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How it All Began

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How it all began……

I was never good with credit. When I was 16, Lane Bryant sent me a credit card. I had ordered from there catalog for several years. I don’t remember filling out a credit application, just this very pretty purple piece of plastic coming in the mail, and I then could order clothes and pay a small $25 a month until they were paid off. Easy, right? I had my first charge off on my credit report at 18.

I was a single mother at the time, and on welfare. The next step was to go back to work, and I needed a car. But with a new job and a small awful credit file, I needed a co signer. I don’t know how I did it, but I talked my Dad into it. I bought a 1990 Ford and went to work 3rd shift.

I behaved at 1st, making payments on time, and then I moved out on my own. I lived in an apartment with my son, and my soon to be husband. (now my ex husband). Living on my own was hard, and things started to slide. First my car insurance didn’t get paid, then it was canceled. So the finance company added their insurance to the car. Then I fell behind in the payments. Eventually I had to give the car to my Dad, and borrow his paid off car to drive back and forth to work. He was nice about it, but swore he would never co sign for me again, and he never has. Not that I would ask.

When my ex and I got married, we moved south with the military. He then took over the bills. I had given my Dad his car back when we moved, so we were down to one vehicle. We decided to trade his truck in and buy 2 cars, one for each of us. His credit was good, so it was no problem.

Fast forward a few years, and we are out of the military and permanently living in the south. Thing are tight, and my ex and i fight about money a lot. Eventually we end up splitting the bills 50/50, and each of us have to pay out of our own paychecks. He doesn’t care about any credit cards, just that if they are in my name, I have to pay them myself. Me, having no self control with money, rack them up. We split in 2001, and he walked away with a paid off truck. I was left with 10,000 plus in credit card debt, student loans, and a single wide mobile home with a 20 year mortgage.

I then decided that I wanted a new car. The one I had was with a credit union, and I was upside down a lot. But it was in my ex husband’s name. So, I let it go back, and bought a car on my own. Took out more credit cards. Move to a rental house that was $250 more a month and let the single wide trailer go back to the bank.

Are you starting to see a trend?

Don’t get me wrong, I was making it, but by the skin of my nose. By then I was at my current job but a single mom of 2 kids. Do you know how embarrassing it is to have collection agencies call you at work, while you are a bill collector for your job? One time, they even faxed my boss about my debt. I blamed my ex husband, and prayed that they would stop one day.

Then the rental house caught fire. Thank goodness I had renters insurance. I had a ton of cash, and a spending habit that I had not fixed.I found a new place to live, a rent to own house. I had one year to rent, and I had to get the mortgage in my name. I did it in 6 months. That was the height of the housing bubble, and I got a 11.75 % variable APR mortgage on a $125,000 house. But I had a ton of money from the insurance, that made it easy. My spending habits didn’t change. My kids and I had more stuff then we knew what to do with.

I then met my current husband. He is 6 years younger than me, and still was living at home. We has a speedy courtship, 4 months from our 1st date to our marriage. The money from the fire had run out by then, and he didn’t have a well paying job, so I robbed Peter to pay Paul to pay for the big wedding we had. The mortgage company did the 1st loan modification on the mortgage within 6 months. They lowered my payment and my interest rate to 7.5 % fixed. I thought everything would work out.

Traded and bought a few vehicles, and racked up more debt. Was kinda of keeping my head above water, then my husband got sick. We then had huge medical bills that included a bill for a cornea transplant. Everything got past due, even the house again. We went and filled out the paperwork to file chapter 13 bankruptcy but didn’t have the filing fee until we got paid on Friday. Thursday, I went out my front door to goto work, and my car was gone. It had been repossessed in the middle of the night. So, I borrowed the filing fees to file a day early, and the next day, the lawyer got my car back from the bank.

Again, things were fine for about 6 months then hours were cut. My husband had to find a new job, and took a $2 an hour pay cut. That hurt. Our Chapter 13 payments were self pay, so we stopped them. And our plan was dismissed.

We went back to the attorney, and asked what to do. He said to keep the house, we would have to file chapter 13 again, but reduce what we were paying in the plan. We gave back my car, but kept my husbands truck. I went out and found a mini van on a buy here pay here lot and got that for transportation as our family by then had grown by our twins and we didn’t fit into the truck by then. This time my pay was garnished for the payments, and my take home was about $250 every two weeks. My husbands was about $600 every two weeks. Everything else went to bankruptcy. It was very tight. So tight, that I even went behind my husbands back and got 4 credit cards while in bankruptcy. See the trend.

Then the layoff. My health insurance at the time was 100% paid by my employer, but my husband carried the girls and himself. To add him and the kids to my heath insurance was $300 a paycheck. His unemployment was $115 a week, and I only was clearing $250 a paycheck. The bankruptcy payments had to stop. My attorney got the trustee to stop the garnishment, and I put everyone on my health insurance. We saved up and filed income taxes, and converted to a chapter 7. We bought 2 salvage titled cars, and let the truck and van go back to the banks. We did another modification that included stretching the mortgage to 40 years from 30 years, and kept the house. We were discharged from chapter 7 in July 2013.

Stay tuned for part two…


Dawn of a New Day

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Hello, I’m Marie. I’m here to get honest about my debt. Yes, I have a lot. So much, I am in denial about how much. That’s why I’m here. To be open, honest and get rid of this debt.

A little background about me. I am a 45 year old married mother of four and grandmother of four. Two of my children are grown, and I also have nine year old twins. My husband and I are coming up on our 11th wedding anniversary.

I grew up in New England, but I now live in the south. I moved here in the 90’s with my ex husband, and stayed after the divorce to raise my two children here. The cost of living where I grew up verses here is so much less and by then, my extended family was all over, that it made no sense to move back.

I grew up with a mother who was single most days, and struggled a lot. She would would work her tail off and then buy us with “stuff” when things got bad. To this day, she still likes to fill her space up with “stuff” and still struggles herself to make ends meet.

I have been at my current job for sixteen years. I am the Credit and Collections manager for a home heating fuel company. I handle not only the extending of credit to our customers, but the day to day collections of our accounts.I think that its ironic that I work as a bill collector, yet manage mine so poorly. I adore my job, yet wish I made more at it. Don’t we all?

My husband also works, he works for an automotive manufacturing business, He has been there about three years, after an eighteen month layoff from his previous job. He just was promoted and received a raise, yet his overtime has been cut in the last few months.

I handle 100% of our bills. My husband has no idea even how to handle a budget. We are scheduled to start Dave Ramsey’s class the middle of September. I think it will be a good tool for us, motivation for me, and a real eye opener for my husband. We our out of balance when it comes to money, I stretch it as far as I can, and he thinks as long as the debt card works, its ok. I won’t lie, I have gone through times that I have turned into my mother, and enjoyed my “stuff”. We have been through major medical expenses, a layoff and even bankruptcy. I’m not proud of that last thing, and I am determined never to go there again.

Like I said before, we have a ton of debt. I don’t have specific numbers yet, but around $20,000 in credit card debt, $10,000 in personal loans, two (just bought in the beginning of 2017 )vehicles (about $30,000 each), a $15,000 in student loans, and in February we bought a new house. So if I had to ballpark it, we are talking about $105,000 in debt, not including the house. The house is owner financed, and we have to re finance it through a bank no later than November 2018. That is a whole separate blog post in itself.

We have huge hurtles to overcome, but I have faith that we can do it all. Today is the dawn of a new day.


Brace Payment Be Gone

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Braces have been part of our lives for almost five years now. You can read some history in these two older posts.

A Car or Braces

Braces – Part II

But I am excited to announce that as of yesterday, all brace debt is GONE! Paid the final $460 payment!

(Braces were not in my budget as I have maxed out my FSA deductions from my W2 job and have been using it to make the payments since I started my W2 job in March.)

Man, this feels good!


First Paycheck = FAIL!!!

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I received my first full paycheck at my new rate of pay. I was shocked that it was much lower than I had anticipated (even after using a couple online calculator programs to try to accurately predict take-home pay).  My expectation was that I’d earn somewhere between $5-6,000/month take-home.  The reason for the large range is that I have a LOT of money coming out in pre-tax deductions, including:  medical and dental insurance, Flex Spending Savings accounts for health and dependent care, and 7% retirement investment (required and matched by my employer). In total, I have 20% of my check removed pre-tax. Taxes remove another 20% of my paycheck. So when looking at my base weekly salary compared to my take-home pay, I’m only actually bringing home 60% of what I earn (to be fair, I’m saving money by being able to pay a portion of medical and childcare from our FSA with pre-tax dollars, but our FSA has caps that we exceed, so some of those expenses are still paid out of my take-home pay post-tax).

After all deductions, my first full paycheck was for a total of $2269. I get paid bi-weekly, so we’re talking about $4500/month for most months (except for the odd month with 3 pay periods). This was a huge shock, given that we’ve been quite accustomed to budgeting for literally double that income amount.

I’ve never shared exact income numbers before on the blog because it made my husband feel uncomfortable for his business earnings to be shared and analyzed. But now that he’s shut his doors down and it’s all me – I feel fine with sharing my personal income. Guess what, y’all….my salary is $95,423/year. That’s with my big raise. I was originally hired at $55,000 two years ago. I guess there’s some disconnect in my brain or something because I thought $95k sounded like “BIG MONEY.” When I got my raise I was overjoyed – I was expecting a huge, wild difference in my rate of take-home pay. Under $5,000/month was NOT what I was expecting. Call me spoiled or privileged of whatever else you want (and I own that I am some of those things – I’m lucky to have the job I do), but this was a huge shock.

So although it feels like “starting over” (although it’s not!!! We’re still down nearly $80k in debt over the last 3 years), it’s definitely a come-to-Jesus moment. Hubs and I have had to totally start over on our budget with fresh eyes. Thinking about how to continue making progress on our debt reduction journey while simply surviving (here, we thought we’d be “thriving” with this huge raise). Some tough realizations have been made:

  • Hubs must keep earning an income somehow. Hubs has run a successful flooring business for almost a decade, but recently quit to go back to school. Many people have commented that he should keep his business going for some side-income, but it just doesn’t work that way. Unless you’ve owned a business in the construction trade before, you probably don’t realize how expensive it is just to maintain the proper insurances, licenses, etc. Hubs is NOT the type to do business under the table without the appropriate certifications. It’s a big problem in his industry (and where we live, in particular), and he was not about to go that route. But to just keep his insurances and licenses up to date cost several thousand a year. When we looked at what he was bringing in part-time versus the costs to keep the company legal, it just wasn’t enough to make it worthwhile. And, maybe surprisingly, the flooring trade is not as flexible with a school schedule as we need. Hubs’ first semester back was this past Spring and he had many stressful calls from employees (or worse, home-owners) with issues that demanded immediate attention, while he was still stuck in class for many hours to come. All in all, this was a losing proposition for our family. So now we’re trying to think of more flexible and accommodating ways that hubs can earn some side-money while in school. So far brainstorming has included: driving for uber or lyft, doing some type of food delivery, and perhaps trying to become a personal trainer. Remember – hubs has been big into health and fitness the last couple years, so the latter is his preferred method, but it will also take the longest to get started and requires additional research first. Any other ideas?
  • Food consumption has to get under control. A friend recently posted on facebook to inquire about how much her friends’ families pay per month for groceries. The most common number I saw was $250/week. I have to say, for the past couple of years since I’ve been working 2 jobs, our food budget has been way over $1,000/month (including groceries + eating out). I mean, $1,000/month was a GOOD month. But remembering back to when I first started blogging, it hasn’t always been this way! In fact, my original grocery budget was only $400/month!!! And I stuck to it! To be fair, it was never easy. I would spend a TON of time researching sales, carefully planning meals around sale items and food we already had in our pantry or freezer. I would easily have to go to 2-3 stores per week to get the best priced items (Walmart does their ad matching, but our local Walmart doesn’t have great quality produce). I’d also make a ton of items from scratch. Everything from breads and homemade granola bars to fruit leather and yogurt – even baby wipes I made myself for cheaper than could be bought bulk at Costco. Between ad searching, meal planning, grocery shopping, food prepping, and scratch baking, I probably spent a good 10-15 hours/week on my efforts. It paid off big-time in terms of money saved, but I just simply lacked the time when I started working full time (plus kept my part-time job, on the side). When I accepted my big raise I had to sign a non-compete so I had to leave my part-time job. So even though I still work full-time, I have significantly more time in the early morning/evening/weekend hours to try to devote to some of my old grocery-saving ways. I don’t know that it’s reasonable to get back to only $400/month. But I think if I shoot for $550-600/month (again – that’s for all food: groceries + eating out), it would be a huge savings over our current spending. I’m going to give it an honest effort for the month of August and see how I do.
  • The budget, in general, needs to be slashed. It’s scary how easy it’s been for things to creep up over time. When I first started blogging all our gifts were in the $10-15/range. Recently our gift-giving has been closer to $25-35+/gift. Hubs and I have both rejoined a gym. It’s very important to hubs (and he spends legitimately a ton of time there), but maybe I’ll cancel my own membership to try to save some money since I’m perfectly happy to run outdoors for free as my preferred form of exercise. I also had a friend recently mention that some health insurance companies offer discounts for gym memberships? I need to call Blue Cross, Blue Shield to inquire about this. Spending across the board needs to come down.
  • Debt payments??? Probably the hardest thing to accept is that our debt payments are going to drastically decrease. We’d grown accustomed to throwing thousands a month toward debt! I’m talking many months where we were paying $2500-$3000/month toward debt!!! Obviously if I’m only bringing home $4,500, there’s no room for a $3,000 debt payment. It’s just not possible. So we have to adjust expectations, adjust our 2017 financial goals, and just keep plowing forward, making as much progress as possible with what we have to work with.

So, ultimately, we need to cut our expenses AND try to find a way to increase our income. There’s not much wiggle room for me (since I can’t pick up side work in my current industry), but I think we can try to find solutions to get hubs some part-time side gigs. My focus will be best spent on trying to reduce our food expenses, since that tends to be our #1 monthly expense (cumulatively speaking. And yes, I know how ridiculous that sounds, but it’s true).

So there you go – I’ve laid it all out on the table. Next up will be formulating a solid budget plan and figuring out how to juggle our debt payments. Especially now that we owe $1,000/month to the IRS from our poor planning last year. Ugh! But baby steps here – if I think about everything at once I become overwhelmed so it’s one thing at a time. We now have a solid “income” figure so we know what we’ll be working with in terms of take-home pay. Now it’s time to figure out how to make our outflow match with our inflow and to find additional areas to cut back.

 

How much does your household spend per month on groceries (and how many people are in the household)? How do you save money on your food budget?


The True Cost of a Deck

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Thanks for all the comments on my latest post about motivation. I’ve taken the comments to heart and am really doing some serious pondering and life planning for moving forward. I’m trying to minimize the financial bleeding this summer, and then jump back full-force in August with some renewed energy. I wanted to try to go gung-ho this month, but with my lower pay and some unexpected expenses (see below) I just don’t think I can even reasonably expect to try to create a $3,000/month budget for the month of July. We’re going to take on more debt. Sigh. But in August I’ll have my first full month of new salary and our bills will have hopefully stabilized enough for us to create a new budget. From what I’ve figured, I think my take-home pay will be around $6,000/month when my new raise goes into effect. So far the budgets I’ve been playing with are still around the $7,000ish range, so I’ve got to figure out how to come up with an extra $1,000 month (or, alternatively, how to cut an extra $1,000/month from the budget). I’ll write up a post soliciting advice soon.

In the meantime, let me tell you about my latest unexpected expense in a story I call “The True Cost of a Deck.”

My mom and stepdad still live in the same home that I was raised in from the time I was 10-years-old. The house is in a highly sought-after area in Austin, TX and has appreciated well during the time they’ve owned it. It’s beautiful and I love it, but it no longer serves my mom and stepdad’s needs. It’s too large, taxes are too high, and it’s too-tall (two story, when they’d prefer a single story).

The plan has been to put the house on the market this coming spring. My mom, a real estate broker, has tried to dedicate much of the last year to putting in updates that were needed to bring the house up to modern-day and to maximize the amount they can list it for when it goes on the market. They’ve done updates in the bathrooms, the kitchen, and with the floors. The last remaining big thing has been the deck.

My mom’s house is built on the side of a hill. When you walk in the front door it’s at ground level, but then the ground slopes steeply so when you walk to the back door of the house (still on the first floor), all the sudden you’re an entire story above ground. They’ve had a back deck that you could walk out on with stairs leading down to the backyard grass below.

The deck is entirely made of wood and it has been heavily used and abused across time. At this point, parts of the deck are warped and rotted and it is unsafe to be on. Many of the surrounding homes had similar problems and all have had their decks redone at some point in the past 5-10 years. My mom, the last hold-out on the street, felt the time was finally right to replace their deck as it could raise safety concerns for potential homebuyers.

My stepdad, a very intelligent academic-type who likes to think himself a DIY-er, spent months thinking up plans for the deck. Finally, they decided to shell out the money to have a professional draft the plans and provide a list of materials needed to complete the project. The plan was for my stepdad to do the work himself. Once plans were procured, my stepdad went to work. Literally on Day #1, before anything else had been done, he got up on a ladder to cut down the limbs of an overhanging tree. When the large branch fell, it took out the ladder my stepdad had been standing on. Chainsaw in hand, all 3 (stepdad, ladder, and limb) fell to the ground. What could have ended in serious disaster (I shutter to even consider the possibilities), ended up not too terrible. My stepdad sustained a severe tear of his rotator cuff that would require surgery. After meeting with multiple specialists (he didn’t want to accept the truth), he begrudgingly agreed to hire out the rest of the work, given that he required immediate surgery and a lengthy recovery. Any plans for future deck-building were gone. In fact, he was told, the muscles in his arm/shoulder would likely never be the same again.

My Stepdad’s surgery was this past Friday afternoon. Early Saturday morning, my sister (an RN) went to visit and check on my stepdad’s bandages/dressing. While there, my Mom encouraged everyone to go outside to see the progress being made on the back deck – now being completed by a hired contractor. Outside, everyone admired the deck. It’s costing an arm-and-a-leg ($20k compared to the $5-7k DIY estimate), but it’s going up quickly and looks beautiful!

Everyone started walking back around the big hill toward the front of the house when my mom tripped on a piece of debris from the construction, fell, and landed hard on her arm. My sister said the “pop” was audible and unmistakable. My mom’s arm was bent backward and sideways, an unnatural direction that can not occur with healthy, intact bones. An x-ray at the ER later verified the extent of the break. My mom was in so much pain that she almost passed out a couple of times: during examination and immobilization.

Screen Shot 2017-07-05 at 2.56.53 PM

My mom had surgery today. Now both people (Mom & Stepdad) have an arm immobilized, recovering from very recent surgery. Neither can drive due to high dosage pain medicine, nor can they do much of anything on their own. In the time between my Mom’s break (on Saturday) and her surgery (today), my Mom has been in such excruciating pain that she’ been nearly helpless, even with her good arm. Meanwhile, my stepdad’s surgery went well but he’s been battling nausea and vomiting due to the pain medicine he’s on (even after having the doctor call in a lower dosage pain medicine). It’s just a mess.

My sister, now 7 months pregnant, is the true hero of the story. She took off almost a full week last month to help move my dad to his new facility. And she’s taken off almost a full week this month to help with my Mom and Stepdad. She’s gone over daily to make meals, take out trash, clean dishes, etc. etc. She had taken over a case of waters and literally had to pre-open all of the bottles because neither parent could seem to do it one-handed. I mean, it’d be comical if it weren’t my parents!

So this deck that was only going to cost about $5,000 to replace will now likely end up costing over $30,000. It’s about $20,000 for the deck itself, then the out-of-pocket max will be hit for both parents due to their ER visits and surgeries, not to mention loss of work (for them and for my sister). I booked a flight and will be arriving on Friday afternoon. I don’t have the money to go and I really don’t have the time, either. But I have to be there for my family. I just have to.

I’ll be in Austin from Friday-Monday. I’ll be back in Tucson in the office on Tuesday, and then I immediately leave for a work conference trip from Wednesday through Saturday. Then the plan is to round the family up and hit Disney later that week.

So the month of July is turning out to be totally nuts. And it’s costing an arm and a leg two arms! (groan, har har).

At least we have our health freedom, right?

Stay safe out there, DIY-ers! I’ll catch you from Austin on the flipside!


Finances & Fitness

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Hubs has become quite the fitness aficionado lately. Remember back in 2015 when he lost a ton of weight? He ended up losing 60 lbs. in total. In 2016 he was really just learning to maintain his weight through having a healthier lifestyle overall. He eats pretty clean, drinks lots of water, exercises regularly, etc. This year (2017) he decided he wanted to try to build some muscle mass. Well, mission = accomplished! I think his whole year was made last month when, while on our mom-&-dad getaway, a kid at the hotel’s pool area asked him if he was a professional bodybuilder! LOL! He ate up the compliment and was floating on Cloud 9 the rest of the day!

IMG_5292

As a disclaimer, I gotta say his “before” picture is in a shirt that was stained, not dirty. Hubs was a flooring contractor so all his work clothes eventually had stains all over them from glue, paint, etc. Just kinda gross to see all the “gunk” – it’s not just filth! Ha!

The truth is, hubs works hard for the gains he has made. Our summer has been a little more relaxed, but during the academic year he had been waking up faithfully at 4:45am so he could be at the gym at 5am when they opened, get in 1.5-2 hours of gym time, and be home in time to help get the girls dressed and ready for school. Even on vacation he went to the hotel gym daily. On our long driving days to and from Texas, he figured out creative ways to still get in his workouts by doing youtube videos using one’s own bodyweight for resistance, etc. When the rest of us want a bowl of ice cream after dinner, he prepares a bowl of fruit for himself. He’s dedicated like that.

I’ve wanted to get back on the whole fitness wagon lately. I used to be really into fitness, and while I would describe my current body-type as “average”, I’d love to get back to a place where I could consider myself “fit.” Unfortunately, I’ve found myself lacking motivation. The other day I was talking to hubs and asked him about how he stays so motivated – how he can push himself day after day to make healthy choices, sacrifice sleep for his gym time, choose the healthier food option when a sweet treat is right in his face, etc. I wish he had some secret trick I could share (or sell for $$$), but we all know that’s not the way it works. His response, “You just have to make the decision and stick with it.”

Me:  But it’s too hot to work out!

Him:  The gym has air conditioning. And you should be sweating while you’re working out anyway.

Me: But I’m tired!

Him: You won’t be after you get your heart rate up and going.

Me: UGH!!!!! BUT I DON’T WANT TO!!!

Him: Well….that’s your problem then. : )

As we talked about it, I couldn’t help but draw the parallels between FITNESS and FINANCES.

I recently admitted to letting our finances slip a bit over the summer. I’ve slacked off on a lot of the money-saving habits I used to have. It’s been months since I’ve designed our meal plans around sales and ads, for instance. I used to do that weekly – our meals were specifically planned based on the kinds of food on sale at our local grocers. It’s been years since I’ve done the envelope system. Or since I kept a “30 Day Wish List” prior to buying household stuff.

I think I’ve just been lacking motivation. To be honest, it’s probably been going on for awhile. I’ve been able to get away with it because our income has been high enough to compensate for some poor planning and spending habits. But when our income dropped, I really never buckled down. I never started the process of really trying to cut back significantly and, instead, I continued to spend like all was normal.

I’ve wanted to change, but I didn’t really want to put in the work to make it happen. Kind of like my fitness journey. Heh.

I don’t have any grandiose conclusion right now where I can say “That’s It! I’m back on the financially-fit bandwagon!” The truth is, I’ve been doing a lot of thinking about it, but not a lot of actions just yet. I really feel somewhat immobilized by our lower summer income (hub recently stopped working to go back to school and I had to leave my part-time job due to a noncompete at my full-time job). It feels like no matter what I do, I’m not sure that I can make our outflow match our inflow right now. It feels helpless. I’ve intentionally never given exact income figures (though it’s not a total surprise, as I’ve been pretty open about our budget and expenses, etc.). But just to give ballpark numbers, we went from earning a take-home salary of roughly $10,000/month….to right at $3,000/month. Practically overnight. Granted, these are take-home numbers (insurance is paid pre-tax, some of childcare and medical is paid pre-tax, mandatory 7% investment is pre-tax), so the low $3,000 number doesn’t mean we’re only making $36,000/year. We’re still making significantly more than that. But just in terms of dealing with take-home pay, we’ve experienced a huge drop over the last couple months.

My new raise goes into effect soon and as much as I am LOVING the academic freedom this summer, I can’t wait for August to roll around just so I’ll be able to experience my first full month with my new salary (remember that raise I got months ago but doesn’t go into effect until my new contract??? Can’t wait!!!).

ANYWAY…..

I just wanted to check in with you all and be honest and open about where I am in my debt journey right now. I have no doubts that we will make a full rebound. I know it. But right now I’m still just kind of limping my way through, trying to find that motivation that comes so naturally to my hubby.

Share a financial (or fitness-related, if you prefer) WIN you’ve made recently! I love hearing other’s successes!

How do you keep your motivation high when you’re not really feeling it? Fake it till you make it? Any other tips or strategies?


How to Deal with New Financial Concerns for a New Generation

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In agrarian times, people were more concerned about crops than money. Then again, crops were money. No wheat, no eat. Contrary to the popular narrative, there has always been credit. People have always needed to borrow goods or services against the promise of future payment with interest.

Generation Xers share many of the same concerns as the agrarian. But along the way, we have developed a few concerns our forefathers and mothers didn’t have. The U.S. is a society of plenty. But it is burdened with epidemic levels of financial stress.

Every generation is convinced that people from the previous generation could not possibly understand what they are going through. And to some degree, they are right. Times, technologies, and social policies change. And personal finance is a different proposition for each passing generation. These are some of the concerns of the current generation of under-forty-somethings:

Old Money

One of the concerns shared by the younger generation is not just about making enough money, but about the system of money itself. In part, this generation is suffering from tracking fatigue. Gold was virtually untraceable. Then we moved to paper with serial numbers, checks, and now electronic transactions.

So reliant are we on electronic transactions that we don’t even carry money anymore, certainly not any money that is completely under our control. Cryptocurrency is a form of money that has the convenience of electronic transactions, but the privacy and control of gold.

Genesis Mining is just one of the many companies that provide the modern-day experience of mining it like gold, but without the picks and shovels. The method of how bitcoin is made is less important than what it enables. Besides enabling anonymous transactions all over the world, it offers a 0-exchange rate currency. One bitcoin is worth the same regardless of where it is mined and where it is spent.

Today, if you are even suspected of a crime, you can be traced by your money, it can be frozen by governments, and rendered indefinitely unavailable. And it is just one more way in which you don’t have the control over your life that you thought you did.

Social Insecurity

In the U.S., Social Security is a federal program that provides a financial safety net for seniors. It is based on the number of years one works, and the amount of money put into the system.

But it is not a one-to-one program. It pays out more than we put into it. And there lies the rub. At the beginning of the program, there were very few beneficiaries, and many workers contributing to the fund. Today, there are almost as many beneficiaries as there are contributors. We are below three workers to one beneficiary. It need not slip much further before the system is completely unsustainable.

People under forty have a right to wonder if social security will be there for them. Eventually, it won’t be, at least on the track it’s on now. And politicians do not have the will to address the issues before it completely crumbles. First, their families will be taken care of for life. Second, voters tend to be older. Messing with social security is political suicide.

Debt Slavery

Not everyone has the option of a side-hustle. But it is a very interesting idea nonetheless. It is just one of the many ways younger people are trying to manage the reality of pervasive debt.

That debt begins the moment we decide to go to college. $160,000 later, you will need to buy a house. That $200,000 mortgage plus a $25,000 car gets you ready for your $20,000 wedding.

In the 1950s, a person could buy a home and start a family without a college education as a working-class citizen. People from that era didn’t need to incur so much debt to live the American dream. That same dream requires us to be mortgaged to our eyeballs.

Money will always be a tool of governments. Safety nets from the 1930s will not last forever. And debt is a constant. The old dream is dead. It is time for new dreams that are bigger than America. It’s time we dream the dreams that encompass the world, and a brighter future for all.


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