Tuesday, August 3, 2010

The contingency plan

DH has found some property that he'd like to buy. It's farm-able land that we could rent and it's in a good location for us, so that we could also build on it someday when the time is right. A very good investment for us.

The only thing is that we don't really have the money for the monthly mortgage payment on it right now. We will have the money pretty early next year after we finish paying off my parents (we borrowed part of our down payment for our house to avoid PMI and not have to rent for another year).

We can swing the payments out of our savings until then, but I was REALLY looking forward to ditching that payment. Once we were done with that, then we could have finished paying off the car by the end of the year and then our ONLY debt would be the mortgage on the house. I fantasize about that day.

But aside from me giving up my dream of having spare cash to actually use on something that we can enjoy (we haven't taken a vacation in 3 years and that was our belated honeymoon), my stomach was tying in knots about what would happen if I lost my job (hubby works for the govt... not really worried about him losing his)? I don't really expect to lose it, but I truly don't feel as secure as I did a year ago. And it makes me nervous.

How can we afford our life if I lost my job? Having a baby to provide for has definitely made me more worry more.

We live pretty lean, except for our grocery budget. I'm still not sure how to trim things up there. But otherwise, the low hanging fruit of our budget has definitely been picked. So finally the other night we sat down and discussed how we could make the worst work.

We talked for a couple of hours. I feel so much better now.

At this time, if I lost my job, I don't think I'd try to get another one. I'd rather take the time I have with Michael... even though I don't want to be a SAHM, but I'd rather do that than try to get established at a new job with M still being so little.

We would probably sell DH's truck for the cash since we have have my old car as a spare for him to drive.

And then the big thing... we would probably try to get his job transferred to down near his parents. If I'm not working, there is really nothing holding us here. DH would probably be promoted if he took a transfer. And his grandma's house is vacant and could be fixed up. We could sell our house here. We could live on one income, with money to spare. Free babysitting à la MIL. I could hang out with DH's friends' wives (the ones that don't annoy me) that stay at home and do play dates. Go for baby #2.

As resistant to that life as I have been, it is really starting to appeal to me. Maybe a little too much. Plan B doesn't look so bad right now.


Celia said...

If you want to email me what types of food and brands you buy, i will take a look and tell you where you can trim. dingle_berry@verizon.net

Michelle said...

I think plan b sounds pretty nice.
I will say that when I was pregnant, I planned on going back to work. I was only going to take off 6 weeks, and K would only be in daycare for 3 hrs because my husband was on 2nd shift. But then pregnancy issues caused me to quit and I did not want to attempt starting a new job with a newborn. The first few months of adjusting to only one income, then a newborn, then some other drama hit, it was pretty bad. But then we learnt to do without some "extras" and things got better. It's really not that bad. Especially if you have family/friends that you can get out with.

Amanda said...

I hear you Michelle. But we really don't have a lot of extras. Netflix (we get our TV over the air, i.e. Free), our cell phones (however we don't have a home phone so we would have to spend about the same amount there), DSL internet (no, not my internets!). We go out to eat once a week at most and we bring our lunches. We don't even use paper towels (except for really big messes). Honestly, the biggest expense I can think of that is not a necessity are my DHA supplements, which run ~$90 per month but I figure it is good to consume that for the baby. We try to use more affordable toiletries. Yup, the low hanging fruit is gone so that is why I get a little scared. There is no cable, gourmet coffee and bottled water to cut out of our budget.

one-hit_wonder said...

plan b sounds pretty good!

we are thinking of something similar re: buying land. the money would come out of savings, which i hate, but i tell myself that buying land is an investment that will likely pay off better than a bank account will (especially with interest rates these days).

Celia said...

Dude, do you think it is a good idea to give Senor Pedro rice cereal once a day? I want to hold off on everything else till 6 months.

Anonymous said...

Plan B does sound pretty good! Good luck with deciding what to do about the land. It is so hard to make these sorts of financial decisions.
We are going through similar decisions right now. We are close to debt free (no car payments, no cc balances, could pay off our mortgage on this tiny house right now), but we need a bigger house, so we could be going from no debt to major debt and having to really tighten our budget. We are trying to decide between buying an older home in an awesome neighborhood with the best public schools in the area but being completely house poor from the mortgage and high property taxes and worried about maintenance issues that will pop up, or buying a brand new house in a good but new neighborhood farther away from things (though closer to DH's job) with quite good schools and low property taxes which would enable us to live like we are currently. Right now we are leaning towards the new house. Did you find any drawbacks to buying new construction? Has it been all you hoped?