Making Ends meet - need some support!

[JDarling]

Alright - My Dh and I just bought a condo in Southern California (where we both live and work). We waited for 3 years, but the prices kept going up so we finally dove in.

Ya'll are gonna freak when you see these numbers.
It's 2 bedrooms, 1 1/2 bath, about 900 sq ft. The building is a 1970's apartment complex that was converted into condos in August of last year. We bought in February and it's killing us! We know we'll get a tax break next year, but... it cost us a "bargain" of $261k! (Out here, that is a deal, trust me.) So that averages out to $2200.00/month financed. Ugh! We are a young couple (no kids, but a couple "furkids" 2 cats and a 7month old boxer pup) have 1 car (THANK GOD that's paid off) which he drives to and from to work but the BEST gasoline price you'll find in town right now is $2.41/gallon (as of last night, it looked a few pennies higher this morning). I walk the 1 1/2 miles to work. I don't mind the walk myself. It's good excersize (I can make it in a little over 1/2 an hour! ). But sometimes it feels awefully long when the weight of the bills are on your mind!

I need some encouragement! I'm not able to put away what I'd like for Disneyworld right now. Though we have plenty of time and DH anticipates a couple raises by then (and I'm looking for a new, higher paying position - keeping my fingers crossed for an offer this week or next week), it still seems so far away! We really need this vacation though. We didn't take one last year so we could afford the condo and almost went insane (especially since saving up ment moving out of our apartment and into a 10ft x 10 ft bedroom, sharing a house with 2 bachelors). So we learned NOT to do that again.

I've started a seperate savings account. I'm selling books and a couple old formal gowns I have that are in great shape (that I'm too small for now) - but man! I wonder if we'll get it all together in time.

 

[funnygarcia]

Sorry no ideas to help you with the budget ..

But could not resist.....
Have you considered a trip to Disneyland? At least it may help satisfy the Disney craving without punching a huge hole in the pocketbook (no hotel needed, eat off site or pack lunch, get an AP: Socal Select $99,w parking $148 / Socal $149, w parking $198/ or Deluxe $209, w parking $258) and visit multiple times in one year.

 

[luv2nascar]

you didn't say what hobbies you and your DH have. Sometimes they can be very expensive. Give up buying magazines and hard cover books. We share at work =-trade so its free. Give up eating out. You can cook at home much cheaper. Turn off those lights and tvs when not using them or in the room.
Become a couponer and bargain shopper. I clean up at Target clearance.
If its not on sale I don't need it. When you cook make bigger portions since there are only two of you freeze meals ahead of time. Meat is cheaper in the really big packs.

 

[JDarling]

funnygarcia - thankfully, premium annual passes to DL were a christmas gift from my folks. Whew! I think I'd really go nuts w/o them. Gas is just too pricey to make the trip right now and it would mean kenneling the dog ($15) as we don't have anyone who can watch him.

luv2nascar -

you didn't say what hobbies you and your DH have. Sometimes they can be very expensive.

In our spare time, I'm a singer/actress and he's a martial artist. The only expense involved is his Ken Po school, which runs $75 a month, but we don't end up paying most of the time since he teaches classes and does odd jobs there to work it off.

Give up buying magazines and hard cover books. We share at work =-trade so its free.

Thankfully, we don't even GO to bookstores now because he WILL leave with something.

Give up eating out. You can cook at home much cheaper.

We've given up on this mostly, but we could do more. Just need to get out once a week, but your right. We could turn a $25 dinner into a $10 Tea and Dessert run somewhere instead. It would satisfy the need to get out and save some dough on the same shot.

Turn off those lights and tvs when not using them or in the room.

Yup. We've actually canceled cable and thankfull, the electric bill isn't one I'm complaining about. It was under $40 last month. Yeah!

Become a couponer and bargain shopper. I clean up at Target clearance.
If its not on sale I don't need it. When you cook make bigger portions since there are only two of you freeze meals ahead of time. Meat is cheaper in the really big packs.

We do all that, except buy meat in bulk. We just get what's under $3.00 for a portion sized for 2 or more and cook it fresh.I know we're on the right track, it's just getting there.. this being "house poor" thing is no fun. I can't wait until next year - when we get our tax break!
Then it's going to be a DELUXE WDW trip.

I've taken a lot of suggestions from here! I've become a mystery shopper, called and gotten the intrest rate lowered on our credit cards (we don't use them now, other than our Disney card, which we pay off almost completely every month). I could look for a second job. That would loosen things up, but again - SANITY....

 

[JDarling]

Gah! No wonder things feel especially tight... I forgot DH got his crown put on this month. That's $240 right there.

 

[CarolA]

You want my suggestion.... move someplace with a more reasonable cost of living LOL!

Several years ago I was offered a job in California. It was a good job with something like a 20% raise. There was NO way I was going to do it. I had just bought a brand new 3 bedroom 2 bath house in a great section of town for $115,000 or so.... There was no way I could afford anything that nice there. I have several co-workers now who are Californial refugees.... just could not make ends meet. Good luck. You are just in such a high cost area. Not sure what to suggest that you have not already done.

 

[JDarling]

LOL Actually, we were planning on moving to Florida last year, BUT DH found a GREAT job that he LOVES - and it's pretty rare. He's getting a $25,000 education for free, and getting paid to work for the company. He's a diamond grader for GIA. If you own a diamond, it's probably crossed over this lab's desk for grading. There are only 2 other GIA labs in the USA. On is in upstate NewYork and the other is in Floridia (not sure where, but it's a very small satellite office - very hard to get into). Even though it sounds like it pays well, CarolA is right!
The cost of living just doesn't keep up with the salaries. A 3%-5% raise doesn't do much when gas is over $3.00 a gallon (which it will be this summer) and you can't find an apartment for under $900 a month (yes folks, even a studio).

CarolA - You can buy an okay mobil home for what you spent on your house!

Our ultimate plan is going to wait until he gets his free degree (GEG) so he can be an appraiser. He's trying to talk me into doing some rough gem cutting with a friend out of the garage and sell the pieces, but we can't invest ANYTHING in it right now so that's out of the question. Once he gets his GEG, he can work anywhere, and we should be able to live in any other part of the country on his salary alone...

Maybe then we can consider having kids...

 

[sanibelover]

Things will get better, but you do have to sacrifice for a while.

When we had our first child, I stayed home. Our income was cut by way over half. We didn't go out. We didn't buy anything. We stayed home and my husband worked a lot. I remember spending $10 on some candles and feeling guilty for weeks. (and that was 11 years ago.....) The point is, nothing worth having ever came easily.

I don't think it's unrealistic to not have a vacation for a few years to afford a house. It's an investment in your future. Don't dwell on Disney. It's not worth it. Enjoy the life you have right now. Time goes too fast to be miserable.

 

[Disneycrazymom]

OH my I can't believe how expensive it is to live in CA! At least you've got good weather and a beach! Is there someone you could trade puppy sitting with so you could use the Disneyland AP's? Maybe a car pool for your DH to work for awhile would help you save up for the gas to go. Even sharing a ride and room with good friends to spend the weekend at the park could be fun. When we first married we used to tent camp to get a vacation. We had some great times too!

 

[JDarling]

sanibelover - Well, we learned from previous years that if we don't have something that COMPLETELY removes us from reality for more than a weekend, this marriage will struggle (what can I say? I'm very Capricorn sometimes and he's very Picses - not that we buy into that too much, but it's a good way to sum it up). Thankfully, I'm not miserable, just bummed from time to time when that "light at the end of the tunnel" seems more like a tiny spark than really "the end of the tunnel".

DisneyCrazyMom- THANK GOD for the beach! I do count my blessings that we're about 45 minutes away from the beach, mountains, or desert, depending on what direction we drive. That much is nice! Trust me - they charge you for the weather! LOL

Ya know - I could look into camp sites w/in driving distance of DL. That would be a great weekend get away, and most of them would allow the pup overnight. We've got some friends (who are coming with us to WDW - if all goes at planned) who have deluxe passes, so...if they can give us a lift, or we can come up with the gas...

DH used to have a friend who drove from our area to work... but he up and moved to Oregan! LOL

 

[Forevryoung]

Well then I wont mention that I'm from Long Island (in NY) where "shacks" cost almost a million dollars Gas isn't that high but it's close to it.

 

[CheapMom]

CarolA- my SIL just moved to TN (Knoxville) from the Baltimore Washington area. She sold her house here and bought a house that was 100,000K less then her Baltimore home but it is SO much nicer than her old house. Way bigger, newer, better schools...
It must be nice to live somewhere with home prices like that. (Unless you need to sell)

JDarling- It sounds like you have your budget as tight as it can go. Don't pay interest on that Disney Visa- pay that mamma off. That will be some $$$ saved. Fingers crossed that you will get a nice little acting job on the side- that will fund a WDW trip

 

[JDarling]

Well then I wont mention that I'm from Long Island (in NY) where "shacks" cost almost a million dollars Gas isn't that high but it's close to it.

Yeah. Nearly as bad here. your average house you wouldn't mind living in and raising a family in runs over 1/2 a mill. easy. "Expensive" houses here run about $4-5 mills

 

[EthansMom]

Have you considered changing your DH's W-4 (IRS withholding form) at his work? There is a worksheet on the back where you can figure out your itemized deductions and that will change your W-4 exemptions. By changing DH's W-4, you could get a little extra in each of his paychecks now instead of getting a refund from the IRS next year. He'll just need to ask his HR folks for a new W-4 form and he should be able to take it home so you can fill it out together.

When we moved to Connecticut from Utah last year, my DH filled out his W-4 on his own his first day of work. He was too embarrassed to ask for help in filling it out. I couldn't understand why we were getting so much of a refund this year and asked him, "What do you have for exemptions on your W-4?" Turns out, we were able to get an extra $100/month by changing the W-4 to include all of our new deductions (higher mortgage & property taxes especially).

I hope this helps!

 

[Sarangel]

You don't mention what you've done with your witholdings... If you bought the house this year, you might try adding one to your witholdings number - i.e. if you're witholding at M-0 move it to M-1 (that's what we did with our first house). That way, you get a little extra in each paycheck to help cover all the interest you're paying. The result is that you aren't loaning the government all your money for the year, only to get it (without any interest) when you file your taxes. Your tax advisor will be able to help you figure out the correct number of witholdings for your tax situation.

Sarangel

 

[CarolA]

Are you paying PMI (Mortgage Insurance) ? If you think you that the area has increased enough to have your equity at 20% then you can see about having it removed. Even if you don't think it has yet, keep that in mind for the future?

 

[JDarling]

Wahoo! Thanks for the tax tips! We get a refund for our condo in in 2006 since we bought in 2005. Somehow - we always end up owing at the end of every year since we've been married. Even when DH was unemployed for 4 months (no unemployment - we squeaked by on my income) one year!! Go figure.

We'll definately look into it! Thankfully, one of our mortgages (we got zero down financing, just like everyone else in California, so we technically have 2) us Intrest only payment. We plan on refinancing in 2-3 years, but for now, it's all tax deductible - at least that one is. The other mortgage is mostly intrest at the moment as well.

Where there is a will, there's a way though! An acting job would DEFINATELY help, and my first album is due out this summer, so maybe that will help as well. Since it's money we're not counting on, we can just haul that away towards Disney.

Thanks guys!

Tonight is free date night! MY DH won tickets to the Padre home opener tonight, so we're headed there. Another couple is coming and they are driving, and we get free parkiing too Yeah! Bye!

 

[cocodog]

Wow Sanibelover... you really give good advice.

 

[blanq]

I am here to send you some hugs... ! You have received some good advice, and you are already living frugally in areas other than your housing. I guess I just want to tell you that things will get better. The cost of living will continue to rise and your mortgage payment will remain constant. You will get raises, and after a number of years it will begin to feel better. Believe me, I have lived through it.

My DH and I got married when we were 21 and 22, 20 years ago. He was in the Marines and we lived in Concord, CA. After our rent, and minimal bills and two student loans, we had almost no money. I remember, one Easter, we had no money so we were thinking about what we could do that wouldn't cost anything. We did have a full tank of gas, so we decided we could drive to San Francisco, and just walk around by the piers. Well, then we realized, we didn't even have money for the toll booths to get there! Yikes...at that moment we really felt poor! And, we WERE poor!

When we purchased our home, 13 years ago for $96K, I was frightened about the mortgage. But now our home is worth almost $300K, and we have a little bitty mortgage compared to many. Also, my income has more than tripled during that time, and DH's has doubled + he has significant OT. So, things aren't so bad now. We save more than 10% of our income for retirement, send our DS to private school, tithe at church and give to other charities, save for college for DS, can take 3-4 vacations per year, and have an emergency fund.

If you continue to live as you are, and not get yourself into credit card debt for purchases you don't need, as well as continue to look for ways to increase your income, you will eventually feel like you can breathe again!

 

[MickeyFlirt]

You said something about moving to FL I say move. My dh and I just built our house 3 yrs ago and for a 4 bedroom 2 bath house we paid under 100,000 with a mortage of around 650.00. Unless you move to Miami or other some bigger cities the cost of living is pretty low. I am considered "rich" in my town b/c I work as a nurse and b/c of the job DH holds. Anything over 16.00 an hour around here will more than get you by and live a nice comfortable life.