Thank you, MMM community

[Kitsune]

Some context: due to Unforseen Events (ain't that always the case... ), we started with 20K in debt last June.

I was ending my maternity leave. I had no income from mid-February to June 2015. And then, in June, I started a new job, but the company was having financial difficulties and everyone's salary (and hours) got cut by 80% until some contracts started up. So: 80% salary, new house, high debt, baby. Not great, right.

Most of my colleagues are 50+, and only 2 colleagues still have kids in the house and a mortgage. So, everyone makes 20% less money (10% after taxes...).

This week, we get the announcement: contracts have been delayed by an additional 2-3 months, and we're looking at some further reduction in hours and/or temporary layoffs.

CRISIS. Most of my colleagues haven't altered their standard of living at all. Their credit cards are maxed out, their line of credit is maxed out, and unemployement pay is 55% of what you were previously making, they can't live on that, etc. CRISIS.

Meanwhile: we have no savings, fair, and that's a shitty position. BUT: that 20K in debt? Totally paid off as of mid-April (aka: my paycheque next week and our tax return wipes it out completely).

After starting the year in debt with a baby and a cut salary, we're in a financial position where 55% of 80% of what I was contracted for STILL LETS US SAVE MONEY. We've applied every influx of money to our debt, and cleared it, so we have no debt payments, no credit card payments, a well-stocked pantry, and a full salary plus 55% of a second one to let us build savings (And, realistically, we can meet all our obligations on my husband's salary alone with a bit of additional cutting back...)

You guys. Without MMM, we'd be in the same boat as most of my colleagues. Instead, we're in a situation that, while stressful and somewhat uncomfortable, is still absolutely tenable, and we're gonna be fine.

I am thanking the heavens we don't live like typical Americans/Canadians right now... the difference is right in my face, and the alternative situation is HORRIFYING.

[RyanAtTanagra]

Congrats!  Yep even without savings, getting your spending under control is in itself a big step that creates a lot of options.

When I first started paying off debt after years of living paycheck to paycheck, I worked my way up to a 50% 'savings' rate.  Once the debt was gone, and even before I had any savings, realizing I could lose my job and get another that only paid half that and still be fine was a huge weight off my chest.

It's a great feeling!  Glad you're in that position.

[funcomesfirst]

Good for you!  I hope you can return to 100% salary sooner than later, but your story is very impressive!

[zephyr911]

When I first read the "Position of Strength" article, I did not even begin to realize how relevant it could be to the average person long before FIRE. He talks about Mrs. Mustache being able to miss out on a commission and not care, because they're rich and retired, and I just thought of it as one of those perks that come along with passing the finish line.

Over time I've come to realize how fully that same kind of carefree attitude can permeate your life early on in the optimization process.

My own example for this week... I stand to make around $5K in commission when my partnership closes on a rental buy on Friday, but the seller has thrown a curveball into the deal that could add costs for us. While I am a 1/3 buyer, I could probably overlook the impact to my share just so I could get my check quickly, if I were in financial need, or had plans to blow it on something fun that "I deserve". But, thanks to a high SR and rapidly approaching lack of need for any check at all, the commission is virtually meaningless compared to the value of doing the best job I can, keeping faith with my partners, and focusing on quality over expediency. So, I am free to fight the good fight and delay or cancel if it's not in the company's best interest. Other deals will come along.

[Spitfire]

Next to FI itself, this is the best part of living MMM style. If your expenses are low enough and you have a stache, you can overcome a freak expense or loss of income much easier than "normal" people.

[OmahaSteph]

Oh wow. I can literally feel your relief. So very happy for you and your little family!

[pachnik]

Next to FI itself, this is the best part of living MMM style. If your expenses are low enough and you have a stache, you can overcome a freak expense or loss of income much easier than "normal" people.

This is why I am here.  Plus, I don't much like living like a consumer sucka.  Living like this makes sense rather than just spend it all and then wonder what to do in case of an emergency. 

[Kitsune]

Oh wow. I can literally feel your relief. So very happy for you and your little family!

So. So. So. Relieved.

It's the reassurance of knowing that the worst case scenario (layoff) still lets us put money aside, and worst-worst-worst case (job loss, unemployment runs out, etc... Think super negative...) we're STILL ok. Especially when 15 people are freaking out about the same thing because they are super-not-ok. It's a rather stark illustration...

[Fi(re) on the Farm]

My sister who's a single parent and lives 3 hours away got sick in December and had to have surgery. I walked into my boss and took a 33% pay cut but gained time off. The peace of mind was wonderful, knowing that I could be there for her without thinking twice.

[Paul der Krake]

Congratulations on navigating the bad currents. Where others see a tsunami, you just fend off the waves!

Keep that ship sailing smooth. Attitude is everything.

[Kitsune]

Congratulations on navigating the bad currents. Where others see a tsunami, you just fend off the waves!

Keep that ship sailing smooth. Attitude is everything.

Well, the waves are higher than I'd like, and the boat isn't quite as prepped as it could be. But we ain't gonna sink, and that's the important bit! :)

[SwordGuy]

Congratulations on navigating the bad currents. Where others see a tsunami, you just fend off the waves!

Keep that ship sailing smooth. Attitude is everything.

Well, the waves are higher than I'd like, and the boat isn't quite as prepped as it could be. But we ain't gonna sink, and that's the important bit! :)

Way to go!   And your situation will only get better from here.  Isn't that great!

[okits]

Rock on, Kitsune.  You and your hubby are badass.  (Imagine what it does to the stress level at home, when the parents are freaking out over a financial crisis.  You've spared your kiddo that.  If you get a temp layoff enjoy the time with your toddler - they grow up so fast!)

[EcoCanuck]

Happy for you! That's exactly what its all about.

Had a 'similar' sort of situation recently (and partly still) but more with the potential of being laid off due to low oil prices. Thankfully we've been saving like crazy and while everyone around is living paycheck to paycheck (maybe slightly better) we're in a position that we would have no issue for a few years if I was laid off. Thankfully it hasn't  happened but the best part was going about my work and not spending all the time and energy stressing about what if.... Its great to have options.

EcoCanuck

[FrugalFan]

That's great! We have pretty secure jobs but you never know what might happen, and I love the security that having a high savings rate gives us. And like many others, I really only realized this part a good ways into the MMM journey. Now I wish I could tell everyone I know about this so that they could experience that same feeling, but talking about money is so taboo.

[marty998]

Great work, love reading these stories.

[Anatidae V]

That is so lovely to read!

[elaine amj]

That's an amazing feeling! And you've come such a long way in the past year - what an incredible success story!!!

DH just went on leave for a few months and could potentially be off for longer due to health reasons. For now, I think he still gets full pay but that will eventually drop to whatever EI (Canada) gives us. In fact, it is entirely possible that I will have to take a few weeks off unpaid if he needs me.

But, even if we both had to quit working tomorrow, we'd be just fine with the savings we have. We're just about FI, but having to work a little more since we want to maintain higher living expenses than what I had originally projected. Regardless, we are completely comfortable financially and a lack of income or higher than expected expenses should not have any major effects on us. At worst, we might have to trim back our vacations and other extras or we might have to work a couple more years. No biggie.

Dh and I were talking the other day about how wonderful it feels not to have to be concerned about money during this time.

[frooglepoodle]

This is wonderful! Congratulations on the debt payoff!

[Dicey]

Great story. Thank you for sharing.  I hope the ripples of serenity continue to support you until the situation normalizes. Nice to have a good life jacket when you need it.

[N]

that is really great! you earned that feeling :)

[EnjoyIt]

Living life with the position of strength is amazing.  It gives you so many more options in life.  A few months ago I was offered an opportunity to make an extra $700/month after taxes.  But in return I would have to do lots more paperwork, be on call often, and generally have less free time.  My wife and I decided we just do not need the extra income and the free time is much more valuable.  If I was riddled with debt, I would have jumped on the extra income in a heartbeat.

Congrats to you for living a badass life and purchasing options.