58YO Single Parent With Youngest Out of House Making $40/Yr.

[juju4169]

In addition to getting a second job what can I do to get some traction for savings? Any and all suggestions appreciated. Please don't tell me that I will never retire. I am aware of that possibility. I want to have some assets for emergencies, etc.

When my youngest moved out in January, I moved to a smaller apartment to reduce expenses @ $300/month and sold my car @ $130/month. Am taking bus to work (yearly pass = $60). Have medical debt ($15,000) and loan debt ($10,000) and still pay for youngest 's medical and dental until 2020 @ $309.00 per month. I was able to save $80 this month due to my frugal habits but would like to save more while I pay down debts and apply that to my retirement account/investments.

I have $6,000 in my 401c from 3 years of employer contributions.

Background: lost home due to unscrupulous tactics of loan co. and won only $1300.00 from class action law suit. Lost over $50,000 in equity.. Had health episode which cost me my job with state and it's benefits, apartment and over 1 year of my life. Am rebuilding from nothing. Thank God I have my children, my mother and my employer who hired me when I was extremely ill.

Thank you!

 

[Vacation4us]

I am sorry you have had a rough go of it. I hope your health has improved. Since you have no assets and are in the whole 25k a meeting with an attorney to discuss bankruptcy might be your best option.

Is the $309 a month solely for your child's health insurance? Seems high for an assumed healthy 24 year old. Either drop it or have them pay for their own. You are not in a position to support an adult child.

Once your out of debt and solely paying for you only then will you be able to save. If you can save as much as you can and work till 70 SS will be higher. Have you checked out what your SS payment will be at 65 vs 70?

 

[MBAustin]

You're definitely on the right track in a difficult situation. Bankruptcy may be worth considering, but have you talked with the medical provider about your situation to ask for adjustment to what you owe or to have it be interest-free while you pay it off?

Are you cooking all of your own meals? If not, this is a good way to save $$ and eat healthier. There are lots of great frugal recipes out on the web, and cooking meals in a crockpot to provide leftovers for lunch is an easy way to do this.

Don't be shy about other ways to save $$ - when you need clothes, shop at Goodwill, etc.

And make sure to take care of your health and stress levels the best you can - exercise, get outdoors, find a support community (church, community group, activity group, something social) for your mental health.

We wish you good health and success in rebuilding your life!

 

[SnowBound]

juju4169: From what you wrote you are moving in the right direction.

Paying down the loan is the first priority. Every extra dollar paid on it today (this month) will feel like $5 less to pay next month. If credit cards have a balance, divide the balance by ten and pay that amount each month. Cut them all up except the one with the highest balance.

How old is your youngest? $309 for someone under 26 is way to much. Google Christian Healthcare Ministries and see what fits you.

Employment: Do what ever it takes it make sure things are going well there. Smile, learn new things that can keep your employer happy. This could be the most important thing you do.

Saving: It is not about how much money you earn; it is all about putting extra money into the bank each month. Until the loan paid off, cut giving to zero (except your tithe if you do so). Think now about Christmas shopping now. Make list, stick to the list. We don't buy wrapping paper or bows; it is all comic paper and ribbon and used gift bags. Try to put everyone on the list that you might give a gift to. Forgetting a couple of people could break the bank. If can you make gifts, Go For It.

Other: Take a full hour and make a list of things you can do for friends and family; focus completely writing the list for that hour and not the cost. Make it as long as possible.
When done, circle a few items you can do for free or nearly free and do them. Then repeat.

Big onetime expenses: Life is a never ending cycle of one time expenses; these really bite, and bite your savings hard. Try to learn from each one, and learn to rebuild savings quicker after each one.

Retirement: I keep reading that retirement happens sooner than expected for half the population. Maybe only fifth of people work past normal retirement age? So yes, you likely will retire at normal retirement age, but keep planning so you have some extra money during the Golden Years.

 

[CaptTom]

Sounds like you're on the right path. Watch expenses, save what you can, pay off debts (highest interest rates first) and work a second job if needed.

That's all far easier to say than do for many people. Especially that stuff about avoiding unnecessary expenses. You seem to know how to do that, so you're already way ahead.

 

[Texas Proud]

Just curious.... you joined Dec 2016 and you are just posting for the first time?



What took you so long?


As others have said, you are on your way... there is no magic bullet that will fix your problems... it is a lifestyle change and it appears you have made some...


I would just keep track of all of your spending and see where you can cut back... buy a cheaper phone plan, or see if you qualify for the free one... get rid of cable and just watch OTA shows...


Good luck..

 

[JPatrick]

A pretty impressive list of ideas. I'll add the idea of possibly getting a work at home second job, given that you are somewhat transportation challenged at the present time, and the fact that the hours can be flexible. Keep grinding it out and skip those get rich quick thoughts (eg. Lotto tickets.) Good luck, and please keep us posted on your progress.

 

[juju4169]

Thanks to Vacation4Us, MBAustin, Snowbound, CaptTom, Texas Proud and JPatrick for the solid ideas & encouragement! Texas Proud noted that I have been on this site for 2 years and just posted for 1st time. I have been reading and learning from you all along, but hadn't seen posts re: very beginning of your journeys. Didn't know if anyone had started where I am now. I

I have made smaller changes like using toaster oven instead of stove to lower my electric to $30/month. I buy second-hand clothes 2x year @ Goodwill & ThredUp online. I have a "uniform" for the law office where I work: Black slacks (3) or skirt with blouses (8), 2 pairs of black shoes & sandals & 1 pair boots, simple earrings. I own 1 pair jeans & sneakers & 4 dresses. I get my haircut every 6-8 weeks & purchase makeup on sale @ Target, etc. as I always need to look professional. Save $30/month on laundry now as apartment has own washer/dryer-water & trash included in rent. My furniture is from Craigslist except for my mattress which was new on sale for $100. I have a Tello cell plan @ $14/month for 1G data/unlimited talk & text. I gave my tv to my daughter so only watch Netflix $7.99/month, Hulu free on her account on my tablet. I became a vegetarian or pescatarian (fish) 3 years ago so grocery bill initially went up but now averages $175-200/month which includes all hygiene, cleaning, pet, household purchases, including houseplants, flowers. I buy store brands & sales. I cook during the week & extra on Sunday-freeze leftovers for work lunches. I don't eat out unless I am tempting my 85 YO mother with a ChikFilA sandwich & coffee. I do tithe to my church @ 10% pretax & want to save same percentage initially & work up from there. I plan to negotiate with medical collectors when I can offer cash @ 10-20% of bill to close account. *Investigated 1 medical bill from daughters spinal surgery (down payment) which I was certain I had paid by cashiers check. Finance office had no record that I ever paid. Made calls to credit union, etc. got proof it had been deposited. They apologized & corrected my credit report for $1380+ Small victories Am getting quotes for my son's medical/vision/dental as you let me know that his rates were too high. Have applied for part-time virtual administrative work so that I don't have to worry about transportation & have 2 interviews. I am throwing an extra $10 ea. @ my 2 loans (costs after insurance for surgeries for 2 of my children) & have paid off my $300 credit card. I don't drink, smoke, use drugs or gamble (lottery tickets either) so no holes in the boat there. My Xmas budget for this year is much smaller. Have already discussed with kids. We are going in together to get each person 1 gift @ $40 so spending $10 on each person or $40 total cost to each of us for the day. Our favorite Xmas movies with good food and cookies make the day special for us.
Thanks again for the encouragement! y'all are awesome! I will keep you updated. Who knows? Maybe I will have some rentals and stocks someday!

 

[juju4169]

BTW my son is 21 with 2 semesters to go til graduation. He has his own apartment, pays his own bills and works 30-50 hours per week in addition to being on the Deans List every semester. I paid all of the other kids' health insurance through college, just trying to be fair to him. After Dec. 2019 I can kiss those bills goodbye.

 

[Texas Proud]

It sounds like you are looking for a second job....


What about your primary one? Are you being paid market rates? if you have been there for many years they might think you have no intention of moving on and your salary might reflect that.


Do some research and see what the market is for people with your education, skills and experience are being paid... take a look at ads and see what other firms are offering..


If you are way out of market then you can bring it up to your boss and if nothing is done then apply for another firm...


Heck, you might be able to get $50K, which would help a lot more than the nibbling you are doing..


Just throwing this out... are the medical bills your responsibility? If not, then just stop paying... you have more negotiating power doing that...


Also, save up 50% of the amount due and call them... say you will pay that today if they write off the other 50%... you would be surprised how many will take that offer... but you need to pay right then... not the next day...

 

[Bir48die]

First of all your son is on his own and should be eligible for ACA on his own. Unless you're claiming him as a dependent which you shouldn't since he doesn't live with you and you're not paying over 50% of his living expenses that expense should be gone. Why wouldn't he go on the exchange now and sign up for 2019?

I won't comment on the other issues as they are numerous and would take a lot of time and research to give any advice.

 

[broadway]

Why wouldn't he go on the exchange now and sign up for 2019?

Agreed!


For a 21-year old male in Wake County, NC with $18K income, your son would be paying $47/month for Blue Cross And Blue Shield Of NC · Blue Value Silver Enhanced 250 (Limited Network With UNC Health Alliance) that has a $250 deductible.

 

[broadway]

You write that you tithe 10% to your church.
That money is better spent on you.
I know that sounds selfish, but it isn't for someone in your financial situation.

$14/month to Tello is okay, but I would urge you to consider a Tracfone on the Verizon network from HSN for $80 which gives you 1500 minutes/1500 texts/1500MB for the whole year. https://www.hsn.com/products/lg-premier-pro-53-hd-16gb-tracfone-with-1500-mintextdat/8817691 You can get additional data at $10/GB.
After the first year, it is another $125/year and often cheaper if you buy from sellers on eBay.

Do you have Target's 5% Redcard debit card?

 

[ocean view]

In addition to the Target Red card, use the Target Cartwheel app to save more. Most target brand items nearly always qualify for additional the cartwheel discounts.

Check to see if there is a beauty college in your city for your haircuts. Their fees are usually a lot less than a regular stylist. If you like your stylist and want to stay with them, consider asking how much less if they simply cut, but did not blow dry and style your hair each time. I save $7-10 on each cut by doing this (I got my hair cut after work and would go right home, so no social embarrassment).

 

[CaptTom]

Bravo!! I'm very impressed!

I can't really add much. From what I've read, you're pretty good at identifying areas you can economize, and there are a few good suggestions above.

The tithe thing raised an eyebrow for me, too. I tend to agree with Broadway that you're closer to the "receiving" end of the charity spectrum than the "giving" end. While I have all the respect in the world for the good things organized religion can bring, and encourage you to support your local church community, it seems somewhat odd that a church would even accept money from someone who is already doing all they can with what they have. God doesn't need the money. Where is it really going? Can't you contribute some other way? Help out with the bake sale or painting, whatever.

 

[broadway]

In addition to the Target Red card, use the Target Cartwheel app to save more. Most target brand items nearly always qualify for additional the cartwheel discounts.

Check to see if there is a beauty college in your city for your haircuts. Their fees are usually a lot less than a regular stylist. If you like your stylist and want to stay with them, consider asking how much less if they simply cut, but did not blow dry and style your hair each time. I save $7-10 on each cut by doing this (I got my hair cut after work and would go right home, so no social embarrassment).

I get my haircuts at Great Clips.

Every year about this time, they sell cards that are loaded with 10(?) haircuts for $10.99 a haircut. It is a great deal. These cards sell out fast.
Or easier to get is the 1 free haircut if you buy a $50 gift card which they offer in December as I recall.

I don't know if the OP uses credit cards, but when used judiciously, the Chase Freedom is a very good credit card to have with the 5% for gas and the 5% for groceries for 1 or 2 quarters a year. Just buy gas gift cards and grocery gift cards to tide you over the months when those are not the active categories. For this quarter, department stores are 5%, and Kohl's sells Shell and BP gas cards.

You can also buy Netflix gift cards at gas stations and supermarkets and use it on your own account. Save 5% on the $7.99/month.


.

 

[ivinsfan]

Tithing is a personal issue and grounded in religious convictions for many people. Perhaps you could consider temporarily giving 10% post tax instead of pre tax. Stash the difference away in an emergency account.

I'm going to second or third the idea of trying to reduce those medical bills....see what you can do with a lump sum payment, or ask about any foundation that might pay part of the bill for you some of that is based on income.

 

[Vacation4us]

God helps those who help themselves....you are in need. There is no shame in tithing a much reduced amount. Tithing 10 % pre tax while you are struggling to make ends meet is the real sin in my book. IMHO. Take that 10% pre tax and fund your retirement. Everyone will benefit if you are able to continue to care for yourself, even your church.

 

[Choices]

As far as contributing to church, I am a Time, Talent, Treasure gal. Many who cannot afford to give 10% of their income, give of their time and/or talent. It is all important.

 

[Vacation4us]

Please look up "Savers credit" on the IRS site. Also remember it is based on AGI adjusted gross income. Your AGI is your income after deductions. If you put 10 % in a retirement account the IRS will rebate you 20% so $800 less in taxes. Maybe you could pay yourself first then tithe the rebate from the IRS a win win!!!

 

[ivinsfan]

Please look up "Savers credit" on the IRS site. Also remember it is based on AGI adjusted gross income. Your AGI is your income after deductions. If you put 10 % in a retirement account the IRS will rebate you 20% so $800 less in taxes. Maybe you could pay yourself first then tithe the rebate from the IRS a win win!!!

that's a great idea...there is also a 50% savers credit with lower income...perhaps a few bucks in an HSA if you qualify .

 

[CaptTom]

I just want to say It's really refreshing to hear good, solid advice about making ends meet on a smaller budget.

So much of this site is devoted to managing large portfolios and "blowing that dough."

It's all good. I'm glad to see we can help folks on both ends of the spectrum.

 

[HI Bill]

There is only so much saving one can do on a limited budget. I agree with others, cut out the tithing for now. You don't appear to have any emergency fund, which is more important than giving to the church at this point (IMHO). Consider filing for bankruptcy. This would be for me, as last resort, as it will damage your ability to borrow money for a while.

Consider getting some additional job training (technical or other practical degree). The job market in Raleigh seems to be quite good, so with more training, you might be able to find a job with a larger salary. Don't just work harder or longer, find a way to make more money! Best wishes!

 

[SnowBound]

Time for a commercial break: Luke 6:47 & 48

 

[juju4169]

Update since I asked for advice from this awesome group



I have investigated each of your suggestions and am amazed at the excellent strategies! My financial ignorance was thwarting my hard work. Your suggestions opened up some new worlds to me!

For example, I thought that the health marketplace was for people on welfare or disability only. When I talked to my son about signing up online he offered to pay for it as well. He didn't know why I was struggling to provide it when he could do easily afford it at those rates. <3

I had never heard of the IRS saving strategy but am excited to lower my taxes and save at the same time!

I had forgotten about the styling school where I took the kids to get their hair cut growing up. it is still there and still charge $5/cut plus tip$. No appointment necessary and I will be there this Sat. when they open their doors.

I have initiated your other suggestions as well and am busy following through with the exception of the suggestion to stop tithing. That suggestion was given based on a true concern for me and I thank you for it.

Something unexpected came up last week which ended up benefiting me as well. My oldest decided to move to New Orleans short term (1 year) to help their fiancee who is having health problems. They live with my second oldest child (they are best friends). This left my 2nd without someone to split the rent with through August. Guess whose lease is up next month? Me! I am moving in when the oldest moves out. (Already approved by leasing office.)

This move and my son paying for insurance will save me over $600/month!! The timing couldn't be better! Yeah for 2019!!

Thank you friends!! I will keep you posted as I save and pay off those medical bills. I will mostly be lurking and learning.

Can't thank you enough! You ROCK!!