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Complete Budget FAIL

July 22nd, 2011 at 06:45 pm

Today was payday, and the level of out of controled-ness that our budget has taken on since we put an offer on this house in February, then spent months in survival mode, dealing with mortgage loans, moving, fixing up and selling another house has finally hit home.

It was payday today, and our credit card bill alone equalled the entire paycheck. We haven't managed to save a dime since Feb. (although I replaced $2500 we had taken out for misc once we sold the house). Seriously. This is out of control.

Granted, the credit card included one-time expenses such as plane tickets for three to grandma's house. But still. Those kinds of things happen more often than we'd like to admit.

After the kids went to bed, I took a walk/run around the park and couldn't stop thinking about money. Wondering how we are going to meet all of our goals with this huge new mortgage (I'm including the extra we send in hopes of sticking to our 5 year payoff plan). I couldn't come up with any answers, I just realize I need to seriously comb over what we have been spending our money on and while I'm figuring this all out commit to only buying essentials.

A No Spend Month may also be on our horizon, maybe in September? And, I think I should get back on track with savings by starting our biweekly transfer to savings again, albeit for a very small $50 each time (down from $400 when we had no mortgage. Sigh.). And, maybe back to an envelope system for weekly expenses so we don't have any more giant shocking bills.

I knew we were going to take a hit when we moved, even though in the long term it's more economical. But still!!!

I was thinking one solution would be for me to bring in more money every month, but I'm exhausted at the thought of staying up later on yet another night to work when the kids are in bed. Ugh.

Any sage advice?

10 Responses to “Complete Budget FAIL”

  1. Petunia 100 Says:

    You're being rough on yourself! You're young and will have your move up house mortgage paid in full in only 5 years! You're doing a fabulous job. Smile

  2. ThriftoRama Says:

    I think I was just shocked that we wiped out a whole paycheck buying misc stuff. I'm worried that we aren't saving, because if we keep this up, we'll start eating away at our savings account and eventually have nothing. FEAR!!!

  3. Joan.of.the.Arch Says:

    You are doing very well. Please take care of yourself so that you can be healthy to be there for your family. You are not in an emergency situation, so do not react as though you are. Your present fear that perhaps you need to work more might actually be evidence that you are too exhausted to think straight. Please make a SLEEP BUDGET for yourself and stick to it.

    Save the heroic sleep loss and third jobs for true emergencies.

  4. ThriftoRama Says:

    Well, I was thinking about it again today. It is possible for me to take on an occasional, very lucrative extra freelance gig every couple of months instead of committing to something regular. That would help say, fund the 529s and my ira without too much change to our routine.

    And, I'm back to couponing. I organized my binder last night and got back on the wagon today. I'm also committed to seeing where we spend and seeking ways to reduce that.

    Hopefully I will have some time to sit down this weekend and do some hard math about how much we're bringing in and how much is going out. WHat we can and can't control, and how we will meet our goals-- which have always been ambitious.

    Baby steps. Sorry I seemed so stressed out. It was hard sending a whole check to the CC company!!

  5. scottish girl Says:

    I agree, you're being hard on yourself. I think you're doing great.
    Silly question: is biweekly every 2 weeks or twice a week? I'd love to send £100 to savings every month Smile

  6. Thrifty Ray Says:

    Life is a marathon not a sprint. Kudos for being conscious of what is coming in and going out..but I agree with the others that you are being too hard on yourself. It is good to always be mindful of where the money is going and to whittle it down when you can, but not to the point that you are not enjoying life. Smile Stay aware, but balance that with what is best for you and your family!!

  7. MonkeyMama Says:

    Personally? I would back off the 5-year mortgage plan. At least until the kids are in school and working more is feasible (without exchanging your sanity).

    Though it's a noble goal - I don't agree that it is a worthwhile goal. Not a worthy goal, while considering the potential costs to your health and sanity.

  8. My English Castle Says:

    Yeah, I'm with Monkey Mama. Things do get a lot easier once the kids are in school. Don't beat yourself up about it. Can you say 7-8 years instead? You've had a really exhausting time of it with the house sale and all the fix-ups. Give yourself some breathing space.

  9. ThriftoRama Says:

    The hell that we went through with our mortgage lenders immediately before and after Hurricane Katrina is still fresh in my mind. They tried to tell us we owed the balance in full of the loan 5 days after the levees broke. They almost pushed us into losing our house and our equity.

    I insist on having our home paid for ASAP as a result of this. I need to know that I own my family's home, not a bank who can change the rules, sell me to another bank, etc. It's important to us. And considering we just came from a house that was paid for, I know how much more flexibility and peace having a paid-for house gives you.

    I think we can make the 5 year plan work.

  10. Joan.of.the.Arch Says:

    Wow, Thrift-O, I just had to read your latest note to my DH. I had thought that mortgages could no longer be "called in full" all of a sudden. I thought that was one of the post-Depression bank reforms. I know it is one of the ways people became homeless during the Depression. I think I understand your frame of mind given how your N-O lender acted. My gosh!

    My own home loan was from a non-bank lender, and to tell the truth, I don't know if those bank lending laws even apply to them. Probably not. But I know there was nothing in the contract that would have allowed them to call in the note at their whim. Of course, we know that doesn't stop a poorly run or devious business. Look at the number of stories of banks trying to foreclose on people who already had paid off the mortgage or in fact never even had a mortgage.

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