Budget Breakdown (Ep. 11) Small Family Business, No Income! | FrugalFitMom Podcast
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- Опубликовано: 27 авг 2024
- In this week’s episode, Christine and Dave analyze the spending habits of a family struggling to find order in their finances as they run a small business. Christine and Dave encourage the family to pay themselves a consistent income, separate business and personal finances, and minimize spending on luxuries to help build up their savings and bring them peace of mind. DM your questions and ideas for future podcast episodes to Christine on Instagram @frugalfitmom6.
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I drive a 15 year old car that was gifted to me, do not buy sodas, take out food, rarely go out to eat and never take vacations. My life is a vacation.- I am retired. I have only my social security but by working a temp job now and then, turning in cans for deposits, selling items online once in a while I am able to have almost $800.00 in an Emergency fund. I am setting aside some of the government stipends we received to purchase new tires in 7 months as well as money to put towards car repairs & expenses and pay off a small amount of debt. Alot of goals for an almost 64 year old single woman. All of which, I believe can be achieved. I ♥ ♥ this series ! It is inspiring
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I’m a single childless lady in South Africa 🇿🇦 Found this channel today. It’s helping me so much! Thank you!
As someone who's husband owns a business and is the CEO and I am the CFO the wife needs to be classed as an employee and payroll needs ran for her. He can do owner draw unless they are both owners.
If he owns the "work truck" he can sell it to the business (track that purchase with a bill of sale so you have that documentation in case of an audit).
If the work truck, internet, and cell phones are used for both personal and business then that also gets sticky and needs tracked appropriately and needs to be paid by the right "side" (personal vs. business).
I started as an employee for my husband and did all the office work. It takes a very specific type of couple to make this work. We have been doing this for 16 years and I will say it is the hardest thing I have ever done aside from working full-time and homeschooling five daughters. Our family has made sacrifices, their dad is gone Monday - Friday 12 hours a day a minimum. I am fortunate to be able to work remotely on my time-frame so I am able to take care of our girls, home, and home school. It is not an easy road but it is fulfilling to be able to start something from nothing and see it flourish into a huge multi location business.
If you have multiple family members with chronic medical conditions, costs can be very high. We spend $300 a month on health, vision, and dental insurance. We spend, on average, another $800 per month for co-pays and co-insurance. So, we are spending an average of $1,100 per month on medical expenses or more than $13,000 per year. This much while having what most people would consider very good health insurance.
You are right! $300/mo for medicine is very common even with great insurance. Some specialty meds are over $10,000 per month...
If $300/mo doesn't seem right, Be thankful!
Great podcast!! Having been married for (almost) 35 years, we learned early on to have a "budget" meeting yearly (or when necessary) during the winter break at school (I am a retired school librarian). It allowed us to be realistic about where we were headed and where we had been. We had a wake-up call early in our marriage over an escrow SNAFU and both of us were panicked. I suggested that from that time forward we do our best to only have debt for the house and one car. We leaned on each other as friends got bigger houses, better cars and great new wardrobes. I can tell you now @65 I am CONFIDENT we can enjoy our retirement and (hopefully) not outlive our money. We also cook more than restaurant and enjoy "takeout" from the grocery store!! The peace of mind it has given us is enormous. We know we are a team and pull together in the same direction. We have just started in the last 5-6 years to put gifts for each other back into the budget. A card, warm hug and knowing you can trust each other is all the gift each of us needs.
Thank you for the video, Dave and Christine!
I loved your talk about the house savings! Can’t stop laughing thinking about your dishwasher going rogue! Lots of blessings! ☀️
GoodRx is an alternative to medication prescription. I’ve had to get more of a med before insurance would allow and it saved me at least $40. In the last 4 years, we’ve replaced the roof, electrical panel, electric hot water tank, A/C unit, washing machine, and flooring, toilets and vanities after a toilet leaked. We had savings for a this and it felt good. Like you said, having a budget and savings is not sexy. Getting older helps too, you don’t tend care as much what people think.
And you can always check with you doctor offices. We often receive free coupon cards and subscription programs or deal directly with drug companies. Also there are Patient Assistance programs out there
Good Rx helps on pet meds as well. Always good to keep in mind!
Love these budget videos! The two of you are fun to watch, and discuss this money stuff in a way we can understand! Thanks and keep ‘‘em coming!
Most pharmacies Walgreen, Walmart, Target just to name a few [ ask yours ] have a " list". On this list are generic drugs that are reduced in price some as low as $4 for 90 day supply.
1. Ask your pharmacy or check with another one if they have such a list
2. Have them print a copy
3. Take it to your doctor office and ask if something on the list is comparable to medicine you take
4. If so ask them to write the prescription for 90 days for the generic
5. If, you have insurance but the list price is less than the copay have the pharmacy remove your insurance from the account [ it can be added back later on ] .
It seems like people equate “reliable car” with “car with the most updated technology” when the reality is the more features a vehicle has the more likely that something will go wrong somewhere. Getting a cheaper, older base level car will probably last a whole lot longer than the high end fancy ones.
Yep, just got rid of my 2000 vehicle and bought the closest thing in a new vehicle (they don't make the model anymore) and I would take my 2000 all day long.
I’m driving my 2000 til the whole thing falls apart lol 😆
@@dianasimplifies the only reason got rid of our 2000 was because it was literally falling apart. The rocker panels were completely gone, we couldn't have the running boards on because there was so much rust. Every time I would reach in to buckle five girls into car seats in the second and third row I would ruin a pair of pants getting rust stains, I was worried one of the girls were going to get cut on the rust. So, if it wasn't for the rust I would happily still be driving that wonderful vehicle. I miss it every day!
@@servantwarrior880 yeah that’s the kind of thing that worries me too! I don’t have that yet. Buick still looks amazing lol 😆
@Diana Simplifies Nice. Lucky you...brand new cars where we live last about five years before it rusts.
I do feel like the birthday holiday line item seems reasonable. That's close to what our is and that is for all of our birthdays, Christmas for our family, but this line item also covers gifts we buy for other people for birthdays/Christmas as well as Easter, Valentine's day, 4th of july (fireworks) and any other holiday expenses!
A lot of that is unnecessary. I feel for younger families that are trying to keep up with social media. I know a family that won’t spend $100 to fix their garage door but going to Disney World. (Kids are 5 & 2)
I feel it's high. I have 3 kids and spend around $160-200 per kid for Christmas, including Santa gifts and $60 per kid for birthdays. Maybe $40 per Easter basket, and $20 per kid for Valentine's day. That's only $960. We might spend $20-40 on fireworks, there are plenty around to watch for free. I do buy gifts from my mom, dad, dad's friend, grandma, aunt, cousin, his girlfriend, and her kid. That's MAYBE $400 for both birthdays and Christmas. That's $1400 a year, even going to round it up to $1600 a year and that's still only around $135 a month. You can do things on a budget, shop sales and clearance year-round for gifts. People don't need expensive gifts.
I love Dave's shirt!
And whats inside Dave's shirt
I love seeing these breakdowns! You are so right that saving isn't flashy, sexy, or exciting. I'm currently reading "The Psychology of Money: Timeless lessons on wealth, greed and happiness by Morgan Housel. Interesting book!! Chapter 9 is spot on with what you said about saving. "Wealth is what you DON'T see. Spending money to show people how much money you have is the fastest way to have less money." Exercising self-discipline and delayed gratification today isn't fun, but reaping the benefits of it 6 months, a year, or 5 years from now feels amazing!!
I use my credit cards for most expenses. One gives travel reward points and the other gives points that are convertible to cash. The latter card's cash back is my budget for christmas gifts.
Joanna Gaines knocks down walls Christine cuts budgets 😂😂
I love watching you and Dave do these!!!!!so realistic and mid jarring with ideas that I haven't thought about before on how to make temporary changes to get through a season. Thanks!
This situation seems scary to me because the family of four is now 100% dependent on this business (which is not yet producing income) succeeding. I might consider the wife temporarily getting a salaried job elsewhere and using her income to pay a part time book keeper and the rest for a bit of a safety net for them. Just a thought. I’m not a huge risk taker myself but maybe they feel differently. Good luck!
Birthdays and Christmas probably includes clothing toys school activities etc. not to mention gifts for other kids (my guy gets invited to a lot and at a young age it’s important to attend). Even modest purchases add up
My car is 17 years old and has 311,000 miles on it and I LOVE her! She is just as reliable as she was 10 years ago and gets me everywhere I need to go. And $800 for a truck payment is sadly, not that bad. Work trucks are VERY expensive, fortunately though, they also (generally speaking) hold their value REALLY well.
Love that we got an update! ❤
I love these budget breakdowns. I have taken tips from each one that you do and keep tweaking my family budget. I have been able to easily cut $400 of spending and add that to savings in the past three months. I also started sinking funds. Thanks again.
When we have something go out we use our Home Depot card we get 6-24 months no interest depending on how much it costs. Then we budget $300 a month to pay it off. Then adjust it to pay it off before interest kicks in.
We own and drive two of the same minivan! We have two 2005 Honda Odyssey's. They are super reliable. Older cars that are a good brand LAST!
Yay!!! So glad you switched to Earth Breeze. I think I have mentioned it to you on your other channel.
I've been curious about it for a while. Does it work well?
@@terrip8451 YES!!! We just got our "yearly" amount and we had some left over from last year. I love it. It works and my hubby's sensitivities are in check! We are white collar workers and don't get too grossly dirty.
I love these podcast stuff. Thank you!
One of your best episodes for me as a tiny business owner keeping income up in these times is really hard as business has slowed but have the pantry and freehold so this really helps keep the divisions clear is great advice, and only way is have one person to manage the money that is the only way we made it
Really loving these budget videos!
I paid off my car last month after taking a 0% for 60 months loan. Car has 30k miles. To me this is financially awesome. That was my last debt besides the mortgage so I am now putting the car payment toward my mortgage.
Yes business and personal together is very messy. I got in a mess with the IRS years ago. It took a long time to get out of that mess.
We own a cat and do NOT spend $125 a month on her. She would definitely be eating better than us if we did 😂
Right! $125 a month seems insanely high for a cat.
My car is a 2006 Toyota RAV4. I have repaired it once since I bought it second hand 10 years ago. I asked my mechanic when I should replace it and he told me if I keep it serviced, it should do 500,000km. It uses a little more oil but still drives like a dream.
I really like these budget breakdown videos with you and Dave!
In this case- I don't know what other base income they have to be living on to cover their bills??? That wasn't mentioned.
The person's Christmas/Birthday fund is crazy to me. I have 6 now grown children. I budget $150 ea for Christmas.
As for "food/groceries" the person didn't indicate if it's 'just food'. Myself, I lump gas and household items into my grocery budget. I get my gas where I buy my groceries and use the store credit card for gas and gas discounts, which is 100% paid off monthly.
Ohhhh we got a sponsor!!! Nice job Christine! I could listen to your podcast everyday
I was cc all the time for everything’s, just for the points I get each month. I pay them off each month and use the points for for Christmas presents
Frugal Fit Christmas and Birthdays, did you consider that they are using this for gifting people OUTSIDE their household? Or traveling for Christmas?? It probably isnt just for the core family of four
Why is it necessary to buy others gifts when you have no emergency fund?
I buy gifts for others outside my household and have to travel to even see my grandma or dad, I don't spend that much or even close. If you can't afford it then you can't afford it. They have no emergency fund, or even income really, they can't afford it.
If that is the case they need separate lines in their budget. Christmas gifts AND activities are one budgeted item, b'day gifts and activities another, travel (whenever it happens) is another. Gifts for those outside the immediate family don't cost much ... bake something, make a small food treat box (everything bought on sale, of course), if they garden, buy a few packs of seeds and make plant markers. Christmas happens whether one spends wisely, or over budget. Which choice is less stressful?... The former choice.
They have no savings. They scarily dependent on only one income stream, a new business. And they're mixing personal and business expenses and only take draws that don't cover their monthly expenses, both of which will get them in trouble with the IRS.
I have Texas teacher insurance. I have 4 chronic illnesses. At the beginning of the year my medications are Is at least $400. They could also be doing client gifts
In 2020 we had to replace our stove, washer,(none available), Our 2014 car blew transmission , lawn mower. What a year but we made it.
My parents diswasher also caught fire! So strange how does something wet catch fire, crazy! Glad everyone was ok.
I would never buy a brand new car. Has no one heard of the depreciation as soon as you drive it off the lot??
We have a home warranty to cover our appliances. We had to use it this spring to fix our washing machine. In the past we have replaced our dishwasher and garage door opener. Our a/c unit and furnace are aging and I'm waiting for them to break.
Both cars here are almost 20 years old. Doing just fine...
I’m a health insurance broker licensed in 25 states. There is not enough info to determine the cost of prescriptions. They might take a really expensive Med or they might all take several $25/month meds per month. Even with a $0 premium, you still have copays for meds. And also, if there’s no income, they actually may mit qualify for a subsidized premium. In many states, you must have a minimum income to qualify for a tax credit that subsidizes their premium.
wonderful
My current car is 8, previous were 9, 8 and 14 when I changed them. Last 2 were from brand new but cost under £8000 each and paid cash or 0% interest.
My car is a little older , my clothes aren’t all designer or purses etc……. but I have money in the bank, when I want to buy something or I want to go on vacation guess what….. I don’t have to sweat it , because I have it!
Cat expense seems appropriate. I would suggest keeping $50 or so for their car gas as they still likely need gas to get to the doctor, appointments, grocery shopping, etc.
I’ve made my own dry laundry detergent for years. No liquid detergents!!
Many prescription meds are excluded on ins policies. Sad but true. The insurance companies want the premiums but do not want to pay out!! The problem with healthcare IS insurance companies getting their grubby hands in the mix… and rant over.
Love these videos!
My kids all work, not because we need them to, but so they can pay for some of their activities. They are more invested in their sports that way.
My husband and I did that, I keep the books and we almost divorced. They need a separate accountant.
I don't see anything about social security, disability, income taxes and other things like that that you need to account for when you are self employed.
I am uninsurable, doesn't matter what amount, no one anywhere will insure me
Utilities look high to me as well.
Hola ! Dave where’s your super budget cap? Jiji
Love ur videos
I drive a 20 year old car that has been getting me around for years just fine.
Actually teens activities can be cheap. My grandson and family go to the YMCA for fitness, fun, swimming, and activities for about $80 per month and my grandson is in cadets for free as well as school activities. Hiking, games night, at home family movie night etc. cab be busy enough. And I have cats and I would suggest about $30 per month for food and shots as needed. I also have dogs and cosT would be about $50. Per month at most. Need to be careful because taking pets to the vets ha blown up into a money making business for the vets. When I was a child and my parents had pets they only went to vets when ill or for rabies/distemper shots very few years. Throw in flea and tick med and that covers the need. I no longer take my dogs or cats for yearly checkups. If they are I’ll, I would take them then. And of course ensure shots and fee/tick are up to date.
I have cats with chronic illness and they have to be checked out yearly to get their meds. Just spent $350 today for 2 cats. Vet bills ain’t for the faint of heart! ♥️ lol
Does she mean Cat like the business equipment company or like an actual cat costs that much? Hopefully since it's a construction business she means an equipment rental.
Well atleast the water was putting the fire out!😅
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So many unknown assumptions. Maybe the gifts are for family and friends as well. Which, granted, it should still be cut. Same with meds and cat and even the ages of the family.
Even though they both work for the business, her car gas is not tax deductible. She does the bookkeeping so, at most, she may commute. Commuting is not deductible for a business. That includes his truck. They WILL have personal gas and vehicle expenses.
I have 3 cats and the cat expenses seem high. Unless that cat has health issues. I also don’t buy my cats the cheapest food either.
I have 4 and also agree. My two elderly cats get a high-quality, grain-free soft food , and the two younger cats are on a high-quality, grain-free dry food plus cat litter and grooming for one of the older cats that can no longer manage the amount of fur she has, and I don't spend $150 each month. The only reason I can think to spend that much on a single cat is, like you said, health issues.
@@terrip8451 mine have health issues. I could spend $1000 in a month! Thankful for large saving acct and frugal lifestyle.
Sounds like CAT the construction equipment
Cat expenses seem high.
Setting up a minimum budget for them- should it not reflect them having to get healthcare -not free from marketplace- because now they will be pulling an income??
Earth Breeze isn't dissolving well in my cold water washes. Sigh.
There’s no groceries!!!
Tell this person to look into pellet litter. It's less chemicals , it's less messy, and infinitely less money. RUclips has videos on how to do it.
Some of the items seem extremely outrageous to me. $600/month for groceries is about 5 times what mine is and mine includes hygienic and household items
My 55 pound dog & i will take my 15 year old car to buy the $28 worth of food plus another $15 or so in treats for a month.
What about shots, heart worm med and grooming.
I disagree with Dave. It's sexy. Working toward a common goal and achieving one thing/financial goal at a time together is sexy.