Will my family starve?

Question

I live on the west coast of Canada. I am a 30 year old father of two. I am an IT professional and bring home close to 50k a year after taxes. My wife is a stay at home Mom who does some part time work and daycare from home, it's not much but she brings in about $1000 a month.

Lately we have been noticing that we are just not surviving.

Our rent is $1200 a month for a 2 bedroom 900 square foot suite.
Gas prices just hit 139.3/liter (Thats 527.3 / gallon)
Food prices have jumped 25% in the last 6 months. We bargain hunt as best as we can but our shopping bill is up to easily $600/month.
Not to mention phone, water, heat, electricity, basic cable, car expenses, child expenses.

We have looked into assisted living and other government funded assistance but as a household apparently make far too much to apply for any type of help. By my governments standards we make more than enough to properly support ourselves. Why are we so hard up then? We are very moderate with our spending,

Answer 1

If you bring in 50k AFTER taxes and your wife brings in an additional 12k per year, you must be earning in the neighborhood of $80,000-$90,000 gross combined. With the overhead you are quoting, you should be operating at a surplus every month. That's $5000 per month net. You should have 2-3 thousand left over easily after overhead.



I am going to go out on a limb here and speculate that your wife pays the bills and manages the budget because you are working so much. I have heard this before. You need to check some things on your own, friend, because there may be a problem beyond the "economy"- things don't add up.



Audit your bank accounts. Run your combined credit report and see if your wife doesn't have a compulsive spending habit she hasn't 'fessed up to. Find out if your wife doesn't have a separate bank account in her name only you don't know about. Start paying attention to the shopping she does. Do the kids have to wear matching outfits from the gap? Is her closet a little crowded? Start paying paying attention to the bills yourself.



You may have a compulsive spender in the family. There is certainly the income and opportunity (since you are working all the time). I have seen it ruin marriages. You literally have money disappearing. Look into it.

Answer 2

50K a year AFTER Taxes plus another grand equals a take home of almost $1200 a week. so that leaves over $3600 a month in living expenses. Some thing is seriously wrong here if you are having problems. Would do an Excel spreadsheet for a month and track all of your expenses. If you do not have Microsoft Excel go to open office.org, and download open office basically the same thing. and put in every dime you spend and on what that will give you a clear picture of where your money is going Do you need that Latte every morning? Do you need to go out for lunch everyday? Do you plan your trips so that you are not burning unneeded gas everyday? Do you all really need those designer clothes on a monthly basis? Do you need to keep your heat at 72 degrees? Most likely you need to change the way you live. Again take a good look at where your money is going, are your credit cards to abundant and to high? Look at everything and then adjust from there.

Answer 3

Keep a record of every penny that is being spent.



That means cash that you withdraw from the bank.



Do you eat out for lunch at work? If so -- start to brown bag it. That will save a couple hundred a month.



You need to know where every penny goes before you can get an idea where your money is being wasted and what changes to make.



If you have too - can your wife get a part time job? She works weekends and you watch the kids?

Answer 4

I hate to say it but rent or mortgage is usually the best way to cut expenses significantly look for a cheaper place if possible. I have often also noticed that people that earn more money spend more money. No offense im speaking out of life experience. My husband and i used to have a combined income of 28k/ yr and were making it somehow now we make 48k /yr and are barely getting by. I looked at our bills and we are spending more a month on services like cable and internet that we didnt have before. We can afford a better place now and that has increased our monthly expenses too. Im reminded of my uncle who has money trouble too and earns 100k/yr he says he barely makes it but forgets about the two SUVs hes paying off lol. I do feel your pain though kids are expensive thats why i cant afford one right now. Good luck!

Answer 5

Feeling the pinch of children, eh? Welcome to being a young family, buddy. This goes on for a few years.



Do what you must to control your spending. Teach your children to do without so many toys and clothes.



Cable bill too high? Halt the service. Read books, play games, live like people did before TV. (Send the kids out to play.)



Cut out restaurants--prepare all meals at home. Going to fast food should be a treat.



If your wife's a spendthrift, or if you are, then cut up all credit cards (don't cancel them! just destroy the cards). Force yourselves to live on cash, and only that amount your budget determines you can have.

Answer 6

Wow, I honestly don't see how you are bringing home over $60,000 a yr with a 1200 mortgage payment and still barely making ends meet. You need to redo a budget. By ANYONE'S standards (not just the governments) you're making plenty. I make $50,000 and have a $1500 mortgage payment, a nice car, and I'm doing JUST fine.



Maybe you are spending way more than you think you are. Is there a less expensive place or area you could relocate to?

Answer 7

I totally feel your pain.



This is why Donald Trump and Robert what's his face, Rich Dad Poor Dad wrote the book "We Want You To Be Rich". Check for it at a Library.



More to the point I think the best offense is not defense (like more budgeting which is .....like a mini death) I think the best offense is Offense.



Consider reading Loral Langemier "Millionaire Maker". It takes similar families in a crunch and shows them possibilities using their current skills and time.



Personally I'm working on it. I'm already on a budget and feel the pinch daily. My husband is working two jobs just to pay the bills and I can't get a job - I have one. Watching and homeschooling two kids. I get odd jobs now and again that are equal to close to a thousand a month but nothing we can count on.



But don't lose hope.



Read the books. Get encouraged that you are not alone then go for the gold.



Let's aim for living Bigger not budgeting ourselves to death.

Answer 8

Hm...

You are asking in a U.S. Yahoo! We don't get taxed as much as you guys do in Canada, so we can hardly understand why you are worried about your family starving when you are making 50k/year. And have a relatively cheap rent to pay.



I hope that you have a COSTCO (wholesale store) in Canada. I buy a 20 pack of hot pockets for $10, 20 pack of hot dogs for $10, 2 packs of cheese for $10. A liter of Cazadores Tequila for $16.

Buy in Bulk and its Cheap.

$50 membership per year.



I'd hate to say this but have your wife consider working in a restaurant. She should get a base pay and tips. And it all adds up.. Are any of your children over 9? I had to babysit my sis when I was 7 made food for her and everything.. Just gotta trust your children to take care of the rest of them.

Answer 9

No, because after that is gone what then? you would still be in the same situation minus the pet. So no I'd find another way. squirrels, rabbit, deer, fish..... deer are not so innocent you know. after a crazy deer runs out in the road, charging after your car, smashing it, insurance not covering it and you having to pay 600 plus to get the car fixed because of the stupid deer, yeah..... Go crazy at hunting season. I hate deer!