It’s Thursday and I’m Crafting my Life! Today I’m talking about the financial planning and pitfalls that go into pursuing your dream.
I’ll admit right up front that I feel more than a little uncomfortable talking about money. It can be a touchy subject, after all. I’m concerned that I will somehow manage to offend every single person reading this, maybe even including myself. So let’s have a big group hug right up front, and promise not to judge each other, OK? OK.
In spite of my discomfort, I know that this is an important subject to broach. We don’t live on air, after all. I have two kids and a house and all the financial obligations that come with those sorts of things. I do have a husband who is still gainfully employed, and that does make a big difference. But, all the same, I am not currently in a position where I can go without income indefinitely. And even if I could, there would likely still be financial considerations, such as what I’m willing to compromise on in order to be at home full-time. Money is relevant when you’re deciding what you want your life to look like.
In honesty, I am able to take some time off from earning money and pursue my dreams because I am in a secure financial position. We have no debt, other than our mortgage. We are incredibly risk averse people in general, and this has served us well. It also means we have no fun, but we’re cool with that. In addition, I received a pretty reasonable severance package when I was laid off. So, for right now, the wolves are not at my door. If I were paying off student loans and credit cards and wasn’t receiving a pay-out, I would probably be pounding the pavement looking for work right now instead of crafting my life.
Starting a new life as a freelancer or small business owner is not going to pay off right away. You’re building a clientele and a reputation. You’re laying groundwork and learning new skills. You might even be investing in space and inventory and PR. This is OK and expected, but it’s important to know up front that you may not make much money in the early months, or even years. Financial planning may not be the most exciting way to spend a Saturday night, but taking the time and keeping on top of things will also help you to keep the lights on, because you will know what you have and where it’s going. This is what I’m trying to do right now – just mostly keep on top things.
Knowing that I am not going to be raking in the big bucks right off the bat has affected the way I’ve handled my severance money. I have not spent it. I have not bought myself a new outfit as a consolation prize for losing my job, or splurged to make myself feel better. I’ve occasionally felt tempted, but I know that if I start spending my savings on stuff it will add up quickly and the money will be gone. Plus, and this is the real kicker, it won’t actually make me feel better. Stuff, as it turns out, is not what I really want at all. I really want the love of my family and career satisfaction and all that jazz. The thrill of acquisition is fun, to be sure, but it doesn’t last.
I haven’t completely altered my lifestyle with my lay-off. I suppose we could start living on ramen noodles and turn off the heat to save money. I’m not really willing to make those kind of concessions, though. At least not yet. There will come a point when I’m going to have to make hard decisions. When I’m going to need to start earning money as a freelancer or go out and find a J-O-B. But that time isn’t yet. For now I would prefer to live the generally simple lifestyle I enjoy and seek out ways that I can earn money by writing.
Money. It is hard, but you need to think about it. And hopefully by thinking about it, you can make sure you don’t run out of it. I’ll keep my fingers crossed for all of us and our collective financial futures, if you’ll do the same. Now, let’s have another group hug. And, please, share with me how you’ve arranged your finances so that you can do what it is that you really want to do. Or, how you can’t do what you really want to do right now because of money. Like I said, there’s no judging here.
amberstrocel
amberstrocel
amberstrocel
amberstrocel
amberstrocel
amberstrocel
amberstrocel
amberstrocel
yes, we make choices. like working 3/4 time for the best congregation around, Beacon. Which btw, gives me time to do the things I like to do.
Twitter: mustang_sabby
says:
I beg to differ! You have lots of fun! *looks back at a summer of posts about the beach, travels to relatives on a farm, then to Bamfield, and others* You don’t need heaps of money to have lots of fun memories. Disney isn’t the only place to be happy.
We are still paying off a lot of debt (getting married, moving into a home with NO furniture and having a baby all in the same year, with very little maternity leave compensation can do that to ya), and as such, most of our salaries go straight into rent, day care, car, loans, credit cards etc. We can see the end of the tunnel, but its hard on us each month to squeeze every penny to get another dime. Balancing that chequing account every month is such a stressful task, as well as providing our son with what he needs, and us with what we need.
I have several fantasies/dreams I would love to pursue someday, but with our current financial situation, I keep them in my pocket until we are in a different place. We will be someday, and that faith keeps me in good spirits when $600 a month goes into a loan payment. Ouch…
I want to live in the country again, have some land, a farm, horses I can ride (chickens and some sheep too! My husband is horrified), and a really, really big garden to sell produce and such at market. I also want to write creatively full time (look out Harlequin!), and be at home when my kids get off the bus in the afternoon. For now, though, because the money is good, I’ll do my technical writing (just got hired permanent from contract WOO!). At least I am sort of following a passion to work with words every day, right?
Money is a hard thing for us right now, but someday it will be easier and that is an important thought to have. I always think of it this way: Family is more important than money, friends are more important than money, and happiness is more important than money.
.-= caroline´s last post ..Preserving Traditions =-.
There wasn’t anything here at all that felt uncomfortable or offensive to me. You are managing your life and expenses as responsibly as you can. I think it’s impressive that you recognize spending money won’t make you feel better…
My husband and I actually have to say to eachother sometimes “you know, we aren’t broke, it’s okay to buy it.”
We work really, really hard for our money and sometimes it feels like it’s streaming out more than it should be… but at the end of the day I do feel that money can influence our happiness, but our happiness is not a direct result of if we have money or not. Um, did that make sense?
I always love reading your thoughts on topics like this, you are very insightful. Hugs to you.
.-= Missy @ The Marketing Mama´s last post ..I’m a Scary Mommy, too. =-.
Facing retirement and knowing what I want that to look like, no work required except where and when I choose to help others, has made me work very hard to think about what I spend and how. I still have a few months left and I’ve decided to thoroughly enjoy them because being extemely responsible is staring me in the face! However, I am preparing. One thing I have done is stop using my debit card except when absolutely necessary. It’s funny how seeing the money disappear from my wallet has made spending a more concrete concept
Also, I’ve added thinking about what I need into my ‘being green’ plans – do I really need it / can I make it (usually not!) / can I get it second-hand / is that toothpaste tube really empty? And it’s true; I really don’t need a lot of new things or fancy evenings in order to have a happy and fulfilling life. Memories that last can be found in soft moments with friends and family and those are the ones that last forever.
I’ve always lived by the philosophy that I’d rather ‘do’ than ‘have’, so I compromise. I save up for a flight ticket home, rather than buy expensive clothes. I thought about saving up for a new car, but I decided to take an unpaid leave of absence from work to finish my master’s thesis instead. I think your priorities affect how you feel financially. I’m not bothered by not having the latest fashions, but I would be very sad if I couldn’t afford gas for my car.
I also believe that a frugal life is environmentally conscious and healthy. I try to buy raw food rather than processed and make my own sauces. I also love to buy second hand. It feels more like treasure hunting than shopping! And walking or biking rather than driving is just good all around. Bottom line, less consumption = less waste = less $$$!
Now, that’s not to say I don’t like nice things or that I haven’t had my share of splurges, but when my financial situation changes, so does my idea of a splurge. In my student days, buying a latte or a chocolate bar was a splurge. Having to buy lunch rather than making my own was sinful. But, I would spend that $5 on a cup of coffee and have that feeling of being rich. Because, really, $5 for a cup of coffee?! So unnecessary, but so incredibly delicious!
Twitter: pomomama
says:
big group hug
we’ve been living on one income since arriving in canada 8 years ago – frugality is now our watchword and i’m so lucky my husband is willing to be the one going out to work every day (though heaven help the house/domestic stuff if it was reversed!).
i get a big buzz out of having a self-sufficient home business – it’s not making big bucks but it fits in and around (and in spite of) family life, gives me some self-respect (i can buy my husband’s birthday gifts with ‘my’ money, not his).
it’s all possible and frugal living can be fun, just don’t forget to factor in some treats rather than being stingy (http://www.thefreedictionary.com/stingy) with yourself
.-= pomomama aka ebbandflo´s last post ..last chance to see =-.
Twitter: fuoriborgo
says:
Amber, you’re a star! What an important topic to bring up! Unfortunately, I have on wisdom.
PS Everytime I bring up money in my posts, my husband ruthlessly crosses the references out, I always take it as one of those cultural Anglo-Saxon things … still, why?!?
.-= Francesca´s last post ..Autumn in the kitchen =-.
Wow, all such thoughtful and financially aware women! To be responsible with money we all need to make choices. And being aware of your priorities in life is a great first step to help you make good financial (and life) decisions with confidence.
Money – aargh! I am cautious and a saver; my husband loves to spend, and has run up thousands and thousands in credit card debt. It didn’t matter quite so much when we wwre both working, but now that we have chosen for me to take 2 years off work to be with our baby, and are trying to live on one income – well, let’s just say it’s a wee bit stressful!
It is so important to talk about money. We talk about it a lot. Luckily we are both on the same page and are savers. It is hard not to splurge on take-out or a treat after a brutal day at home with the kids but we are trying to limit what we spend to live on one income and not draw too deeply on our savings.
.-= Capital Mom´s last post ..Halloween party =-.
I’ve given you an award! Come on over and check it out
.-= abbie´s last post ..This Blog is Over the Top =-.
Twitter: ladymrules
says:
It’s amazing how little financial training most kids get. I hope that we can teach our boys to manage money well. Ideally it should be a tool to enable you to live comfortably, but not make you a slave to wanting it or needing it. Easier said than done, of course.
.-= Lady M´s last post ..Being Crazy is More Fun with Two =-.
I’m going to share a story that’s way out in left field for no other reason than that it is a little different.
I once covered my naked wife with thousands of dollars in cash and took a picture of her. Why? Money and my wife are two of the things I love most (this was before we had kids).
OK Mike, the rule of the Internet comes into effect here.
Pics, or it didn’t happen!
.-= Jon´s last post ..Family Day at Place des Arts =-.
We are pretty much in the same exact position. My “severance pay” came in the form of my 401k that I liquidated, and with several thousand in school grants for both me and my husband. So, like you said, the wolves are not at my door, for now…. but this money is going much faster than I wanted it to (because I’m not at all sticking to my usually-impeccable budget which is 100% my fault, but I get so freaking bored at home I HAVE to get the kids out of the house somehow, and that always involves dumping money somewhere.)
I tell myself every single day “okay, that is the LAST $20 you blow! Stop it!” but it has been soooooo hard. Tomorrow… tomorrow is the day I stop spending the severance pay.
.-= TheFeministBreeder´s last post ..Do You See What I See? =-.