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April Recap And Random Money Musings

May 2012 is already shaping up to be a better month than April was. That’s pretty decent considering it isn’t even May yet. I get paid at the end of the month, and have already paid all my bills for May. That’s also pretty decent considering I paid up the ones I had to skip on last month just to survive. I absolutely detest living like this but one of the first things I learned in Divorce 101 is that sometimes you just have to survive. That was April’s mantra. May’s, I hope, will be more about recovering and stabilizing rather than just making it. By July, I actually hope to be moving ahead.

So, I’ve paid the bills, and there is money to eat on for the rest of the month; another reason May is already better than April. In addition, I did this without planning on the rental money, from the old Someday-The-Bank-Will-Decide-To-Foreclose house. I’m going to terminate the contract with the renters whether they pay or not on May 1. We are on a month-to-month and i can terminate the agreement with 30 days notice for no cause. The income is nice, the hassle is not. It is also a good idea for me to just get used to not having that income. After that, I’m probably going to need to begin not planning on the money from The Evil Ex, because I suppose that will go away soon also. I just can’t worry about that now. On the up side, I have a few gigs that opened up over the summer that will hopefully do much to get my savings going.

On another note, my son was sick all last week and he gave me whatever he got. I spent most of the glorious spring weekend indoors, sick with a killer cold. I’m feeling slightly better now, but won’t be heading in to work tomorrow. I’m certain my clients would not appreciate me coughing, sneezing, and hacking phlegm all over them. I’ve already called in my assistant. She can handle most of the important stuff, and reschedule the rest. I will be spending the day in bed sleeping, hoping like anything to speed my recovery. God knows I’ve taken enough sick time this year.

In all, April sucked. Bankruptcy is no fun and things were super tough. On the other hand, I do believe the home we are in right now was divinely appointed. There were not and still are not any homes of the kind and size we have for the amount we are paying. I’m not sure this is necessarily a forever home for us, but I can think of much worse places to land for a few years while we get back on our feet financially. Plus, it is low maintenance and I love this place. Things could be much, much worse.

So, here’s to moving through the roadblocks and challenges in life. After every hill climb, there is a glorious descent. Let’s hope the ride smooths out for the rest of 2012.

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Fear & Finances; Bankrupt But Wealthy

The days, months and the first few years immediately following my second divorce were, as I look back on it now, terrifying. To be honest, they were nothing compared to the angst and trauma I endured before deciding to seek a divorce from the nightmare that was my second marriage. I was terrified that I would not be able to survive on my own. I was even more concerned because I was responsible for four children, two dogs, a big mortgage on a small shack, a car payment, and student loans.

I soon learned that I did, indeed, have much to be frightened of. I didn’t, by any stretch of the imagination, have anything scary enough to keep me in that marriage as long as my fear kept me there. I should have gotten out earlier. Looking back, there are a number of things, I should have done differently. Isn’t that the way it is with life? We look back thinking what we should have done differently, but we look back with different eyes than the ones we viewed the situation with in the first place. We look back, older and wiser, hopefully, because we learned from the experience.

I remember agonizing over finances. The ex was irresponsible with money, and, among other things, routinely overdrafted the checking account we used to pay bills. This became a downward financial spiral of robbing Peter to pay Paul. Add to this, the fact that he was hard on things. For example, cars he owned somehow always wore out quickly due to negligence and abuse thus requiring costly repairs. He was just as careless when it came to our home. By the time the marriage ended, I was over my head in debts I could not on my own salary pay, and living in a house which had been damaged by his misguided attempts to “improve” it. I bought a house that was a fairly nice ranch home in a quiet neighborhood. Three years later, you almost wouldn’t recognize the place. It looked like something out of hoarders. It was one disastrous unfinished project after another. I was left to dealt with the debt and clean up the mess.

All of this went down in 2007, and by the time my divorce was final, I was also upside down in a house that I’d never have the capital or cash flow to improve, let alone sell for what I still owed. I should have called uncle then. Instead, I went on a debt repayment plan and for the following six years I struggled to pay off debt, had no credit, no savings and more bills to pay than income coming in. I also had four very hungry children, and because my income was $50 over the guidelines, my children couldn’t qualify for free and reduced meals or any other assistance. I was awake many a night wondering which food pantry or church I could hit up next.

During this time, I also experienced blown engines on three cars (obviously not all owned by me at the same time), a failed rear-differential that dropped right out of the vehicle as I was pulling a load of firewood gleaned from a friend’s property. Of course, there were also the normal maintenance repairs and things that come up. I remember being so destitute that when gas went up to well over $4 a gallon a few years ago, we ended up walking to the store. Were it not for the assistance of friends and the kindness of strangers, I would not have survived those years. (Note: I didn’t mention the help of family members…that’s because there was none, though my first ex and his wife were angels to me on numerous occasions.) I should have walked away from it all early, applied the financial atomic bomb of Chapter 7, and then moved on.

Six years later, I’m finally getting a clue. That bomb has been set to detonate and I look back now and wonder, what was I so afraid of and why didn’t I do that much earlier?

I fought to keep my home, now I’m surrendering it. Here’s the kicker, I moved into a place that is much larger and newer than that house, has all the modern amenities (the house needed updating in the worst way), and costs less than half the house payment. I thought that I’d be hit hard with taxes this year due to not being able to use the house as a write off, but because of having a child in college, it turns out I’m getting money back. And I have to wonder why didn’t I do this earlier? Why did I try to stick that nightmare out?

You could say that if I’d known better I would have made different choices. I don’t think that’s true. I knew better about the bankruptcy. I had good information about the pros and cons. I still hung on trying to repay debt that both was not mine and which I wouldn’t be able to repay in three more lifetimes at the rate I was going. I think the real thing holding me back all that time was fear. I was afraid of the stigma of having a bankruptcy on my record. I was so worried about what it would do to my FICO score. I was worried that I wouldn’t survive.

I ask myself why I didn’t do all this earlier? Sometimes I can beat myself up about it because, after all, I’m six years older and as you get older you begin to realize that both time and money are precious commodities, but time is more valuable. I forget, that I’m looking back with different eyes than the ones I viewed the situation with first. My eyes now see that in this economy, these days, sometimes bankruptcy is not only the only option, it’s a very smart financial move. My eyes now see that if you live on a cash only basis, you don’t need to be ruled by the FICO. More than anything my wiser vision recognizes the strength and courage born of enduring. I know I will survive.

Sure, there will probably be things that come up down the road that terrify me (the second ex seeking a modification in the child support order comes to mind as it seems to portend a costly and futile legal battle). I also know that there are certain things that just won’t ever scare me again. Things do always have a way of working out, they aren’t always disastrous, and somehow I will survive. I’m wealthy in ways that can’t be measured in currency.

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