My husband and I live in a rural area, commuting an hour to work, and we’re trying to get our budget back on track. Our goal is to be debt-free by 2028 (excluding our mortgage) while still enjoying life a bit. We currently have a tight budget and a small buffer due to unexpected expenses. We have a tax return coming that we plan to use to pay off some past due taxes and smaller debts. I’m looking for suggestions on how to better fit our financial goals into our budget. Here are the details:
I suggest creating a zero-based budget. Start with the essentials like mortgage and fixed expenses, then allocate for your emergency fund and debt minimums. If you know you need $600 for the cruise, save that gradually. It seems like you might need to cut back on some discretionary spending to make this work.
Can you both agree to reduce your personal spending to $50 each? Also, consider cutting down on your entertainment subscriptions to just one or two. This could free up money for your upcoming events.
You seem overextended. The expenses for vacations are adding up when you don’t have enough saved. Focus on paying off debts first and building your emergency fund to avoid financial strain from unexpected costs.
I honestly think you should reconsider the cruise and the November trip. Focus on getting your debt down first. You can always take trips later when you’re in a better financial position.
Your grocery bill seems high. What are you buying? Try to focus on whole foods and cut down on snacks. If you have access to stores like Aldi, they might offer better prices.
For your subscriptions, consider rotating them or cutting down to one. You can also save on utilities by being more energy-efficient. It sounds like you have a plan, but you might need to make some sacrifices to reach your goals.