The Absolute BEST Thing About Being Unemployed

8 12 2009

Y’know, being unemployed isn’t really all that bad if you’re trying to get out of debt. I know, I know , you must be thinking I’ve lost my mind but just try to hear me out on this.

The first lesson in getting out of debt is you must be living within or even below your means in order to get it done in the fastest amount of time possible.

When most people say “I’m getting out of debt”, they mean “I pay the minimum balance on all my credit cards.” But when I say ‘My wife and I are getting out of debt.” what I’m actually saying is “This month alone we’ll be sending off over $800 in addition to our minimum payments on everything.”

We want this thing to be over with! We’ve been at it for 2 solid years and it should take us another 2 to clear out the remaining $50k we have left (excluding the house note) before we can truly say we’re debt free.

But having said that, I had a revelation today: There are some major advantages to being unemployed. While I won’t go over all of them now, I do want you to leave with this thought:

Nothing teaches you how to live within your means like a sudden loss of income.  NOTHING.

If you live in a 2 income house and one of those incomes is lost, you STILL have to make things work. Lights have to stay on, foods’ still gotta hit the table, you still need gas to keep the car running, and clothes still need to go on your children’s backs! And those priorities could care less what’s going on with your money, they still need to be met and met often!

So you’re still wondering where the ‘advantage’ part comes in, right? Well, here it is: Once you’ve adjusted to making ends meet on that new consolidated income amount, when the lost income is replaced either by a new job or other stream of income you will find it easier to apply it towards setting up an emergency fund, and then applying it to your debts, past dues, and the stuff that’s gone into collections.

But here’s the catch. (Sorry but you knew there had to be one.) This will only work if you are focused and disciplined with that new money coming in. Don’t treat it like a Raise or a Christmas Bonus or some sort of Promotion because it’s NOT. At least not yet.

Get out of the cycle of sending your money away from people you always need to pay back! And do it starting with your smallest lender no matter who they may be. The purpose of getting out of debt is to stop owing folks so that you can use ALL of YOUR money for YOU! For the average person it usually takes about 2 years to do depending on their income level and the amount of debt they have. But the majority of people it should take far less time than that.

So what do you think? Agree or disagree? Well for us, I know that it’s worked in the past because for every promotion and pay increase we’ve gotten we’ve rationed some to adjust our cost of living but the vast majority has gone right toward paying down our debt. There’s just no way we could have paid off over $65k in the last 2 days without putting this concept to use.

Live Invincibly,





One response

8 12 2009
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