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Ch Ch Changes

December 16th, 2008 at 07:09 pm

Shoutout to David Bowie, who I really like.

I've been off the site for a while now, preparing for a major life change that will likely require my presence here more than ever.

Hubby has decided to quit his job and start up his own consulting company. I know on the surface it sounds crazy to give up a stable, good paying job in this economy for something totally unstable. But when we thought about it more, it actually makes some sense.

First, he's 40 and has been miserable at his job for a while. I'm a strong believer that if you're going to be spending so much time doing something, you may as well be happy about it. That's priceles...

Second, his job is actually not that stable. His company recently announced that they're being bought out, and there's no guarantee of future employment with the new company. We could wait around for a severance, but who knows when/if that would happen.

Third, I have a very stable, well-paying job with great benefits. I recently took over a new position that came with a promotion and my company is actually in pretty decent shape. I'm also only part-time (80%) and have the option to go back full time if I want, which will get me an extra 20% salary.

So we'll be losing a little over half of our total income (ouch). My goal is to be able to pay all of our regular monthly bills with my salary, and rely on whatever he brings in to pay for special things like vacations and to amplify our savings. He'll have enough pressure in the beginning trying to get up and running without added financial burdens.

So I've run the numbers and am thinking it will be doable but REALLY REALLY tight. I'm not sure exactly what my net pay will be, because I need to change withholding and all of that, but I think it will be close.

We're moving to a cash/envelope system. I always charge everything and pay off the credit card each month, but would prefer the discipline of cash. So in December, I'm paying the credit card bill from November plus everything this month cash (using my year-end bonus). That way everything including Christmas will be paid by the 31st and we'll start the year fresh.

Next time I post, I'll put up my January expenses and talk about what's getting cut. I'm really excited to get going with it!

6 Responses to “Ch Ch Changes”

  1. mom-sense Says:

    Can he work part-time while he starts up his consulting business? Does he have any prospects lined up to start working on immediately?

    Best of luck to you! I would want to be supportive, but I
    am sort of a nervous nellie! Good luck!

  2. gamecock43 Says:

    I agree with you. You sound like you have put a lot of thought into this, you know the risks and are prepared for the worst. That's all you can do. Good luck!

  3. Ima saver Says:

    Congratulations and good luck!

  4. creditcardfree Says:

    Sounds exciting and challenging! I look forward to hearing how it works out for your family.

  5. monkeymama Says:

    Good Luck!

  6. frugaltexan75 Says:

    It does sound like you both have put a lot of thought into this. Good luck!

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