Is this debt?
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| Sun, 08-29-2004 - 6:34pm |
In addition to dh's income, I bring in a freelance income of roughly $200 a month (sometimes more, sometimes less). Because dh's income is barely adequate to cover our expenses, debt payments, and savings, we tend to use this "extra" income for extra expenses--dental work, chiropractic visits, etc.
The way that it is beginning to feel like debt, is that we have started planning our use for the income long before it actually comes to us. For instance, we planned to use my check a few months back to buy a grill, and had everything picked out and so on before the check even arrived. Although we didn't actually buy the grill until the check arrived, it felt like it was already spent when we got it. Then, worse, dh needed chiropractic work (extremely painful back), and so we worked out a deal with the chiropractor where we paid for some of the work up front and then agreed to pay the rest when--you guessed it--my next check came in. Again, the check came in, and out it went again. :(
Now, it's my teeth. I need dental work. I'm actually determined not to do it until the check is actually in hand (unlike dh's back, I'm not actually in pain), but we know already it will take up my entire income for October. Then the next paycheck I get (which might be November, might be later) will have to go straight back into our contingency fund to cover a check I'm having to write to cover carpet damage to our old apartment when we moved out.
Even though we're paying cash for everything (I guess the chiropractor was technically debt, since the work was done before it was paid for, but everything else is waiting until the money is in hand, or is coming out of savings which are then replenished when the check arrives), it *feels* like debt because it's all spoken for before we even have the money.
Am I just obsessed? Do other people do this? Do I need to do an "intervention" and get back ahead of the game again so that we don't have all this money planned out before it even arrives? Or are we just in a stage where we have a lot of sudden expenses, and once we're past this, will it even out again?
Just looking for thoughts.
Heather

I know what you mean. I sell gift certificates, so I collect the money, but the dance lesson hasn't been taught yet. To me, that's debt too - a service I owe.
Your situation is kind of 'borderline'. You're planning, and budgeting, and paying cash, like we're 'supposed' to. But since your income isn't as steady, it might feel more like debting, or even gambling.
When I budget, I try not to include my dance income, because it's not steady, like a regular paycheck. But when I do get money in, I usually restock my savings account, or pay off something big, like having a dance floor installed, or buying plane tickets to see my step-son enlist in the Army next week.
If it were me, I'd follow my gut instinct. If it feels like debting, it might be debting. Maybe try stopping the behavior for a while, and see if the debting feeling goes away?
Good luck,
Lee Ann
Lee Ann
www.werenotafraid.com
It's gotten to the point (danger! danger!) where we'll put things
on the credit card knowing that our next check will cover it.
So, now I've stopped, the card is paid off and I'm trying very hard to WAIT
for things if at all possible. But there's always something coming up.
I don't think what you're describing is debt, well some of it anyway.
Planning for how you're going to spend your check is fine. But when
you start making payment plans, then I guess it's debt.
Like you, I'm hoping it will even out. But I'm trying to buckle down
for a while to help it along. Some days I'm really good and some days
I'm bad.
Do you have any "extra" checks coming (where you get paid 5 times in one
month instead of 4 for example?). This week's paycheck will be "extra" for us,
we'll have 5 in Sept, so I'm planning to put it right into savings for some extra cushion to help get us ahead.
I agree with Lee Ann-if it feels wrong, try and build a cushion to absorb some of this 'extra' stuff. I don't know how much will be 'enough' for you, but sounds like that might be a thing to try.
Good luck-
Lisa