.

As my mom says when I state "Wow, your car has Projector Fogs, cool"...she will tell me "Yea, and I am 58...I didn't have it when I was 25" Sometimes the big ticket car just isn't in the cards...don't worry, it will be later!

And if you set out 50$ a month for beer instead of $150...do House parties instead of the bar!

[RobPaulson]

I actually have a very strict budget. When salary cuts happened i realized something needed to change.

I have girlfriend and we go out about once a week for dinner/drinks (we r both struggling financially to get into grad school at this point). And I may go out for drinks with friends one other time a week. Those 2 'eat outs' along with my weekly lunch/dinner groceries, and my weekly $150 'fun money' allowance is GONE. And even carrying this out, I tell someone almost every day I cant hang out b/c of finances =( i'm sick of working for my car ...

[SaiDori]

Big Cut #3 Bills...can you cut your cell phone (go pre-payed) Basic Cable instead of satelite? CAR!?! Bar time? THIS category is were you will make or break yourself, and where you need to set out your priorities.

You could live without cable TV at all. It will eliminate the bill entirely.

As for your car, try to go to your bank to see if they can re-finance it over a longer period of time, making your obligatory payments smaller.

[RobPaulson]

You could live without cable TV at all. It will eliminate the bill entirely.

As for your car, try to go to your bank to see if they can re-finance it over a longer period of time, making your obligatory payments smaller.

Ya, I dont have cable, and I can not live without my phone/plan since i dont have a landline either.

The loan is already for the next 5 years, its already a low interest rate, it doesnt get much better than what i have in terms of a loan. For this to be worth it, i need to eliminate or bring my monthly car payments down to 100-150/mnth

[Curtieson]

I actually have a very strict budget. When salary cuts happened i realized something needed to change.

I have girlfriend and we go out about once a week for dinner/drinks (we r both struggling financially to get into grad school at this point). And I may go out for drinks with friends one other time a week. Those 2 'eat outs' along with my weekly lunch/dinner groceries, and my weekly $150 'fun money' allowance is GONE. And even carrying this out, I tell someone almost every day I cant hang out b/c of finances =( i'm sick of working for my car ...

Yea...it sounds like you are at a crossroad...one of the reasons I bought this car was for a fun new hobby...playing around with looks...and hanging out here and learning about it. It isn't fun paying the bills...but if I thought there was a better place I could be spending my money, I WOULD.

I think that might be where you are...there is stuff that you would find more fun then your car...and with a 3.5 MT you were expecting a lot of fun out of it... Maybe it would be best to flop to an "A to B" car (dare I say Corolla?) instead of a Joy Ride...

And...just another idea...stop by the dealership...throw out the thought of moving to a 2.5 lease? Doing that would take you down a couple hundred a month! At least then you have the same look...but loose a bit of the "Joy"

[Curtieson]

For this to be worth it, i need to eliminate or bring my monthly car payments down to 100-150/mnth

Down TO 150 or Down BY 150???

Down TO $150 means you need a 6 year on a $10k car...that is quite the change from the near $30k you are sporting now.

You can get a new Kia for $8k if you don't mind driving a tuna can...

[Bmore-coupe]

If selling the car and getting a more economic one solves your problems, I say do it. Besides renting(which I know that you cant get out of right now), cars are the largest waste of money out there.

You basically are buying something that is immediately worth less than you paid for it, and then it just goes downhill from there. I say sell the car, buy a good dependable car like a civic (I know, I just cringed too ) and bank the leftover money. If you do that, you will end up with extra cash left over and no more car payment .

Then after you get on your feet, worry about getting out of the renting situation. Renting is just throwing money away. I look at owning a home as a livable savings account. All of the money that I put into it, I will be able to get back plus some when I sell it (depending on your area's housing market and minus intereston the loan).

Best of luck Hope everything works out in the end

[mcheddadi]

seriously I think best option is to sell the car. get a used versa or honda fit and ENJOY LIFE. cheap insurance, cheap cost of ownership. I'd got with a honda fit over the versa cuz it's hoter and it gots V-TEC!!!! LOL.

[Ranga14]

I actually have a very strict budget. When salary cuts happened i realized something needed to change.

I have girlfriend and we go out about once a week for dinner/drinks (we r both struggling financially to get into grad school at this point). And I may go out for drinks with friends one other time a week. Those 2 'eat outs' along with my weekly lunch/dinner groceries, and my weekly $150 'fun money' allowance is GONE. And even carrying this out, I tell someone almost every day I cant hang out b/c of finances =( i'm sick of working for my car ...

The going out with friends to the bar can destroy your finances. Especially if you do it once a week. I can't remember the last time I went out to the bar, lol, sad I know but like someone else said, usually it's just going to a friends house and having a get together and usually they are gracious hosts and provide free beer, yes I said free beer. If you can work out that kinda deal then I'd say you could save at least $50-$100 a month and depending on your actual income, that means something.

As for myself. I guess you could say I'm lucky to be in the position I am at 27 years of age, been on my own for 10 years and in my profession (web design) for 11 years. No degree, just certifications, lot's of book reading and a TON of experience at big name firms. That tends to get me in the door even over college grads, combined with a great portfolio but not every job relies on a portfolio. I will say one thing, I did get laid off at the end of last year and I was getting worried but I started doing contract work that paid the bills until I got some nice bigger onsite gigs going and now the economy seems to be slowly but surely gaining a little steam.

Anyway, what kind of job do you do? Is there anyway you could get a quick certification of some kind to advance or maybe trample over some hapless victim and take their place? I guess all I'm saying is try to look at all angles, even the ones in which you might get your hands dirty doing, haha... Not saying pick up contract killing or anything.

[CoutureCoupe]

Hey man sorry to hear about the situation. I'm about 2 years out now from college and I can feel your pain. The thing that gets me though it all... eBay. Start selling your old stuff, you would be amazed at what the resale value is on certain things.

For instance you could sell old baseball cards, if you are into designer clothes there is a huge resale on designer jeans. If your parents have stuff laying around in attic, sell it. I started doing this when I was about 14, it was like making way for the new. Now I'm up to $3,000+/Month in sales. I even sell stuff for friends/coworkers and charge a commission. The best part is that you can do it on your own schedule. As long as you have internet and a camera you are all good.

[Heels1010]

What will you be teaching? I am a math teacher on long island i got my bachelors almost 2 years ago. I am putting off getting my masters which is only 10 classes. student teaching does suck but it can get u in the doorway to a school district. also u can sub in a district. for instance i subed alot and would make $110 a day and i was done by 2:00. Then i would work my other job.

I bought a 2.5 because i was worried about all the extra cash involved from insurance and gas but now i regret it because my car is almost paid off entirely in one year. It would be paid off had i not dropped a couple thousand on mods.

[LongBeachCoupe]

My girlfriend is a 4th grade inclusion teacher here on LI, she just got her masters in special ed, and her school is probably going to lay her off... there arent jobs around for teachers here in the NY area...

What I do know is that if you have student loans, you can negotiate, tell them you cant afford it now, and they will say, ok well how about $100 a month..

If your parents can let you slide on ZERO rent for a little (if they are covering the mort from other renters if its a multi-fam home)

Curtieson has it right, on saving like its a bill...

COUPONS.. if you are eating/drinking somewhere you should have a coupon there, or you are going to the wrong place... Also, bringing lunch to work rather than buying it saves a bundle...

EATING OUT IS NOT AN OPTION... cut it out.

I was a finance major (hofstra 04 grad)

[Heels1010]

that line

why don't you just sell the car? it's a car afterall, not worth stressing and penny pinching over. sell it in canada you can get arround 28K to 32K $ CAD for a mint low millage one and since the canadian dollars is really high, thats like 28K to 32K USD$ straight to your pocket. i'm being optimistic but there are lots of opportunities now.

this makes me think of the movie dodgeball when they have to raise $50,000 and the one guy says we could pay it off in canadian dollars and save us some money lol.

[JIBRIL4life]

I got a buddy that is kinda going through the same thing, left a job for a new job back at home and his insurance went to 650$ A MONTH. yeah retarded, he has to keep his car insured cause it is financed. So he is prolly going to take a 7k loss on the resale of his mazda 3.

My sister pu her house,car and student loan into basically the mortgage for the house and reduced her bills by 1k a month a couple years ago.

this is all canadian figures.

So if you got school debt and car debt see if you lump tem and pay in a smaller amount or sell the car or maybe curb the car for a bit and take da bus.

There is no easy solution, I know that the states is taking a much harder hit then Canada but trust me guys we are coming out of things i see people spending money at work all the time.

Good Luck mate, and hey come up with something like LBC does make something that all of us people can buy!!!!!

[DAAN.]

sacrificing my social life.

Decide what is an asset and what is a liability. Reconsider your priorities.Prepare for big changes / full heartily engage and accept them.

Hint : social life + car + school = bad combo.

I would and did : Sell car, buy used, cut social life.

[marlin29311]

Officiate a sport. Seriously. I made $360 this weekend alone umping baseball.

I'm not going to beat a dead horse and say what everyone else said. Just looking at what you need to spend to survive, and cut the rest. Rent, insurance, food, bills - then reallocate what's left.

[Curtieson]

Officiate a sport. Seriously. I made $360 this weekend alone umping baseball.

GOOD POINT! I made $20 a game for LITTLE LEAGUE! Softball officals make $15 a game in the bar leagues here and that is 45 mins each.

Do 2-3 games, 2 nights a week...there is your car payment right there!

[RobPaulson]

GOOD POINT! I made $20 a game for LITTLE LEAGUE! Softball officals make $15 a game in the bar leagues here and that is 45 mins each.

Do 2-3 games, 2 nights a week...there is your car payment right there!

wow ... you guys are fkn amazing ... i umpired for like 3 years in high school, i cant believe i didnt remember that, i'm getting in touch with people now ... just made my day

I actually spoke with my parents in depth about this yesterday and they both strongly urged me to KEEP the car and cut back expenses otherwise with an even stricter budget layout, with less flexible areas. We were able to find an extra bit every month, that plus umpiring (umpiring fits in my schedule PERFECTLY) will allow me to save AND make car payments.
Modified by RobPaulson at 6:05 AM 6/10/2009

[erick.s]

There are a few things I would do in your shoes. The first thing I would do is sell the car. Strip off any aftermarket parts and sell them separately. Try to scrape together whatever cash you can and buy a solid "beater" with cash - no loan involved.

Next, you should sit down with your parents and lay everything out on the table. Show them that you're not being irresponsible with your money but due to a pay cut you're having some trouble. See if they'd be willing to lower your rent payment a bit to help you out.

After doing those two things take a look at any other extraneous expenses you have and decide what you can ditch and what's absolutely necessary to keep. Doing those few things should get you a long way towards solvency.

[Curtieson]

Where did you start to look for Umpiring gigs? I had never thought of it before...but even this last Saturday I found my old 'Clicker' (the Ball/Strike/Out Counter) that I had put in the bag when I was cleaning my old car out when selling it. I ALWAYS had that with me...haha But yea...where did you start? All the beer leagues are underway already...but...maybe I will try those...it is just that HS is done so that certification is out of the question.

[marlin29311]

I umpire at our local kids rec leagues - I've been doing it since I've been 14, but you could seriously just try asking around at your local fields one night or search online to see if they have a website and some contact info...for regular rec games for the 13-16 year olds, I make $55 a game behind the plate and $45 in the field...and when you go younger, its less, but it's still at least making easy money. Summer time I've done All-stars, legion, tourneys, etc...and those all pay upwards of $100 a game...Just contact your local little league and they should be able to help...

[RB4Life]

Any little side job i think would help you in my opinion. umping games is a great way to make extra cash. Im not a big fan of selling a car that you wanted. but if push come to shove have you thought about trading it in for a 2.5 mabey. Yea you may lose you HP and a couple luxury things. but it would drop you payments down and you would still have a AC. There are way out there. But i hope it all works itself out for you man