Thursday, June 7, 2012

Turbulent Times Ahead?

Summer is here! my favorite time of the year but this year will be a bit different. Due to all the pregnancy complications the wife's paychecks have stopped. She was supposed to have enough time saved up but due to the bed rest and hospital stays she had to leave work two months earlier than expected. Her last paycheck was the last day of school and it was already less than what she usually gets.

But I'm ready! I freaked out a bit and planned ahead. We got through over $3,5000 in medical bills (all paid, no debt added) and I still managed to bring our home emergency fund up to $4,000 dollars. This money is now sitting in our savings account and can be transferred quickly for any unexpected expenses. I'm hoping to add a little bit more money this week (birthday stuff) but this is what our bank account looks like as of this morning:


What worries me the most is the BABY! You could say I panicked a bit and went out and got close to 400 diapers, 800 baby wipes and 8 cans of formula. I also purchased the very cool Motorola MBP33 Wireless Video Baby Monitor which was one of the items we didn't get in our registry, probably due to the $189.99 price. All these baby purchases were made using stuff from our shower we never really used. We had tons of clothes and some gifts that came after the baby arrived. The nice thing about stores like Target is you can return stuff without receipts for in-store credit. I did not use Citi or add any new debt for these purchases. 

The baby also has her own mini emergency fund at home. I saved up $250 dollars in cash in case she needs anything. The money is in her bedroom drawer and I also saved up all the gift cards she got when she was born (most of these came from her co-workers):

Babies R Us: $200
Target: $150
Amazon.com: $150
Walmart: $75

For the wife I also saved up gift cards. She has close to $250 in Macy's gift cards which should come in handy in case she needs anything. I also have many Lowe's and Home depot cards that I got from Citi as rewards in case we need anything around the house. To take care of gifts I also have gift cards for Best Buy and Pier 1 which total around $150 each. 

Around the house I also managed to stock up on everything. I bought 240 thrash bags (Glad Forceflex). I bought 10 containers of detergent (Arm and Hammer 68 oz), 60 liters of water (I drink these at work) and all kinds of foods that will keep in the pantry for months. I also saved up tons of restaurant gift cards in case we want to go out to eat on the weekends- too many to list here but most of them are in the $25 to $50 range to restaurants like P.F Chang's and Olive Garden.

Yes I have saved up over $1,000 in gift cards but the goal is to rely on these instead of dipping in to the emergency fund. We will probably have to survive on $800 after all bills are paid on each pay period, before it was close to $1,600 so that's almost 800 dollars less to live on (gas, groceries, expenses) which is why I freaked out and did all this. 

I labeled this post Turbulent Times Ahead but I think we're ready! I'm prepared to live on less income until September 15! Wish us luck!

HS

9 comments:

  1. Good luck!! Sounds like you've been trying to plan ahead and that's great!

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  2. You seem pretty set. You should honestly have no issues at all. It's actually sticking to it, which you don't have the best track record for.

    Good Luck

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  3. It sounds like you're quite the planner these days!

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  4. I'm always curious about how/if your wife is contributing to the planning since we only get your side of the story on your secret blog. Is she involved in this process and committed to living with less during the income slump? Or does she think you're crazy for stock piling gift cards and still swiping her credit car?

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  5. The wife wants nothing to do with finances, she doesn't even know how much her paychecks are or how to log in to the bank accounts... I've tried and she says she's happy, doesn't want to get involved. I don't use any of her credit cards, Discover is under her name and that balance is 0.

    She knows her paychecks are 0 now since she met with HR back in March and she's agreed not to spend money over the next 3 months or so..

    HS

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  6. I, for one, find it awesome that you've taken the time to plan ahead for how to make it through the summer without taking on new debt. Just stick to it and don't let yourself get rattled if something unexpected comes up! You got this!!!

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  7. Everything that you've set aside sounds good. I think your biggest temptations are things that provide a quick satisfaction, such as eating out or that cool pair of sunglasses. Hang in there. You planning like this is a good sign.

    As a wife, I can't understand the concept of not wanting to know anything about the finances. I handle the bill paying and budgeting, and call the bank to check on savings balances. Hubby is not as involved as I am, but he also knows generally where we stand and how to handle things if I couldn't.

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  8. It's unfair to you both for her to turn a blind eye to your finances. She is not facing adult responsibilty. What if something happened to you?

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  9. If something happens there's a little black box with all the passwords and instructions lol

    HS

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