Robbing Peter, to pay Paul, John and Andrew

There is leftover month at the end of our money.  We moved back into a house that we could not afford, to save it from the bank.  We tricked ourselves into believing we could. We had all intentions of staying in this home and paying our creditors.  Reality though is an ugly word and far from our dreams of success.  The nightmare was not over when we finally woke up.  As the morning sun filtered in, it shed light on our devastating financial situation.  We ran (mostly me) our finances worse than an inexperienced day trader. Buy cover, buy cover up, buy buy buy.  “It will only cost you xx.xx per month”, said I don’t know how many salesmen.  In rare cases, it was xxx.xx but those are harder terms to push.  It’s easier to see the devastating total with those.  We (again mostly me) would continue to believe that the money would materialize and that we could pay for it all.

In the end with the final budget, came the slap upside the face.  Minus Five hundred fifty dollars per month before groceries and gas.  Wow!  How did that happen?  Things, we wanted things, a lot of things.  Then came services, we wanted those too.  The sellers advertised the services for less than a cup of coffee.  If I had been drinking coffee at the time, maybe I would have been awake enough to notice all those little things add up. The calculator clicks kept on going, and we were not in the black.   Each expense revealed that we stopped paying attention several espressos ago.   Over time and a few contract jobs for me helped mask the truth.  They were temporary fixes for the fact that we were broke!   Some people define broke as not having physical money.  Yes, that is the end result. However you are also broke if you have some dollars in your hand, but you owe more people than it will pay.

So, as you have read we are hoping the equity from the sale of our house will purchase a more affordable living solution. Our trailer will be small, but the rewards we and our creditors will reap, mighty.  Right now (if the house sells for what we want) we will have enough to cover the bottom line of the RV’s cost.  We are not immediately worried about the land (we need it, yes) but worrying hasn’t solved a single problem to date, in our life. Maybe we should have worried a bit more about what we had, not what we didn’t have.

We subscribe loosely (right now) but are heading full force, into a well known financial plan.  If I had a dollar for every time I thought about implementing it, maybe I wouldn’t be writing this blog.  The financial program has an order of operations.  Food is your first priority when you receive your paycheck.  Luckily for us, we have always known this, and have never gone hungry.  We have been associated with others, who have not heeded this advice, and it has not worked out for them. There are many plans out there, many of them are excellent plans and have helped numerous people.  Please choose one, whichever works best for your personal situation.  I do not recommend operating without a plan, I could write for hours on the chaos that results when you try flying solo. No matter where your cursor lands, please I beg you, choose food first.  Do this above all other expenses and payments.  You can eat anywhere, but you must eat.

Our debt is surmountable and will take a time to resolve.  We are hoping we can significantly pay down on it in a span of two years.  Likely it will take longer, but I hate planning that far in the future.  We are faithful that one day we will become comfortable with the balance remaining.  Then we will need to “make sure” our new home does not run us right back to the poorhouse.  There is no shame in digging a hole too deep, there is only shame in knowing where that hole leads and digging further anyway.  I hope this advice helps all of us.  I know people who are successfully filling in their holes and doing well.  The journey is long but “Peter” (from my title) sure would appreciate keeping his money.  Live life well, but financially wise.

Mimi

 

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