Living on a Budget, Saving Money/Help

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QUESTION: I have quite a bit of debt.  I have student loans of around $35,000.  I also owe the IRS for previous years because I filed for six allowances on my W4.  

Now that I only filed for two allowances on my W4, I'm barely able to get by. I find myself taking out payday loans on a monthly basis.

My gross income is just over $35,000 and is even more "gross" after the taxes are taken out. Ha! And of course, there's no savings to fall back on right now.

What can I do to save up?

What would be the best strategy to pay off the debt while still being able to pay my rent ($960/mo), and buy groceries?

Would it be wise for me to file "exempt" on my W4?

Michelle

ANSWER: you havent told me your income.  all i can say is ask for a irs consolodation using one of the services that state they help . i would go to the  dave ramsey site and look up his local endorsed provider to help with irs settlements. AS THEY SHOULD BE LEGITIMATE AND NOT A FRAUD THAT JUST WANTS TO STEAL YOUR UPFRONT MONEY.  and then with your income known and your monthly expenses stated maybe i can help with a budget.

good luck

---------- FOLLOW-UP ----------

QUESTION: My annual income is  around $32,000 after taxes. My rent is $960/mo.  

Please let me know what I can do the pay back the IRS AND the student loans.

Thank you,

Michelle

Answer
ok mischelle i know cali rent is high because i lived in la for 20 years.  have u considered being a roomate.  i say be a roomate because then u dont have to worry about the other guy not paying. as the lease is in his name.

i might suggest u look into what i did in the nineties.  i was lucky enought to bee a homeowner.  i rented both bedrooms of my house on a weekly basis . ie rent paid fri each week or every other fri if they got paid every 2 weeks.  i then put up a false wall in my living room /kitchen nook area and made a 3rd room with a private entrance ie the front door.  the rest of us entered on the side kitchen door. and when i wanted total privacy i went to the 20 ft trailer i had inside my garage complete with tv stereo and internet. but that was the 90's but my rent income was 900 a month at 75 a man a room per week.

32,000 is 2700 a month   so 1700 for exp when insurance and cell cost 300 a month. ie cut ur rent cost 1st
then look at car expense if u have one and food and gas and write down all bills and their min payments.

now internet and tv.  i turned off cable 3 years ago savings 800 a year.  i use hulu plus the next day for 10 a month.  
if internet is 40 a month consider becoming a mickey d player. free wifi thats 500 a year saved.


as for debt and irs there are irs programs for forgivness. based on debt load.  a tax attorney who does bk may be an option to get a restart.  and no i dont reccomend those bill consolidation companies. they are rip offs for the most part and your credit is wrecked just as bad as with a total chap 7 wipeout BK.

i hope this may be a start

feel free to follow up with exact bills each month

i dont agree with his debt free idea but his getting back on track ideas work. if u want to go to a library and read dave ramsey for free.

i do use credit cards and have for 30 years and will continue.

but then i can afford to pay them off each month or i get real low interest balance transfers because of my good credit

i wishh you good luck

Living on a Budget, Saving Money

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tbaarr

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I prefer to answer only public questions so all can benefit . there is a donation button.but its not necessary for you to donate to ask me a question. if you want to donate. it will go to my daughters education fund and I thank you. Questions related to credit card management and use of credit to achieve your financial goals I have found on google that my screename has been linked to some garbage financial sites, that I have nothing to do with Please ask me to verify this if you are not sure and let me know who is making any claims so i can sue their asses off this is my website or my blog http://www.geocities.com/tbaarr/night_vision.html http://www.tbaarr.blogspot.com/

Experience

i own over 10 credit cards

8 of these have credit limits over 10k and i use 2 of them to invest with

i have the balance as a fixed life of the loan balance transfer

and make 10 points profit on the money

Organizations
none

I retired doing this in 1996

and wish to pass on my experience. BE aware I got married in 1998 and started Driving Rig in 2004 so that I could get affordable quality Heath insurance for my family as I now have 2 beautiful daughters 4 and 8 as of aug 2007, so I may take longer to answer som questions. i cover such subjects as, my approach to credit, how to establish and maintain multiple accounts, how i get single digit life of the loan balance transfers, how i use their money for 45 days interest free, how i use credit cards to invest for 30% a year profit, and how i maintain a 650+ credit rating while holding 5 or more accounts. I challege anyone have me compare any answer, that suze orman gives on her tv show, to what i would suggest as i find her answers just plain incompetant, especially when she states that borrowing money from an ira causes you to pay double taxation. Thats just plain wrong

Education/Credentials
outsourced electrical engineer with a calculus background

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