Is $1400.00 a month enough money to........?

Buying & Selling Real Estate
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Is $1400.00 a month enough money to........?

Antonio Bodley
AL · Member since 2010 · 522 posts · 31 votes

Live on? If I only bring home $700 every two weeks to pay monthly debts that are more than what I earn monthly, can I afford to get my own place to stay? I have loads of debt and I know my current debts and the debts I will have to pay to live on my own will seem like more than I can handle. Do they have housing programs available for low income single people with no kids? I am in a tough situation at home where my folks are in a rough spot financially and I am always put in a tough situation where I have to keep sacrificing my down payment for my own home to help them get over. This is constantly happening to me. I want to move out and get my own place, so it's not like I am just laid back comfortable just living under my parents roof with no plans of moving out. All I need is a bigger down payment on a home and even bigger steady paychecks coming and I am I good to go. So far my down payment has been used as a safety net to help the family out. The more I get put in a situation like this the more that decreases my chances at ever leaving. What am I missing? My parents seem to think it is possible for someone like me to survive on my own with the money I bring home every month and still pay all of the costs of living on my own including my current debts, which has to be paid every month. If there was an option to make this happen for me I would do it starting today if I could. That's how bad I want to get out.

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Ann Bellamy
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
13y

You can get by without cable, use the internet for your tv watching entertainment.

Use the internet to google North Dakota Oil Fields or check into jobs in Texas. You recently posted that you wish you knew the name of an online fax service. I replied that you could find lots of free ones by googling them. You have internet - the whole world is available to you via internet. In this age, there is no reason to say you don't know something, if you have a device and internet connection: Look it up yourself.

You do have it tough, I agree, and your student loans will follow you forever. Part of the problem, I suspect, is your location. But determination to break out of the cycle is another part of it. If you have an accounting degree, you can research accounting jobs in other parts of the country like Austin Texas or North Dakota. So just because you don't know anything about North Dakota, doesn't mean you don't have the means to get information about it. Look it up!

Pay varies dramatically by area. In Northern Massachusetts, I know real estate investors who are paying $40 per hour for bookkeepers (not accountants, bookkeepers). Two hours away on Cape Cod, CPA's are dying on the vine and lucky to get $25 when they start out. Sounds great when you are only making $15 or less, but remember the cost of living is very high. But there are ways: rooming houses to start with, or renting a room in a house. Again, you can search on the internet to start with. Look it up!

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Let me give you what you need here......a swift kick in the azz!

    If you can't live on 1400 in Al, you must have an expensive habit, lol.

    If you said NYC, I'd have doubts, but in Al, pretty low income state I'd think.

    And, here you are on an RE site, you should know how to get a place to live, even a MH. You may need to move further away, don't know what town you're in, but you don't have to go far to get to cheap living areas down there! I was at Ft. Rucker long time ago, housing was an issue there, finding it, but it wasn't expensive.

    As to your other bills, you must really be underwater if you're living with your folks and can't get them paid down with 1400 a month. If you really can't afford it due to bills, play the American game, bankruptcy, suffer for three years and move on, you can flip contracts without credit, use hard money lenders, maybe some seller financing if you must trash your credit.

    I don't see an excuse for being there, except the fear of getting out. When your determination exceeds your fear you'll be leaving the nest. :)

    4Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y
    Originally posted by Antonio Bodley:
    ... All I need is a bigger down payment on a home and even bigger steady paychecks coming and I am I good to go. ...

    Sounds like you've got the cart before the horse; first get the income to the point where you can afford to be on your own, then go out on your own. Without sufficient income, eventually you go without paying rent (or something else) one month, and then you're looking at moving - probably back to where you are at now.

    1Reply
  • Patrick L.
    Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    13y

    Well it all depends, how much are you giving your family right now every month? If that's more than what an apartment plus utilities would cost you then you'd save money by moving out.....but I'm guessing it's probably less than that amount and if that's the case you probably can't afford your own place I don't know your local market but I'd figure best case you can probably find an apartment for $500 plus any utilities you'd have to pay (plus cable/internet if you need that). All of your other expenses will still remain on top of that so run the numbers and make sure you have a buffer because your landlord will throw you out quicker than your parents if you don't pay.

    0Reply
  • Kelly N.
    Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    13y

    In a word, yes. You'll have to have a budget and be careful with your money, but you can do it.

    Look for a place to live that's close to where you work so that you don't need a car. Find something as cheap as possible- no more than 1/3 of your monthly income (so about $450 per month), the less the better. Maybe a studio apartment? Rent a room?

    Work on increasing your monthly income while you read up on all things real estate related. I'd start with some Dave Ramsey books- get them from the library! Sell stuff you don't need. Get a second job. Do odd jobs for cash.

    Trim your current spending- stop eating out, ditch the expensive cell phone, buy your clothes at a resale place.

    Build an emergency fund- $1000 at first, then use it only in an emergency. And only for your emergency.

    Start paying off those debts, or save up for a downpayment. Read Brandon's guide to RE investing in your 20's.

    You can do this- it won't be easy but you can do it if you keep at it.

    Kelly

    1Reply
  • Antonio Bodley
    OP
    AL · Member since 2010 · 522 posts · 31 votes
    13y

    Bill Gulley Ouch!! Yeah my expenses are way high due to my school loans being a little over $41k along with vehicle insurance and the note, grocery, gas, and some other expenses that I could cancel but I use them daily. Alabama is and always has been a poor state to me compared to other states that are more advanced with more to offer than what Alabama has to offer. I wish I could move further away if I was able to get good stable employment where ever I move to. Does bankruptcy work with student loans? Those are my biggest loans and biggest regrets. When you say suffer, could you be more specific as to how I would suffer? I wouldn't say say I have fear, but I did have concerns how I can find a place I can afford with my income being what it is. And one more thing. Even a MH?

    Steve Babiak Thats' what I been trying to tell my folks who doesn't see it that way. I need a much better job that can cover all those expenses. I need a lot more than a down payment in order to get a place and keep. That only covers the cost of getting the place but not enough income to keep the place.

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y
    Originally posted by Antonio Bodley:
    Bill Gulley Ouch!! Yeah my expenses are way high due to my school loans being a little over $41k along with vehicle insurance and the note, grocery, gas, and some other expenses that I could cancel but I use them daily. Alabama is and always has been a poor state to me compared to other states that are more advanced with more to offer than what Alabama has to offer. I wish I could move further away if I was able to get good stable employment where ever I move to. Does bankruptcy work with student loans? Those are my biggest loans and biggest regrets. When you say suffer, could you be more specific as to how I would suffer? I wouldn't say say I have fear, but I did have concerns how I can find a place I can afford with my income being what it is. And one more thing. Even a MH?

    Ouch! LOL, life is tough kid! LOL

    Sorry, no escaping student government guaranteed loans through bankruptcy, they will follow you to your grave and then to your estate to pay! See if you can get them consolidated, there are some programs out there but be careful and read the fine print, lots of rip offs playing on students. Just double up and get them paid off. Good luck :)

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    13y

    If your income is at, below, or just above your expenses, you need to do one of, or both of the following two things: Raise your income (accomplished by a new job with higher pay or second job) and/or reduce your expenses (by cutting things you dont need - I see most of what you have appears to be necessary so this option may not be possible in your current situation).

    Get another job or some RE side biz going to generate some extra capital to pay down your debts and/or build up that down payment.
    FHA is your best bet for financing as they have only 3.5% down payments and the closing costs can often be arranged to be paid by the seller (assuming you are a good negotiator)

    Podcast Guest on Show #130
    2Reply
  • Marcy Albrecht
    Investor · Canton, OH · Member since 2013 · 18 posts · 4 votes
    13y

    If your debts are more than your income (even if you have millions of houses..) that is not a great place to be! Please try to increase your income and you will see doors open!

    0Reply
  • Antonio Bodley
    OP
    AL · Member since 2010 · 522 posts · 31 votes
    13y

    Patrick L. You guessed right. Cable, phone, and internet are one of the main debts I am referring to and that is like $133 a month as one big package deal and I use them daily. I even contacted the cable company to see what the cost would be to cut cable from that package deal and they told me if I did that I would get no tv channels at all. I had to pass on that. I use internet quite often as you can see, so I know that won't work. And of course you know I got to have a phone.

    Kelly N. I live in a poor part of town and my job is far away in the rich upper class community and homes near my job are like the southern version of Beverly hills they are so extravagant and extremely expensive to live there. I need a car for that and that now costs me $280 a month not including car insurance. I don't eat out much, but if I am going to budget then I guess I better learn how to survive on Ramen noodles. I am working on increasing my income, which is what drove me to this point to get involved in real estate investing. But no luck with that yet. My cell phone is a straight talk unlimited service prepaid phone that costs me $51 dollars a month to refill with that plan. Emergency fund of $1k would take me almost a year to save up. I got a down payment and I keep having to use that to come to the aid of my parents. That's one of the reasons why I cannot get ahead. If I could keep saving that money for down payment instead of having to keep spending it on something other than a down payment on a house then I may have a shot. I don't go clothes shopping anymore because I only wear work uniforms mostly everyday of the week. I can't find anything in my room that is worth selling. I got old baseball cards, but I doubt that counts. I mean I don't own a lot of stuff worth selling if I wanted to do that.

    0Reply
  • Antonio Bodley
    OP
    AL · Member since 2010 · 522 posts · 31 votes
    13y

    Bill Gulley You aren't kidding. Life really is tough. The debts are consolidated, which they have me on a payment plan for students with low income. I get to pay loans based on the income I make per month. I want to be able to pay a lot more money on all three loans to shorten the payoff amount in less time.

    Will Barnard I am looking for other jobs even if it is not a job I went to school for as long as it pays good. I already lost out on one job I was hoping to get. I got something else I am working on to get extra cash, but that is not working well either. I am considering taking up a trade at an apprenticeship program if all else fails. I know there is a shortage of people in the trade industry vs people going to 4 year schools to land some high salary white collar job in the corporate environment. The work is hard and dirty, but the starting salary is more than what new grads make at their new job.

    Marcy Albrecht I am.

    0Reply
  • Kelly N.
    Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    13y

    Antonio Bodley- Is your car a lease or are you making payments? I'd look at buying a beater car when your lease is up, or selling the car to get into something cheaper. Insurance will be cheaper then too :) Once you get rid of the car payment issue, you free up $280/month (20% of your income!) and that'll be a huge help.

    Other than that, and maybe your need for cable & internet, it sounds like your spending is pretty low.

    On to the more delicate issue- is moving out going to keep you from helping out family using your down payment savings? If not, I'd stay put and save the rent money...

    1Reply
  • Rob K.
    Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    You stated that you have $41K in student loans, but only make $1,400 per month. What is your degree in, 16th century Greek poetry?

    I would focus on finding a better job. You should also have one or two part time jobs in addition to get this mess cleaned up. If you found a full time job at $15 per hour and made an extra $200 per week part time, you would be up to $40K per year. You would be in much better financial shape.

    If you're not tied to that area, look at North Dakota. Their oil fields are booming and they're hiring anyone and everyone. High pay too.

    Good luck.

    1Reply
  • Scott W.
    Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    13y

    you're an example of how hard it is now for your generation, even those with degrees. my company has hired a lot of kids straight out of college...you wouldn't believe the line out the door for one job; it's sad.

    good news is the economy is coming back; why not look at a more metropolitan city, atlanta?

    you helping out your parents is admirable.

    if you've got your degree, you will be fine in life. hang in there, it will get better...and you will find a more professional job.

    0Reply
  • Antonio Bodley
    OP
    AL · Member since 2010 · 522 posts · 31 votes
    13y

    Kelly N. I am making payments on it. Insurance may not be too too bad. After all they did give me some discounts. Cable, phone, and internet combined is $133 a month. Yes it is going to keep me from helping my folks out once I use all my down payment to get away from here. Once that money is gone there is no more saftey net for them to turn to when times get too rough because I sure can't get that kind of money from my paychecks. If I was to spend nearly all I got from my paychecks to help out then my only way to survive for two long weeks is to dip into my savings account or live off my credit card. That's all I got left to get by. That means more debt I don't need.

    Rob K I was never fortunate to get a better job related to my accounting degree after so many attempts. Now I am working somewhere doing something that is not related to I was suppose to be doing for a lot less pay. This was totally not suppose to happen to me. My work schedule is so messed up they won't even fix my schedule where I have time left open to work a second job. It's their way or no way, so I don't have much of a choice. I dreamed of making $15 an hour. I have never seen that much money in my life all the many years I been working. I don't know what it is like to make over $20k a year. I know nothing about North Dakota nor this place you speak of that is hiring. If it's in the oil industry of course the pay is going to be fantastic. If I Knew how to apply to a job out of state in this oil industry I would do that. Do they require work experience? We don't have oil fields where I'm from so that is something I never did before. You hit it dead on. There are way too many people applying for one job. Even the most qualified people cannot land a job. My problem is not only is the jobs I apply to have way too many other people wanting that same job, but employers are not being realistic by asking for so many years work experience immediately after graduation. They are not willing to give anyone a chance to prove they can do the job they are applying for. And job interviews? That's a joke to me considering how employers are and what I been through over the years.

    0Reply
  • Mark Van Horn
    Real Estate Investor · Pittsburgh, PA · Member since 2013 · 3 posts · 1 vote
    13y

    Sounds like you may be in a rural are, in which case your options are limited. If in a city, picking up a spare job is more possible.

    There is also the option of grabbing all the overtime at your present job. That is the fastest way to give yourself a raise every week, every day. Most people are too busy complaining about their job and calling off to make or possibly save any real money. Be different, pester your boss for all the OT that comes up from other employees calling off.

    Also, if you find a part time job and it has a direct deposit option, have 50% of what you net after taxes from it deposited in a separate savings account, and don't touch it unless you absolutely have to. I had a part time job while working OT at a regular job and was able to save a surprising amount of money while paying down debts, and I didn't have any automatic deposit into savings set up. Like payroll deduction for taxes, if it's taken out before you receive it, you won't miss it. We have all tried to save on the net after our bills, not the gross. It doesn't work. In this case, you are trying to build up capital. All of this takes practice and sticking to your plan, which brings up another point.

    If the cable you mentioned is cable TV, get rid of it. Most of the stuff on cable isn't worth your time. I have no cable TV. Internet is much more useful, though expensive, but you can use it to increase your search for better employment.

    You may also consider moving somewhere else, even out of state. Texas is booming again, and so are other areas of the country. If you know someone there who is willing to put you up for a while, go for it. I did it and it was great being away from the family. In your case, you can always send money home and you will have more to send to them.

    1Reply
  • Antonio Bodley
    OP
    AL · Member since 2010 · 522 posts · 31 votes
    13y

    Mark Van Horn I guess you can call it rural. I live in a residential part of town where there is nothing here. No good jobs no nothing. All of the job best job opportunities are located an hour plus. And that's just minimum. Walmart does not allow us to get any over time. Do it and you will be fired for too much overtime. My manager warned me not to do this again after I got 1 measly minute overtime. Can you believe that? One minute over? My current job does not even allow me time to work a part time job. I was going to get rid of cable tv, but the cable company told me that there would be no channels including local channels which I do watch often. I am looking at anything I can find, but I do not qualify for any of them because I have no work experience in those jobs.

    0Reply
  • Ann Bellamy
    Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
    13y

    You can get by without cable, use the internet for your tv watching entertainment.

    Use the internet to google North Dakota Oil Fields or check into jobs in Texas. You recently posted that you wish you knew the name of an online fax service. I replied that you could find lots of free ones by googling them. You have internet - the whole world is available to you via internet. In this age, there is no reason to say you don't know something, if you have a device and internet connection: Look it up yourself.

    You do have it tough, I agree, and your student loans will follow you forever. Part of the problem, I suspect, is your location. But determination to break out of the cycle is another part of it. If you have an accounting degree, you can research accounting jobs in other parts of the country like Austin Texas or North Dakota. So just because you don't know anything about North Dakota, doesn't mean you don't have the means to get information about it. Look it up!

    Pay varies dramatically by area. In Northern Massachusetts, I know real estate investors who are paying $40 per hour for bookkeepers (not accountants, bookkeepers). Two hours away on Cape Cod, CPA's are dying on the vine and lucky to get $25 when they start out. Sounds great when you are only making $15 or less, but remember the cost of living is very high. But there are ways: rooming houses to start with, or renting a room in a house. Again, you can search on the internet to start with. Look it up!

    5Reply
  • Paul Sorgi
    Real Estate Investor · Abington, MA · Member since 2011 · 356 posts · 114 votes
    13y

    Plenty of advice has been given now it is your turn to take ACTION! Let us know how you make out.

    4Reply
  • Dyna J.
    Chicago, IL · Member since 2013 · 105 posts · 31 votes
    13y

    There are part time jobs you can do at home also. Wahm.com has tons of information for jobs -- most are minimum wage but some paying much, much higher. There are also freelance boards you can join and search jobs and/or post your info.

    I agree with all the advice you have been given. Stop seeing yourself as a victim and doors will open for you.

    1Reply
  • Raymond B.
    FL · Member since 2009 · 2k+ posts · 357 votes
    13y

    Antonio Bodley,
    You said that your Internet, cable, and phone cost you $133 each month.
    How much does the phone cost you each month?
    Are you aware that you can get a phone service for less than $2. each month?
    In my area I have various speeds available for the Internet.
    I have the slowest, and that reduces my monthly cost.

    How many Cell phone minutes do you use each month?
    I have a Cell phone service that cost me less than $7. per month, plus about .09 cents per each minute used.

    Raymond

    1Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    13y

    Not only this thread, but a lot of your threads appear to have lots of negativity from you. Things like I can't do this and can't find that, etc. my opinion, you spend too much time focusing on things that don't seem to work out for you rather than on items you can do or work on doing better to accomplish the goal.
    There is no magical answer to your issue, you have to find it within yourself to make something positive happen.

    I find it hard to believe that a person with a college degree in accounting can't make more than 1400 a month.

    Podcast Guest on Show #130
    2Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    I'd be ecstatic to find a really good bookkeeper with some REI knowledge for $2800 a month.

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    13y
    Originally posted by Jon Klaus:

    I'd be ecstatic to find a really good bookkeeper with some REI knowledge for $2800 a month.

    Exactly my point! Thanks for jumping in Jon.
    Podcast Guest on Show #130
    0Reply
  • Dyna J.
    Chicago, IL · Member since 2013 · 105 posts · 31 votes
    13y
    Originally posted by Will Barnard:
    Not only this thread, but a lot of your threads appear to have lots of negativity from you. Things like I can't do this and can't find that, etc. my opinion, you spend too much time focusing on things that don't seem to work out for you rather than on items you can do or work on doing better to accomplish the goal.

    Exactly. I was floored when he totally dismissed the suggestion for relocating to North Dakota because he didn't know anything about it. Thats what the hell google is for. I had a old coworker who every summer went to Arizona (I think ... somewhere in the southwest) to work as a firefighter battling forest fires. Because of the overtime she would clear $30+k over about 3 or so months. What if she never went down there because she "didn't know anything about it"?

    Seriously OP, get away from Mom and Dad because if they feel its okay for you to bail them out again and again financially they're never going to stop. Google dave ramsey and learn about his debt snowball.

    2Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    13y

    Anthony, I hope you don't take my comments are anyone else's comments as a slap in the face but more of a boot in the azz.

    Podcast Guest on Show #130
    2Reply
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