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.


  1. Wow. This sounds totally peaceful.

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

  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.