Monday, February 13, 2012

This is Financial Peace

The other day I was working on financial planning and such, making sure I'm on track for my 2012 goals. (I am, by the way). I decided to plan a budget for if I have to go on unemployment this Summer. I sincerely hope I don't, but my goal is to keep calm and carry on when I get my inevitable pink slip next month, and having a plan for unemployment seemed like a good place to start.

I did it a few times, because I thought it couldn't be right. But it was.

I could live on unemployment with an average of $200 left over per month. Seriously.

I budgeted for fun money each month. Not as much as I spend now, but enough to still enjoy life. I'd still be able to get my hair did every other month. I could pay for car insurance, and all my other bills. I would stop my aggressive loan payoff and just pay the minimum. I wouldn't be contributing to retirement. But I could do it.

I figured that I'd put $100 into savings and $100 into my Roth if I get laid off this summer. The fact that I could live on unemployment and still be saving and investing for retirement is pretty amazing.

And the ONLY reason I have this peace is because I got intense and paid off my credit cards and car loan. Two years ago I would have been in a panic. A full blown freak out. In fact, I was, when I got my pink slip. A year ago, I would have had to get way more strict in my lifestyle and still would have barely made it. But now, because my only remaining debt is student loans, I could live on under two grand per month.

I don't want to get laid off. In fact, it will piss me off. And I'll probably have a breakdown of some sort. But, I am WAY less panicked and scared now that I know I could live on unemployment just fine. And that, my friends, is part of what Dave Ramsey means when he talks about Financial Peace.

3 comments:

  1. Wow. This sounds totally peaceful.

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  2. what a great post! you've summed it up exactly and I can't wait to be feeling this way.

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  3. Financial Peace University classes meet for two hours each week for 13 weeks, during which time the average family pays off $5300 in debt and saves $2700.

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