Left my job yesterday

[my4fireflies]

Left one of my jobs yesterday. It was ending soon, but I cut ties completely and asked for my last check. It was elder-care. I just couldn't take the stress anymore. I worked there almost 2.5 years and the hours went from 5 a month to 124 in the last 2 weeks. I have had 3 days of since Jan 1st. It took a terrible toll on my psyche, my health, and family. However, it was great for reducing my overall debt. This job SUCKED but in the end, it hastened my financial plan by several YEARS. I still have a few years to go, but it's all starting to come together. I reduced my output so that I don't have to find another job. I can keep my 15 hours/wk,  minimum wage job that I love. That income, plus hubby's income, is enough to CONTINUE to pay down the debt and build a savings. We should have the remainder of the cc paid off in June and then I will build a savings while doubling the payment on 20K in school loans. Unless you tell me not to?

 I definitely need to build my savings. I currently have 1K in emergency savings, and 8K in hubby's 401K. He's 40, I'm 42 so....that's NOT good. My plan is to get 3 months worth of wages saved, then really hit the school loan til it's gone, then save another 3 months of wages so we will have 6 months of wages in an emergency fund. Then put EVERYTHING we can into the 401K for as long as we can.

I also want to move in the next 2-4 years. Our current 202 year old home needs SO much work.
 
Right? Wrong? Feedback?

[radram]

Left one of my jobs yesterday. It was ending soon, but I cut ties completely and asked for my last check. It was elder-care. I just couldn't take the stress anymore. I worked there almost 2.5 years and the hours went from 5 a month to 124 in the last 2 weeks. I have had 3 days of since Jan 1st. It took a terrible toll on my psyche, my health, and family. However, it was great for reducing my overall debt. This job SUCKED but in the end, it hastened my financial plan by several YEARS. I still have a few years to go, but it's all starting to come together. I reduced my output so that I don't have to find another job. I can keep my 15 hours/wk,  minimum wage job that I love. That income, plus hubby's income, is enough to CONTINUE to pay down the debt and build a savings. We should have the remainder of the cc paid off in June and then I will build a savings while doubling the payment on 20K in school loans. Unless you tell me not to?

 I definitely need to build my savings. I currently have 1K in emergency savings, and 8K in hubby's 401K. He's 40, I'm 42 so....that's NOT good. My plan is to get 3 months worth of wages saved, then really hit the school loan til it's gone, then save another 3 months of wages so we will have 6 months of wages in an emergency fund. Then put EVERYTHING we can into the 401K for as long as we can.

I also want to move in the next 2-4 years. Our current 202 year old home needs SO much work.
 
Right? Wrong? Feedback?

Congratulations on your decision to leave your job. It sounds life changing. What do you plan to do with the new non-work time?

Definite yes to CC payoff. What is the rate on the school loan?

[my4fireflies]

I plan to increase my gardening, poultry raising, and money saving techniques. We raise poultry (chickens and a few turkeys) for personal consumption of meat and eggs. I plan to become more frugal with our menu/groceries but I must admit I'm already SUPER frugal, spending about $100/wk for 6 people: 2 adults and 4 teenagers. I am looking forward to decluttering and downsizing our life. I also need to assist my 19 year old ASD twins with becoming more independent. They don't drive, so that's the first item. Practice driving and get them their licenses and help them access resources in our area such as employment, independent living (some day), etc. I FINALLY get to call the shots (more or less, we still have a mortgage). It feels WONDERFUL.

The school loan is 5.22%

[Blueskies123]

Rather than gardening why not find a job where you only have to work 40-50 hours?

[my4fireflies]

Can't tell if that was a joke or not? The point is to not work outside the home very much and to use my time at home to benefit the family, for now. When the twins are living independently I may return to work. I can't help them if I'm not here, so they have been in limbo for a couple of years.

[soccerluvof4]

I saw your CC payoff on another thread. Your doing well and yea maybe take a breather and allow yourself some time to figure it out first.

[fuzzy math]

Since you are in the medical field, can you find a position (not sure if part time is eligible) where you can work in an underserved community and get your loans paid off?

Also with you ages I would recommend focusing on getting your retirement contributions up to at least the company match. Your student loans are tax deductible.

[my4fireflies]

Good point on the matching, fuzzy math!

[my4fireflies]

I looked into my retirement. It'ca called OBRA because I am a part time municipal employee Must learn more

[ikonomore]

So you left your job, have 8k in a 401k, CC debt and student loan debt.  Hope it works out, just don't see how it will.

[my4fireflies]

My husband is still employed full time and I still have my part time job. The job was ending on 3/20, I ended it a little earlier than scheduled date to get the stress off me. I'm happy.

[ChpBstrd]

If you can write that post, you can do better than minimum wage. Even temp agencies pay better than that. Is the student loan yours, or husband's? Maybe as soon as you reduce the CC debt and get the family situation semi-stable, it could make sense to focus on a trade certification or even get a degree. No, you're not too old. Maybe in 20 years, but not now. You have a whole career ahead of you, even if the past has been rough, so plan like you're starting over. You could STILL retire a millionaire if you make the right moves.

Also, sounds like you are in a rural area, presumably with few opportunities. If the choices were rural poverty vs. middle class in a small city, would you move or is the location firm?

[my4fireflies]

I do have a bachelors degree, the student loan is mine. I went back to school a few years ago so I'm in year 4 of repayment on a 10 year loan. I tried a regular 9-5 but I have a very complicated life that requires flexibility, which my current job  fits PERFECTLY. I have children with special needs (medical-Lyme, chronic fatigue, cardiac issues, emotional-ASD, anxiety, ODD). Appointments and crisis pop up frequently. I love my current part time job. It allows me the flexibility I need for my children. It brings in about $500/mo. I do live in a somewhat rural area. I'd prefer not to move and use my location to my benefit (small scale farming of sorts). Living here is a life-long dream, partially realized. Dh is becoming increasingly unhappy with his current employer, so I have told him that I will follow him anywhere, but I do prefer to stay in this town if possible. I am very happy here. I don't MIND moving, but I am not a city or suburban kind of girl. I am a pioneer woman at heart. I raise a large portion of our meat,  can my garden harvest,  dabble in lacto-fermenting,  knit,  tend chickens,etc.

After posting all that I'm thinking maybe I could try my hand at a couple of local farmer's markets....just have to check how much it costs for insurance and the associated fees. I did it 2 years ago and was MISERABLE, but I was very unprepared. I was working too many hours at the job I just left and there was no time for prep.

[overwhelmed]

I do have a bachelors degree, the student loan is mine. I went back to school a few years ago so I'm in year 4 of repayment on a 10 year loan. I tried a regular 9-5 but I have a very complicated life that requires flexibility, which my current job  fits PERFECTLY. I have children with special needs (medical-Lyme, chronic fatigue, cardiac issues, emotional-ASD, anxiety, ODD). Appointments and crisis pop up frequently. I love my current part time job. It allows me the flexibility I need for my children. It brings in about $500/mo. I do live in a somewhat rural area. I'd prefer not to move and use my location to my benefit (small scale farming of sorts). Living here is a life-long dream, partially realized. Dh is becoming increasingly unhappy with his current employer, so I have told him that I will follow him anywhere, but I do prefer to stay in this town if possible. I am very happy here. I don't MIND moving, but I am not a city or suburban kind of girl. I am a pioneer woman at heart. I raise a large portion of our meat,  can my garden harvest,  dabble in lacto-fermenting,  knit,  tend chickens,etc.

After posting all that I'm thinking maybe I could try my hand at a couple of local farmer's markets....just have to check how much it costs for insurance and the associated fees. I did it 2 years ago and was MISERABLE, but I was very unprepared. I was working too many hours at the job I just left and there was no time for prep.

I get the impression she is not asking for ways to increase her income but asking if her current plan makes sense.

She has a part time job that allows her the flexibility she needs to care for her children with special needs. She has a husband working full-time as well.

my4fireflies - glad you were able to hang on to the other job for long enough to help with your cc payoff.

It sounds like your plan is a good one, kill the cc which you already have a plan for.
I agree you should check the retirement plans and try to at least get them to the employer match.

Your priority clearly seems to be working with your kids to help them gain more independence. When you feel that is done or if something changes, you can decide if another job is something you want or need.

As difficult as that huge increase in hours was, helping your debt pay-off plan was a great benefit.

I'm happy for you because you sound happy.

[radram]

I plan to increase my gardening, poultry raising, and money saving techniques. We raise poultry (chickens and a few turkeys) for personal consumption of meat and eggs. I plan to become more frugal with our menu/groceries but I must admit I'm already SUPER frugal, spending about $100/wk for 6 people: 2 adults and 4 teenagers. I am looking forward to decluttering and downsizing our life. I also need to assist my 19 year old ASD twins with becoming more independent. They don't drive, so that's the first item. Practice driving and get them their licenses and help them access resources in our area such as employment, independent living (some day), etc. I FINALLY get to call the shots (more or less, we still have a mortgage). It feels WONDERFUL.

The school loan is 5.22%

Looks like a sound plan. I will forever refer to my emergency fund as months of spending, not months of savings.

How long can you live on 6 months of earnings? It sounds like a lot, since you could increase the side hustle of your farmette if you had to. That is one sound emergency plan :)

Congratulations on your life changes.

[my4fireflies]

Thank you radam and overwhelmed. :) I guess 6 months of savings IS 6 months of spending--I look at the same way. 6 months of our current budget is my savings goal. Does that make sense?

[radram]

Thank you radam and overwhelmed. :) I guess 6 months of savings IS 6 months of spending--I look at the same way. 6 months of our current budget is my savings goal. Does that make sense?

Allow me to clarify. If you are saving(building your emergency fund) every month, or equivalently paying down debt by doubling payments, that is money you would not be spending(or saving) in times of an emergency. You would revert back to the minimum payment until the emergency was over. As a result, 6 months of savings should be more months of spending. Once the cc is paid off, that reduces the minimum household expenses forever. Same with the student debt. Once the student loans and cc are paid off, you will no longer have those payments, allowing you to live even longer on the same amount of emergency fund.

Every major payment that ends just allows you to live longer and longer, since you no longer have to support it every month.

It sounds like you are still able to reduce your debt and save, so your 6 months of income should be more than 6 months of living expenses during an emergency.

If you truly did spend everything every month, you would be on a plan to never FIRE, or never even "R" at any age.

It is a real boost in moral to see something paid off, and then to immediately see that you can now live longer with the same amount of money.

Have a great day.