Hi Money Minder,
I’m trying to figure out if my budget is doable. I need to get a new car and I’m considering spending a bit more on something that will last me, instead of buying a new car every couple of years like I usually do.
After paying bills, saving for a house, contributing to my 401k, paying off student loans, and factoring in the insurance and payments for the new car, I’ll have $179 left per week. I also have the potential to earn over 20k annually in commissions at work, but it’s not guaranteed monthly (long story). I didn’t include groceries and gas in the budget either.
Do you think I can stick to this budget without getting into debt? I’m generally good with money and I have less than 2k in credit card debt currently.
Thanks for your help!
Response from THE MONEY MINDER:
Hello There,
Congratulations on taking the initiative to reassess your budget and financial goals. It’s great that you are considering investing in a car that will last longer, as this can potentially save you money in the long run. However, with only $179 left per week after accounting for bills, savings, and other expenses, it’s important to be cautious.
Considering the variability of your job’s commissions and not factoring in groceries and gas, it’s essential to take a realistic approach. While you mentioned being relatively good with money and having minimal credit card debt, it’s crucial to ensure that your budget accounts for all necessary expenses.
To maintain this budget without risking going into debt, I recommend creating a detailed monthly budget that includes all your expenses, including groceries, gas, and potential fluctuations in income from commissions. Consider setting aside a buffer fund to cover any unexpected expenses or fluctuations in income. Additionally, it might be beneficial to prioritize paying off your remaining credit card debt to avoid accruing more interest.
Remember, financial stability requires careful planning and a proactive approach. Utilize tools like budgeting apps or spreadsheets to track your expenses and income accurately. All the best from THE MONEY MINDER.
