thanks for clairifying expenses..
Bittom line is yes your situation "looks" untennable..if you were not to change tac..
No wonder you are stressed living paypacket to paypacket..
But you are normal in that many like you have fallen into the same trap - you however are a smart one looking for a change..
Some tough love
1. You are living a lifestyle that you cannot afford. Your lifestyle is that of a couple that should be earning twice as much as you. So this is about perspective and understanding that a new car, house, holidays etc are not a right (in the old world of credit) but need to be earnt..
I am a millionairre and i drive a car worth 6k....why should you have a better car than me? No real reason i can see..
I am not having a go at you I am just saying that my perspective is that i am ok with a cheap reliable second hand car. I have never had a car loan and instead of losing 15k per year (in after tax dollar) in interest, depreciation, insurances, high gas costs etc etc Ithat is money in my pocket.
I dont feel any different driving a cheaper car..but make sure its reliable. I dont have cable either...
I live close to my work, or publci transport so that I can walk or ride a bike which not only saves me money but also keeps me fit and healthy. Living close to work or transport can save families many many thousands per year...
So i think you need to set yourself a plan over the next 12 months
- How can you get rid of debt?
- How can you make wholistic lifestyle choices that save money and dont cost money
Your income is not all that bad - your costs and debt are the issue
If you see no way out of your expenses (want to keep nice car, want to keep cable etc etc) then you gonna have to find more income. thats a whole new story.
Oh and it may be worth getting your house valued. Actually that is very important. Find out if you will make any money "IF" you had to sell.
Despite being worth alot of money i have never lived in the houses i own. i have always rented. i am not suggesting this for you or for anyone. Its merely to let you know nothing is written in stone. people get into financial trouble because they follow societal conventions about what the think they need to own, buy, rent etc....when truth is there is no rules. The best rule is what suits you and what suits the economic circumstances..
would be great if you keep us posted on developments..
you are doing the right thing!