OK, so I have spent this morning mulling over our monthly budget, trying to tweak numbers.
Its not awful, but its negative for a little while.
Before California, after paying my 401k & Health Insurance, I was taking home $1875/ month from my job. We were also living off $2000/month rental income. So our living expenses were $3875/month.
However- our NEW living expenses budget will be $5405/month because we have an added $1530 COBRA bill now.
Currently husband & I are without jobs. When the rentals are all full-they bring in $3700/month after insurance/mortgage.
So if we use up all rental income every month we are short $1705 a month. We can curb a few hundred a month maybe from our lifestyle- I'm not really sure because we have our first baby coming in 5 weeks. So we might be trading lifestyle expenses for baby expenses.
And obviously we cannot use 100% of the rental income every month to live off- nothing would be saved for repairs or savings.
So we need additional income.
Husband has a court date in mid December to qualify for disability. He has been applying for 2 years now- and this is the final step (we have been told). He feels confident he will get it but nothing is 100% sure.
If he gets it- our income will boost by $1200/month.
In December we will once again be property manager for the rental property we gave to FIL (still gets me mad to think about) and that will bring in $180/month.
I am working on a side business that will conservatively bring in about $500/month after expenses. However- it will require about $2k in immediate start up costs and take about 5 months to produce product. So that wont be anything for a while.
After ALL of those come to fruition- we will have a surplus of $175 a month for savings.
Oh jeez. I have to get a job. ASAP.
I'm wondering when a realistic time is to start a job after having a baby? Is 2 months realistic? Husband will be home to care for the baby.
I know my old employer will try to find something for me when I am ready to return. It's a matter of something being open. Often there are entry level jobs open...that's the same job I took when I started with them. But I guess that's what I will take to stop the hemorrhaging of money. A job will REDUCE our monthly bill by the cost of COBRA too- it will take OFF $1532 a month.
A job will solve everything. OMG! A job will instantly give us $1700 a month in savings BEFORE my salary. I was burned out when I resigned, but for that kind off financial relief I would return tomorrow if I wasn't pregnant.
I was really hoping we could live off the rental income until I found a job that I wanted. But putting it down on paper tells me "no".
So it appears that for the next 3 months we will live off 100% of the rental income, and still be racking up about $1700/month on credit cards until January when hopefully disability kicks in.
At that time we will be living off credit cards about $500/month.
January is when I will start looking for a job, hopefully I'll be employed by March or April.
The only caveat is that our biggest income producing property will be vacant in October. The tenants are moving out. It will take us about 3 days to clean it and then we can start showing it. Hopefully it will rent for November 1. So we are short $1800/month for the month of October. However- I have been in the unit recently- the tenants have DESTROYED one of the ANTIQUE, Floor to ceiling Wood mantles original to the house. I was stunned, hysterical and furious when I saw that and if it cannot be repaired (which I don't think it can- we are keeping the full $1800 deposit.) That mantle is for another post though.
ok! Fun times ahead! Cant wait! I am going to go have a pity party now.
New Budget- the Numbers are NOT Working
September 25th, 2013 at 03:18 pm
September 25th, 2013 at 03:38 pm 1380123528
September 25th, 2013 at 03:42 pm 1380123737
Your situation is only going to get worse the longer you take to get back to work. Sorry to be so harsh, but you aren't an a good situation.
September 25th, 2013 at 04:09 pm 1380125352
Can you list your expenses and then see what you can slash? If you're going to nurse that can save a whole lot of money in formula (I was a non-nurser, with no regrets, but formula can be expensive, especially if you have a baby with allergies, sensitivities, or colic). If you're not going to have a baby shower, start small on only what you need through craigslist, etc. Cloth diapers will save you another big bundle.
Can your husband find something part-time? Holiday help will certainly be starting soon, and at this point, something is definitely better than nothing.
I've got a rental property and in this economy, it isn't wise to count on that as your sole source of income. From talking to others, the caliber of the renter has decreased with the number of foreclosures and people walking away from houses. Double check credit reports in both/all parties names.
September 25th, 2013 at 04:25 pm 1380126329
1 - October 1 you can shop the Obamacare insurance exchange - maybe a possibility to reduce your insurance expenses? Have you shopped around - private health insurance - otherwise?
2 - I was fine to only take off 2 months with my first child, but was mostly the extreme exception. & it depends on the child. My two children were completely opposite AND My body reacted completely different. So I *never* had the slightest problem working with my older child (not clingy at all; he completely arranged his sleep schedule around me - and spent about 4 hours a day napping while I was at work. I remember wondering what in the *hell* the mommy wars were about. ??? He was also 0 going on 5. He completely skipped the "toddler" stage, and was not a "baby" for very long). Then I had my second child. Clingly clingy clingy. My hormones were whacked and I could not work full-time for 6 months (all sorts of physical and emotional problems and so on with the hormones). All this to say, you won't know the answer to this question until you have your child, and you might not even know until you try to return to work. The best thing you can do is keep things flexible. Maybe have some part-time job ideas in case you aren't up to "full-time" right away. You might not have a lot of choice, but you also don't want to burn bridges if you can't handle it. I will say that having a spouse at home with kids has made working less of a big deal to me. So, that will make your experience different from average - you may be able to take on more outside the home. But that only works if he takes on a lot, and you let him take on a lot. I wish you luck.
September 25th, 2013 at 04:49 pm 1380127771
What about the remaining money from your FIL? Could that help you stay off the credit cards if he steps up his payments?
September 25th, 2013 at 10:03 pm 1380146594