When life hands you lemons be thankful for those sour little devils and make some dam lemonade! I won’t bore you with all of the stupid choices we made along the way that landed us in roughly $230,000 in student loan, mortgage, credit card, vehicle, and medical debt…I’m guessing you can probably figure it out. Yep, we were doing all of those things that you are “supposed” to do like going to college, starting a family, and buying a home…and of course trying to keep up with all of those people you know, and come to think of it, even people you don’t know….who the heck are the Jones’s anyway???
A couple of months ago I had enough, we have had a very fortunate thing happen to us…. moving back in with my mom (thank you Granny)…. and we were still living paycheck to paycheck! We were very lucky to get a renter into our house to cover the cost of the mortgage and utilities but one day the renter called up and said that the furnace had went out. We had absolutely no money saved to replace a furnace and, of course, it was in December (2016) up here in the cold upper Midwest. We once again had to put our tail between our legs and ask parents for help, and that was the last straw….I had absolutely had enough!
Where is our MONEY!!!! After years of being totally ignorant of our finances I sat down and started looking at our expenses, and then I started adding up the debt. I don’t think that I have ever felt a panic so deep in my soul before that day. No wonder we didn’t have any money, we were $230,000 in debt and had an annual household income just shy of $70,000. I was mortified, what the F*%k were we going to do?! After I told my husband, I cried and he held my hand and in a very calm and soothing voice said “it will be ok” WTF!!!! NO IT WON’T!!! It took me a while to regain composure but after I cooled down I started to realize that wouldn’t you know it…he was right J
We were going to be ok. We were going to have to make some pretty hard decisions but we were going to be ok. The first decision was to continue to stay with my mom, that was a really hard one, but I need the security of knowing that my kids will have a roof over their heads and a loving grandparent here to tuck them in some nights because mommy’s butt was going to have to get a second job.
The next hard decision that we had to make was to sell our home, which we plan to do this spring. We do have a little emotional attachment to it just because it’s our first home but we can’t afford to keep it around. Plus, if we are able to make any money on the sale we can use it towards paying down our debt.
The next thing is really going to be the hardest…. We need to stop spending needlessly and cut our expenses. We are starting with obvious things like not eating out, no movies, and cutting cable (that one makes me tear up). But we don’t really know anything about budgeting or living below our means so this should be interesting J
P.S. We are complete newbies at this so if anyone has any tips/tricks, or advice…we would greatly appreciate it!