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Monday, February 1, 2010

Rock bottom prices!

Net worth:  Still in the -$250k range.  Still avoiding figuring out the correct answer.

My wife and I recently hammered out our budget.  We discovered that we were about $600 dollars short of paying our bills every month.  This was quite a shocking discovery.  We were already pretty tight on our personal spending budgets, with groceries, gas, prescriptions, etc., now we find out we need to take more money out of that budget to pay the bills. 

We have to make changes.  We put both of our student loans on forbearance, again.  That saved around $800 a month right there.  I know that many of you financially savoy people are probably freaking out at that idea, but we didn't know what else to do.  But, it gives us the money we were short and an extra $200 to start putting towards other bills.

Our other plan is to just start selling everything.  And I mean everything.  I have at this time, 4 auctions up on eBay.  I started an account at Amazon.com.  I posted ads on Craigslist.  Nothing is sacred.  The vehicle we paid off, we can sell it and downsize.  My first guitar, furniture, unused kitchen appliances, heck even the kitchen, well, bathroom sink!  Time to sell it all.  I know it's just stuff, but it still hurts to get rid of some of it.  But, it's time to make a change.

Finally, we made a step of progress today.  I sold  off my Wii, took some gift money we saved and we paid off our department store card!  Now it only had a balance of a little more than $500, but still, the interest rate on those puppies is ridiculous.  I believe that the card was at a 19% interest rate, so that $500 would've taken close to 4 years to pay off and added an additional $216 in interest by just paying the minimum payment.  (You can find this information by doing a "credit card amortization schedule" search.)  Again, just a drop in the bucket of turning my net worth around, but a drop non-the-less.

We've got some more major life changes in the works.  I don't know if we are ready to make some of them yet.  I'll let you know soon.

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