Yes, I want to live better and get rid of my debt. I want to save for my retirement and be able to buy a home with at least a 50% down payment in a few years. I want to buy a car in cash and know I’m never paying interest on it.
But right now, my biggest goal is to be financially secure no matter happens.
I’m not sure how my job security situation is right now. The company is doing alright at the moment, but some internal factors are making me a bit nervous. Honestly, the situation could go either way. It’s all up in the air at the moment, and as I don’t have a diploma to back up my experience, I’m trying to prepare for the worst. It could be a year before it’s resolved, it could be six months. I really don’t know, and having no control over that scares me.
Right now, the company pays for my schooling. The company owns the cars we drive. Everything I have and everything I’ve ever earned is wrapped up in this company. As long as it’s around, there are opportunities for me. If this goes the other way, what would I do with $3000 in debt, no savings, and no diploma? I would be 100% screwed.
If the company survives (please god), I’d also have an opportunity to get a green card and assist with expansion in the US. Or I could stay here and work on development, while still doing A/R and making more money because of that. Who knows at this point? There are 50 different directions this could go.
The way I’ve planned this out, if I have a year, I could have $8,000 in the bank. Every extra month after that adds another $1000. If I need to, I can start over. I don’t think I’ll feel 100% safe until I have a large bank account and a designation, but for now $8,000 would be good enough. If nothing happens, I still have a head start on a future. That is priceless in itself.
I have been told by people in my life that I’m over-saving, and that I shouldn’t be working this hard at getting my net worth up. Since I’ve started this journey, I’m told all the time by friends that I should go have fun just this once. It’s always “Come party in Toronto Meghan, you make more than any of us do and we can afford it! Just this once, drop some money!” Well to me, spending just this once on something I really don’t need might mean not being able to pay my phone bill in six months. I am not willing to take that chance. Before I was buying cheap cartons of smokes each pack had me almost in tears, because I know it’s terrible for my financial health, but it’s the one spending habit that is too hard to stop so far. I need to feel secure before I can start spending comfortably again, and I won’t feel secure until I have a fully funded emergency fund. To me, that’s a year of the minimum I need to survive- that adds up to just over $16000. That includes rent if I needed to move out, food, phone bills, and an adequate amount for everything else.
I may sound a little nuts, but I don’t ever want to be unable to support myself if something happens.
What is your main reason for taking control of your finances? Kids, security, desire for wealth?