Issues with money management: What can I do?

posted 2 years ago in The Lounge
Post # 2
Member
5567 posts
Bee Keeper
  • Wedding: October 2017

thecodifier :  

What I would do is look at the last few months of your bank account. See what you’ve spent on each item.

Necessities are electric, rent or mortgage, food, gas for your car… I’m sure there are others.

I would put each transaction into a category, like food, eating out at restaurants, mortgage, insurance, etc and see what you can cut back on.

You would be surprised at the things that add up during the month.

Post # 3
Member
5567 posts
Bee Keeper
  • Wedding: October 2017

Also, when you say the local, does that mean the space that she rents for cosmetology?

Unfortunately if she’s bringing in less money than she owes for renting, she might need to find a new setting because that’s completely illogical. She’s spending money to be there instead of earning money.

Post # 4
Member
3727 posts
Sugar bee
  • Wedding: November 2014

Your wife should probably consider closing her own shop for the time being if its eating all of her income. She could work in an already established salon that wouldn’t require as much overhead cost. Also look at non essential spending like cable and eating out. Those costs add up over time. 

Post # 5
Member
9595 posts
Buzzing Beekeeper
  • Wedding: September 2015

You either need to spend less, make more, or both. Obviously. You guys should operate on a real  budget. If shes losing money on rent she should go to work at someone elses shop. If your Father-In-Law isnt paying you enough, get a job elsewhere etc. Sell a car, move to a cheaper place, stop eating out and shopping etc. You have to live underneath your means. 

 

Post # 6
Member
1756 posts
Buzzing bee

Have you ever journaled all expenses (every cent spent) for one month to see just exactly where your money goes? Sometimes this can be really eye opening. Whenever I find myself in a budget crunch, that’s always my first go to. Usually I’ll find that maybe my “fun” money, is getting out of hand. Coffees, lunches, they add up! 

Post # 11
Member
1756 posts
Buzzing bee

thecodifier :  Yep! Those damn urges! Also, I’d suggest budgeting in for unexpected gifts like birthdays and holidays. Those always catch me off guard! 

Post # 13
Member
1846 posts
Buzzing bee
  • Wedding: December 2017

Would it be possible for her to rent out part of her salon to someone else? Can she do some more publicity to get more clients during the week? Maybe do special offers on week days?

Post # 14
Member
40 posts
Newbee
  • Wedding: February 2018

Maybe it’s possible for her to work just her busiest days from either your home or mobile service and have a regular job the other couple of days. And as for weekend work not being in your field, maybe you need an unskilled job – service station, grocery store, bar work. Doesn’t sound like you have the luxury of being picky if your expenses outweigh your income. Best financial advice I ever heard was pay for everything you can in cash, and when your income goes up keep your expenses the same- otherwise you will never get ahead. 

Post # 15
Member
75 posts
Worker bee
  • Wedding: December 2017

Second PP’s, you need a budget. You can also find a lot of good tips by looking up folks such as Dave Ramsey or searching debtfree on instagram (i know your post isn’t specifically related to debt, but there are a lot of good general tips)

If you can’t get wife on board immediately for making a budget, start by seeing where you can cut- can you eat out one less time per week? Buy something in bulk?

One thing you’ll likely come across that is really helpful is determining how much you need to set aside per month for big or continuing costs down the road (often called sinking funds) Does require having a budget, but for example say you know that your car needs tires in the next year and they’ll cost about $400, you would put away about $30/mo for that cost so hopefully when the time comes you have that money saved and don’t have to take it out of your paycheck. This also is helpful for holiday costs,clothing,etc.

If after budgeting you find you still need more money, it sounds like at least one of you needs to figure out a way to bring in more income. Maybe your wife could see if there are any tasks she can do for the building owner on slow days to bring in some extra cash, or do ubereats on days it isn’t busy.

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