Living In a Financial Fallout Zone

The explosion is over. The dust has settled. All that remains is to pick up the pieces and try to continue on. This is the reason for writing this blog. Our journey to independence will take years, but this is our first step. This is our way of holding ourselves accountable, as well as soliciting new ideas. Following are some of the reasons we are where we are:

  1. We did not have a backup plan. For just one reason a backup plan is needed check out this post.
  2. We tried to live beyond our means. We ate out more than we should have. We made purchases that were unnecessary. As long as there was money in the account to cover what we wanted, all was well.
  3. Like most Gen Xer’s, if we could not afford, we borrowed. This is self explanatory. If the payment was manageable, we needed (nay, deserved) that new technological thingy.
  4. We failed to plan for emergencies. Life happens, some sort of padding is needed to alleviate the fall. No one could ever be prepared for all the possibilities that could go wrong, but some type of safety net will at least ease the pain of the landing.
  5. We did not live on a budget. Here again, a daily balance check was all we needed to see how much we had to spend on groceries, gas, movies, etc. Looking back, there have been a few times that meals purchased outside of the home during a month would have covered a house payment. Thirty and forty dollars a day adds up quick.
  6. We seldom, if ever, comparison shopped. We rationalized, “We need the item, it is here, it seems reasonably priced, and it would probably cost more in gas to drive elsewhere to get it than we would save.”  One of the things we have seen in other blogs is creating a price list for groceries and common household items-definitely going to try it out.
  7. We procrastinated reviewing our financial situation out of fear. We knew we were in bad shape, but we did not want to “face the music.” By putting this off we inevitably done more damage than if we would have just balanced and decided to take action sooner.

There are many more reasons, but these are a few of the major ones. We woke up one day, and the jobs that paid for all this were gone. No emergency savings, no backup plan, no additional income, just the bills remain.

This is where we are going to chart our journey out of debt, ways to save money, encouraging words from scripture, as well as ways to entertain family and friends in a fun, financially responsible way. We hope to engage you, ask for your input, and maybe help you avoid some of our mistakes.

Have you come to a financial crossroads where to continue is to sink?
What are some of the mistakes you have made? How have
you made progress toward being debt free?

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