Looking for a reality check on my budget situation. After all my bills are paid (rent, car, utilities, phone, debt minimums) I have about $500 left for the month.
That’s it. It has to cover groceries, gas, emergencies, anything random that comes up.
I’m on a debt payoff plan right now with about 14 months left. No extra income. I live in Texas.
I’m not really asking about the debt strategy, I just want to know if $500/month as a catch-all is actually livable or if I’m setting myself up to fail.
Has anyone been in this spot? How did you handle it?
I appreciate any insight!
Is $500/month after bills actually enough to cover real life?
byu/indifferent_foci inpersonalfinance
Posted by indifferent_foci
19 Comments
$500 to cover groceries, gas and emergencies really is not enough. You need to analyze your budget and see where you can save or get a better job.
For a single person? Most likely. You may not be having a ton of fun all the time or eating out much, but it’s doable. Saving probably won’t happen much though.
$500 even for a single person is tight. Half of that could very easily be spent on groceries.
Doctor’s visits could easily cost $100+ per. What if you need some dental work? What if something needs to be fixed with your car? Even just an oil change?
Well that’s not after bills if you haven’t counted gas and groceries. Those are regular expenses you need every month. For a single person, that’s probably enough but not really much room and definitely have to spend wisely on groceries.
You likely will spend all 500 dollars leftover on the things you mentioned. Maybe you’ll be able to save 50-100 bucks on a good month which will eventually be wiped out by a big emergency purchase. You will have no savings, no retirement and will live in a constant state of financial stress. You will work until you physically cannot work any longer. At this point, your children will have to take care of you and/or you will be placed in a long term care facility where they will take almost all of your social security. You asked for a reality check, this is it. If I were you I would be looking for a second job and cutting out all non-essential purchases. Ultimately you need to learn how to budget better. Idk how much you make but finding a way to make more money (education, career change, etc) would also benefit your situation.
I am confused. How are you on a debt payoff strategy if you are only paying debt minimums?
I do not see enough margin for the plan to be sustainable. Any little hiccup will force you into more debt and higher debt minimums until the amount of $500 is reduced to $400, then even less.
You gonna be eating a lot of rice and beans. Gas and such really depends on how far away is your job and a lot of other factors.
Is it doable? Yes. Would I try and get a roommate if I can? Absolutely.
For 14 months it is going to be rough. One emergency and it kind of falls apart. Have you already done things to reduce your footprint like cut the cable, change phone plans, etc. If you can get through the 14 months and then take that 2800 to use for spending, create an emergency bucket, and a 2nd bucket to save up 6 to 12 months of all expenses you can really create a game plan.
It’s doable to cover food and gas if you’re single. You’re not going to be covering any emergencies or have any savings.
It’s doable, but difficult. A “thrifty” food budget is $150/mo. . Calculate out the cost/gm of protein and cost/calorie. Aim for 50 gm of protein/day, some veggies.
Inexpensive protein sources are beans, soy/tofu, chicken backs and other soup bones. Frozen vegetables, bags of apples, oranges, potatoes, pancake mix. Don’t throw anything out that can possibly be part of a later meal. Avoid all processed foods (maybe except for spaghetti, noodles, etc.) Consider using cash only for purchases.
Minimize driving to save on gas. Look at your other expenses to see if there are any opportunities for saving. For instance, can you cut down on your utility costs by turning off the heat or the AC whenever possible and putting up with 60 degrees to 85 degrees? Could you save on your car insurance by having a higher deductible- but be ready to pay if you have an accident. Do you know someone who might be ok to share with who can stay on your couch so you both can save? Especially the last might not work, but those are my thoughts.
Good luck!
What are the true minimums on your debt? You said elsewhere that you jump up to 2300 a month once the debt is gone. Maybe slow your roll for one month or so to prepare and get a 1,000 emergency fund in place. Then initiate your 14 month payoff plan, and slow down a little to refill your emergency fund back to 1000 dollars as things come up.
I’m a Dave Ramsey girl, so I appreciate the “gazelle intensity”. Rice and beans and all that… it’s do-able and respectable. But set yourself up for success with an emergency fund and be cautious not to hit an all or nothing attitude where anything short of throwing the 1800 dollars into the debt is an abject failure.
Create a budget and list all of expenses. Then you can see where you can shave off a few extra dollars.
Have you considered a consolidation of your debt? I get that you’re aggressively paying off debt which is smart, but if you can. You might be able to reduce that payment by a couple hundred. Leaves you a little more room to be a person but also tackles the debt at a reduced interest rate
That depends ENTIRELY on how you live your life. None of us has any idea what kind of car you drive, how far your commute is, how you shop for groceries, etc.
The danger is that after food, there’s not enough to build an emergency fund.
Is it possible to change the living situation (housemates)?
Or get out of a car payment and into a beater?
You also need to be able to save. If you cannot save you will be living paycheck to paycheck and the first emergency that comes up will send you into a debt spiral.
For the short term maybe in theory, but in general no. If you have some car issues or something and it costs you 1400 how are you going to pay it? Even if you have the money how long will it take you to save that up again for the next emergency? With a budget that tight things fall to the wayside like dental for example. Then you ignore teeth for years and suddenly you need 3 grand for a root canal and crown bc you didn’t want too or couldn’t afford dental care for years. Any little thing can sink you and at the low rate you can set money aside you could and will likely fall in a hole at some point. Spend 3k on teeth. A month later get a flat tire and need a new one. Been there shit is brutal.
What’s your phone bill each month? There are lots of good prepaid plans out there for not much.
Is internet included in your rent or are you paying for it separately? Potentially options to save there as well.
If you stick to beans and rice, maybe the occasional splurge on a veggie, and you don’t drive an inordinate amount, you could survive.
Increase your income, get a second job, etc.