Living above means until March 1st

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
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Keepcalm
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Living above means until March 1st

Post by Keepcalm » Wed Jul 11, 2018 3:26 pm

Due to circumstances my monthly outflow will now be about $300-$400 over my inflow until March.

Has anyone ever been in this situation? Although I can survive the event it is a hard one mentally. Looking for some mental insight from those who may of had to take a negative cashflow short term like this.

Thanks.

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Phineas J. Whoopee
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Re: Living above means until March 1st

Post by Phineas J. Whoopee » Wed Jul 11, 2018 3:30 pm

One could argue I live above my means every day except payday. I think for so short a period of time, as long as you have the resources to cover it it's a nonissue.
PJW

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Pajamas
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Re: Living above means until March 1st

Post by Pajamas » Wed Jul 11, 2018 3:33 pm

Depends on the reason for it and what your total spending is. The context is important.

$300 to $400 isn't much out of $30k monthly but it is out of $1.5k. Paying to finish school or for another temporary but reasonable expense is fine but spending it on beer might not be.

In general, long-term thinking is more beneficial than short-term thinking in financial matters.

delamer
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Re: Living above means until March 1st

Post by delamer » Wed Jul 11, 2018 3:35 pm

Phineas J. Whoopee wrote:
Wed Jul 11, 2018 3:30 pm
One could argue I live above my means every day except payday. I think for so short a period of time, as long as you have the resources to cover it it's a nonissue.
PJW
Assuming you’ve done everything you can to reduce your expenses during the shortfall period, just be glad that you have the savings to cover the negative cashflow.

JoeRetire
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Re: Living above means until March 1st

Post by JoeRetire » Wed Jul 11, 2018 3:42 pm

Keepcalm wrote:
Wed Jul 11, 2018 3:26 pm
Looking for some mental insight from those who may of had to take a negative cashflow short term like this
Take comfort in the fact that you know it is a short term event, and know the end date.
Imagine if you were one of the many that must do this regularly, with no end in sight.

Daryl
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Location: Malvern, PA (I like to sleep near my money!)

Re: Living above means until March 1st

Post by Daryl » Wed Jul 11, 2018 3:42 pm

As someone who "front-loads" my 401k contributions, I'm typically cash-flow negative for the first part of each year (until I hit the IRS limit)

02nz
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Re: Living above means until March 1st

Post by 02nz » Wed Jul 11, 2018 3:54 pm

I was in a situation like this when I temporarily owned two properties - living in one and was in the process of selling the other. My emergency funds were less than they should have been (lesson learned), so I ended up using a credit card check offer at a zero rate (though there was still a 2% or so fee so it wasn't free).

Do what it takes to manage the situation now, but resolve to avoid a repeat by building up your emergency fund.

Socal77
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Re: Living above means until March 1st

Post by Socal77 » Wed Jul 11, 2018 4:00 pm

Make a list of all the tailwinds you have pushing you forward. Chances are they are much more powerful than this tiny headwind that faces you now.

bloom2708
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Location: Fargo, ND

Re: Living above means until March 1st

Post by bloom2708 » Wed Jul 11, 2018 4:04 pm

What can you sell? What can you cut?

If you have Cash/Emergency savings to cover your shortfall over the months, then you can make it.

If not, anything not bolted down can be sold. Even the dog is quivering (Dave Ramsey quote). :wink:
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

Grt2bOutdoors
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Location: New York

Re: Living above means until March 1st

Post by Grt2bOutdoors » Wed Jul 11, 2018 4:20 pm

That is what your emergency fund is for. Do you have one?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Pajamas
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Re: Living above means until March 1st

Post by Pajamas » Wed Jul 11, 2018 4:55 pm

Grt2bOutdoors wrote:
Wed Jul 11, 2018 4:20 pm
That is what your emergency fund is for. Do you have one?
Might not be an emergency. Might be beer. :beer

runner3081
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Re: Living above means until March 1st

Post by runner3081 » Wed Jul 11, 2018 5:48 pm

Keepcalm wrote:
Wed Jul 11, 2018 3:26 pm
Has anyone ever been in this situation?
Thanks.
Over 50% of America.

Katietsu
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Re: Living above means until March 1st

Post by Katietsu » Wed Jul 11, 2018 6:28 pm

Two cliches popped into my head when I read the post:
-People first, then money, then things.
-The Serenity prayer..Grant me the serenity to accept the things I cannot change,
Courage to change the things I can,
And wisdom to know the difference.

Assess your situation. If you are putting things in order according to your ideals and if you have made all the changes to address the situation as is reasonable, then take comfort in knowing that you have planned for such emergencies.

41Fin
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Re: Living above means until March 1st

Post by 41Fin » Wed Jul 11, 2018 10:10 pm

If the situation is truly short term then take solace in that. some people don’t know where their next meal will come from. Those are the ones with hardship.

denovo
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Re: Living above means until March 1st

Post by denovo » Wed Jul 11, 2018 11:00 pm

Keepcalm wrote:
Wed Jul 11, 2018 3:26 pm
Due to circumstances my monthly outflow will now be about $300-$400 over my inflow until March.

Has anyone ever been in this situation? Although I can survive the event it is a hard one mentally. Looking for some mental insight from those who may of had to take a negative cashflow short term like this.

Thanks.
I am sure if you post your budget Bogleheads can find 300-400 to cut if it bothers you.
"Don't trust everything you read on the Internet"- Abraham Lincoln

inbox788
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Joined: Thu Mar 15, 2012 5:24 pm

Re: Living above means until March 1st

Post by inbox788 » Thu Jul 12, 2018 1:57 am

What does it look like March 1 thru Dec 31?
Q-Q and Y-Y?
It doesn't sound like a huge deficit and it's a fixed period, so you be able to survive the situation without much scarring.

Ron
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Joined: Fri Feb 23, 2007 7:46 pm

Re: Living above means until March 1st

Post by Ron » Thu Jul 12, 2018 3:05 am

I retired at age 59. My expenses exceeded my income for just over 11 years, until this year when I began my age 70 SS.

That's what savings are for...

- Ron

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