Overextended financially

[MissingSquish]

I have been overextended financially since my husband died, but even more so since I took my new job a year and a half ago. My income is not covering my expenses now, and I've been depleting my savings really quickly. I keep to a budget as best as I can, but I have unexpected expenses every few months or so that really put me over the edge.  I do pay my credit cards in full every month, and don't carry over interest.

 

I did get a raise in January, but it was small considering my performance. I did ask for a mid-year review, and I was denied. The entirety of my small raise goes towards my 401k (I was not eligible to contribute until January).

 

The gap is pretty big. I'm not quite sure how to attack it. I'm debating on pulling my current funding from my 401k and looking for part time work. What do you guys suggest?

[mmg19]

My first 18 months of widowhood was financial crunch time for me.  It was drastic but let me tell you it can be done.  You are already on the right track.  No credit card balance and no interest.  Sticking to a budget and recognizing expenses are greater than income.

 

1.  What expenses can you cut.  Cable? Either bare basic or cut entirely. Eating out?(Plan and come up with low cost meals.  Electric?Carefully watch your use.  Leave a room, turn light out.  Raise AC a few degrees and don't run when not home.  No eating out.  No quick run thru for a drink.  A little ingenuity in the use of simple everyday expenses can add up.  Track every expenditure.

 

2.  Never draw from 401K but you may need to cut back on what you put in.

 

3.  Part time job?  Check out what is available and what you could do. 

 

4.  Are there higher paying jobs in your field of work?

 

5.  Do you own home?  Rent?  Can you make do with a smaller and less expensive place?

 

I don't know your situation or if you have expenses that were incurred before death of husband, but for me I was faced with debts from my LH's medical expenses and business that forced selling our home and learning a new meaning to the word frugal.  Good news is all debts were paid, started a new career, house sold and my kids and I made it. 

 

I am so sorry you are dealing with this but the bottom line is you can't spend more than your income and get stable financially.  Lottery is not an option.lol  I hope others on this board have ideas that will work for you.  Lifestyle change sometimes can make a huge difference.  Tracphone worked well for me and thrift stores became my new friend.  Good Luck in finding the best solution.

[Mrskro]

http://widda.org/index.php/topic,697.msg16301.html#msg16301

 

I didn't re-read the thread but memory serves there were great money saving tips here

 

I'm sorry you are dealing with this too.

[MissingSquish]

Thank you everyone who responded. Lots of helpful tips. Have been really overwhelmed this past week.

[Trying]

I'm sorry you are facing financial struggles, it really can be so stressful.  My opinion is to never sacrifice your contributions to retirement, it's too important.

 

I have a lot of friends who are doing direct sales for extra income and some have been quite successful, and I can think of at least 3 who are making more than in their full time job.  Clothing, skin care products, nutritional programs, jewelry, home goods, bags, there are so many options.  With social media you can do virtual sales not just house parties.  It's more flexible than a part time job, just a thought.

[canadiangirl]

MissingSquish, so sorry you are having to face this as well.  RE: supplementing your income/part-time work, I am in the process of turning a hobby into a small (micro) eBay/Etsy business to generate needed extra income. While I've only made $800 so far (but this for me does help), I would be happy to check in with you privately for tips and progress. 

 

She's Canadian, so some tips make Canadian references (e.g. our RRSP vs your 401k) but I really like the financial writer Gail Vaz-Oxlade. She's no-nonsense and savvy. She has great budget resources on her website http://www.gailvazoxlade.com/, several good books on financial planning and has had at least 2 TV shows that I know about, Til Debt do us Part and Princess -the former show is available on Youtube and you may be able to watch the latter online unless it is blocked for American users: http://www.slice.ca/princess/video/  I have no personal or other affiliation with her, just have enjoyed learning from her over the years.  I wish there were more financial planning courses offered through high schools, colleges and banks as a resource.

 

The thread mrskro referred to on these boards has great ideas too, and I recently wrote this to still_lost, which was the result of research I had done to make extra money online:  Here are some options I came up with a while ago, not sure if they still exist or jive with your skillset:  Amazon Mechanical Tank-human intelligence tasks- HITS- test sites, take surveys etc; Conduit-create custom toolbars that when someone downloads, you get paid; Content sites- get paid for quality control e.g. Ehow, Brighthub, Constant-Content; MicroWorkers -tiny tasks e.g. sign up sites, dig articles, link sites; Fiverr- marketplace for $5 odd jobs; ChaCha- human powered search engine.

 

Hope this helps. 

 

 

 

[Captains wife]

Sorry MissingSquish - we all have enough to worry about without having to worry about finances too! Part time work is a good idea, especially if it is something you can do while looking after a dog full time. Would be great if you could find one in the canine area given your love for dogs/animals. One thing I did during the recession for part time work was writing online. Dipping into retirement etc is never really a good idea unless absolutely necessary. Is downsizing (car, house) an option? And finding little ways to cut expenses (which I did post widow) - including changing meal plan, coupon cutting, trying to cut back on utilities, clothes shopping on sale, finding less expensive services for certain things (hairdresser, lawn service), cut back on certain things for me (eating out, pedicures), pay bills online (less postage) and stagger what bills need to be paid first, hiring people on Craig's List to fix stuff around my house (although be careful with this one).

[Catnip]

I miss my husband but boy do I miss his paycheck! MY job was to supplement his, not the other way around! But, I have a job.

I make my own coffee at home and bring it to work in a thermos every day.

I make my own lunch every day-PBJ, yogurt, apple.

No summer vacation.

No eating out.

I've been buying Christmas gifts when on sale all year round. That way I don't panic and run out of time and purchase things just to buy things.

 

But my credit card takes a hit. I now have a dental crown on there cuz my dental insurance does not cover it all. I also have my new lenses and frames on my card. All just this summer.

 

Good luck to you. All my expenses go up but my salary does not. How fair is that?? I have not gotten a cost of living raise for 3 years now. Sometimes higher ed (I work at a college) is not very high.

[Eddienhp]

I have experienced a severe financial crisis in the wake of my husband's death almost 5 years ago. I have been negotiating debt ever since. I cut out cable. We have internet only with a magic jack phone. I have Netflix and Amazon Prime to watch movies and shows. We do not go on vacation preferring to enjoy attractions in our area. We rarely eat out. I shop clearance clothing/shoes. It is a lifestyle change but it is working for us. Our life is simple but it is enjoyable and we have fun. I feel we have more quality time together. Part time work is good if you can take on the extra hours. A little cut here and there will add up to a decent amount of savings. Good luck to you.

 

Eileen

[MissingSquish]

Thanks everyone for all of your advice and suggestions. I was able to spend less than I made last month (which is HUGE). Still looking for some part time work, but I've got a step in the right direction.

[Guest TooSoon]

Great job!  A long time ago, I had a short period of unemployment, a move to a new state/apartment and some pre-existing financial obligations that landed me with some debt.  When I started my job, I was completely broke and just barely hanging on.  But I wanted to send words of encouragement.  I came up with a plan and stuck to an "austerity" program for about 10 months.  I spent as little as possible, paid my bills and paid off my debt.  The first few months were rough but it almost became like a contest I was having with myself to see how much I could shave off that debt each month and before I knew it, I could see the progress being made.  Kudos to you for taking control!  You can do it! 

[Guest Justme2]

Same, here. I don't think many realize the financial hardships we widowers face, especially if we did not have a fairly large insurance policy, on our late spouses. Wishing you the best.