Bought myself freedom with a budget. Wanna know how? First let’s talk about why.
My co-workers are worried, stressed and overworked. There’s been plenty of budget shortfalls, leading to layoffs and cutbacks in health care and retirement pay. Because rich people aren’t paying taxes, that means the middle class and poor have to pay more for basic medical care, We’re expected to do our own saving for the proverbial rainy day, in spite of the 50 years of success of the best-run government program known as Social Security; we’re told that it’s not going to be there, that changes have to be made (in spite of our country being able to start and sustain armed invasions and occupations of endless foreign countries on the flimsiest of pretexts).
Locally we can see an increase in homeless, the walking wounded pushing shopping carts around and always dressed in the same colorless gray rags, muttering to themselves, rarely begging for help but more often frightening those around them. The homeless are in need of help; no jobs, no cure for what ails them, no respite from their acquired addictions. They could be us.
We all know someone, often many someones, who are unemployed and in danger of losing the roof over their heads. Many years of nearly 10% unemployment has become just the way things are. Nobody in a position of leadership is doing anything about the jobs situation. Instead we hear, at all levels, from the Federal government to the state and county and city, of the needs for cuts. Cuts, cuts, cuts. Some of our leaders are gleeful about the cuts, and some of them are reluctant and sad, but both ends of the spectrum have one tool for the nails that need pounding, and it’s a knife.
My co-workers aren’t unique; times are tough all around. But since I work with these people day in and day out I can see the fear and desperation in their eyes. They speak volumes when they push themselves to do more even when there’s no time or energy left. They worry about losing their job and being replaced by a cheaper, younger worker. They feel the pressure of keeping their income while they have a mortgage and hungry kids and spouses. More work, fewer workers. Even smart working is starting not to be enough, it seems.
I don’t feel that fear of losing my income.
Not as much, anyway. Being laid off, fired, let go, made redundant, given my walking papers, whatever you call it, it would suck; but I did something in the last year that has made a big difference.
I paid off all my debts. No more credit cards, no loans. I owe money to no one as of the end of the past year or so.
My current obligations are rent (which hasn’t increased in six years), electricity, my iPhone bill, my cable modem, food and drink. And that’s it.
My current income is a little more than the median household income for the country (which was US$49,777 a year in 2009 according to this US Census PDF) and my baseline spending budget is just under $1400 a month or $16,800 a year. As you can tell, that gives me a hugely positive cash flow. To date I’ve been spending most of it; I upgraded my computer to a brand-new four-core MacBook Pro, for example, paying cash for it. I’ve also been saving some for that future rainy day, and now that I’ve satisfied my desire for a new toy my need for better hardware I will be saving even more.
I also plan on giving generously to charity and to help those in need; my goal is to bump it to at least 10%, and maybe as much as 20%. I can afford it, and as a wise man once said, today you, tomorrow me.
Hopefully I can hang on to my job long enough to build up a huge cushion, something that will carry me through to the end of my life, in addition to whatever Social Security is left after our cowardly leaders get done with it and what meager retirement money greedy Wall Street allows me to keep. I’ve spent years living my life in humble surroundings and with just a few, high-quality tools, and the basic necessities of life. I have fun, and I don’t suffer, and I have great friends, but I don’t spend more than I make, not any more, and never again.
There is great comfort, though, in knowing that my needs are small enough that I could take a huge pay cut and not have to change a damned thing. I’d still eat the same foods, I could still afford this roof over my head, I’d still be able to get around town on my bike and with the bus. I wouldn’t have to give up my fancy iPhone, although I could if I had to cut back. My laptop is paid for so I wouldn’t have to worry about making payments or taking a huge loss and pawn it off. The few luxuries I have are assets, not liabilities. I have no dependent children that need food and shelter.
In fact, I’ve calculated that I could survive in my current lifestyle with as low as a $11.00 an hour full time job. I have much confidence that I could find such a job if I had to. I’m half tempted to go find such a job now, just to see if I can and keep my job hunting skills intact. Or pick up a part-time job just to supplement my income and build my savings faster. Wouldn’t it be great to have a job just for fun, instead of being obligated to it?
By eliminating my debt I have given myself much freedom. So while I feel my co-workers pain and stress, I don’t share it. I do my job as best I can, but I’m not giving in to the drumbeat of fear, and I have no trouble turning down extra work or letting some of the less-important projects (which are all, according to management, high priority) we’re supposed to juggle fall to the ground. If they want to lay me off, I know that unemployment will pay all the bills and do its function: allowing me to land on my feet and get going again.
It’s a great feeling.
