Day 338: Finances – Get Rid of My Car?

My monthly fixed bills (NOT counting things like groceries, gas and other expenses). I already made some “CUTS” and am now saving $160 per month! These are separated by my personal bank account and business bank account.

6:58pm

Day 338

Lately, I’ve been stressing out about not having enough time to get everything I need done. With a full time job, posting everything I do, writing blogs and trying to get some research in, I tend to get a little overwhelmed from time-to-time.

I decided I need to lower my monthly expenses as much as possible, that way I could spend less time at work waiting tables, and more time researching and trying to help indie musicians grow.

I kinda ramble on, but here is a “vlog” version of this blog above.

My Two Biggest Expenses: $1,200

RENT: $600

I recently left my parents (again 🙄) after my brother was looking for a roomate to get an apartment with. So, in June 2019 (i think) I stopped paying my parents $200 for rent and internet and started to pay my brother $545 for rent on top of an extra $55 for SuddenLink Internet.

A lot of people told me “Good for you! You’re becoming more independent! You’re doing great!”, but I KNEW I was making the wrong decision. I think it’s completely acceptable and even more responsible to live with your parents if its helping you accomplish your goals. BUT, if you aren’t chasing anything and just working to pay the bills/have fun on the weekends, you need to leave the nest FOR SURE.

CAR: $600

I’m financing a 2015 Chevorlet Impala (base model), which makes my insurance higher. I really don’t need a car this expensive… 🤦‍♂️

$330 car loan + $220 insurance +$50 maintenance = $600/month.

How Do I Make Huuuuuge Cuts?

Back To Mom & Dad’s: -($400)

The way I see it, there is really no reason I need this apartment other than vanity and a little bit more comfort. Its a waste of work hours! Almost one whole shift per week I’d be saving.

Hopefully I can get back to Mom and Dad’s (paying $200 instead of $600) by early December. That does mean we would have to break the lease early. I need to go to our apartment leasing office and talk to them about what are options are, whether its finding someone to take over the lease or paying the fee (which could be 2–3 months rent!). Luckily my brother is stacking cash right now so he could afford the upfront fee and I would most likely pay him back monthly for my half of it.

Get Rid Of My Car?: -($600)

Here’s the thing. My car has been holding me back recently because I’m upside down on the loan about $7,000. 😬 According to Car Max my car is worth only about $4,500 and I still owe about $11,500

Also, I haven’t used it in the past THREE MONTHS or so because the registration is out, but in order to update that I need an inspection, BUT in order to pass inspection I need to get my check-engine light checked out, which will cost me even more money that I don’t have right now! 🥵😰

So, in the past 3 months I’ve spent $1,800 on a car that runs ok, but just sat there! 😳 I’ve been paying my brother $60 per month to use his car untill I can save up enough to fix mine. 🤦‍♂️ He works out of town 3 weeks out of the month (sometimes more), so he hardly uses it.

That being said, I started to think maybe I should just get rid of the car and just EAT the upside down $7,000 or so. That would mean making the same $330 per month payment for almost 2 years for NO CAR. BUT it would free up my insurance payment of $220.

I’m still trying to decide what to do, but for now, I called my insurance company, Geico, and put my car in “storage”. It saves me $100 per month as long I dont drive my car (which I haven’t been already)

Pay Off Other Debts: -($255)

I owe my brother about $1,600 for other stupid pay-day loans that he helped me pay off. I pay him $255 per month untill I pay it off.

Live For Free? 😱 🤯 🤩

Well, no…. BUT, I figure I can get my monthly fixed bills from $1,500 down to roughly $450 in just over one year if I:

  1. Dec. 1, 2019 — Move back to Mom and Dad’s. This gives me $400 more per month to apply to my brother’s loan, making it only about three months til I pay it off.
  2. Mar. 1, 2020 — Pay off brother’s loan: $1,600. This will give me a total of $655 per month to apply towards my car loan (on-top of the normal payment amount). Assuming I keep my car in “storage” and DON’T get rid of it, I can have my car paid off in about 10 more months.
  3. Dec. 1, 2020 — Pay off my car: $11,500. This will save me a total of about $1,000 per month that I can now either: a.) put into savings for a year of college at the “University of Google and Audible” (my own research 😆), or b.) take more time off of work to spend researching and networking

Conclusion

So, that’s my basic financial plan for the next year or so. We’ll see how it works out. I think Im leaning more towards keeping my car, but I’ll definetly let yall know what I decide. Either way, Im getting really excited at the possibility of having my car paid off within a year! It was a stupid buy in the first place… but hey, you live and you learn! 💪

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