Hello everyone.
I got this email from a reader, Jylie (who runs a personal blog here), who was asking for some advice and I wanted to share it with you.
Hi Lulu,
No, thank YOU! Truly. I’ve passed your blog on to several colleagues and friends that I have had conversations with over the past year or so regarding finances and things of the like and they, too are impressed and more importantly, inspired. I’m not sure what age group you are in but I am 28 years young, recently married and a mother of two. I had my eldest (age 7) at 20 and my parents were no longer living in Miami (where I’m from). My parents never taught me any lessons in finances or how to manage them properly, or the stress that could rise from finances or, the do’s and don’ts of credit cards. Once I turned 18 I applied for every single credit card known to man just because they had leopard printed card options and I felt it was money at my fingertips to burn. These cards would later help me with my son as well.
You can imagine that it did not “end” well lol. To this day I am still at a struggle but now, with a mortgage and hospital bills and a new baby girl with those expenses to handle I am at a breaking point, literally. My husband was laid off in 2009 and since then we have been relying on my income alone, which is a good-enough salary but not for four children (he has two from his previous marriage) and a life of dollar signs calling our names.
My reason for sharing this with you is only because of the fact that even to this day, with me now living just 12 miles from my parents’ home (I moved to Atlanta with my son to be near them for support of any kind), they still have not done much to advise me of the right way to overcome financial stress. They have prepared Excel sheets and shared how they handle their finances but for a person that has never had any guidance what-so-ever, it’s hard to pick up the skills at the drop of a hat! So, from your blog I learned what the “snowball” method was (something I’ve always heard but never Googled; go figure); I received many tips that I plan to try out and am just INSPIRED to take care of these matters.
My credit score dropped to 486 this year with my home heading into foreclosure (sad face) so any and everything I can do to help get it back up will be amazing.
LOL, sorry for the long novel of an email here. I just wanted to give more of an idea of my current situation and why someone’s simple blog was so inspiring…
Thanks again.
Now I did email this reader and we are working on a few things to get her back on track but what advice do YOU have for her? Make your suggestions in the comments below!!!!
Twice in her email she has mentioned how her parents have not taught her how to handle finances. I think there’s bit of blame and resentment that needs to be let go first. When we let that go, we’re able to truly focus and be motivated to solve the problem (as opposed to being distracted by what could have been in an ideal situation.)
I’m not sure where our expenses are going but I’d track it, then eliminate what can be elimated (cable, buying books (use the library), name brand groceries, name brand medications, downgrade salon maitenance. Basically, prioritze what she needs. Keeping your home, getting out of debt, keeping family safe are top priority. Next, I’d see how we can rake in extra income. Husband is unemployed, should look into temp jobs and clock 40 hours a week trying to find a job. She can look into how she can make some extra income as well. 2nd part time job!
Wishing her the best of luck.
Jylie has actually started to track her spending and I just read on her personal blog that she realized she spent $630 on groceries for her family in one month. She knows that was way too much and she is working on trying to have a No Spend month to reduce that amount.
Thanks, Linda! We’ve taken initial steps to putting all of our expenses out on the table and started cutting back on everything we can. This month, we’re working on a $375 budget, total (on top of the February spend freeze). Doing well so far! I’m hopeful that this month is where we prove to ourselves that we can do it. 🙂
Difficult to gauge Jylie’s situation without more info. But here’s what i would do:
1. List all your monthly expenses
2. Focus on those that are recurring in nature that you can do without (cable, cellphone, latte).
3. See if you can eliminate or minimize any of these. For cellphones you can move to prepaid, make coffee at home, can you live without cable for sometime?
4. Find out what it’ll take to keep your house from foreclosure. Try not to let that happen.
5. Call up each CC company and talk to them, explain your situation and let them know you are committed to repay what you owe. Work something out. If you declare bankruptcy they get nothing, they would rather take a lower payment. Keep trying even if the first rep isn’t responsive.
6. Don’t take on additional debt
7. Can you sell an asset? If you have two cars, may be do with one?
8. Where there is a will there is a way. Don’t take the easy way out.
Hope this helps.