How do you make money?
- Thread starter mom2meiko
- Start date
indimom
Are We There Yet?
- Joined
- Jul 18, 2008
Okay, mrsklamc, I had to add, I couldn't agree more with your latest post. I've watched friends of mine over the last year or two where one parent has lost their job and their looking for another while on unemployment, yet they continue their normal lifestyle of eating out, taking the kids to daycare. And one even bought a new home without selling the old one first. (It is still not sold). They are digging themselves in deeper and deeper day by day, and think it's just going to change tomorrow like magic...
famsen
DIS Veteran
- Joined
- Jul 15, 2006
No kidding! It is what it is. If you have a mortgage, a portion is tax deductible because the interest is tax deductible. Don't tell me I can't do math. I make my living in finance, thank you. I was saying that if they are financing DVC, it is considered a mortgage and they can receive a credit on their taxes. I am saying DVC is very difficult to sell at all right now and if they are financing and owe more than they can get for it, they will owe money.
The large point was that some people JUSTIFY carrying a mortgage (DVC or otherwise) because it's a tax deduction.
If you need to carry a mortgage, the tax deduction is a perk for you -- it's not a reason to get a mortgage. Certainly, you should take that deduction because it's legally yours. BUT it's foolish to say, "I'll finance a larger house or DVC just so I can get a tax deduction." That's something people say when they're trying to talk themselves into buying something that they really shouldn't buy.
I remember trying to explain this to a girl I used to work with. She was CONVINCED that paying off a mortgage was a foolish thing to do. She was CONVINCED that interest on a mortgage costs you NOTHING because you just "get it all back at tax time". She had never looked at how much she was paying out vs. how much she was getting back.
allison443
DIS Veteran
- Joined
- Mar 13, 2002
pixie921
DIS Veteran
- Joined
- Dec 12, 2008
Do we know if the OP even owns DVC? Or are they using their friends' points, or do they simply have a regular reservation at a DVC villa? I don't think the OP has ever said, one way or the other. So there may not even be the option of renting the points and/or selling them. 
IMO, it's far easier to spend less money than it is to make more.
You need to take a long hard look at all of your family's spending and make some changes.
I agree with other posters that you should seriously consider postponing your trip until you've got your finances ironed out. If that trip costs only $500 more than you would spend if you were at home (which is a very conservative figure for food, tips, travel, and other spending), then that's $500 you could have toward solving some of your problems.
Keep all of your reciepts and bills in a manilla envelope for a month or two. Take them out and add them up to see how much you're truly spending.
I honestly wouldn't be surprised if you're spending more than your household income each month, even without the other setbacks you've had recently. You need to reprioritize your spending.
A few things I notice just from your post. Catching up on one mortgage payment is costing $3000-$4000, so you've likely got a pretty high mortgage payment to begin with. You've got art and antiques but apparently little or no Emergency Fund. You're relying on free child care from a relative as part of your ability to afford your lifestyle. You've bought DVC and been paying 2% of your income for extra vacation time, but you're having to borrow from 401ks to make ends meet. Between yourself and your husband, you are working three jobs but still having problems. I'm not trying to make any judgements... but these are all signs that your current financial problems run deeper than just one or two missteps. Those few missteps are just the straws that broke the camels back.
Take a deep breath and take a whole look at your lifestyle. Do whatever you have to do to steer yourselves back onto the path you really want for the future.
Good Luck!
You need to take a long hard look at all of your family's spending and make some changes.
I agree with other posters that you should seriously consider postponing your trip until you've got your finances ironed out. If that trip costs only $500 more than you would spend if you were at home (which is a very conservative figure for food, tips, travel, and other spending), then that's $500 you could have toward solving some of your problems.
Keep all of your reciepts and bills in a manilla envelope for a month or two. Take them out and add them up to see how much you're truly spending.
I honestly wouldn't be surprised if you're spending more than your household income each month, even without the other setbacks you've had recently. You need to reprioritize your spending.
A few things I notice just from your post. Catching up on one mortgage payment is costing $3000-$4000, so you've likely got a pretty high mortgage payment to begin with. You've got art and antiques but apparently little or no Emergency Fund. You're relying on free child care from a relative as part of your ability to afford your lifestyle. You've bought DVC and been paying 2% of your income for extra vacation time, but you're having to borrow from 401ks to make ends meet. Between yourself and your husband, you are working three jobs but still having problems. I'm not trying to make any judgements... but these are all signs that your current financial problems run deeper than just one or two missteps. Those few missteps are just the straws that broke the camels back.
Take a deep breath and take a whole look at your lifestyle. Do whatever you have to do to steer yourselves back onto the path you really want for the future.
Good Luck!
OP here....
First - I can't possibly respond to all of the posts because there have been so very many! I do thank everyone for their advice. I realize there are more places where we can/should cut back and as I said, I just became aware of how serious the situation is this weekend so I am still digesting it and thinking through my options. I honestly was just looking to see if there was anything else that I hadn't thought of that others might have in mind...
Our financial situation has not always been this bad. To be honest, the DVC was purchased at a time that it was nothing for us to spend that monthly mortgage payment or the annual dues. I have been suggesting to dh that we consider selling it for about a year now as our situation has become tighter and at this point it is up for serious consideration if selling his car does not resolve the issue. (dh is firm that this is an investment in our family and he does not want to give it up unless all other options have been considered/tried. it will be sold before we lose the house i assure you all.)
as for the house being too much for us - it wasn't until we got into this mess with the repayment plan. i know many of you said you don't understand it and to be honest, i don't either. it wasn't an easy conversation to have with a 2 year old and a sickly 4 month old to contend with but we are hoping to talk in greater detail tonight and try to figure out exactly where things stand. it appears that everything started when we were getting our roof replaced - a necessary evil, not a luxury - and has snowballed from there but i won't swear to that being the starting point. my mind is so full of should have's, could have's, would have's, i'm having a hard time keeping track of the details in my mind right now. it really has been incredibly overwhelming.
yes - we may cancel the trip but i will not take any steps in that direction until i know exactly where things are at. i have cancelled vacations before and am not afraid to do so again if necessary. the well being of my children is my absolute number 1 priority and nothing - not even mickey - is going to get in the way of that!
for those of you concerned that i am spending on other luxuries, i assure you i do not. i don't get facials, manicures, pedicures, etc. unless it is a gift from someone else. i do occassionally get my hair cut but prior to my last cut in june it had been feb the year before - over a year between cuts - so i don't think i'm overly frivulous in that area. dh cuts his own hair at the house and our dd has had just 1 cut in her life, that her grandfather insisted on taking her for. with a few expections (and 9 out of 10 times it is for my kids) i don't typically pay full price for anything and always get it 2nd hand if it's possible. for crying out loud, my son is 4 months old and i am still wearing my maternity clothes because i don't want to spend the money on new clothes for myself! (my pre-maternity clothes were literally falling apart at the seems when i became pregnant.) dh and i do not exchange gifts on any occassion - although he has occassionally gotten me a $10 boquet of flowers for our anniversary. we buy for our kids but minimally - our dd got a $5 kiddie pool for her 2nd bday! i have not always been this thrifty but am now out of necessity. i'm not embarrassed by it or ashamed of it. as long as my kids are healthy & happy, have a roof over their heads and food in their bellies, we're doing ok. the roof is at risk right now (from what i can tell) and i will move heaven and earth to protect them...
and before anyone criticizes my choice of home - i don't live in a monstrosity. it's an average size 3 bedroom colonial that is a fixer upper that has been in my family for 3 generations. we stay in this house out of respect for the family and because we are in a great school system and that is important to me for the sake of my children.
i realized after reading the first few pages of comments that i opened myself up to criticism and attack but that wasn't my thought when i posted the original message. i only wanted to see if anyone had any new ideas that i hadn't already thought of. i never expected that people would go and research my entire post history to see if i am a spender or not.... things change, as have my circumstances since most of those posts....
yes - most of you are right that going on the vacation is completely irrisponsible.... the only reason we may still go - emphasis on may - is because our friends already purchased non-refundable airline tickets (that we didn't agree to - they already purchased them in our names....) and they are counting on the use of our dvc (which yes, again, may be sold after the jan trip - whether we go or not.) (we have helped them out in reverse circumstances in the past - they wanted to help us out, we didn't ask.)
if we don't sell the dvc, we will absolutely be renting it out over the next few years until we do get into a better situation. it has already been agreed to that this is our last big vacation (if we go) for quite some time.
i was reaching out for help/advice and i definitely got it. i truly appreciate the supportive people who offered advice without judgment/criticism. it's an awful situation we are in and i am still coming to terms with it. i do appreciate the advice from others - even if it did come in the tough love format.
First - I can't possibly respond to all of the posts because there have been so very many! I do thank everyone for their advice. I realize there are more places where we can/should cut back and as I said, I just became aware of how serious the situation is this weekend so I am still digesting it and thinking through my options. I honestly was just looking to see if there was anything else that I hadn't thought of that others might have in mind...
Our financial situation has not always been this bad. To be honest, the DVC was purchased at a time that it was nothing for us to spend that monthly mortgage payment or the annual dues. I have been suggesting to dh that we consider selling it for about a year now as our situation has become tighter and at this point it is up for serious consideration if selling his car does not resolve the issue. (dh is firm that this is an investment in our family and he does not want to give it up unless all other options have been considered/tried. it will be sold before we lose the house i assure you all.)
as for the house being too much for us - it wasn't until we got into this mess with the repayment plan. i know many of you said you don't understand it and to be honest, i don't either. it wasn't an easy conversation to have with a 2 year old and a sickly 4 month old to contend with but we are hoping to talk in greater detail tonight and try to figure out exactly where things stand. it appears that everything started when we were getting our roof replaced - a necessary evil, not a luxury - and has snowballed from there but i won't swear to that being the starting point. my mind is so full of should have's, could have's, would have's, i'm having a hard time keeping track of the details in my mind right now. it really has been incredibly overwhelming.
yes - we may cancel the trip but i will not take any steps in that direction until i know exactly where things are at. i have cancelled vacations before and am not afraid to do so again if necessary. the well being of my children is my absolute number 1 priority and nothing - not even mickey - is going to get in the way of that!
for those of you concerned that i am spending on other luxuries, i assure you i do not. i don't get facials, manicures, pedicures, etc. unless it is a gift from someone else. i do occassionally get my hair cut but prior to my last cut in june it had been feb the year before - over a year between cuts - so i don't think i'm overly frivulous in that area. dh cuts his own hair at the house and our dd has had just 1 cut in her life, that her grandfather insisted on taking her for. with a few expections (and 9 out of 10 times it is for my kids) i don't typically pay full price for anything and always get it 2nd hand if it's possible. for crying out loud, my son is 4 months old and i am still wearing my maternity clothes because i don't want to spend the money on new clothes for myself! (my pre-maternity clothes were literally falling apart at the seems when i became pregnant.) dh and i do not exchange gifts on any occassion - although he has occassionally gotten me a $10 boquet of flowers for our anniversary. we buy for our kids but minimally - our dd got a $5 kiddie pool for her 2nd bday! i have not always been this thrifty but am now out of necessity. i'm not embarrassed by it or ashamed of it. as long as my kids are healthy & happy, have a roof over their heads and food in their bellies, we're doing ok. the roof is at risk right now (from what i can tell) and i will move heaven and earth to protect them...
and before anyone criticizes my choice of home - i don't live in a monstrosity. it's an average size 3 bedroom colonial that is a fixer upper that has been in my family for 3 generations. we stay in this house out of respect for the family and because we are in a great school system and that is important to me for the sake of my children.
i realized after reading the first few pages of comments that i opened myself up to criticism and attack but that wasn't my thought when i posted the original message. i only wanted to see if anyone had any new ideas that i hadn't already thought of. i never expected that people would go and research my entire post history to see if i am a spender or not.... things change, as have my circumstances since most of those posts....
yes - most of you are right that going on the vacation is completely irrisponsible.... the only reason we may still go - emphasis on may - is because our friends already purchased non-refundable airline tickets (that we didn't agree to - they already purchased them in our names....) and they are counting on the use of our dvc (which yes, again, may be sold after the jan trip - whether we go or not.) (we have helped them out in reverse circumstances in the past - they wanted to help us out, we didn't ask.)
if we don't sell the dvc, we will absolutely be renting it out over the next few years until we do get into a better situation. it has already been agreed to that this is our last big vacation (if we go) for quite some time.
i was reaching out for help/advice and i definitely got it. i truly appreciate the supportive people who offered advice without judgment/criticism. it's an awful situation we are in and i am still coming to terms with it. i do appreciate the advice from others - even if it did come in the tough love format.
mb168
DIS Veteran
- Joined
- Jul 24, 2002
I should have left your whole paragraph because when read in this context it looks like you're saying that selling for less than you owe (if that is even the case, we don't know what she paid for it) is a bad thing, plus they would lose the deduction.
If it means continuing to pay a little bit more than what they can sell it for verses paying for the entire thing that they can't afford, yes, it still makes sense to sell and take the loss, neither is a valid reason to keep it. The savings in not making MF payments could likely make up the difference. Same with cars, boats, etc, they are ALWAYS worth less than what people owe on them. If you cant afford to keep it, yes selling is the only way to alleviate the problem, and yes, unfortunately there is a little bit of pain involved called Stupid Tax.
Liberty Belle
<font color=green>I was going to reply, but I see
- Joined
- Aug 23, 2006
I understand why you don't want to move, but...was your house over-priced? If your father is willing to babysit for free it seems he would sell the house to you at a decent price.
Anyway, it still doesn't seem right (especially the $1000 extra payment for months to catch up), but it's not my business. I just hope you're not sugar coating things for yourself. I don't know how these things work (foreclosures and such) but it would be a shame for you to lose a home that's been in your family for generations.
mb168
DIS Veteran
- Joined
- Jul 24, 2002
I just have to say that this was the BEST follow up by an OP in a situation like this that I think I have ever read
. I still think that you have a little further to go in acceptance of both the situation and responsibilities, but you took a lot of hits on the chin and it looks like it may have woke you up. Whatever you decide about the trip, DVC, bills, house, etc, I hope you do it TOGETHER with your husband and are fully informed of the situation at all times. The one thing that I don't believe I read from any of our comments that is yet something else to add to the pile is that it is also Christmas which could have been devastating to go through without knowing this. By finding out now you may have just saved Christmas. Good luck!
mb168
DIS Veteran
- Joined
- Jul 24, 2002
Just found out about Stanley recently and started following him on Twitter and reading his site a little;
www.ThomasJStanley.com
twitter.com/thomasjstanley
Good stuff but unfortunately like Dave, Suze, and such, it's a LOT of common sense that we SHOULD know, but somehow get fooled into being "normal" that we don't realize that it's wrong until it's too late.
MinnieGi
DVC/BWV
- Joined
- Nov 3, 2001
I just have to say that this was the BEST follow up by an OP in a situation like this that I think I have ever read
I agree! Thanks OP for coming back to clarify and search for more answers. Sometimes posts like this the OP disappears all together. I truly hope you get the WHOLE picture of your financial situation from your DH soon and then work on a plan of recovery TOGETHER!!! And let this also be a call to you to be sure to KNOW your families financial health too.
Hugs go out to you that you can straighten everything out.the house was not overpriced at all. it was from my mother's side of the family - divorced parents. the mortgage was a result of the $$ we had to put in to pay off her overdue taxes and overall disrepair of the house at her hands... (she was about to lose it to the state...)
i agree something doesn't add up but as i said i'm hoping to get more details once we can talk without the kids distracting us... i have not been involved in the finances up until now but plan to going forward...
Liberty Belle
<font color=green>I was going to reply, but I see
- Joined
- Aug 23, 2006
I just have to say that this was the BEST follow up by an OP in a situation like this that I think I have ever read
Whatever you decide about the trip, DVC, bills, house, etc, I hope you do it TOGETHER with your husband and are fully informed of the situation at all times. The one thing that I don't believe I read from any of our comments that is yet something else to add to the pile is that it is also Christmas which could have been devastating to go through without knowing this. By finding out now you may have just saved Christmas. Good luck!
I agree! Thanks OP for coming back to clarify and search for more answers. Sometimes posts like this the OP disappears all together. I truly hope you get the WHOLE picture of your financial situation from your DH soon and then work on a plan of recovery TOGETHER!!! And let this also be a call to you to be sure to KNOW your families financial health too.
thanks to you both for the kindness.
i opened this can of worms and truly do appreciate what people have to say. fixing this situation and ensuring my childrens future is my number one priority. nothing matters more than they do.Hi
i am so sorry to hear about your money problems I can relate to you as my family have been through a situation like yours. Its hard at the start but if you and your husband can work together as a team anything is possible.
I know eveyone has told you to cancel you trip while i agree with them if it was me i would cancel but you need to do what is right for you.
If you need to talk please PM me if you need to get things off your chest.
i am so sorry to hear about your money problems I can relate to you as my family have been through a situation like yours. Its hard at the start but if you and your husband can work together as a team anything is possible.
I know eveyone has told you to cancel you trip while i agree with them if it was me i would cancel but you need to do what is right for you.
If you need to talk please PM me if you need to get things off your chest.
dcfromva
No horsing around, Christmas is coming!
- Joined
- Jun 16, 2002
I saw this recently as a go into business yourself type thing:
Hanging Christmas Lights: Ways to make money
Hanging Christmas Lights: Ways to make money
howlongtildisney
Mouseketeer
- Joined
- Oct 24, 2009
My husband works for a nonprofit (Consumer Credit Counseling Service) that specializes in helping people in financial distress. They have free over-the-phone counseling and webinars that may be of interest to you - www (dot) cccsinc (dot) org. Good luck.
Share this page
GET A DISNEY VACATION QUOTE
Dreams Unlimited Travel is committed to providing you with the very best vacation planning experience possible. Our Vacation Planners are experts and will share their honest advice to help you have a magical vacation.
Let us help you with your next Disney Vacation!
Dreams Unlimited Travel is committed to providing you with the very best vacation planning experience possible. Our Vacation Planners are experts and will share their honest advice to help you have a magical vacation.
Let us help you with your next Disney Vacation!
