When One Partner Won't Budget
Jake's Regular Expenses
Like the irregular expenses, the amounts listed below reflect only his share for things, even if they are a joint expense. Accordingly, the pet, grocery, Netflix, internet, rent, satellite cable, renters' insurance, and electricity categories should be doubled if you want to get an idea of our joint/mutual costs. Please also note I solicited more information about his credit cards and have updated the information. For his payments, however, I am going by what he has paid historically, not what the minimum payment actually is. These are monthly numbers.
- Gas, auto: $55
- Pet expenses: $50
- Grocery/household: $300
- Cell phone: $135 (Note: Jake uses his cell phone for the business, too, though I'm not sure if or how he separates it from his personal use.)
- Drycleaner: $40
- Netflix: $8
- Internet: $32.50
- Satellite cable: $37
- Renters' insurance: $9
- Electricity: fluctuates throughout the year, in summer $100
- Withdrawal/cash: unknown, I suspect it varies widely
- Charity: $10 (Humane Society)
- Haircuts: $18
- Rent: $488
- Student loan 1: $180
- Student loan 2: $70
- Student loan 3: $176
- Student loan 4: $112
- Auto loan: $300
- Credit Card 1 ($12,697.64 @ 4.99% for life): $400
- Credit Card 2 ($2,202.87 @ 7.5% variable): $200. This is the one in my name.
- Credit Card 3 ($2,648.33 @ 3.99% for life): $200
- Credit Card 4 ($1,875 @ 0% until 3/6/13): $175. His share of the wedding expenses not covered in advance.
- Credit Card 5 ($8,175.51 @ 0% until 9/1/12): $125. A loan to the business to sign up for a year's subscription to a client-referral service.
- Credit Card 6 ($1,350 @ 9.99%): $150. A loan to the business to cover his partner's expenses when he was short.
- Total: $3,370.50
Here's where it gets tricky. Since January he's paid himself twice per month in amounts varying from $400 to $5,963.98. Based on his disbursements year-to-date, he can expect his gross salary for the year to be $47,577.42. On average, he's grossing $3,659.80 per month.
On the surface, then, he's making enough to pay his bills plus a little extra. However, I'm sure he's spending it all (that is, I expect that eating out and miscellaneous purchases would take us to the limit of his gross salary). I guess this is what he means when he says “it's worked well so far.” However, he hasn't been paying quarterly estimated taxes. There are some structural changes to the business that took effect August 1st, and he's been waiting for that to start his quarterly payments.
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