Ok... I am sharing this not only because I am DAMN proud of myself... but because I hope to inspire all my fellow Mustachians who are on this journey with me. I am a single mom to three kids ages 18, 12 and 9. I lost everything in the past year (materially speaking) including having my house foreclosed on, selling most of my posessions, and embezzling my little home business to try to pay bills. Then, I found out my daughter needed a spinal fusion surgery. Even though she had health insurance through her dad's job, the co-pays were in the thousands. Neither of us had the money, so I went to apply for Medicaid. When I was at the office, they told me that I qualified for Food Stamps... WHAT???? That was a serious low for me. I knew I needed to do something... and fast.
I began looking at my relationship to money. I grew up in a home that lived below the poverty line... and I realized that no matter how much or little money I have earned in my life, I have always kept myself at the poverty line through creation of debt, or quitting well-paying jobs. Something had to change. I was what needed to change.
After my daughter's surgery, I found a job through a temporary agency that is enough to cover our basic needs. With that covered, I was able to begin re-investing profits from my small business back into the biz. Within three months my profits have tripled!! I work hard at my temp job and yesterday they made me an offer for a permanent role. It is more money than I have ever been offered in my life. Combined, my net income from my business and my new job is over $100K annually!!
But here's the best part... because I have been devouring Mr. Money Mustache blog info, I have also changed how I am spending my money. I have paid off my car, and a small loan. I am postponing grad school until I finish paying off my undergrad degree. I have created a budget that is only 30% of my new annual income... that means that I will have about $70K per year to save/ invest etc. Since I have ZERO retirement savings, I am going to max out my 401K contribution at work. I will save the remainder...first for an emergency fund... then to buy a home. This time though, I won't be paying a mortgage. I will buy a home cash down, even if it means I have to wait a while. I never want to be in a position again where my home could be taken away.
And, in case you are thinking that $30k per year is too hard to live on... please know that my budget includes clothing, vacations, gifts, car repairs, cell phones for the teens, and money to dine out once a week!! That is not shabby living by any means!
Habits that took a lifetime to learn are not going to simply go away now that I've had a "financial rebirth". So, I have also enlisted the help of a therapist to keep me on-track toward my goals... yes, still within my budget :) Just this morning I told him that I wanted to quit my new job! SERIOUSLY!!! He mentioned that perhaps the mere thought of actually having "gobs" of money was terrifying to me, and so I was finding reasons to sabotage this good fortune. I thought about it, and I realized he is right. I am terrified. I have never known what it is like to have anything in savings. It feels foreign to me. Have you ever experienced something similar? It will take some time to undo my negative associations with money, and to build confidence that I can become a great money manager. I hope to share my experiences with those of you who can relate. And, I hope my sharing this story will also keep me accountable to reaching my goals, and perhaps inspire you to reach yours!
