by Tricia
The other day, something happened that normally would create utter chaos in our household. My husband received a call and was told that there was a problem with payroll and he won’t be getting his regularly scheduled paycheck.
Since I forcast ahead in Quicken to make sure we have enough cash for everything, to have a source of income taken away for a few weeks could be tragic. Even a smaller check like that one (it’s for a part-time job) can send our bank balance into the red zone because I run our checking account so low.
My husband’s boss apologized for the error; he’s not sure what happened. He even offered to give my husband a loan for the amount until the next paycheck. It still feels weird to say it, but I looked at my husband and told him that we can wait until his next payday for that money. Why? Because we can pull from our savings. It wasn’t a problem.
If something like this had happened a year and a half ago, I would have been pacing the house back and forth trying to figure out what to do. I wouldn’t want to take up his boss’ offer of a loan (too darn proud to do that). I would have been thinking of how we could make some money fast. I’d also be calculating how much we could possibly put on our credit cards (groceries, gas, etc.).
Oh how things have changed. I’ll just initiate a balance transfer from one of our savings accounts and pay it back as soon as we can, probably when some more money comes in. Slowly but surely, we are getting closer to living a life that doesn’t involve living paycheck-to-paycheck.
We’d have a problem if this happened with our major paycheck (don’t quite have enough in our savings yet to cover that one), but it felt nice that we were able to do it with this one. Actually, it feels more than nice…it feels pretty darn good.
that’s fantastic. it’s got to be less stressful. it’s also got to feel good in the long term, knowing that you have more control over sudden changes in your finances.
it was really nice that your husband’s boss offered a loan. glad that you didn’t have to take it, but is was a nice gesture.
Cash flow crisises Oh god do I know that feeling been there too many times to remember!
It’s nice having something to fall back on isn’t it!
I am *so* proud of all the steps you and your family are taking to create financial security.
Thanks for sharing your world with the rest of us who aren’t quite to where you are in achieving financial freedom. We’ll get there, I know. Thanks for lighting the way.
Here I go – memories of doom and gloom.
I once had an employer that had a “glitch” in his system. I believed everything he said. I believed he was financially savvy enough to not worry about his circumstances.
As an employer now, I realize this is not acceptable. It is illegal for an employer, for any reason to hold back earnings. Should a “glitch” happen, I would do what ever I could to make good the payrolls. And I would succeed, most likely without informing any employees about the situation. Even if it meant pulling personal funds to do it.
Here is my big red flag – BEWARE. Your hubby’s check could be at bigger risk then you know. I worked for free for weeks before I saw the writing. I don’t care if you have the money or not. There is an employer/employee relationship here that must be maintained at all times. Friendship must be set aside. Even if you don’t need the money, why should you lose interest on your savings and the security you are building for your family, for a person who knew the risks of business and took them anyway.
Make sure this does not become a habit. Charity begins at home and all that jazz.
End warning.
Good for you, I’m glad you have a cushion for the unexpected!
I’m glad you had the savings to cover things. I wonder though, why you would be too proud to take the loan. The boss’ company screwed up (does the boss own the company?) so someone at the company should make sure that people get paid. And they shouldn’t call it a loan…
Well, the actual employer here is a huge place that we both have worked for previously. They have many, many employees so it is very believable that there was a glitch and there isn’t a cash flow problem for the employer.
My husband’s boss I guess is more like his supervisor. He isn’t involved with payroll except for making sure the payroll department paid his employees. He himself is also an employee. So, it was really nice of him to offer a loan using his personal funds.
But Dedicated is right. Any time that you don’t receive a paycheck, a red flag should go up. In our case, given the employer, it doesn’t surprise me that this check slipped through the cracks. I also have full trust that the pay will be with the next paycheck.
If not, they will be subject to the “Wrath of Tricia” LOL 🙂
Congratulations on being able to weather the storm so well and with such ease! That’s an huge accomplishment!
And I appreciate that your husband’s boss offered a loan out of his personal funds. That’s a very nice thing to do, and would certainly solidify my allegiance to that supervisor.
I just wanted to mention though, that it’s not a ‘loan’ if you’ve already earned it. That paycheque is money that already BELONGS to your husband. It shouldn’t be YOUR pride that holds you back, the COMPANY should be the one that is embarrassed here. What kind of way is that to treat someone that you value? Not paying them for work they’ve already performed? You’d never ‘have a glitch’ paying for the groceries that you already ate last week, would you?
Wow thats very inspirational to hear. Having some money reserved away like that for problems that can come up must be a great feeling (Not quite there yet but quickly approaching it)
I’m so glad you could cover it with your savings! That must make you feel really good!
I remember back when my husband and I were first married and living very much paycheck to paycheck, his Friday paycheck didn’t arrive until Monday. It was only 3 days, but it was super-stressful. We were very fortunate not to have any checks bounce!
It’s definitely much better to have a savings cushion.
Yay I am so happy! That is great that you can weather this storm unscathed 🙂
Not so impressed with the paycheck people. No not at all. :mutter:
I hope they issue you a check NOW instead of making you wait for your next check.
My husband works for big companies and is a 1099 employee. These employers can put you on a 30/60/90 day cycle. Many a time it has been down to the wire. Even recently we had 60 days between checks, although my husband was working continually. Sure we have some savings, but 60 days is a long time to support a household.
my wife didn’t get paid for three months, so I know how you feel.
BUT…if the employer offered to loan the money, I would take it so I didn’t have to lose out on the interest in the savings. of course, by borrow, I mean zero interest.
Congratulations! It’s neat that you keep seeing the concrete benefits of your increased financial responsibility. Stories like this one illustrate how much living paycheck-to-paycheck can be a form of financial slavery. It’s a terrible reality to be that dependent on a particular job/employer and to not have the freedom of a little breathing room and the freedom to go a few months without a job. Several years from now you’ll know real financial freedom…no debt and a real financial cushion so that you can do what you actually want to do (within reason), you never feel panic based on an employer’s actions, and you will be able to go without working short-term as needed or wanted.
One other thought…you mentioned that in the past if you didn’t have this savings, you would have kicked into over-drive thinking of other ways to earn money quickly. Maybe you can use a little bit of the residual adrenaline right now for you or your husband to go kick up a little extra income…no harm in bolstering the savings even more or spending a month or two (thanks to the minor panic caused by the employer) putting more toward debt!
You’re a superstar and a source for admiration. Good going, Trish–I’m glad you were able to pull through the pay glitch without a problem.
Good thing you had the savings account; I’m trying to clear up my debt to the point where I can afford to continue contributing to my savings. Its so much better than using credit cards in a jam but not always possible.
Hopefully everything with your husband’s pay gets resolved quickly. Glitches suck when they involve money.