sandynd
Rookie Desperado
- Joined
- Jan 4, 2008
Hey everybody. Backslider here 
Three years ago, we knew my husband would have to resign from his job due to health issues. I made sure we were debt-free except for the mortgage before his pay stopped. Then I drew up a very strict budget that took into account all of our yearly needs, day to day needs, and some savings. This was completely based on my take-home pay plus DH's disability payment (not a lot but better than nothing.) We found some things that DH could do on the side that abided by the rules of disability and still brought in a little cash. We did awesome for about a year and a half, and then we contemplated buying a seasonal business. We figured we could make it pay for itself since we both have experience, but the start up costs were more than I thought, and I've lost a little control with spending for the business, and that's spilled over into personal. So now, we have the house mortgage, the business mortgage, and an unsecured line of credit of almost $7000.
The house mortgage is budgeted in already, so no worries there.
I have no budget for the business mortgage, but it's an interest-only line of credit which I've been using our health account savings to pay the interest on (I figure it's a mental health investment - I don't stress out over the months we're not bringing in any revenue if the interest is paid) and then the big paydown comes when we get taxes back from the business losses. We use the paid down room on the LOC for current operating expenses for the year. So far I've spent too much in capital improvements, so next year there are no capital costs planned. I'm hoping to at least break even next year, and then start making money.
But in the meantime, this year has left me with the unsecured LOC debt, which I really want to get paid down before we open next year. I do not have a debt repayment line in my budget, since I was determined we wouldn't have debt. So, here's my plan:
I am also going to comb this thread for ideas to cut back, and put every last nickel I can into the debt. Our trip in October is already paid for, or I would be using that money too. I have to pay off almost $1000 a month to make this work - wish me luck!!
Three years ago, we knew my husband would have to resign from his job due to health issues. I made sure we were debt-free except for the mortgage before his pay stopped. Then I drew up a very strict budget that took into account all of our yearly needs, day to day needs, and some savings. This was completely based on my take-home pay plus DH's disability payment (not a lot but better than nothing.) We found some things that DH could do on the side that abided by the rules of disability and still brought in a little cash. We did awesome for about a year and a half, and then we contemplated buying a seasonal business. We figured we could make it pay for itself since we both have experience, but the start up costs were more than I thought, and I've lost a little control with spending for the business, and that's spilled over into personal. So now, we have the house mortgage, the business mortgage, and an unsecured line of credit of almost $7000.
The house mortgage is budgeted in already, so no worries there.
I have no budget for the business mortgage, but it's an interest-only line of credit which I've been using our health account savings to pay the interest on (I figure it's a mental health investment - I don't stress out over the months we're not bringing in any revenue if the interest is paid) and then the big paydown comes when we get taxes back from the business losses. We use the paid down room on the LOC for current operating expenses for the year. So far I've spent too much in capital improvements, so next year there are no capital costs planned. I'm hoping to at least break even next year, and then start making money.
But in the meantime, this year has left me with the unsecured LOC debt, which I really want to get paid down before we open next year. I do not have a debt repayment line in my budget, since I was determined we wouldn't have debt. So, here's my plan:
- Cancel my parking pass at work
- cut down on grocery spending
- buy no clothes
- try to use much less electricity over the winter
- try to use much less gas over winter
- cut down satellite tv bill
- if I get a year-end bonus at work, use it to pay down debt or put in my car fund
I am also going to comb this thread for ideas to cut back, and put every last nickel I can into the debt. Our trip in October is already paid for, or I would be using that money too. I have to pay off almost $1000 a month to make this work - wish me luck!!
Dh's employer offers a similar package so for some reason I assume everyone gets this just by working FT.
crazy2
to pay for it. I'm thinking monthly then that way I still have that vacation fund stash - for hopefully a vacation at some point, or to use for an emergency if needed. (DD is a national level athlete, so quite a bit of travel involved, which is costly. Thank goodness for airmiles and grandparents!)
