Rereading this post from January 2010 was a bit of a surprise because I had forgotten that things were so bad that even a promotion and a pay raise could temporarily cause problems. I can’t even begin to imagine where we would have been back then if Brett had lost his job versus just losing a portion of his income (although a nearly 40% loss of income is a pretty strong blow).
I can see now how fortunate we were that we didn’t have to worry about losing our home. Brett’s military retirement income covered our mortgage, insurance, and taxes – all were paid by automatic deduction every month. But of course, that left everything else we had to cover: food, utilities, car payments, credit cards, the girls’ braces, and more out of our diminished income. Those were the things that were overwhelming us, even with income still coming in and an upcoming increase in Brett’s pay.
Brett is out right now selling used books and a few DVDs we found so that we have a few dollars (hopefully) to get us through the next couple of weeks. We have two necessary doctor visits which will require co-pays, a prescription for one child that must be filled, and there will hopefully be enough left over to buy milk the week after next. Otherwise, we have no cash flow for the next two weeks, nothing in reserve, nada. We are broke and are now getting a taste of what millions of families have been going through during the recession with their jobs lost and/or their incomes reduced, or what low-income families go through all the time. As my husband and I are both employed and have good benefits, we have no excuse for our current financial state except for getting ourselves heavily into debt.
Thankfully it’s just going to be a small taste of going without income. We did get a nice surprise at the end of the year – Brett received a promotion (!) and somewhat decent pay raise (!!) week before last and is transitioning from weekly to bi-weekly pay. It will not solve our problems but it is going to make things a bit easier going forward. However, next week is the first week he skips getting paid. I only am paid once a month, on the last day of the month, and that will arrive the same day as his new pay and we will catch up then and be back on track. But even knowing this week was coming and preparing as best as we could, arriving here has been a real eye-opener and frankly, frightening. It is the first time in my life that I won’t be making (a few) payments on time. I made sure that every automatic payment in our account will be covered, but that took every dime of what we had on hand. The non-automatic payments will just have to wait until the end of the month even though their due dates start next week. I have made sure that there is enough food on hand for the next two weeks. Meals will be simple for sure, but at least we have enough food (other than milk; I don’t have room to store more than a week’s worth of milk) to get us through. The children thankfully have enough in their school lunch accounts to cover them for the next two weeks. Faced with a situation like this in the past, I would have broken out the credit cards, but not this time. They are what got us to this place, and not the way out anymore.
What weighs constantly on my mind is the question, “What if Brett had lost his job instead of receiving a promotion?” We are selling books and DVDs now; what else would we have to sell to survive? How would we feed our family? Would we eventually lose our home? Would we survive?
This is where our debt has brought us and it’s not pretty. This is definitely not how I want to spend the rest of my life, looking over my shoulder, or checking out the window to see if the wolf is still hovering at the door.
In retrospect, Brett’s “promotion” turned out to be a way for his company to get more work out of him once again to take care of the backlog of work that had piled up once the overtime was cut off. The new position was salaried versus hourly but came with the same long hours as before for the same work. The pay increase, although appreciated, ended up being nowhere near what he had been making previously so once overtime was approved again, he left the salaried position and went back to hourly pay until he retired.