Wednesday, January 27, 2016

CHR Challenge Day 4

Day 4 of the CHR Challenge focused again on money fears. So often we think only of currency cost and not on the actual value of opportunities.

Our first task for Day 4 was to take a look at the budget of our expenses and really study it. I have always hated numbers so this was a big task for me to complete. When I wrote all the numbers out and totaled them up, I was a little surprised. My monthly expenses are how much? Then, we had to keep the two things that bring us pleasure and remove the three things that don't from the budget. That was easy. When I looked at the numbers written out like that, I was surprised to learn that with my monthly take-home salary, I should still have roughly $200-$300 available at the end of the month; even if I did factor in some money for shopping, dining out, and miscellaneous expenses. To say I was shocked is an understatement. Obviously, something is up because I never seem to have extra money and this is a tight budget.

Then, after including the little pleasures in the budget, this new number became the "bottom line"; what I would need to "roughly" live. I looked at that number hard. Seeing that number made my money fears concrete and to be honest, not nearly as terrifying as I thought it would be.

After that, the challenge got really tough because we were instructed to say the following exactly: "I quit my job and have no income yet, but now I can do anything. Wow, it's actually kind of exciting (and terrifying) to be this free! I'm nervous, but I know I can figure out a way to survive." Then, we had to write down at least three things we would do if we found ourselves with no income but the same bills and new bottom line.]

Here's where it gets tough guys. I had to face facts and be realistic. Here are the three things I would do:

1. Sell some stuff (ouch)
2. Move in with my parents (Yikes!)
3. Work my business smarter (This made me think of a few years ago when I was unemployed and this exact thing did not happen.)

Okay, now I know the plan for the worst case scenario. It's not as scary as it was at first, even if it is a little depressing. I looked around my apartment and identified all of the items I would sell if I had to and that made me sad because I worked hard for those and for some, I put a lot of love into them (ex. like the office desk and cabinet). No more bookcase to hold my books. Those would go into boxes for storage (gasp!). Half of my closet would be depleted. There goes the dining room table. I probably don't need that wine rack (it was the first piece of furniture I ever bought!). The list could go on, but seriously, its depressing.

Then this thought creeps in: "What if I fail and I end up living in my worst case scenario?" (EEK!)

That's what we deal with on Day 5.

1 comment:

Crazy Cat Lady's Kitchen said...

I love budgets!! I would be happy to share my spreadsheet's with you!