High Finances for the Lower Incomed

I used to earn triple the income I have now. Everything was financed and I worked to pay the bills. Clothes were on credit, gifts were on credit, a vehicle and a house were financed. I thought the job was there to stay and as long as I could make at least the minimum payments I would be okay. The only thing I never put on credit was groceries. At least I knew that was a bad thing to do. Added to the debt was disorganization. Bills would be brought into the house and placed in a different spot each day and sometimes be paid late because of this.

Simple organization and refusal to fall into debt are all that is needed to pull a family out of a bad situation like this. Some people are quite happy to put everything into a computer program and make charts and graphs. Some have special apps on their cell phones to remind them when payments are due. Others track their net worth every day. I don't carry a cell phone (one less bill, plus more freedom from distractions) and I like to keep things very simple.

I have one three ring binder to keep me organized. If I complicate things too much, I know I won't keep up with it. Find what works for you and do it. When mail comes into the house it goes on the kitchen table. It took a while to drill this in but it works now. Junk mail is shredded and recycled immediately. Bills are recorded on the calendar in the binder and placed in the pocket in the binder. I don't bother to buy a calendar anymore. Why pay between $10.00 and $20.00 when I can print one for free from the web? I place it in the binder and use it daily. I haven't paid a late fee since I started this system.

Track your debt. At the bottom of the calendar on the right had side I keep a list of all the bills that come due monthly. This way if I don't get one in the mail I will remember it is due and call to find out what happened. It is also nice to see these reduce in number as I pay them off. In January 2010 I had fourteen bills and in December 2010 I had six , only one of these was a credit card. The other five were regularly occurring expenses like rent and electricity.

At the bottom of the left hand side of the calendar I keep a running total of the amount of my debt. During the past year I have watched in shrink several thousand dollars. It helps to keep you motivated to remain frugal and get rid of debt when you watch it shrink. This year I'm pretty sure I will get rid of debt completely and I can't wait!

I know that it makes sense and there are people out there who can automate their finances and have automatic withdrawals for savings and bill paying. I am on an extremely low income so this does not make sense for me. Sometimes I have $500.00 in my checking account and sometimes I have $5.00. This is how people end up with overdraft fees. If I look at my checkbook and send out the bills myself I can avoid these problems.

Don't forget your savings. Having some money in savings protects you from having to resort to credit card use for unknown emergencies. When your car breaks down and you have enough to cover the mechanics fees it keeps that money from being added to your debt. Debt repayment is important but so is boosting your savings little by little. I always place what I need for bills and keep cash for gas and groceries. I shop carefully through the week and any cash left over when the next paycheck arrives goes into savings.

If I've bored you to death by now, please forgive me. I just want to let the unorganized, or the debt laden, or the poor, or newly poor know that there is a way out. You aren't stuck here forever, and you can live a satisfying life on less money. It may take more work, and a fresh look at consumerism, and thinking about what is really important to you. A little work and a fresh perspective can pull you out of the grasp of the debt monster.

"Is This What We're Reduced To?" or A Conversation Overheard

I'm still not seeing this recovery we are supposed to be in. None of my customers are feeling it either. I haven't once had someone come through my line and say, "I'm buying extra for a party to celebrate my promotion. My company can't find enough people to hire for all the work that needs to be done." Nope, that's not going to happen.

I have a regular customer, probably in her late fifties to early sixties, who used to work at a store in the next shopping plaza. I think they went through some management changes and the entire crew lost their jobs for new hires at one point. This is something that some companies will do occasionally instead of letting new management work with the group already employed to see who their good employees are. The last time she was in she told me her unemployment ran out and she was desperate. She said she qualifies for some program that will give her $325.00 per month. Can you live on $325.00 per month?

A cook from a restaurant spoke with me yesterday. He said he was grateful for a job in food service because people are still eating. Several of his friends and family are about to lose their unemployment benefits.

Two women, most likely in their mid fifties, stopped in front of my counter to converse a few days ago. They told each other where they had applied, how many interviews they had been on, and how many resumes they had sent out. Each was involved with a very extensive job search. They were professional and they definitely were not slackers. One told a story of how after the interview she was offered a position helping to unload a truck when needed. She was told that she would only be called in when there was a need for extra help and she would only get two to five hours if they needed her at minimum wage. She said, "Is this what we're reduced to? Are we just occasional stock boys to them?"

Tonight I overheard a loud conversation by the exit door. One young man who I know has been on unemployment was almost pleading with another man. "I don't care, it's a job." he said, "I'll do anything. I'll work for five dollars an hour."

A Glimmer of Better Times?

My husband has been discouraged every week when he looks in the paper to find less than five jobs. Even the fast food jobs that people say are always available are not there. They have a staff already, and believe it or not, they rarely hire in our area. You see the same faces for a long time. People are not able to job hop as they once could.

He drove two counties away to apply for what was advertised as warehouse and sales positions. It ended up being a small building with a few freezers for those people that sell meat out of a truck. They wanted to hire everyone that showed up. We have no idea what these guys are paid, but it just seemed to risky. Who buys meat off the back of a truck anyway?

Yesterday, he applied at a job not too far from home, and with his telemarketing experience he was hired immediately. It may work and it may not, so without quitting the other job he's going to try it out. The job is as an appointment setter for an air conditioning company and it is commission only. I figure, it's Florida where air conditioning is a necessity and he is good at phone sales so.....We are hoping to at the least bring in a little extra income. We need it so badly right now.

Bills are paid but there is no breathing room. We've also managed to keep Chloe in food and insulin without dragging out the credit card. However, this morning she is worrying me. She always eats, and has been as healthy as possible for quite a while now. This morning she refused breakfast. She was able to go on her walk although she moaned a lot. I gave her some apple in case her blood sugar had dropped, something that regularly happens in the morning. She usually eats right away after her treat. She didn't. We will take her to the vet if she hasn't improved by tomorrow morning. She's eating lunch now and that's a good sign.

We are employed when many are not. We have a place to live and food to eat when many go without. Our survival skills are strong and life will improve. Perhaps we'll even have healthcare one day. Here's wishing everyone out there health, happiness, and future prosperity.

The Little Things

I make a low wage now, and I am frugal in order to survive. This situation however, does not rule my entire life. I don't mope around through my entire day worrying over my lack of money. Although I do often have struggles I also find time to enjoy books, nature, my family, and the dog who owns me. I realize I'm in another transition period right now and improvements are around the corner.

You can't get so bogged down in day to day struggles that you forget to have fun. While working towards finding a way to rise above your current situation you have to pause and find joy.