Broke is a relative term. Us, broke? How can we be broke with over $18,000 in the bank and a net worth of almost $400,000?
Because despite that net worth we’ve still got about $620,000 in debt, including house; two kids to get through college right now, not later; and only a bit over a decade before retirement. The only way we’d see any of that net worth today is if we gave up our house and our retirement accounts. So I’m living like I’m broke, which brings me to how I got on this journey.
A year of no shopping! No more clothes, shoes, bags, or jewelry. That led me to realize that our troubles were much worse than the occasional shopping spree. I was spending upwards of $2400 a month on groceries. So no personal fashion shopping has been the easy part. The serious part has been living on a budget, paying off credit card debt, and setting aside money to cash flow college.
But now as spring approaches my closet is looking kind of sad. Everything is black. The t-shirts are kind of ratty. I’ve got white blouses I’ll never wear because I never wear white blouses. My jeans are sad. My little Eileen Fisher pants are losing their elastic — for the third time. I’ve replaced the insoles on one pair of flats two times already. Whine.
I need to stop complaining. I’ve got over $18,000 in the bank and a net worth of nearly $400,000.