Sunday, October 10, 2010

Sole Salaried Breadwinner

So, Peanut quit his job two days before the wedding.

He had my full support and encouragement to do this. He's been wanting to go freelance to do some more interesting versions of what he'd been doing at his salaried position. He'd been applying all over town, and finally got enough legitimate interest that he felt comfortable giving notice. We'd already been planning to have him join my health insurance coverage, so really there was nothing holding him back.

However, this has changed up all of our plans for student loan repayment.

We can live off of my salary, including making minimum payments on all our student loans. There won't be much left over to save, but at least we won't be hurting. His freelance earning potential is a lot greater -- if he works two days a week, he'll be making what he was making while salaried, so there's a LOT of upside there!

However, he's now completely dependent on various companies for contracts, and these are short-lived contracts: one day, three days, maybe a few weeks if we're really lucky. And they often don't book until the day before. So our "security gland" needs are a lot higher than they were.

Our new plan is to use my salary to pay all the day-to-day bills (ha, ha, I'm SUPPORTING YOU, darling!) and bank all of his income. Once we've saved enough to both maintain our emergency fund ($10,000) and pay off our loans in one fell swoop, we'll do so. This will still probably happen within our one-year timeframe.

It also might change our plans for staying in New York. We do have a plan to leave the city to settle somewhere else before starting a family.When Peanut was employed in his salaried position, we were waiting for me to pass the six-month mark since my last tuition reimbursement disbursement, so I don't have to pay that money back. Now, if things go really well for him, we might stay here longer so that he can continue adding awesome stuff to his resume.

I'm a little disappointed that we won't be killing loans on a frequent basis. We'll also be paying a little more interest than if we made higher payments every month, but it will be in the tens of dollars, if that, rather than the hundreds. However, I'm thrilled that Peanut gets to do something super-creative and great for his resume, and with the potential to make a lot more money (if he gets booked on longer contracts).

So, new budget, new savings plans, new debt killing plans, and more to come!

5 comments:

  1. Wow, that's a lot of change to deal with at once but I'm excited to read about how it all works out, and it sounds like it was thought out and with a good plan in mind, so I'm expecting to hear good things as the updates come in.

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  2. What exciting news! Good luck to peanut in his new career direction!

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  3. Good luck, hope all works out just as you imagined it would!

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  4. There's nothing to lose in giving it a shot if you can afford it. Just a word of caution: set a deadline or a budget of when he should "throw in the towel"...

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  5. Wow--totally jealous of Peanut! Good for him!

    Will you do another post about where you and Peanut plan on moving to if you leave NYC?

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