@obuscador Yeah, it’s hard for us to help without a more detailed budget breakdown. Mortgage is good, groceries are perhaps a little high, but not egregiously so, it’s everything else. $2000 for medical expenses and subscriptions is very suspicious. $4500 for bills, student loans, car payment, and utilities also feels very high (even with a nearly $1k car payment).
@mssonya84 The upside for OP includes equity and a house that will be paid off in ~11 years - and the 3% 401k opportunity. And the challenge is within the 6500 in monthly expenses that wasn't broken down.
And OP's family's challenge is to reduce expenses in order to live on their income - less the 3% of 401k contribution that's being matched. Even if there's a pay cut. Sometimes it actually turns out to be good for kids - and for adults to be denied some things for budgetary reasons.
@mssonya84 Pay off the 10% loan, match the 3% and use everything else to fill your emergency fund back to around 15k. It doesnt sound to bad, in 5 years your car is paid off, in 15 your house, in XX your student loans. After each of those steps you can safe more for retirement.
It doesnt even look that bad just the car was a bad decision und you should have matched the 3% from the start.
In the end if you dont have enough to retire you can always sell you house and live in a cheaper country
@mssonya84 My suggestion for you is to continue with the retirement contribution up to what your employer matches. You need to get on a written budget and account for any expenses and potential future expense ( Eg. Tire replacement, roof replacement etc). Your budget needs to be detailed. Look at all your expenses. 1,200 seems high for a family of 4 For food. I recommend reading The Total Money Makeover and to start listening to Dave Ramsey or other similar type of person who talks about finances. What Ramsey talks about re finances is nothing revolutionary but the steps make sense. Follow them to get out of debt. I am not a fan of his personal beliefs so I listen to the finance part only and ignore the rest. Can you and spouse get another job tempor until debt is paid off?
@bryanjohnmaloney Just went to the grocery today and for weeks worth of groceries it was $220 dollars. We try not to eat out whatsoever so we cook most of our meals at home. And that’s why we have close to $1200 budgets for groceries and toiletries. A month worth of toilet paper and paper towels usually runs about 80 bucks alone. Of laundry detergent is about 12 bucks. Soap, shampoo, dish detergent and hand soap, you’re looking at 50 a month.
I tried to eat, mostly a Mediterranean diet and eat salmon just about every night of the week and I only eat one meal a day. I can usually eat one and a half fillets of salmon a week. That’s about 60 bucks alone. Probably gonna switch to chicken because it’s cheaper.
@mssonya84 Seems like you are using more than one roll of paper towels and at least two rolls of tp per day?
Costco for the salmon, paper goods and detergent if there is one nearby, but you absolutely need to avoid impulse buying. Aldi for day to day groceries. And try to cut down on paper towels to the extent you can. While you are at Costco, I will allow you to buy a pack of bar mops or fabric cleaning towels.
