Monday, December 22, 2014

Took my breath away

Today was our first paycheck since G-man work a full 2 weeks at the new job, and wow, it is scary.

We knew we were losing his night differential and locality pay (or more accurately, we would be getting NC locality pay instead of CT and CT is significantly higher). Because of the change in taxes as well, we had no idea what a paycheck would look like, other than smaller.

Let me just say I am glad that we changed the retirement loan...because if we hadn't done it already, we would have to do it now.  Any thought about saving that money is GONE.  Every penny will go toward the household expenses.

Before I get into a number that is more scary at first glance that it really is...let me preface it with how we divide the money by direct deposit:
  •  Savings.  The majority of his check goes into our "savings" account, which is also where our mortgage is paid from.  Years ago, I started moving half our mortgage paycheck over into this account so it didn't accidently get spent.  It became easier just to have it directly deposited at a set amount into the account, along with a small amount of savings.  Our mortgage has gone down since November due to the escrow account and we just kept the amount the same and had a little "extra" going into savings.  Looking at the new numbers...we may have to adjust.
  • Car.  In order to get a better rate on my car loan, the credit union does it as an auto-debit.  So money for my car loan, and a small amount to EF (we are well over the Dave Ramsey $1000 EF, but this money is out of sight, out of mind.  Again, this is a set amount that is direct deposited. 
  • Checking.  This is our major account that we live out of.  All the bills and spending money comes from here.  Since this account does not have a designated amount for direct deposit as the other 2 accounts do....what ever is "left over" from his check goes here.
Additionally, the retirement loan is also taking directly out of his check.  Once that is paid off, that money goes back into play for whatever purpose we deem.  The plan had always been to use it in the snowball to pay off the remaining debt at that time, and after that it would go back to being an actual retirement contribution.

And of course, we have medical insurance, life insurance, taxes.....all eat up the check.

So now....we get to the actual amount that was deposited into our Checking account this morning.  Ready?


Before we adjusted the retirement loan, that number was $323 with the locality and night pay, and the higher loan amount.  I am not entirely sure what the number was after we made the adjustment because those checks all had overtime on them.  But I know the loan adjustment changed the per paycheck amount by about $150.

What that means is.....if we had not adjusted the loan.....this paycheck would have been about $10 into our checking account.  Our mortgage and my car loan would have been covered.  But my paycheck would have had to cover food, gas, utilities, and all debt payments.

I am trying really had to breathe.....It really is only a difference of $164 from what we were used to.  But all the stuff that used to be covered by G-man's second job....and then by overtime after he quit....NONE of that is accounted for at the moment.

This is what I mean by trying to paying CT bills on NC salary.  Our cost of living is so much higher here, and this isn't going to work long term.  I have places to draw from if I need money, but that isn't a great solution.

G-man talked about getting a part time job to keep him busy and help with money....we may have to talk about that again more seriously.



  1. I feel your pain... :( Our bills have sky-rocketed in the last couple of years... we don't have a whole lot more than you for 6 people after bills either. It seems to never end some days... hope you figure things out!

  2. Ouch. I know you knew you would be looking at smaller numbers, but I'm sure seeing them in black and white is scary. Remember that things will be easier when you are only keeping one household and with a presumably lower cost of living. Just think how much better it will be when the debt is gone! Hang in there ...

  3. So what will you do if your house sells and you quit your job? It might take some time to find another job(no matter what it is) so you will have $159 to cover what your current job covers? That is scary.

    My husband is currently off work on short term disability. When the first pay was deposited I knew it would be bad, but I was not prepared for just how short it would be. He was paid for 2 weeks what he would make in one.yikes. needless to say my line of credit has taken a hit.

    1. G-man is going to get a second job after the holidays. As for soon as the house sells I will start applying. If I have to work at Mcdonald's...then so be it for a time. I am actually less worried about that. We do have money in EF, savings, and some that is in holding. But none of this is ideal....

    2. I hope it all works out soon :)

    3. Insanity. Pure insanity. You need to get your priorities straight because this is a mess. A complete mess. I would shelve the idea of buying a house--you cannot afford it. Stop being a typical American and live within your damn means. That means if you're nearly $60k in debt, you can't afford to take on a new mortgage. Rent an apartment. That's what your friends have been telling you for months and you stubbornly refuse to listen. Fine. It's going to be your funeral. Work at McDonalds? Holy hell...what is wrong with you?

    4. Again...that number is a piece of the puzzle. And I have a degree that will allow me a much better paying job than McDonald's. And rent....I can pay 1500 in rent. ...or 1500 in mortgage. Same money.

      Merry Christmas!

  4. This is the scary part , but it will get better, having two separate living situations is always hard.

  5. It's going to be OK. You've got to believe that. It's just money. Money comes and money goes.

  6. I hope your house sells sooner than later so you can put CT behind you.