how to know if i am in "crisis mode"?

**scipper83** · 03-06-2011, 08:23 PM

after doing our budget we have just enough to cover all the basic expenses except our emergency fund, car repair/tires, home repairs, Christmas fund,and license and tags. i am a firefighter and could potentially have more income in the next few months but we are planning the budget with what we KNOW we will have for the month. i know the EF MUST be funded or we will get nowhere but while there is no $$ for these items am i in crisis mode? i am new to this so could use the help. thanks

**HoustonDave** · 03-08-2011, 10:48 PM

I am sure Greebo will have more wisdom than I, but I would say you are in crisis mode. You are only one unforeseen event away from deeper in debt.

I would think that you need to do one or more of the following:

Sell anything you can do without and put the proceeds toward your emergency fund. See his expanded BS 0.6 "Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months"

Decrease monthly expenses by reducing where you can (utility use, grocery bills, gasoline) until you can free up money for your emergency fund. See expanded BS 0.7 Cut lifestyle (Cut CATV, Cellphone, Regular phone "extra's", Internet, Eating out, etc) and/or take second job if $1000 EF will take more than 30-90 days. (depending on income)

I'm not saying starve yourself, or freeze, but look for every angle you can.

Then, when that extra work comes along, you will be in a better position to take advantage of it.

**frugalwarrior2** · 03-08-2011, 11:13 PM

If you lost the ability to work tomorrow how would you fair?
How long before savings are gone?
Do you owe more than you own?
Are you late on anything?
Are you on track for retiring on schedule?
How big of an emergency would it take to sink you?
Do you know exactly what you owe?
Do you have disability?enough life ins? Can you live on that? can your family?
Pretty sure you are just A small crisis away.
You ask you these questions,don't rationalize anything,and see if your on track.

**Lindsey** · 03-09-2011, 04:38 AM

Skip the Christmas fund and give coupons of yourself instead.

**Greebo** · 03-09-2011, 05:43 AM

Originally Posted by scipper83

after doing our budget we have just enough to cover all the basic expenses except our emergency fund, car repair/tires, home repairs, Christmas fund,and license and tags. i am a firefighter and could potentially have more income in the next few months but we are planning the budget with what we KNOW we will have for the month. i know the EF MUST be funded or we will get nowhere but while there is no $$ for these items am i in crisis mode? i am new to this so could use the help. thanks

Would you be willing to post your budget here?

We have people who are expert at finding wiggle room.

**krbshappy71** · 03-09-2011, 08:10 AM

I'm guessing everyone will have their general opinion on what's crisis mode. What will you do differently if you are in crisis mode?

I'm still hanging on to my internet and cell phone so whether I'm technically in crisis mode or not I'm too stubborn to admit it and I just a'goin with keeping current and paying what I can to debt.

Posting your budget, as Greebo says, can do wonders!! It really helped me and I still visit my old thread to see what other people suggestion that I may not have implemented yet.

**scipper83** · 03-09-2011, 09:34 AM

heres the budget:

total income-2291.22

giving-295
saving and pension(cant put on hold)-40.89
housing-748.65
utilities-282.50
food-280
transportation-222.50
medical/health-273.68
personal-148
NO DEBT!!! except house

if you want to know anything more in depth let me know. we have already cut our utilities to minimum and i know know house total seems high but thats with taxes and insurance. really when i find a part time job it will change everything but until then this is what i got. thanks for your help

**Ashley01** · 03-09-2011, 09:44 AM

By giving do you mean to a church? Or charity? This is just my opinion but if you can't afford to meet all your personal bills/goals you can not afford to give. Maybe you could give another way? Donating things you no longer need/use or time?

**Greebo** · 03-09-2011, 09:44 AM

Your housing is at 32-33% of take home (that IS take home, right?) - that's not terrible but it's not great - but I don't know how you'ld get that any lower either.

Utilities --- I'd like to see that broken out. Transportation - if you have no debt, what's included in that - gas and insurance?

How many ppl in the house?

What part of the country do you live in?

And what's in "personal"?

**Greebo** · 03-09-2011, 09:45 AM

Originally Posted by Ashley01

By giving do you mean to a church? Or charity? This is just my opinion but if you can't afford to meet all your personal bills/goals you can not afford to give. Maybe you could give another way? Donating things you no longer need/use or time?

His expenses exactly equal his income - so he's not shorting anyone to give to someone else.

**khaski** · 03-09-2011, 10:12 AM

Originally Posted by Greebo

His expenses exactly equal his income - so he's not shorting anyone to give to someone else.

I would argue he IS shorting himself by giving so much right now, when he cannot afford to save $ or pay down something. Think that category should shrink substantially for the now. 'Pay yourself first'!

**Ashley01** · 03-09-2011, 10:21 AM

Originally Posted by Greebo

His expenses exactly equal his income - so he's not shorting anyone to give to someone else.

Op says he has enough to cover everything expect savings, car maintaince Christmas etc. So when the time comes that the car breaks down where will he take that money from? It's just my personal opinion that he should have those things taken care of before he gives. But again just my opinion

**Greebo** · 03-09-2011, 10:49 AM

Originally Posted by khaski

I would argue he IS shorting himself by giving so much right now, when he cannot afford to save $ or pay down something. Think that category should shrink substantially for the now. 'Pay yourself first'!

Well, he's shorting his future, but when I said "not shorting anyone" I meant shorting creditors . The FIRST person one should short is one's self.

Originally Posted by Ashley01

Op says he has enough to cover everything expect savings, car maintaince Christmas etc. So when the time comes that the car breaks down where will he take that money from? It's just my personal opinion that he should have those things taken care of before he gives. But again just my opinion

Maintenance maybe. Christmas? No. Christmas is nice but is not an entitlement. Christmas can be done very very cheaply.

**shoiji** · 03-09-2011, 10:56 AM

How many people are you feeding on $280 a month? Does this also include HBA?

**Lindsey** · 03-09-2011, 02:50 PM

I know you'll get a lot of slack for giving. I just want to say that I think it's great! One of the first things people cut is giving and it could hurt someone else who that money might help with they make less than you. Keep up the good work. You will be rewarded for it later.

I'm also curious about how many people you feed, what's in transportation, and to see the utilities broken down.