by Hope
The last week of December, I heard from a past client asking if I was available for a big role. I was so excited to hear from him. Not only was he one of my favorite clients, but, of course, I wanted more work. But I was also immediately torn as I felt a loyalty to my accounting client.
He and I scheduled a call for the second week of January to touch base. And the day before that call…I was laid off.
So while I was devastated in one sense, my availability opened up and need for work became urgent.
Round and Round of Calls
The first call went great. The role he described was a dream role. And we left that call with some things to think about. But no real plan.
The second call was a couple of weeks later due to some pre-scheduled travel on his part. And we were both prepared. It went great. And I came in confident that I could not only succeed in the role, but with a firm grasp of what I was willing to offer to get it. Firm boundaries.
By the third call we had come to terms as far as time commitment and finances. It was a compromise on both our parts, but for the first time, probably ever, I stuck to my guns. And came away feeling really good about the deal we had tentatively struck.
Fourth and fifth calls nailed down the details and introduced me to the leadership team. And as of the writing of this post, we have a signed 6 month contract. I will start next week.
The future looks bright.
The Details
I will be bringing in $6,000 per month as a part time independent contractor. We will re-evaluate at the 90 day mark and 6 month mark to discuss expanding the role and possible increase in rate. As a contractor, I am wholly responsible for all my taxes, FICA, etc. so I can’t just go budget $6K. But this is a huge step in the right direction. And I am so pleased!
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 3 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
This is good news. I highly encourage you to live like you are broke over the next six months and throw all the extra money towards debt and savings. No eating out, no travel, no gifts to the kids. Nothing you don’t actually NEED. Don’t count on an increased rate or the job going longer. You’ve lived what happens when you don’t have enough savings and too much debt and you lose a job. It’s imperative you get your debt down and get used to living on a small salary.
Yes, absolutely this. No vacations, kids pay their own insurance, debt gets paid down. Act like this is your only income for the year, because for all you know it could be.
Hope,
This is fantastic news! Now, to use this news to solve your problems. This is what I have done in these situations.
First off, make a list of every expense you have monthly. Be realistic.
Next, list out everything you are past due including dollar amounts. Then add the next due date on those bills. Highlight anything that flat out cannot get any more behind without catastrophic results.
Now, pull out a calendar. write in every time you will be getting paid for the next 60 days from any consistent income. Then, add a note at the top for any money that should be coming in but you do not know when or is not guaranteed but is expected. This money is not to be used for putting out fires. You will use that money for debt reduction as it comes in.
Now, look at your calendar and look at your list of past due and monthy expenses. It should be obvious but you pay your biggest fires first. The stuff with the biggest consequences from not being paid gets paid first. Sometimes that means a bill gets further behind for you to pay a current bill if the current bill cannot get behind at all without dire consequences.
You should be able to tell as you do this where your bottlenecks are. Obviously any inconsistent income should be used to put out fires if necessary but hopefully this is enough income to help you get ahead. Assuming I am remembering your budget well enough, it seems like you can be caught up on the insanity sooner than 60 days depending on if you are keeping your other work too. As soon as you are caught up, you need a game plan. Everyone will argue this differently but at the end of the day you need a strategy you can live with and you have had a ton of stress over the last year in a half. Plenty of people will disagree with me, but when I was in your shoes this is what I did with money I had left after bills. Idid 50% savings, 40% debt reduction (settle stuff if you can and bargain HARD) and 10% have fun and thank people I care about. I did that till I had 3 months expenses saves. Then I switched to 20% savings, 70% debt, 10% fun. Ran that till I had 12 months expenses saved. Then 90% debt 10% fun till I paid absolutely everything consumer debt related with interest rates over 5% off. If you make it that far without any new fires, then time to invest. I did it this way because I knew it was 3 to 5 years out from paying everything off and the reality is I could not have zero fun money or I would have been depressed or negative and I knew.from experience that was not conducive to long term success.
Regardless, make a.plan and stick.to it because this just might be that light at the end of the tunnel you have been waiting for. Use it to your advantage! Proud of you for sticking with it!
Phenomenal, Hope. Use this opportunity to erase some debt and build up your savings. It’ll be tempting to treat yourself, but you have a great opportunity to kick some credit cards, pay your dad back and regain your piece of mind. It’s worth so much more than takeout.
I am so incredibly happy for you! I have been following since the beginning and have been a silent supporter. I will keep praying for you and your family!
Congratulations on this contract! I would recommend prioritizing paying back your family members first.