Spending over $1000/month on entertainment...help

[Katsumi_Toda]

Hi, I divorced my wife a couple years ago. She controlled the money and did a poor job -had secret credit cards etc. I have since been getting myself on my feet and have had my own bank accounts for 2 years!

I'm 32. I live in a studio apartment. I sold my car to lose the note and bought a cheap little motorcycle, cash.

I earn around $3000/month (after taxes and health insurance).

My expenses are around $850 (not including gas, food, entertainment)

I have about $8000 in my savings account.

I have $6000 in school loan debt (the monthly payment is included in expenses above).

Since I sold my car in May, I've been putting about $1000 in savings each month.

I basically blow about $1,100 on entertainment each month.

My predicament is I'm not sure weather I should just pay off the school loan now, tighten up the budget, and build my savings back up....or buy a newer, more reliable motorcycle. I am considering this, as the bike I own is cheap (i bought it to learn on). It brakes down a lot and spends a lot of time in the shop. This is expensive and leaves me cycling to work. I can buy a new one cash and not deal with reliability issues.

I live very simply. I have no TV, no internet, no real expenses. I would like to lose the school loan, but I'd like a reliable vehicle. Riding is also entertainment for me.

My goal is to return to school. I'm an licenced nurse. With my bachelor's I could basically double my income. This is one of the reasons I'm trying to keep my living expenses down, as when I return to school, I'll have to work less for the 1-2 years it will take to graduate.

Any advice?

Also, any general advice on budget/spending etc. I think I am spending way too much on nothing each month.

Thanks for reading.

[marvholly]

I have been reading this & other financial forums for >10 years.

I CANNOT understand why everyon always has everything ALL item A OR all item B. Why not take that $1000 and split it between student loan and savings. At the end of a year the loan is paid off & you have $600o in savings toward the different vehicle, your schooling.......

[bjl584]

You say you live simply with no tv, internet, etc., but then you say you blow $1000 a month on entertainment. What type of entertainment? Where is the money going? The answer seems to be as simple as stopping spending $1000 a month on entertainment.

[Katsumi_Toda]

I have been reading this & other financial forums for >10 years.

I CANNOT understand why everyon always has everything ALL item A OR all item B. Why not take that $1000 and split it between student loan and savings. At the end of a year the loan is paid off & you have $600o in savings toward the different vehicle, your schooling.......

I see what you're saying, but I don't like that idea. Also, $500/month towards the school loan will tale 12 months to pay it off.

I like the idea of just paying it all off and being done with it. I'm just having a hard time deciding between that and getting a new bike.

[QuarterMillionMan]

Would you consider getting a tv & or Internet as entertainment options. Simply staying home and watching tv or entertainment via the Internet can dramatically cut down some of your entertainment budget if you are going out every other night. Chilling out at home and watching shows can save a lot more than being out on the town . Just my 2 cents.

[disneysteve]

How exactly are you spending $1,000/month on entertainment? Where is that money going? I think you need to itemize that spending before you can figure out how to fix it.

How much would it be to replace your motorcycle?

[Katsumi_Toda]

Would you consider getting a tv & or Internet as entertainment options. Simply staying home and watching tv or entertainment via the Internet can dramatically cut down some of your entertainment budget if you are going out every other night. Chilling out at home and watching shows can save a lot more than being out on the town . Just my 2 cents.

Good call. Getting internet would probably be a good idea.

[Katsumi_Toda]

How exactly are you spending $1,000/month on entertainment? Where is that money going? I think you need to itemize that spending before you can figure out how to fix it.

How much would it be to replace your motorcycle?

I eat out or get take away for pretty much every meal. I will go out and spend $80 on a meal for me and my chick. I spent over $300 this weekend on movie, dinner, drinks. I spend $200/month on cigarettes.

I only started looking at my budget yesterday when I was looing for a new apartment and working out what I could afford. I was like, wow, I can afford something really nice. Its just having the new bike/paying off that school loan/going back to school are more important to me right now.

I'm always thinking about if something happens and I somehow lose that income, I need some money to fall back on. I don't like taking my income for granted and definitely don't wanna be in a situation where pretty much every penny is spent before I get my check. I think I've probably gone a bit extreme with that though and have, therefore, ended up over compensating with my entertainment budget.

$4000 for a brand spanking new bike with trading in my current bike.

[disneysteve]

I eat out or get take away for pretty much every meal. I will go out and spend $80 on a meal for me and my chick. I spent over $300 this weekend on movie, dinner, drinks. I spend $200/month on cigarettes.

That's why I said you need to itemize that $1,000 figure. You aren't spending $1,000 on "entertainment". You're spending $200 on cigarettes. You're spending a certain amount on dining out (which is a form of entertainment). You're spending a certain amount on alcohol, and so on.

Once you have a break down of where the money actually goes, you can start to address it. Start cooking more meals at home. It is way cheaper and far healthier. Work on reducing the amount you smoke or even quitting entirely - also cheaper and healthier. Limit alcoholic beverages to those enjoyed at home where the cost is a fraction of what a bar charges. When you go out, just drink water. Instead of going to a movie, do something at home with Netflix or Redbox or On-Demand depending on what you want to see and what services you have.

How did dinner, drinks, and a movie cost $300? Let's say dinner was $80 (the figure you gave). Movie is $20. Drinks are maybe $10 each so if you each had 2 drinks, that's another $40. Total of $120. Where did the other $180 go?

[JoeP]

That's why I said you need to itemize that $1,000 figure. You aren't spending $1,000 on "entertainment". You're spending $200 on cigarettes. You're spending a certain amount on dining out (which is a form of entertainment). You're spending a certain amount on alcohol, and so on.
...
How did dinner, drinks, and a movie cost $300? Let's say dinner was $80 (the figure you gave). Movie is $20. Drinks are maybe $10 each so if you each had 2 drinks, that's another $40. Total of $120. Where did the other $180 go?

I'd go a little further and suggest that the OP make a very detailed list of all expenditures. Track for a couple months and then he'll have a good picture of where the money is going. Then it will be easier to target expenses to be reduced or cut.

Youth is a good time to learn financial discipline and habits that can be carried forward when you start a family, buy a house, etc.

[disneysteve]

I'd go a little further and suggest that the OP make a very detailed list of all expenditures. Track for a couple months and then he'll have a good picture of where the money is going. Then it will be easier to target expenses to be reduced or cut.

I agree completely. You need to know where your money is going. It sounds like you have some idea but not enough. For 30 days, write down everything you spend on absolutely anything. It will quickly become even more obvious where the problems lie. Then it will be up to you to decide where your priorities lie. Which is more important - eating out every single day or getting out of debt and buying a new bike?

[cardtrick]

I eat out or get take away for pretty much every meal. I will go out and spend $80 on a meal for me and my chick. I spent over $300 this weekend on movie, dinner, drinks. I spend $200/month on cigarettes.

I only started looking at my budget yesterday when I was looing for a new apartment and working out what I could afford. I was like, wow, I can afford something really nice. Its just having the new bike/paying off that school loan/going back to school are more important to me right now.

I'm always thinking about if something happens and I somehow lose that income, I need some money to fall back on. I don't like taking my income for granted and definitely don't wanna be in a situation where pretty much every penny is spent before I get my check. I think I've probably gone a bit extreme with that though and have, therefore, ended up over compensating with my entertainment budget.

$4000 for a brand spanking new bike with trading in my current bike.

Go get the patch. Get electronic cigarettes. Get some prescription medication. Go see a hypnotherapist. Anything to get you to quit smoking. You will save money in the long run and also you will live so much longer. Considering you're only 32, your risk of smoking related death can be reduced to almost zero if you quit while you're still young.

[LivingAlmostLarge]

Stop smoking so you don't die early.

[QuarterMillionMan]

It's not as easy as it sounds, quitting smoking. I know that for a fact although I no longer smoke. In fact, getting that monkey off one's back is one of the hardest addictions to quit. I had smoked from 1985 thru 1993 and quitting was not easy. I have not touched another cig since then but those things are highly addictive. I had quit cold turkey style but as other posters have mentioned try different methods and hope you can overcome it. While I'm at it I'll tell you a story about an Aunty of mine who never smoked a cig in her life. However, she endured second hand smoke inside the house from my Uncle who smoked 1 or 2 packs a day. She eventually had to go on oxygen herself, developed cancer, and died from all the second hand smoke. So sad. Cigarette smoking is one of the worst things out there.

[nyczarnold27]

+1 about quitting smoking or at least trying. I smoked from 16 to 26 years old and quit for good early this year. It's really only 10% physical and 90% mental.

What's the point of saving money for 30 years to die at an early age?? Money is always 2nd to Health.