One of life’s curveballs

Posted by The Debt Defier on July 25, 2008

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I(DD) went to work yesterday morning and my boss met me as I walked in and suggested we have a brief meeting in the conference room. In my short time at this job I have learned one thing, meetings with the boss in the conference room are not good.

This one sure wasn’t.

I was being let go. They were expecting tough economic times in the near future and they weren’t sure if I was a good fit for their company. So they decided we should part ways now before things got too complicated.

I was fairly blindsided so I just sat there like a deer in the headlights, nodding silently and saying things like, “I understand.” And the ever-so clever, “uh huh.”

What I was saying “uh huh” too was my severance package which included two months salary and health insurance for the rest of the year. They may be SOB’s, but they are generous SOB’s.

But on the bright-side, as I was walking home carry my box of personal belongings, I thought “this isn’t so bad, now I’ll have time to paint the house.”

I’ll probably take a few days to do some personal reflection and try to figure what’s next. I’ve been out of work before, but that was different, we didn’t have any kids. Everything is on the table this time, from going back to school, working the night shift, to even moving to another town.

I’m fairly open. But I think I have to be.

I’ll do my best to stay debt free while going through this transition. I guess, we’ll get to see just how good I am at defying debt. We’ll be cutting back expenses in the short term. Who knows, I might even be selling our van after-all.

I know I’m not the only one out there who has ever lost a job, so any advice would be appreciated.

Until next time,

-DD

» Filed Under About The Debt Defier, Careers

The Nitty Gritty - Details Of My Financial Hole

Posted by The Debt Defier on July 11, 2008

Before I get too far on this journey to financial freedom, I figured it was time to come clean on just where I stand debt wise.

As of today July 11th, 2008 my wife & I owe:

$95,108.62 - Mortgage
$11,843.96 - Car Loan
$6,130.00 - Student Loan
$1,226.92 - Credit Card Balance

When I see it listed, it doesn’t seem so bad. The total of $114,000+ is scary to think about, but I feel it’s quite manageable. I now just have to figure a way to manage it.

Here’s what I have to work with:

Income:

$3500 - monthly take home pay.

Expenses:

$830 - House Payment
$330 - Car Payment
$105 - Student Loan Payment
$950 - Daycare bill
$100 - Electric bill (in winter this is $400+)
$100 - Phone & Internet
$50 - Water, sewer, & garbage fees
$100 - Insurance (Auto & Life)
$500 - Food
$60 - Retirement savings
$45 - Contributions to church
$130 - Gas

Total = $3,300

I usually am able to pay off the credit cards each month. Which are normally double what they are this month, but I paid this month’s daycare bill late enough that it missed my card’s cutoff date. Of course this means that next month’s bill will be HUGE, but I’ll cross that bridge when it comes. And for the past couple of years I’ve also been making small extra payments to the student loan ($20-$50 a month), but you can see that there isn’t much left at the end of the month to do a whole lot with.

In a future post (probably next week) I’ll dissect our biggest expense…DAYCARE.

But in the meantime, I’ll be curious to see the results of my financial tracking to see where I can cut some corners. It’s been a challenge trying to keep track of every cent spent (especially during the long holiday weekend) but I keep reminding myself that it’ll be worth it in the long run.

I know that The Happy Rock is full of great ideas on saving money, but I bet that you all have some great penny-pinching tips and tricks as well. If you do, please share them…because I need all the help I can get.

Until next time,

-DD

» Filed Under About The Debt Defier