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catherine
2-12-14, 8:45am
I had about 4 projects I was up for in January and February, and none of them transpired--a VERY unusual situation. I have never had a two-month "vacation" since I broke off from my corporate job and went freelance.

A) It's scary. I just read this article in the Huffington Post (http://www.huffingtonpost.com/kathleen-ann/american-used-to-haves_b_4732434.html)that freaked me out.. unfortunately I read it right before I went to bed, which is when my spiritual defenses are low and things tend to look bleaker than they are. But I found so many similarities between the writer and my potential situation that I became really worried about my own future.

So I got up the next day, and decided to go through the article paragraph by paragraph and analyze it--I was able to identify tones of victimhood. I also was able to see that she is not me. I was also able to realize that her perspective coming from that of "normal" culture--not "simple living" culture. So, while she is bemoaning her poverty and the fact that she's only making $20,000 a year, there are lots of simple livers who live and are happy on ~$20,000. In other words, her doom and gloom reality does NOT have to be mine. (Thank God for my Simple Living friends!)

B) At the same time, I have to recognize the red flags and take appropriate action. First order of business--do my budget for both February and March taking into account the money I have right now. I do have a project in March, so I'll be OK for April (not great, but OK). That means living for two months on one month's income.

I did the budget, and I see there is NO room for discretionary purchases. None. I've cut out entertainment, clothing, haircuts, restaurants, personal "blow" money, gifts, household stuff (except for what's absolutely necessary).

So I'm essentially embarking on a "no-spend" two months. And I just wanted to say that one good thing about it is there are no decisions to make on a daily basis! You get a solicitation in your email and you just say, nope, sorry! You pick up a magazine in the check out line and you just say, nope, sorry!

It's my aunt's birthday Thursday and I had written on my to-do list to go buy her a card. Instead, I went through my desk and found a really nice general greeting card and I used that.

I'm hopeful that all those other projects will come around again because I think going no-spend would be a drag after a while, but it's an interesting experiment in how low you could go if you have to.

On the bigger issues--I have put another bee in DH's bonnet that selling the house might be something to consider, and rent for a year. It would allow me to get rid of most debt, and cut down my "must make" income by at least half. He somehow doesn't get it that we are on a tight rope financially. And I am adamant that if I leave the house, it will be on my own terms--I will not let things go to the point of foreclosure. But if I have another couple of months like the way this year started out, that's where we'll likely be.

Anyway, this post has rambled on with little to do with the topic, but there it is..

ApatheticNoMore
2-12-14, 3:57pm
On the bigger issues--I have put another bee in DH's bonnet that selling the house might be something to consider, and rent for a year. It would allow me to get rid of most debt, and cut down my "must make" income by at least half. He somehow doesn't get it that we are on a tight rope financially. And I am adamant that if I leave the house, it will be on my own terms--I will not let things go to the point of foreclosure.

well I'm wondering how close the house is to paid off. If it was getting there, no I would not sell :)


So I'm essentially embarking on a "no-spend" two months. And I just wanted to say that one good thing about it is there are no decisions to make on a daily basis! You get a solicitation in your email and you just say, nope, sorry! You pick up a magazine in the check out line and you just say, nope, sorry!

well one book I read did recommend periodic spending diets as being easier than trying to constantly be frugal ("how to survive without a salary" - but I need a salary sorry :laff: )

I'ts probably best not to read such articles (huffpo). I mean it's fine to stay informed about politics or whatever but stuff like that isn't really it ... I didn't check the unemployment rate when I was unemployed (about 2 years ago), it was just: I don't need to know. I mean I was aware the economy was doing badly ok and California more so, because I couldn't actually hide under a rock from the external world, but that was as much as I needed to know! :) As for whether one is or is not similar to another person, I really think CHANCE plays a HUGE role in life. So just because she's had a bad run doesnt' mean you will. But sure it helps to save for a rainy day. That she can't accept chance plays a large role in human life (just stoicism) or alternately (and more politically) blame the system at the most radical level of rejecting it's basic values, is why she is not just poor which may not be her fault and is painful enough, but also feels ashamed of it.

from the article:

Now, I'm renting an apartment and I'm desperately awaiting a check so I can pay the rent. Yet, I'm lucky to have an apartment that includes utilities.

most shared rentals are that way, of course that's here, where utilities aren't going to run you very much anyway. And that's if your a single person willing to share an apartment.


But on days when I feel hopeless, I can envision myself 20 years from now, living in hardscrabble poverty. Female friends my age who are in similar financial circumstances are terrified of the future. If we can't get decent paying jobs today, there's little hope of getting a corporate job with benefits in the future. And during the past few years as we've struggled, we went through all of our savings, 401(k)s and anything left in the bottoms of our pocketbooks. So we can see ourselves as old, pathetic bent-over women, living in bus shelters, our ragged belongings in supermarket carts.

So she's entirely dismissing the possibility of receiving Social Security some day? I'ts not a huge amount to live on, and sure everyone knows it's best to have other things to supplement it (and if chained CPI goes through it would be a disaster) but earning $100 an hour surely she's had some years of seriously putting into the system!

catherine
2-12-14, 4:08pm
Thanks, ANM.. I appreciate your comments..


That she can't accept chance places a large role in human life (just stoicism) or alternately (and more politically) blame the system at the most radical level of rejecting it's basic values, is why she is not just poor which may not be her fault and is painful enough, but also feels ashamed of it.

That's what I was thinking also, after I had a chance to sit back, detach, and think about the article and my reaction to it.

As far as my house goes, unfortunately I still have a lot to pay off ($255k). If I could be assured of an income on par with my last 6 years (since I went freelance), I could pay it all off in 7 years. Because my income has been amazingly consistent for a freelance income, I was hoping perhaps it would continue to be so.. but of course, you can't depend on anything except death and taxes.

Oh well. In my ample free time this month I'm doing some Buddhist/Christian readings which are so helpful. I'm also decluttering and doing minor house upkeep like repainting dirty walls, so at least all's not lost!

onlinemoniker
2-12-14, 4:43pm
It's my aunt's birthday next Monday and I just stopped by the store to pick up 2 things before the killer snow (coffee filters and frozen green beans.) I forgot to get her a b-day card and you just reminded me but I am not going back there. I have a box of cards myself and I will do the same as you.

Yes, $20k can work for many if they don't spend any money. I am a teacher and run a household on my lone salary w/ significant college debt payments. I have cut EVERYTHING discretionary out w/ the exception of my hair. No cable, 30 buck cell phone, no entertainment (except library fines,) dinner out = 1 or 2 x per year. No clothes, nothing new for home. This is the way I live. But I am trying to make some additional income through work--hasn't worked out so far. My point is it can be done and long term, too. Good luck.

Lainey
2-12-14, 8:05pm
Catherine,
Not much to add except to say good for you for being pro-active. Always good to have a plan b, c, d, etc.

SteveinMN
2-13-14, 11:06am
At this point with my business, I would be very happy with a $20,000 income (gross or net). :)


On the bigger issues--I have put another bee in DH's bonnet that selling the house might be something to consider, and rent for a year. It would allow me to get rid of most debt, and cut down my "must make" income by at least half. He somehow doesn't get it that we are on a tight rope financially.
My mom, who is the renter for my rental property, used to talk all the time about expensive home improvement projects (brought on by watching too much HGTV and not having a clue that labor often is as expensive a component in home improvement as the materials themselves).

The rent I'm charging her does not cover such grandeur, but I was having a problem getting that point across until one year when I showed her a simplified ledger sheet/spreadsheet showing the income I got from the property and the expenses which had to be paid that same year. The difference was only a few hundred dollars. That provided the picture I needed her to see -- that keeping the house going cost much more than just making the mortgage payment every month. The grand home improvement projects now exist only in her head.

Maybe laying out income and expenses -- even in an over/under graph -- might illustrate to DH just how tenuous your situation is.

Teacher Terry
2-13-14, 3:28pm
I think that is a great idea Steve!

carly
2-20-14, 12:45am
I am into this right now. Feb. has been a no spend month as I am paying off 2 small credit cards. Got the first paid off today!!!! Next month the other will be paid off. I keep them for emergencies ONLY. I sold the house ad live in a 1 bedrm apt,with more than enough room. I have green space outside my door and am allowed o plant a garden,flowers, whatever. I always get my clothes at the thrift store. My cat is my only luxury. I wash my clothes in a hand turned tabletop portable washer which does a great job.

I love not going to Walmart!!!

catherine
2-20-14, 8:06am
I am into this right now. Feb. has been a no spend month as I am paying off 2 small credit cards. Got the first paid off today!!!! Next month the other will be paid off. I keep them for emergencies ONLY. I sold the house ad live in a 1 bedrm apt,with more than enough room. I have green space outside my door and am allowed o plant a garden,flowers, whatever. I always get my clothes at the thrift store. My cat is my only luxury. I wash my clothes in a hand turned tabletop portable washer which does a great job.

I love not going to Walmart!!!

carly, great to have a no-spend partner here!! Don't you love not going to Walmart? All of a sudden my attitude is, "Wow, look at all the stuff I truly DON'T need! Lucky me!"

Thanks everyone for your comments and support!

Steve, my DH is a master of denial, and also he kind of glazes over at numbers, even in graph form. I really think it will take pain on his part to realize our situation--so one of the other benefits of no-spend is that I can say to him, unless you go without, we will not have money for the mortgage. He has to experience the situation--intellectualizing it won't work.. but perhaps I'll give it a try--might be good support for the case!

awakenedsoul
3-30-14, 10:29am
How are things going catherine? Do you have an emergency fund? I've always lived on around $20,000. a year. Now it's much easier, because my cottage is paid off. That's sort of my strategy, to live on that amount regardless of how much money is coming in...that way there's plenty of savings. It's so easy to spend more as you earn more.

I hope some other projects came in for you.