My recent frightening realization...

[Professorshak]

2 months ago I had finished Dave Ramsey's Money Makover. I pushed my wife to pay off all our debt, which luckily wasn't that much. She, having majored in economics, was always thoughtful about spending. So last month we paid off the remaining balance off the mattress we bought 2 yrs ago when we got married, and now, are debt free.

I'm 26 and make 1800 from my primary job and 400 from my side job, every month. She was laid off and has been on unemployment for 8 months. She couldn't find anything in her field, and when she tried to switch, she wasn't qualified for any other.

I was accepted into a masters program for industrial psychology, which I start tomm. She has spent the last 2 months researching, and decided to pursue speech pathology. In order to be considered into the program however, she needs to complete 8 prerequisite classes , 3 of which she starts tomm. So we're both in school this semester.

After we examined our expense, we realized last night that we're in a deficit. Even after I've elminated all uneccessary expenses, accounted for reduced grocery spending, and possibly moving, we're still in a deficit.

I'm not counting my side income and her unemply benefits because I want to still have savings.

At this point I'm thinking of trying to find another primary job, but the unemployment rate isn't...

So I'm not quite sure what to do...

[Broken Arrow]

Sorry to hear that. On the upside, it's temporary, and it's a short-term loss to achieve a greater long term gain. It's not a bad idea, even if it does seem daunting.

[disneysteve]

we're in a deficit.

I'm not counting my side income and her unemply benefits because I want to still have savings.

So I'm not quite sure what to do...

You can't not count all of your income when planning out your budget (unless you have enough to cover everything without that income). You either need to budget based on your actual total income or adjust your spending downward to match the portion of your income you actually want to spend.

If you truly feel you have cut everything you can, then you need to add in the other income and reduce your savings rate.

[arthurb999]

Are you guys planning on working the days and going to night shcool?

[mommyof4]

Just as a side note, congratulations to your wife for choosing speech language pathology as a career! I made that career switch several years ago and it was one of the best decisions I ever made! The job opportunities are wonderful, the market is wide open, even in this economy, and she will have a job before she graduates. Employers are so desperate for SLPs, they are offering sign on bonuses, moving expenses, etc.

[Scanner]

A part-time job, no matter what it is, will have to be split among the two of you.

The days of pursueing college at the expense of working seem to be coming to a close. The only career I can think where that hasn't happened yet is in medicine and maybe law but I think that will change eventually - where you just borrow your way thru and then all of the sudden pay it down as a bigwig MD or ESQ.

Just don't see that in the stars.

Luckily, when you get a part-time job as a student, anything goes - it doesn't have to be "in your field." You don't have to limit yourself and nor should you. Delivering pizzas, gas attendent, whatever you want. . .preferably something where you can study and work (when I was in school, I used to be a nighttime attendant for a clubhouse for an apartment complex).

[Professorshak]

I'll be going to school 3 days a week right after work. The only part time work will be the Barber shop, which I've thought seriously about working Sat. in addition to Sun. but I would rather spend that day to study.

My wife on the otherhand can't find a part time job because, everything she has applied for is either taken, or she is overqualified for, even as a secretary Her classes are in the daytime and it will take her these 2 semsters to acquire the pre-requisites, and do extrememly well, to even be CONSIDERED for the program.

I've made several cuts in our expenses, eating leftovers, and looking for cheaper apartments. My grandmother, who has a giant house and only uses the first floor, has offered us the second floor to use until we get ourselves back on track. While we would save LOTS of $$$, I don't know how that will affect our relationship.

We LOVE our apartment and can't believe we have come to this point. My other concern is the lease agreement which I will make another post for.

My wifes program may take her 4+ years, which means she will most likely be unemployed throughout the program. My program is from 2-3yrs. We're not getting Financial Aid and our biggest concern right now is Health Care which is VERY costly under my organization. I've thought about finding another job but everything about my current one makes going to school extremely convenient for me.

[PetMom]

You have come to the realization that the both of you going to college and being in your expensive apartment and not going into debt and keeping up savings and paying for health insurance and planning on starting a family is basically not doable.

You will need to make some sacrifices now for getting good job skills in place and good careers with money making potential.

The idea to move in with your grandmother seems the most logical one and if it was a tight rope walk in the relationship department you could always move out as I am sure you would not have a contract to sign.

Your wife would do well to have different resumes - my sister has learned this one - she knocks off a lot of the schooling and overqualifications for job searching depending on the job she is seeking.

I still think the moving in with your grandmother is the best solution - she could use some help around the house and have security and you could pursue your educational goals - not be up worrying about getting your budget set down to the penny.

There would be time to study and get the grades to be/stay in the program.

Don't forget relationships take work - put in the effort to get along - and make sure your wife will also.

As one poster stated this would be temporary until you graduate.