Better Than I Thought!

So, all of our hard work and efforts paid off!  Our credit jumped up.  Our debt to income ratio is right where I wanted it at the time being.  AND, we can qualify for more than we originally thought we would.

A dear cousin, Kari, has been giving Travis and I advice about building our credit and paying off our debts so that we can own a home.  The woman is a genius.  I am so totally clueless about this homebuying stuff.  However, Travis and Kari were on the same page the whole time, and they explained things to me in more simpler terms so that I could understand.  There were so many things I learned, I was amazed!

Kari pulled our credit reports and gave us an updated, accurate credit score for each of us.  She sat down with both of us and went through every page on our credit report, telling us what lenders look for.  She pointed out areas that we could fix, and she pointed out areas where we should leave things alone!  I was surprised that there was one thing on our credit report that she told us NOT to touch until after we buy a home.  If we messed with it, it could potentially hurt us because of when it will be reported - and she explained why it would negatively impact us.  This one thing was a collections account.  This debt was actually paid through the hospital between 2008 and 2011.  However, it was not updated on our credit report.  Even though that debt technically does not exist, the agency did not report it to the credit bureaus.  It is not hitting our credit negatively to leave it alone the way it is.  At first, I thought "OMG, that needs to be taken off!"  But Kari explained to me the moment that there is any activity on the account, it will come across as a negative impact on our credit and bring our credit scores down.  She told us to wait until after we buy a home to update it.

Kari also told us where we can dispute things on our credit report.  She told us the best places to talk to in order to handle credit disputes.  There was ONE medical bill that we paid off that had not been reported to the credit bureau.  Unfortunately, because we paid it, it's possible it will bring down our credit score.  But oh well, live and learn.  It'll be ok.  When Kari looked at our previous debts and saw that everything had been paid off completely, she told us we did everything right.  That was a relief to hear!  I was worried that I was messing up.  Kari reassured me that we are not in a terrible position, and because we have a good record of debts being paid in full - even though our credit scores weren't as high as I had wanted them to be - that will look more favorable because it shows we pay off our debts.

She ran our numbers through a program to see how interest rates would fluctuate between FHA and Conventional loans.  She showed us every possible outcome.  She told us the pros and cons for each type, and how they would affect us.  Ironically, where we are, monthly payments won't be much different for either type of loan.  When going through the possible outcomes and different costs of a home and calculating a different percentage for a down payment, we were looking at possibly a $7 - $30 monthly difference between the two.

She asked us if we had been searching for a home at all lately.  I told her one house in the neighborhood we live in that I have had my eye on.  She ran the numbers for both types of loans with the amount the house was selling for and she took taxes into consideration.  This is where I was super surprised.  A Conventional loan was $7/month more than an FHA, but it was also more than likely a better option for us.  Then, we took another home into consideration.  An FHA was a better option for us on that one!  I was really surprised how minor adjustments made a HUGE difference!

After going through adjustments and comparisons, Kari told us that we were "finance-able" where we currently are.  She told us that we could qualify for much more than we originally thought.  Granted, we told her that we were looking for a lower cost home and wouldn't mind doing repairs.  This one really surprised me:  she told us that with where we stand, we should NOT get a house less than $50,000 because insurance and interest would not work in our favor.  The lowest we can look for a house is currently $54,000 without getting hit with huge insurance costs and higher interest rates.  I never thought there would be a minimum amount for getting a better deal.  If you go too low compared to what you qualify for, the bank won't see it as a loan being worth it - and we could potentially get denied because - well - it isn't worth it to invest in that much with where we are.  Interesting....

Again, these were all "approximate" and fairly accurate simulations, but it let us know where we currently stand on getting a home.  Worst case scenario, Travis and I will be home owners in July of this year.  If we continue doing what we are doing, handle a few minor adjustments on our credit reports, we could be homeowners by March!  AHHH!!!

Kari then calculated taxes, down payment, closing costs, appraisal costs, fees, etc. and gave us a total that we need to save for.  It's more or less a "goal" amount for the least that we should save for, and we need to save up that amount and keep it untouched for 2 months.  Only small additions, like $20 or $50 from a paycheck that is easily traced, can go into the savings.

Kari is going to run a few more simulations with another program with a lender.  This is going to tell us where we could be in 3 months up to 6 months.  Kari is going to see how long we should wait to get the best deals, without having to wait forever and not move forward on buying a home this year.  The lender is also going to talk to her about our credit report and give advice on what she would like to see us do before she'd be willing to approve us for certain amounts.  Basically, a lender is telling us what we should do in order to get our credit scores up higher in a short time frame and also what is going to work in our favor this year.

I cannot tell you just how relieved I am!  Travis and I left there feeling so proud of our accomplishments and determined to do whatever we need to in order to put ourselves in an even better position.

Not going to lie, this homebuying process still looks like Greek to me.  But I am glad that I have Kari to hold my hand and mentor me through the process.  Travis is on the same page with Kari - so it makes me feel better knowing that he understands this more than I do.

Here we are... step number 1 towards buying a house is accomplished.  Now on to step 2!

Bumps in the Road

Trying to become established in this kind of job market and economy has really proven to me to be a vicious circle.  I feel so stuck sometimes.  Here I am, working full time for no benefits - but with a chance to move up in the company.  I don't really have any idea where this is going to take me and for how long I will have to work before I get advanced.  I know two women in the company have been waiting to retire, but they have been so short-staffed and overworked, that the possibility to retire is not available to them.... That is until I arrived.  So I am being trained for their jobs.  But with my previous work experience and with my degree, I have no idea where I am going since other opportunities are arriving every day.  I'd hate to say it because I love everyone I work with, but all of my coworkers have told me this regularly:  I'm over-qualified for all the jobs in this company.  I have to agree.  However, I'll do whatever I need to in this economy to build my experience for a better future for my family.

Travis is working hard in school.  He finished his math class 2 weeks early, which is no surprise to me. He loves math.  It's his Art History class that he can't seem to grasp.  I guess that is the engineer in him. Luckily, his fall semester is mostly math and science.  Travis also got a manager position part-time to work around his school schedule at a place that specializes in kayaking, boating, hiking, and extreme sports (mostly water sports).  Throughout the summer, they have a variety of sporting events.  I know Travis will love this.

I cannot lie and say that I'm extremely happy with where we are.  My student loans are going to get more expensive and I am not sure we can afford it.  Paying off the credit cards has become an endless feat.  We still have one more medical bill to pay off, granted it is only $500.  Some people may think we are careless with money because my credit isn't that great.  My credit has been hit multiple times for multiple reasons.  First, when I was sick, the medical debt almost destroyed my 680 credit score.  I have only had 1 credit card my entire life, and the max amount on it was $500.  I had to use it to pay rent one month, so it maxed out.  I tried to get another credit card to use only for gas so that I could increase my credit... but I was denied.  Travis only has one credit card, and it's debt is only $200.  When Travis and I were seeing opportunities with his company and he was promised a promotion, we began house hunting because Travis's credit score was great.  Due to my student loans and our limited income, we qualified for $70,000.  Not long after that, Travis was laid off.  So, needless to say, we didn't buy a house.  When I graduated, we moved in with family in Fort Wayne.  As I job searched, majority of companies were hitting my credit score even more.  It seemed like every time I applied for a job, I had to agree to a credit check.  When asked if I could print off a copy as to not hit my credit score, I was told no.  We wanted to get an apartment or a house or some place to live, but out of fear for being denied based on our credit scores, we don't want to risk more hits to our credit.  I've heard many people say that bad credit is better than no credit.  While that may be true, having bad or no credit still feels impossible to get established.  It looks like our goals of buying a home this year are not going to happen.  Next year, when my student loan payments rise, I'm afraid that we still are not going to be able to buy a house, especially with the income we both produce.  And to look for a new job, I'm afraid my credit will only get beaten up more just for applying.

But on a brighter note, Travis was able to sell his old car!  It only sold for $350, but it sure helped.  We hadn't gone on a date, so we used the money for a nice dinner, movie, and because I absolutely love fairs and festivals, we spent about $20 towards a day at the Three Rivers Festival.  At the festival, Travis gave me a brilliant idea!  I should start a blog about sweet stuff.  I love sweets!  I have a horrible sweet tooth.  So I am going to give it a try.  When I put the blog together, I will definitely post a link when it is ready for its debut.  So keep a look out for the Sweetest Blog on the Block!

So Close, I Can Taste It!

I am super excited!  We've already accomplish Baby Step #1 by creating a $1000 emergency fund.  Baby Step #2 (other than student loans) will be complete this summer!  I can actually see ourselves getting established.  Travis has decided, after working a factory job that was detrimental to his health, he is going back to college.  He has a strong interest in figuring out how things work, why they work, and he's super good at working with electrical stuff.  Travis is pursuing a B.S. in Electrical Engineering Technology.  I couldn't be more proud of him.

What have I been up to?  Well, I got a nice job doing a variety of things!  Right now, I am finishing up my internship at the zoo in Public Relations/Marketing/Event Planning.  I'm busy making training videos, putting together activity packets, planning the Earth Day event, and I get to help out the PR/Director of Communications with any projects she needs done.  Not long ago, I had to take pictures of a leopard getting a dental.  I even got my picture with the furry guy!  (Sorry, I can't post pics on here.  It's against policy.)  The internship ends April 27th.  I told my bosses I am not leaving.  One will have to take my arms and the other will have to take my legs and drag me out crying.  I love it there.  I'll never forget it.

I graduate on May 5, 2012 at 3 PM!  I already ordered my cap and gown.  I plan on making my own graduation invitations using the pictures my friend Kylee took.  I will post pictures of them when I am done!

I landed a great job with an auction company.  I enjoy the people I work with.  I have my own desk all set up.  I just need to add some personal touches - like family photos and quotes.  I have a good system down already, so now I'm not struggling to get things done on time.  They work around my internship, which is fantastic.  I only work 2 or 3 days a week (sometimes I have to pick up a Saturday to stay on top of things, but that's only happened twice).  I love dressing up for work, so I thoroughly enjoy that.  The two guys who are my bosses are super cool.  They have a part-time administrative assistant, and she's such a bubbly, friendly lady.  I look forward to the days that she is there.  They also have a lot of staff that comes and goes.  The head maintenance guy comes around and jokes with everyone.  He's a hoot.  His wife works with my bosses on properties and payroll/finances.  She's a sweet lady too.  Every once in a while, I see a cute elderly man named Larry.  His desk is in the cubicle across from mine.  BTW: the cubicles are not the typical cubicle.  These are freaking fancy and large.  Anyways, Larry has become my buddy.  Right now, I just put together ads, brochures, post cards, and manage the ad budgets.  I don't have time to do much else since I'm not there full-time.  In April, we are going to sit down and re-negotiate my salary.  They casually mentioned something about getting me a Mac computer for my desk!!  AHH!  I'm so excited!  They are hooking me up nicely.  Anyways, they have full intentions on keeping me full-time, so that is why we will negotiate a salary.  Once I am full-time, I will manage all social networking sites for the company, create videos for the company and properties we will be auctioning, and I will be putting together more promotional things for the company that can be used on an iPad.  That way, when they go to speak with prospective clientele, they can show them a nice looking "powerpoint" (but more professional and fancy) of all the different types of auctions we do.  Can I just say... I love my job.  And to think when I applied, I didn't think I would get it.  Out of 155 applicants, I was the lucky one.

I'm so happy that things are falling into place.  Everyone asks me if Travis is working.  But you know, I don't mind him not working.  He's still getting a lot of things done and taken care of.  Plus, he's looking for an easy part-time job so that he can finish school.  When I was in school, I worked part-time.  I tried focusing solely on schoolwork.  I want him to do the same.  This man busted his ass off for 3 years.  He worked like a dog just so that we could keep a roof over our heads.  He's taken such good care of me... it's time I do the same for him.  It is his turn to focus on getting an education and pursuing a career.  It is my turn to buck up, take on more responsibilities, and keep our heads afloat.  After all, if it wasn't for Travis's hard work, I would have never finished this degree and landed this job.  Besides, he is going to be making the big bucks when he's done! :)  Behind every great man is a great woman - and I tend to keep that reputation strong.  He's such a great husband - I need to be his great wife.  I cannot explain how proud I am of him and what we've accomplished as a team.  We're a force to be reckoned with.

Once we pay off these credit cards and polish off that medical debt (yeah, there was a debt for $500 that somehow got lost.  We're not done yet.  ::headdesk::), we are buying my husband a car.  This summer, we are hoping to get a starter home.  It won't be our forever home, but it will turn a great profit when we re-sell it in 5 years time.  We are thinking after getting a car, we should be set with a down deposit plus fees by fall.  Who knows, maybe next year we'll buy a house and have a little bit more saved up.  But it's still fun to look at our options.

I'm not going to lie.  We did break our habit of saving.  This Sunday, Travis and I went on a shopping spree.  I found heels that I could wear to work on clearance!  I got a black pair and a tan pair.  Then I found really cute tops and tanks to wear underneath my suits for work for real cheap!  Then I found two blazers that fit perfectly!  I had looked at Travis and said, "watch, this is going to be too big."  I put it on and it fit!  I about shat myself!  So I got 2 - one is white with a gold button; the other is a black boyfriend blazer.  I also found some nice jewelry on sale that would go with any outfit.  So now I have 4 necklaces and a pair of earring to wear to work!  Since I splurged on work stuff, I told Travis that he should have some fun.  So he bought a new XBox controller (his was broken) and he pre-ordered the new Resident Evil game.  While splurging like that is a terrible idea, we don't do it often.  We rarely, if ever, buy anything for ourselves.  So my first paycheck went towards treating ourselves.  But that's it.  No more frivolous spending until we get another car.

In my very rare amounts of down time, I've been socializing with friends and talking with family members.  I've also been putting together the Woenker Recipe Book.  When I am done, I will post free printables on here just for fun.  Just don't hold your breath.  It'll be a while!

Saying No

The hardest part of our journey to getting out of debt and back on our feet is saying "no" to family and friends.  We want to spend time with everyone, but it's hard to say, "no, we can't go out and eat at that nice restaurant tonight" or saying, "no, we can't come visit this month."  It's so difficult.  It breaks my heart to tell those I love that we cannot go out and do fun things.  It hurts even worse to tell them I cannot see them.

When you are trying to get out of debt, and your biggest feat is a lack of income, you have to prioritize your time and money.  Soon, we'll be paying back my student loan debt.  We've just established Baby Step #1 in building a $1000 emergency fund.  Yes, we will have income coming in soon.  But we still have bills to pay and a savings to build up for a home.  We have to put money into maintenance on our car.  We have been very lucky that my parents have paid for the car insurance.  We would like that to end.  We also need to save up money so that we can have health insurance.  Gas is super expensive - so traveling is just not in the hand we've been dealt right now.

I know family and friends are not in our shoes, so they don't see it like we do.  I know they don't mean any harm.  But there comes a point in time where they get tired of hearing "sorry, no."  We've tried to balance everything the best we can.  It's just hard to please everyone.  I wish that people would give us a little more time.  It isn't like we don't appreciate our family and friends.  We want to spend as much time as possible with each and every one of them.  But we just cannot afford it.  Everyone else is established in their lives.  We've cut back drastically.  This year is dedicated to getting on our feet.  I know many people don't understand it completely.  I try to stay in touch through e-mails, Facebook, and phone calls. I try to explain that it isn't because I don't like them or that I'm not upset with them.  But here is the time where that brick wall hits.  They think we don't want them in our lives because we cannot afford to travel.  They think we don't want to spend time with them because we never go out with them.  And it's always the same reason:  we cannot afford it right now.  When that time comes, it's hard on everyone.  Others see this as an excuse.  We say will come see them as soon as we can afford it - but it comes across like broken, empty promises - even though it is genuine.  After all, how many times does it take before you get tired of hearing the same excuse?

I'm not upset with anyone because I understand how they feel.  At times, I'm at a loss for what to say.  Some individuals have been pretty harsh towards us.  Some have created a huge fiasco over it that I have officially pulled myself away.  It makes me feel bad when they refuse to see things from my point of view.  It isn't like debt is going to go away overnight.  It isn't like we'll have extra money to spend in a snap.  But here's a great perspective that I have....

My father once told me, "it's more convenient to see everyone else than it is for them to see you."  This is a sarcastic comment.  It means that some people expect YOU to go out of your way to see THEM.  Not once does it cross their minds to say, "I know they've hit a rough patch financially.  Maybe I'll go see them and we can do something that doesn't cost money."

Dave Ramsey talked about this on one of his talk shows.  He said that there comes a time where you have to start saying no if you want to get out of debt.  You have to learn how to say no to people.  It is easy to rack up debt and blow money when you go out with the people you enjoy being around.  Think about it.  A couple of close friends ask you to go out one night.  What happens?  You are more inclined to spend money you cannot risk spending.  You might buy an adult beverage to be social.  You might go to a nice restaurant and spend $12-15 on your meal.  You might feel more inclined to go out to see a movie.  That money adds up - especially when you have an "income problem."

Not everyone is going to understand.  It's a hard road to travel.  But you have to keep telling yourself, "this will all be worth it in the end."  Don't fall back into old habits.  Now is the time to keep pressing forward.  Later on, those who truly care will see where you have been and what you accomplished.  There will be a day where you won't have to worry about gas for traveling.  When that day comes, everyone will see it.  You won't have to say anything.  For those that don't get it when that day arrives... well, you can decide where the relationship will go from there.

Baby Step #1: Accomplished.

After quite a hectic run around with my financial aid, I finally received my grant refund.  With that money, the Hubster and I put $1000 directly into our Emergency Fund.  That fulfills Baby Step #1 from Dave Ramsey's Seven Baby Steps.  We are now working towards paying off our credit card debt.  Our credit card debt is very small.  It isn't even $1000, which is why we decided to pay these off.   That shouldn't take long at all!

After we pay off the credit cards, we need to get another car.  Some may say that is a ridiculous idea, but we cannot keep juggling one car.  Having that single car run constantly between the both of us is adding miles to the car and wearing down on it.  Already, we need to put some maintenance into it just to keep it running so much.  So, with the remaining amount after paying bills is going straight into fixing the car.  It's a great car.  It's been amazing.  But the poor car has been working way more than it should be.  And it's showing.

WOO HOO!  We made it through Baby Step #1!  On to Baby Step #2....

Here's to a New Beginning!

We are officially starting over!  I think 2012 is going to be our year!  I finished my classes at Indiana University and now I am finishing up 200 hours of an internship before graduation.  I will be graduating in May 2012!  I can't believe it is finally here!  Travis and I packed up our things, and we moved in with my father-in-law and grandfather-in-law.  They are fantastic.  We have lived here almost 2 weeks.  Mornings are spent talking to grandpa and enjoying a nice cup of coffee with some danishes.  In the evenings, we sometimes lounge in the living room with dad and watch TV shows.  Once in a while, we visit with friends and family.  I'm slowly figuring my way around Fort Wayne.  It's a little confusing, but I'll get the hang of it soon enough.

Today was a great day.  I found out that I begin working next week at the Fort Wayne Children's Zoo as an intern in Public Relations and Social Media.  It was meant to be.  They were looking for someone to help with the social media and communications department - and that is what I do best!  Since the internship won't be every day, I'm looking for a part-time job to fill in some of the gaps.  Travis just received a phone call about a job he applied for on Friday.  They really liked his experience and quickness with math.  He has an interview this Friday, so fingers are crossed!  I am also getting a chance to really put my talents to work.  I am putting together multiple websites for different companies and organizations voluntarily.  Right now, I am finishing up a website for Merle Norman Luxe Spa & Salon in Fort Wayne, Indiana.  Then I will be working on an interactive website for an awareness/support group for Intestinal Malrotation.  I think the hardest part about web design is the color scheme.  That's what I'm playing around with right now for the awareness/support group's website.

We still have the apartment in Bloomington.  It is available if anyone is interested.  Right now, we need to pay next month's rent, and it will automatically be put on the market as vacant.  We have to pay the rent and electricity until someone decides to take the lease.  Then, our lease is no longer in existence.  Our apartment complex is a great area, and they currently have no vacancies.  People have been looking for a one-bedroom apartment, and after our luck with trying to find a sublessor - the complex decided to help us with the process so that they can advertise an available apartment for the demand they have been receiving.

We only have one medical bill left to pay.  Then we have about $1000 in credit cards to pay off.  We still only have one car, but it'll work just fine.  My internship is in walking distance, and family members have offered to drop me off or pick me up whenever I need a ride.  Once Travis is working, he'll more than likely use the car more than me.  And my internship isn't every day of the week, so I will be able to pick him up and drop him off whenever I have errands to run and he needs to work.  Right now, Travis and I have developed a goal list.

1.  Re-establish $1000 in our savings fund (we had to use the money to move)
2.  Pay off remaining medical bill.
3.  Pay off credit cards.
4.  Buy a second car.
5.  Save up for an apartment (or possibly a house).

Things are really starting to look up for us.  All I can say is: it's about time!  Travis and I made some New Year's resolutions, and the number 1 resolution is "Always stay positive."  So far, it's been working.  Positivity goes a long way! :)

I hope everyone enjoyed their holidays and are off to a great start to the new year!  Just for fun, what are your goals for this upcoming new year as you build your nest?

First Call about the Car!

Some people think we are crazy.  We are selling my husband's car.  The only reason we are selling his car is because we cannot afford the insurance and maintenance on it.  We currently have one car that is paid off, has insurance to cover both of us, and it is in great condition.  But hubby's car needed a new fuel pump and there is an easy fix for the left brake thingy (obviously, I know nothing about cars).  Basically, the car needs about $400 of work into it that we just can't afford.  Plus, we cannot afford to get car insurance for hubby and I on that car.  We are selling it for a decent price - what it is worth minus the extra costs that are needed to repair the fuel pump and brake.

To have one car might sound like a bad idea.  But where we live, there is readily available public transportation.  For starters, taking the bus is not that bad.  I usually take the bus to campus anyways because it costs way to much to pay for parking.  I can easily walk anywhere I need to when I'm on campus.  My husband likes to skateboard and ride his bike, so that is usually his way of transportation to and from work.  Sometimes, he and his co-workers will carpool.  The only time we really need the car is to get groceries and for me to get to work.  Sometimes, my husband will take the car to work while I'm on campus all day (Mondays and Wednesdays are 13 hour days!).  And if anything, IU has this awesome Safety Transport system.  If at any time, day or night, we need a ride from point A to point B - all we have to do is call the number for the Safety Transport, and an IU marked van with 2 employees (one male, one female) will pick you up and take you to where ever you need to go.  There really is no use for a second car in our lives right now.

So - the car has only had a "For Sale" sign on it for a few days.  It hasn't even gotten cleaned yet - haha! A gentleman called my husband today, and he is interested in the car!  He totally agrees with the price!  He is going to talk to his wife overnight, and he'll call us back tomorrow.  I guess they need a car that will get them from point A to point B.  The maintenance on the car doesn't seem like a big deal to him for the price we are asking.  I'm super excited about this!  The money we make from this car will go directly into our emergency fund and paying off some of those medical bills!  **Fingers Crossed!**

Where We Were...

Just to give a few people an idea of where we are coming from, I decided I would fill you in on the number crunch.  I'm not lying when I say we used all of our money to pay debt.  I've had a few people come up to me and say, "Oh, you think you have it bad..." and then proceed to tell me their negative numbers.  I'm not trying to belittle anyone.  I know this economy is really hurting people.  But we didn't just blow our money like I've seen some people do.  I know this sounds harsh, but I don't want to hear woe-me stories about debt when those people are doing literally nothing about it (other than blowing their paychecks on videogames, booze, strip clubs, and night clubs).  Then, they want to come up to me and tell me how I don't know what I'm doing when it comes to finances.  So, kiddos, I'm going to lay it out there and show you the numbers.

I'm only going to focus on medical bills and credit cards.  You'll get the picture.  Our rent is average, our utilities are very conservative (especially since water/sewage/trash/recycling is all included in our rent), and the only reason why we are in debt in the first place was because of medical expenses.  Our medical expenses forced us to use credit cards (which is stupid, don't do it unless you know you can pay off the credit card!).  I'm not going to include my student loans.  Why?  Because I believe you can't put a price on education.  Yes, I'll be paying it back - but paying back my student loans won't be nearly as difficult if we take care of our current debt.

Currently, these are the medical bills we're paying off:

• IU Health (when hubby had meningitis, it's the final bill):  min. $50/month = $175 remaining
• Radiologists (SIRA):  min. $20/mon = $405 total
• Dr. Greene's office:  min. $20/mon = $620 remaining
• Unity Physicians:  min. $120/mon = $2707 total

Currently, these are our credit cards (GASP - we only have 2!):

• Credit One:  min. $25/mon = $306 total
• Capital One:  min. $15/mon = $500 total

We are currently LOW income.  When I say low, I mean $1600/month income.  But this is me going to school full time, working only 16 hours a week (because that's all they can give right now), and my husband literally just got his job back after being laid off and is starting back this week.  I'm currently getting everything situated for my senior year in college, and I am looking into work study as well.  I'm still looking for a second part-time job, too.  

So, with our current expenses and our current income - it sounds doable, right?  We should be saving money!  No.  That's not correct.  We just started this income this week!  My husband was laid off for about 4 months!  I couldn't work up until April.  And when I could work, I spent the next 3 months looking for a job.  Economy is tough, ya'll.  So, you can imagine with no income, how hard that was.  Luckily, there were food pantries, generous family members willing to help because they understood our situation, and we used ALL of the money we ever saved to survive that difficult time.  Saving what we did prior was our emergency fund.  An emergency fund goes quickly.  I'm glad we had it when we needed it.

But here's something else.  We paid off a lot of debt.  How much?

• IU Health grand total:  $21,507.87
• Unity Physicians total: $1803.00
• Radiologists (SIRA) total:  $1065.00
• Pathologists total:  $165.00 (and we are expecting reimbursement of $27.50)

We paid off a total of $24,155.87 in 2 years.  Before I got ill, I worked.  I would work as many shifts as I could and I even pulled overtime.  But from November 22, 2010 until April 15, 2011, I could not because doctor's ordered me not to and for 3 months of that time, I was strictly bedridden - only permission to use the restroom.  And my husband worked a lot, pulled overtime, and did whatever he could.  We struggled for 2 years to pay off that amount.  That is not even including the bills family members contributed towards.  It costs a lot of money to save your life - and not all treatments are covered under insurance plans.

Paying off debt is possible.  We've done it - and we know there are sacrifices to be made.  But I definitely don't like someone telling me that I don't know what I'm doing, or that I'm following a cult because we're following Dave Ramsey's plan.  Maybe why so many people follow him is because it freaking works.

For all the other penny pinchers out there - stand your ground.  You aren't crazy!  I know it is possible.  We survived... literally.

Cheap Date Night!

So, one thing about saving up for money means less time going out and spending it!  Obviously!  Well, what about having a date night with the other half?  Looks like we'll be getting creative!

Tonight, we are having our first cheap date night!  What are we doing?  We have strawberries and sandwiches packed, and we are going to a "secret place" that my hubster won't tell me where it is to watch the meteor shower!!  I'm super excited!!

The weather alert says there is a thunderstorm watch for tonight.  I'm not too excited about that.  Sorry mother nature, you are not ruining date night!  And you better not be in my way from seeing cool meteors!

UPDATE:


Mother Nature decided to be cruel.  We went to Morgan/Monroe State Forest, and the storm pretty much pushed us out.  The clouds were so thick and heavy, it was impossible to see the stars.  And the lightning pretty much freaked me out.  So, we came back home.  Oh well, at least we managed to enjoy our time watching the storm roll in over the lake.  It was quite beautiful.

Getting Rid of What We Don't Need

I have honestly been thinking of selling literally everything.  If I could sell it, I would.  I would sell whatever I could and start from scratch!  But a lot of our furniture are hand-me-downs, and when we got them - they weren't in the best condition.  So those things probably won't ever sell.

We aren't in desperate mode just yet.  If we were desperate - you better believe I'd be getting rid of some of our nicer things, like the TV, entertainment center, book case, dressers, even the bed!  But we're not desperate yet.  So, what are the luxuries that we have that are just a hole in the pocket?


First and foremost, my husband's car.  We can't afford to fix it and keep up the maintenance on it.  We've managed to do just fine with only one car.  For school, I take the public transit to campus and walk.  I don't need a car on those days.  Plus, what's great about it is I can also walk to my husband's work from campus.  So later in the evenings, I could actually get a delivery driver to pick me up on his rounds and take me to his work or take me back home.  It's pretty neat to have that available.  If for some reason they can't, I can always call the campus safety transport to take me home.  If I had to go to work, I would need the car, or I would need a ride.  My husband and I are pretty good about sharing and taking turns, so I highly doubt we'll have any issues with this.  Plus, our schedules work well together to make it less of a hassle.  Bye bye beast car.

1994 Pontiac Grand AM - You were convenient, but we won't miss you!

Baby Step 1: Build An Emergency Fund

Our current goal right now is to follow the Seven Baby Steps offered by Dave Ramsey.  We're starting today!

So, baby step #1: build an emergency fund.  Sounds easy.  But that emergency fund is $1000.  We have $0 in our savings.  It is up to us right now to pay off the minimum payments towards all our bills.  We have to continue paying for our monthly expenses, such as rent, electric, food, gas, etc.  So, thinking about it, this is going to take a little while.  Once we can build this emergency fund, we'll be able to have something to fall back on in case something happens.  To help us get there, we are selling my husband's car.  Two cars is a luxury, and we cannot afford the maintenance and insurance on his car.  We're also selling some furniture and random items.  I hold on to my books.  I love my books.  But I'm even going to sell them.  I want a library some day, so I see this opportunity as a temporary separation.  I don't *need* them.  I just want them.  So there's the difference.

At the top of the post section, I have a handy dandy ticker dedicated to savings that I got from Ticker Factory online.  It's great because you enter in the amount you need to save, and whenever you add to your savings, you can add it onto your ticker!  I'm going to have tickers for every step.  I think I will get a much more satisfaction seeing all the tickers completed.  Plus, I have you lovely readers to keep us on track!

We are also using the budget sheets available on Dave Ramsey's website.  We are going to do this!  This is the first step towards building our nest!

Introduction

Hello!

Today begins the day that my husband and I are starting over.  We've had a very rough patch in life.  This blog is mainly for us to track where we've been and where we are going.  It's to monitor our success, a place to vent our worries, to praise our hard efforts, and get us motivated to get where we are going.  I'd glad you have come here to join us!  The work it takes to get on your feet again after a hard time is agonizing.  Sometimes, it feels impossible.  But to stand up and face the impossible makes anyone brave.  Everything in life comes back to money.  It's a shame.  It shouldn't.  There's an amazing quote that I always think of when I hear people talk about money.

"Only when the last tree has died and the last river has been poisoned and the last fish been caught will we realize we cannot eat money."

- Cree Indian Proverb

It makes you think.  But unfortunately, you cannot survive without some kind of currency.  

I was never taught how to manage money or how to budget.  Sometimes, I found balancing money very confusing.  I figured out a system real quick when I had to move out on my own.  I never lived out of my means and I worked hard for every penny that I earned.  When my husband (fiance at the time) became ill and almost died of bacterial meningitis, his medical bills really put him in debt because he didn't have health insurance.  Luckily, the hospital offered financial assistance for those who honestly could not afford the bills.  Unfortunately, it didn't cover all the bills.  I was also experiencing health issues (which were misdiagnosed as endometriosis).  I had been dropped from my parents' insurance, and I myself quickly racked up medical bills for treatments.  I wasted my money on a health benefits plan that didn't pay for anything.  Our medical bills combined became overwhelming.  We took money out of our savings accounts including our wedding fund to pay off the bills.  With my health becoming a risk, my husband and I married at the Justice of the Peace because we couldn't qualify for any assistance as independents (unless I had a child, which was not in our plans at the time).  We gave up hope for a wedding because it was not in the cards we were dealt.  

My health got worse, and I had a insurance plan (even though it wasn't anything great, it was better than nothing).  I had a heart attack at 24 years old due to a congenial birth defect called intestinal malrotation. My health continued to get worse, and medical bills piled up again.  I was forced to withdraw from college and quit my job - leaving us on a single income and more debt than we could afford.  If it wasn't for local food pantries and the generosity of our family members, we wouldn't have survived when my husband was laid off from his job.

I found out I had become pregnant, and my health continued to decline.  It wasn't until I was pregnant that I found out I had struggled with E. coli for months.  I was treated for it, and Hoosier Healthwise paid for my pregnancy.  Unfortunately, we lost our daughter on April 5, 2011.  I had complications from the miscarriage, and I hemorrhaged.  My ER visit for the hemorrhaging was not covered under my pregnancy plan because I had miscarried 3 days prior and the doctor decided to not put the medical code saying my visit was pregnancy related.  I fought for months, even got a patient's advocate, but the doctor still wouldn't budge.  Without that code, my pregnancy insurance would not cover my visit.  My mother graciously helped me pay off some of the medical bills that acquired during this difficult year.  

My husband and I struggled to find decent jobs to get by.  I set up payment plans for all the medical bills.  My husband waited for three months for unemployment to approve his status.  We are still waiting, one month later, to receive his unemployment.  By the grace of God, the company my husband worked for was sold to new management, and he got his job back.  I found a job, working part-time at a burger joint.  They couldn't hire me as full-time.  

I am going back to college for my senior year.  I qualified for many grants and financial aid to cover my final year in college.  I am still waiting to hear whether or not I qualify for work-study.  If so, I have a possible work-study position available to me at the Career Center on campus.  I also signed up for tuition reimbursement for the semester I had to withdraw from college.  I won't find out if my appeal is approved until after September 6, 2011.  If I do receive reimbursement, I will have to wait another 45 days to actually get my money back.  

The economy is rough.  It's rough for everyone right now.  We are in a crunch, living paycheck to paycheck.  We're even behind on some bills.  We literally have about $50 in our bank accounts.  Once my husband receives his unemployment, we should be caught up on our bills that are behind.  

Now that we are working our way out of our current quicksand of financial stress, we are setting up budgets and working towards building our little nest.  We have so many things that we need to pay off, and many things that we need to save up for.  We are literally starting here with nothing.  So now is the best time to get a plan put into action.  This is what this blog is for.

We are following guidelines from Dave Ramsey currently.  We plan to follow the Baby Step program and see what happens.  It couldn't hurt.  So, this blog is dedicated towards our nest egg.  This blog is dedicated to building our nest so that we can officially live our lives.  I hope readers will find this blog as a useful tool to getting out of those difficult times.