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Forum -> Household Management -> Finances
Choking financially, and ppl think were living the good life
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amother


 

Post Sun, Oct 30 2011, 4:57 pm
The title says it all.... a couple of years ago, we bought a house, what the agent called a "fixer upper" which in my language was a DUMP. The price was right, and we figured we will slowly renovate.... we did small things here and there to make it livable and about 6 months ago we decided that since our family is b"h growing we need to renovate seriously, I.e. convert the basement into bedrooms and fix up the upstairs. we received a few quotes from contractors and my husband got a home equity loan, which was reasonable and we were able to monthly pay it off. Now here is where the problem started. everyone told us, "just wait, whatever the contractor quotes, figure double...." we couldn't imagine it would be so much, but we were so wrong! so many small things cropped up on the job, everything cost more than we thought, and although we by no means have a mansion, the house is very nice! (just an example of how things can cost more, we were ready to put down the flooring in the basement, and my contractor called me to let me know how uneven the floors were, and that he recommends leveling them with wood.... not over the top right? it all makes sense to do, but everything adds up!)
so now we are left with major bills, we don't have family members to aproach for help, and my dh works like a dog as it is. I feel so inadequate, I'm due in a few weeks so it doesn't make sense for me to look for a job now, and we are barely able to pay the grocery bill, all while living in a nice home!
we even considered selling, but the amount we would get is not worth it, because there is nowhere cheaper to go in our town, and moving right now is out of the question.
Anyone been there done that??? I would love some advice or chizuk! thanx for reading my long vent....
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amother


 

Post Sun, Oct 30 2011, 5:02 pm
Have you spoken to anyone about refinancing to lower your monthly payments? We just did that and saved $100/month which may not seem like a lot but our mortgage broker paid all the costs of refinancing (he makes more money by selling the mortgage to a larger bank so he comes out ahead even with paying our fees). $100 is not a lot but when bills are tight, it goes a lot towards food....

And whatever renovations might be left, you obviously need to halt them.
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amother


 

Post Sun, Oct 30 2011, 5:03 pm
Also, did you do the renovations the legit way and get permits; if so, it'll all being recorded by the city and when the value of your home goes up, so do the taxes so beware....unfortunately
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amother
Linen


 

Post Sun, Oct 30 2011, 5:15 pm
In the future, don't use a contractor. Instead, hire individual workers yourself to do the jobs. I have a friend who saved thousands of $$$ this way.

Just a few ideas to save money:

1. Put your family on a diet of bread & water
2. Limit showers/baths once a week
3. For shabbos, serve eggs instead of chicken & fish & meat
4. Grow your own vegetables (put metal fence around to protect)
5. Sell your kidneys on the black market
6. Encourage your kids to sell pencils & pens for 25 cents each in school
7. Make sure you only buy clothes from Kupas Ezra or Goodwill


Last edited by amother on Mon, Jan 04 2016, 3:53 pm; edited 1 time in total
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Britmummy




 
 
    
 

Post Sun, Oct 30 2011, 6:43 pm
Well, OP, your husband is already working hard, you are not in a position to find a job right now, so it sounds like the only one of you able to bring in any extra income is the house Wink
You say your home is now lovely, so have you considered taking in a lodger? Or renting out a room to a student/young couple? Or how about allowing film crews to use your house as a film set (I think there are websites where you can sign up for this!)?

Otherwise, maybe there is something you can do from home until the baby comes (and even the first few months, during naptimes etc.). What was your profession before? Could you tutor students learning that profession (via Skype if not in person)?
Are you crafty? Could you make anything to sell? I have a friend who made bridal veils when she was at home with young kids. And another friend who started a cupcake business from home and now runs a shop and mail-order cake business!

I'm sure with a bit of creative thinking you can come up with a solution to bring in more income Smile
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amother


 

Post Sun, Oct 30 2011, 6:45 pm
OPINIONATED wrote:
In the future, don't use a contractor. Instead, hire individual workers yourself to do the jobs. I have a friend who saved thousands of $$$ this way.

Just a few ideas to save money:

1. Put your family on a diet of bread & water
2. Limit showers/baths once a week
3. For shabbos, serve eggs instead of chicken & fish & meat
4. Grow your own vegetables (put metal fence around to protect)
5. Sell your kidneys on the black market
6. Encourage your kids to sell pencils & pens for 25 cents each in school
7. Make sure you only buy clothes from Kupas Ezra or Goodwill


I have to say number 5 and 6 put a smile on my face.... we're trying to cut down, but it aint easy Crying
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chocolate moose




 
 
    
 

Post Sun, Oct 30 2011, 6:46 pm
I don't think you can worry about what ppl think of you. I was in a similar circumstance.
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Raisin




 
 
    
 

Post Sun, Oct 30 2011, 6:50 pm
can you rent out the basement?
read seraphs blog for food ideas on a budget.
can you sell any surplus stuff on ebay? clothes, books, toys, etc?
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TranquilityAndPeace




 
 
    
 

Post Sun, Oct 30 2011, 7:30 pm
You say that you took out a home equity loan and paid it off. Can you take out another to pay off the contractors and slowly pay it off once again?

Hugs, this must be really challenging for you....
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mini




 
 
    
 

Post Sun, Oct 30 2011, 8:05 pm
Talk to smart person or a rav what to do
Hatzlucha
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curlyhead




 
 
    
 

Post Mon, Oct 31 2011, 11:48 pm
rent out the house for a couple years while you rent a smaller cheeper house. Hopefully the difference between the 2 rents will help pay for your loans or everyday spending.
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LisaS




 
 
    
 

Post Tue, Nov 01 2011, 4:35 am
Everyone has hidden challenges. Don't worry about what others think - let them think you have the good life. Thankfully your hidden challenges are financial and not shalom bayit, illness, or with your children.
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Britmummy




 
 
    
 

Post Tue, Nov 01 2011, 5:14 am
curlyhead wrote:
rent out the house for a couple years while you rent a smaller cheeper house. Hopefully the difference between the 2 rents will help pay for your loans or everyday spending.


This is an excellent idea!
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chica




 
 
    
 

Post Tue, Nov 01 2011, 8:07 am
OPINIONATED wrote:
I

Just a few ideas to save money:

1. Put your family on a diet of bread & water
2. Limit showers/baths once a week
3. For shabbos, serve eggs instead of chicken & fish & meat
4. Grow your own vegetables (put metal fence around to protect)
5. Sell your kidneys on the black market
6. Encourage your kids to sell pencils & pens for 25 cents each in school
7. Make sure you only buy clothes from Kupas Ezra or Goodwill


This actually insults me. #7 should not be in this list with the rest of them. 1-3, and 5-6 are obviously jokes, but why is buying clothes at goodwill a joke? My clothing budget is $50-100 a month to clothe the whole family, including if someone needs new shoes or a coat. Why wouldn't I look for good quality clothing that is preworn if all it needs is a whirl in the washing machine? Not in the same grouping as selling a kidney.
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sv9506




 
 
    
 

Post Tue, Nov 01 2011, 11:09 am
amother wrote:
Have you spoken to anyone about refinancing to lower your monthly payments? We just did that and saved $100/month which may not seem like a lot but our mortgage broker paid all the costs of refinancing (he makes more money by selling the mortgage to a larger bank so he comes out ahead even with paying our fees). $100 is not a lot but when bills are tight, it goes a lot towards food....

And whatever renovations might be left, you obviously need to halt them.


Could you post the name of the mortgage broker as I would be interested in this (if all of the fees are paid). If you don't want to post the name then would you be able to PM it to me.
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Barbara




 
 
    
 

Post Tue, Nov 01 2011, 11:35 am
amother wrote:
The title says it all.... a couple of years ago, we bought a house, what the agent called a "fixer upper" which in my language was a DUMP. The price was right, and we figured we will slowly renovate.... we did small things here and there to make it livable and about 6 months ago we decided that since our family is b"h growing we need to renovate seriously, I.e. convert the basement into bedrooms and fix up the upstairs. we received a few quotes from contractors and my husband got a home equity loan, which was reasonable and we were able to monthly pay it off. Now here is where the problem started. everyone told us, "just wait, whatever the contractor quotes, figure double...." we couldn't imagine it would be so much, but we were so wrong! so many small things cropped up on the job, everything cost more than we thought, and although we by no means have a mansion, the house is very nice! (just an example of how things can cost more, we were ready to put down the flooring in the basement, and my contractor called me to let me know how uneven the floors were, and that he recommends leveling them with wood.... not over the top right? it all makes sense to do, but everything adds up!)
so now we are left with major bills, we don't have family members to aproach for help, and my dh works like a dog as it is. I feel so inadequate, I'm due in a few weeks so it doesn't make sense for me to look for a job now, and we are barely able to pay the grocery bill, all while living in a nice home!
we even considered selling, but the amount we would get is not worth it, because there is nowhere cheaper to go in our town, and moving right now is out of the question.
Anyone been there done that??? I would love some advice or chizuk! thanx for reading my long vent....


You need to refocus. In the grand scheme of things, you ARE living the good life. You own a home that you describe as very nice, and that you are able to renovate. Have a growing family. While you say that you are "barely" able to pay the grocery bill, you are able to pay it.

Next, you need to speak to your contractor. When he comes to you and says, "the basement floor is uneven you should level it before continuing on the renovations," say, "is that a part of the original estimate? Why not? Why didn't you realize this issue when you gave me the original estimate?" Then, after considering the answers, you might try, "that's not in our budget. What other solutions are there that will cost less money." and/or "we're going to have to cut something else so that we can come in under budget." Maybe there are some things that you'd like that you can't get or do.

Finally, if you will need additional income to pay for the renovation, you really do need to think about how you will get that money, even if you are due soon. Maybe you do temporary work. Maybe you open a business running errands for working families. Maybe you cut costs elsewhere.
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curlytop




 
 
    
 

Post Tue, Nov 01 2011, 11:47 am
amother wrote:
Have you spoken to anyone about refinancing to lower your monthly payments? We just did that and saved $100/month which may not seem like a lot but our mortgage broker paid all the costs of refinancing (he makes more money by selling the mortgage to a larger bank so he comes out ahead even with paying our fees). $100 is not a lot but when bills are tight, it goes a lot towards food....

And whatever renovations might be left, you obviously need to halt them.


What rate did he get you? The mortgage rates have gone down tremendously in the last couple of years.
I am not sure what your broker did with selling your mortgage etc.. can you clarify?!
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amother


 

Post Tue, Nov 01 2011, 12:02 pm
chica wrote:
OPINIONATED wrote:
I

Just a few ideas to save money:

1. Put your family on a diet of bread & water
2. Limit showers/baths once a week
3. For shabbos, serve eggs instead of chicken & fish & meat
4. Grow your own vegetables (put metal fence around to protect)
5. Sell your kidneys on the black market
6. Encourage your kids to sell pencils & pens for 25 cents each in school
7. Make sure you only buy clothes from Kupas Ezra or Goodwill


This actually insults me. #7 should not be in this list with the rest of them. 1-3, and 5-6 are obviously jokes, but why is buying clothes at goodwill a joke? My clothing budget is $50-100 a month to clothe the whole family, including if someone needs new shoes or a coat. Why wouldn't I look for good quality clothing that is preworn if all it needs is a whirl in the washing machine? Not in the same grouping as selling a kidney.


My parents are retired, and have hundreds of thousands of dollars in their bank accounts. They buy most of their clothes at thrift shops.
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amother


 

Post Tue, Nov 01 2011, 3:02 pm
I'm the amother from above. Our mortgage rate is now 4.25 which was an improvement for us b/c we combined our first and second mortgage. The second one ballooned in 5 yrs and had a very high interest rate so in the long run this save us decent money. But refinancing, even with a diff. situation, might still save the OP a small chunk per month.

The mortgage was through a small local company. Our mortgage broker then sells the mortgage to a large company (this time it was Chase). That profit from the sale more than covers the fees that he so "graciously" waved. Ths is a common practice, btw.
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4thebooks




 
 
    
 

Post Tue, Nov 01 2011, 3:26 pm
Britmummy wrote:
Well, OP, your husband is already working hard, you are not in a position to find a job right now, so it sounds like the only one of you able to bring in any extra income is the house Wink
You say your home is now lovely, so have you considered taking in a lodger? Or renting out a room to a student/young couple? Or how about allowing film crews to use your house as a film set (I think there are websites where you can sign up for this!)?

Otherwise, maybe there is something you can do from home until the baby comes (and even the first few months, during naptimes etc.). What was your profession before? Could you tutor students learning that profession (via Skype if not in person)?
Are you crafty? Could you make anything to sell? I have a friend who made bridal veils when she was at home with young kids. And another friend who started a cupcake business from home and now runs a shop and mail-order cake business!

I'm sure with a bit of creative thinking you can come up with a solution to bring in more income Smile


where can I sign up for film crews to use my house as film set?
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