@Anonymous wrote:
I wasn't talking about borrowing from my 401k, I was talking about taking my money out (enough to catch up) and paying the tax penalty on it; because I am 30 and have more time to save up; right now my priority is digging out of this hole I'm in. But that's not an option, so I am working on other ideas.
I know I'm in the minority here, but I fully recommend cashing in part of your 401K in addition to making other changes if at all possible. At $700 a month in fees alone, you're burning through $12'000 faster than some people might realize. Throwing money at some problems isn't going to fix them completely, but throwing money at this problem WILL get you out of immediate danger. It's a great idea to have a large retirement plan, but right this second it's more important that you some of your bills paid off. Most 401Ks can be withdrawn if you're having a financial emergency (which you are). They deduct the taxes due from the payment, but it's a small price compared to finance charges or payday loans.
Ask HR or your benefits manager about an emergency benefit (most companies have this). Usually it's not a loan, although they may have a loan for higher amounts. It's usually $100-500, but that's a bit of free money that could help you a lot right now.
Axe eating out entirely and drastically cut your entertainment bill. It may not be applicable in your case, but I am using Gamefly to rent games (like netflix). It's $18-23 per month, but it's less than the $50-120+ that my girlfriend and I were spending. If you rent/PPV a lot, Netflix is a lifesaver. Some video stores have in-house programs where you can pick up movies too. I've only bought one book since going to the library a lot, and that's The Complete Tightwad Gazette (worth the money).
On your budget I see "personal loan" and "brother loan" -- are these loans to other people? If so, now is the time to ask for a break.
My number one tip to you is DO NOT COUNT ON YOUR WIFE'S BIRTHDAY MONEY! I have seen this exact scenario play out so many times! This mystery check might be for $500 or $10'000 or they may buy her something tangible instead. Something like a dinette set or a nice crib or a memory foam mattress (all great gifts) is not easily sold, so it's basically worthless when it comes to your current situation.
Sell the TV on Craigslist. It's a lot easier to sell large items there because people will come pick it up instead of paying shipping. You're also likely to get a better deal. If it's less than three months old, call the store and ask if you can return it without a box (if you don't have the box). If you can, great, if not craigslist it tomorrow (most people can pick it up on weekends).
Call your utilities and see if you can get a reduced rate for a couple of months. Lots of electricity companies do this because of AC costs. The saved amount will hit you later, but without interest.
When your insurance is up for renewal, shop around. Big savings can be had.
Some grocery items can be had at Dollar Tree. I usually get polish sausage, canned mushrooms, olives, pasta and sauce, other groceries and all household supplies there for less than $20 a month. I've calculated it at my grocery store and I'm saving at least $100 doing it that way. Dollar tree is great because $1=$5 worth of stuff usually.
If you're still using a landline, now is the time to switch to vonage or bundle with your internet company. If you switch, you can often get a month or two free.
In fact, if you call up some places and act like you'd want to quit because of the money troubles, they can oftentimes cut you a big break (for the cost of 20-minutes of hold time
).Cut out most/all convenience foods, make a meal list for shopping, and stick to super-basics for breakfast and lunch. Oatmeal and PB&J, bologna sandwiches, malt o meal. Stuff that's not too bad for you, is cheap and fills you up.
You're kind of hosed on the baby stuff. All I can suggest is not to be brand-loyal when it comes to baby stuff. I don't suggest using the least expensive diapers or switching to cloth diapers (I wouldn't do it!), but if there's a special going on you want to weigh the options. (That's assuming your baby isn't potty-trained). If your baby is eating baby food, try replacing some baby food with home-made (salt and sugar-free) food like boiled carrots and peas (cooled to room temp of course).
Does your medical insurance cover you and your wife? I see that you spend $50 on medical a month, so just wondering if that's OTC products (which is necessary for a lot of people and a reasonable amount). But if your insurance doesn't cover either of you and the $50 is a doctor's visit or something, then definitely investigate your insurance options.
On the payday loan front: instead of canceling your bank account, make a second checking account and turn off overdraft protection (you may have to go in the bank to do this). All of your other bills need to come out of Checking Acct #2, and all your checking acct money need to be there. If the payday checks hit the account when it's empty they should bounce (with a $0 balance in the acct). Yes if that happens they may try to get a judgment against you for some ridiculous amount, but they may try that anyway. Going to CCCS or a similar agency could cause them to put the checks in immediately, but it's also possible that things will work out. So have faith in yourself that you can make it.
Good Luck!!!!
Griffin
Message Edited by Nectarine on 04-17-2008 10:56 PM
