Hello all my blogging friends. I know it's been quite a while since I've checked in here. Life has thrown us a few curve balls in the last couple of months, and I really haven't had much time to check in with all my friends. It's something I've sorely missed! (And need to get back into!)
Today I'm not going to go into the in-s and out-s of what's been going on, because I honestly don't want to come across as whining or being ungrateful. I'm counting my blessings daily and trying to keep on keeping on. Today's post is honestly me reaching out to you my friends for some advice. It's times like these that I appreciate and love even more the community of bloggers that we belong to. You have such a network of people to draw from in times of need!
First of all I want you all to know that any and all comments, advice are welcome. I'm honestly at a point where there can be no bad advice. So here's the question. How to recover when you've hit rock bottom financially?
Let me first give you some background on us so you know where we're coming from. When Eric and I first got married six and a half years ago, I had some debt that I was managing, but quickly it got out of control. We could blame this on several factors, but what it all boils down to is that we were irresponsible with our money. We were young and in love, and made some horrible choices. When we first got married, Eric was paying on some payday loans, that we let go on for about two years, living off of them so to speak. It finally got to a point that we decided to suck it up and pay them off, and I'm glad we did! The sense of relief was awesome!
Then two months later, Eric lost his job. We were totally blindsided and had nothing in reserve. We spent a year and a half living on unemployment and food stamps, looking for work. We ended up having to move back to Utah with my parents (a tad humiliating) and look for a job.
Fast forward to feb of this year. Our landlord told us he wasn't renewing our lease because he had family that needed our apartment. We once again had nothing in reserve, and we were barely scraping by as it was. We ended up having to live with friends for a couple of months, and now with my parents once again. (If it was humiliating before, it's completely embarassing now...)
So here it is. Eric has a job that pays about $11.75/hour with benefits and a 401K. He's been there a year and a half, and it's looking steady. We don't have a car payment because we bought a car outright. We do have car repairs come up every once in a while. Our insurance is paid through his work, so we do't have to worry about that. We have no credit cards, because everything is in collections. We've had two cars repossessed, and both he and I have student loans. Our credit is so bad we couldn't finance a can of peas if we tried.
We are completely horrible with our finances. We have hit rock bottom because of this. We get paid on a Friday, and by Sunday night it's gone. (I honestly think our biggest problem is that right there, we go for so long with literally no money that when we do have $$ again we just go crazy and spend it!)
I'm sick and tired of this. I think it could all be fixed with willpower, but I honestly don't know where to start to get things fixed. My question to you readers is this. How do you recover from rock bottom with your finances? How to apply willpower and budgeting? What has worked for you in your financial life? What hasn't worked? What luxuries do you allow yourself when creating a budget? How do you keep from overspending?
Please give me all comments and suggestions you can think of. I need a jumping off point so we can get some momentum to get things turned around.