Hi, my name is Jason and I’m a personal finance junkie. I also run Live Real, Now.
In October, 2007, when we found out that my wife was pregnant for the 3rd time, I panicked. Every month, we tapped into our overdraft protection account, at least once, at 21% interest. Our credit cards kept growing, and we couldn’t make ends meet. Now, we were going to have another kid in diapers, another kid in daycare, another kid? How did that happen so fast?
Kid #2 took years to show up. We were counting on a bit more time to save some money and maybe potty-train kid #2. Sometimes, life comes up like a kick in the gut. Seriously, I love all of my kids, but this is one time that it would have been nice for kid #3 to defy us like her sister did and does.
It was time for a reality check.
Over the next 18 months, I dropped some vices, cut some expenses, didn’t bother changing any important habits, and got further in debt. By March of 2009, I was researching bankruptcy. I didn’t see another way out. Our expenses–including the invisible ones that cause the stuff in a shopping cart to multiply like rabbits on X–were close to 150% of our income. Really. For every dollar we earned, we spent a buck and a half. I’d shovel anything extra we had into our overdraft protection account. I had no idea where our money was going, but it was going there faster than I could make more.
The worst part is that we weren’t doing badly. We were technically broke, but we made every payment, almost always on time. Sometimes, I paid the electric bill a month late, but that fee was only $3 and it let me make my other payments. I don’t think I ever made just a minimum payment on a credit card, but sometimes, I only beat it by $10. We were drowning in debt, but we had great credit. At 25, I had a credit rating in the upper 700s. Who thinks they have a problem if the collectors aren’t calling?
Bankruptcy. Reneging on all of the financial promises I had made as an adult. I am a firm believer that something like that should be shameful, and I was ashamed to be thinking about it. One day, when I was finishing up my list of bankruptcy attorneys to call, I ran across Dave Ramsey’s site. I’d love to say that it was the light at the end of the tunnel, but I’d be lying. It was just something to file away in some dusty corner of my brain. It was interesting but irrelevant.
That night, when I was picking up my kids from daycare(3 kids, 2 full-time!), I saw The Total Money Makeover on my daycare provider’s shelf. I had no idea how long it had been sitting there, but I’d never noticed it before that night. I borrowed the book and read it twice, before ordering my own copy. When I was done, and had digested at least the first few baby steps, I sat down with my wife to take a hard look at our finances. I told her we had to implement Ramsey’s plan.
She was skeptical. After all, we were doing fine. No bill collectors and a high credit rating meant there was no problem.
I told her that was fine. We didn’t have to make the changes necessary to get our money in order. Whatever she wanted to do was fine with me.
Then I handed her the attorney list and told her what it was. It was our only alternative.
About Live Real, Now
I’ve got obsessive tendencies. Nobody who knows me will ever argue with that. When I get started on something, I devote total energy to it. Before I became a paid code-monkey, I could happily make a day disappear designing my old Neverwinter Nights server. When I get wrapped up in a good book, I’ve been known to clear 1000 pages a day.
Unfortunately for my friends and family, in early 2009 that obsessive focus hit my finances. It became all I talked about and most of what I read about. Conversations about restaurants became conversations on cooking cheaper at home. Movies discussions turned into Netflix vs The Theater. Vacation talk turned into talk about how my kids would just grow up disappointed but responsible. I was a bit obnoxious about it. Ask my wife.
In September of that year, I told my wife I wanted to launch a blog about personal finance. I was so focused on it; I spent so much time planning it and talking about it. It made sense to me. I’d get to share my thoughts and I could shut up about it at home. I’d maybe even make a few bucks in the process. I spent the next two months building, designing, and writing. I launched on December 1st, 2009 with a full month’s worth of posts on the hook. By the end of the month, I was down to having just a week of post in reserve, so I cut down to posting 3 times per week. Posting every day wasn’t working for me. I haven’t missed a scheduled post yet, though a few have been written the morning they went live.
Yakezie & Me
Over the next few months, I watched the Yakezie go live and I saw a ton of my favorite blogs join up. I held off. I’ve never been much of a joiner. I’m a bit introverted and a bit independent, so signing on to anything right away isn’t my style. I figured I’d sit back and watch to see how it went. A few of the blogs I was reading were at close to the same point in their life-cycles, so a comparison would be kind of neat. I’d see how they did with the Yakezie and compare it to how I did without it.
Science sucks. Especially when you compare it to the Yakezie. By May, I’d convinced myself I made a mistake in not joining up earlier, but I still put off joining for a while. Procrastination is easy. I finally joined on July 16, 2010, 12 days after the first challenge closed and about 2 weeks before the Beta Chapter was created. Talk about bad timing. My procrastination made me one of the very few who had a longer-than-six-month challenge.
That’s life. I’m a Yakezie Member now, and that’s what matters.
I guess what I’m trying to say is…Hi!
Welcome Jason! Glad you stuck it out for the 7 month duration. Time goes by fast, and I’m sure it’s helped you persevere as well.
You are welcome to delve deep into the private forums and get an idea of some of our plans. I hope you will be with us for a long time, as the Yakezie Network plans to be here forever!
Cheers, Sam
Thanks! I’m not going anywhere. The public forums alone give enough value to make it all worthwhile.
Hey Jason, don’t feel too horrible about bad timing. I forgot to announce the Yakezie challenge on the blog until well after the Alexa ranking got below 200,000.
Jason, I can identify…I’m extremely obsessive as well. But I view that as a good thing, you get sh%$t done! Very sad to hear about your family’s struggles with money, but good to see you overcoming them!
Our struggles with money were all our own fault. I’m just happy we decided to fix it ourselves instead of filing bankruptcy.
Jason, This was a riveting post. I read every word from beginnning to end! You were one of the first blogs I bookmarked when I started reading PF blogs. Your persistence and obsession on personal finance is a healthy way to get yourself on a profitable financial track!!!! I loved the examples about how each discussion topic turned into a PF commentary. Best of luck and welcome to Yakezie! I know you will profit as much as I have!
Thanks!
Welcome Jason! Great story about how you saw the warning signs and realized you were in trouble with debt. Glad to see you got things turned around in time.
Wow jason – that’s quite the story. You’ve made a great financial turn around. Also, welcome to the yakzeie – it’s great to have you here!
I really enjoyed your story. We too had a large gap between our first and second child, then the third came 17.5 months after the second! I completely related to what you experienced. How does your wife feel about the journey now?
She’s still frustrated, a bit, but she’s also excited about our progress. For being as skeptical as she was, it’s fun watching her brag about what we’ve accomplished.
Always fun to read other Dave Ramsey fans’ stories. There’s always a common thread but it never gets boring to me. Naturally I’m biased, being one of his trained counselors, but there’s so much power in the process he teaches to help folks like you totally change their lives around. Good stuff!
Talk about life happening all at once! Thanks for sharing your story. It’s awesome to hear how passionate you are about writing – very inspiring!
Hi Jason!
Having 3 kids is tough on the wallet. Hopefully, you are doing better in your personal finance and on your way to pay off the debts. :)
So far, we’ve got almost $35,000 less debt than when we started.
An interesting story. I’m always impressed at the passion that Dave Ramsey seems to inspire. I’m glad that you felt encouraged to pull your life together. Plus, it’s always nice to meet another introvert!
Some days, I really feel like a DR fanboy. :)
Ramsey is pretty great. Have you ever heard of Gail Vaz-Oxlade? Even though most of her stuff is tailored to Canadians, she has lots of tips for everyone from students to parents. She’s got a great book to called Debt Free Forever that was a great inspiration on myself. Hope that helps!
Great story Jason! I use my site as a release as well. My wife didn’t mind, because then I actually started talking about our finances a little less. She’s happy, and I’m happy – and it’s fun to communicate with all of my readers! :)
You know the old saying…”Happy wife, happy life.” :)
Hello, Jason. I wish you well in your endeavors to become debt free. It’s definitely reachable with hard work and sacrifices, as you may very well know.
Romeo
Jason, I’m sure that the family loooooooooooooooooooooves that you now have another outlet so that you’re not talking to them about it so often. :) It’s crazy how hyper-focused you get when you really are ready to to make a serious change. Thanks for always dropping by my blog and commenting.
[…] This post was mentioned on Twitter by Elle, Financial Samurai. Financial Samurai said: #Yakezie Member Post: Live Real, Now (@LiveRealNow) | Yakezie.com http://t.co/oDH8AII via @Yakezie […]
Jason, I am glad you stuck with and joined! Your story is one that is familiar to a lot of the PF Bloggers out there. Out of curiosity do you have a post or two about the strides you have made over the past 2 years?
Sure do. :)
http://liverealnow.net/mistakes-made/
http://liverealnow.net/one-year-later/
http://liverealnow.net/what-happens-when-you-save/
Jason, glad you’re here and a part of Yakezie. I enjoyed learning more about your story, and how you got here. I know what you mean about how sometimes it’s easy to get totally wrapped up in something; I’ve been there too! It seems as if getting your finances recalibrated and back on track is worth obsessing over for a while….of course that’s coming from a personal finance blogger :)
Thanks for sharing your story. Do you find there are a fair amount of economies of scale with more than one child, or in your experience did your costs go up about the same amount with your 2nd and 3rd child compared to your first?
Between the first two kids, no, but there is a 7 year difference and different genders. We didn’t have a crib, a highchair, or much of anything else for kid #2. For kids #3, we had a 20 month gap and matching genders, so we still had all of the gear and clothes to hand down. Daycare also cut us a break on 3 kids.
Ah I see, yes very good points. That’s nice you get a daycare discount. That must come in pretty handy with the price of daycare these days. I don’t know how single parents manage daycare costs on one income.
I enjoyed reading your story. Dave Ramsey was the inspiration for me to get my financial life under control as well.. Welcome to official membership.
What an interesting story! I’m glad you made the decision to cut debt. How long will it take you to get out of debt? Are you able to save your credit rating along the way? Thanks for sharing
According to my spreadsheet, I’m 2.5 years away from being debt free, but I should still be able to trim 6 months off of that. Our credit ratings are going up. I’m guessing that, when we’re done, we’ll be over 800.
I enjoyed reading your story. We had the large gap between our 3rd and 4th child – it was really like starting all over again! Congratulations and good luck towards your debt free goal. Welcome to the Yakezie!
I have a friend who’s never had a gap of more than 2 years across 8 kids. He just potty-trained #8, after 17 years of diapers.
Don’t feel bad. I joined in July 2. 6 months seemed like an eternity to wait but it got here in no time. Going from 2 kids to 3 would be downright scary for me. It seemed like going from 0 to 1 wasn’t bad, but going from 1 to 2, daycare costs suddenly jumped to the top of my expenses list.
I have enjoyed your blog and thanks for sharing your story.
That was incredibly interesting. You were able to take your passion and turn it into an entrepreneurial venture (even though it annoyed your wife)!
I’m glad that you were able to find an outlet for your personal finance obsession! Did you tell all of your friends that you annoyed about your site?
Yep, and bugged them to check it out. :)
Welcome Jason! I loved reading your story. It is encouraging to hear that you came back from *almost* going into bankruptcy. Good for you!
Jason, great to hear your story. How did you manage to get your wife on the same page? Just with the threat of bankruptcy?
Congrats on your success and I look forward to getting to know you better here at Yakezie!
We’ve never been completely on the same page, but we’re reading from the same book. :) We disagree on a lot of the little things, but totally agree that our situation sucked.
Please don’t take this the wrong way. You’re story is a very entertaining one to read. Not because of the content, but in the way that you write it and deliver it. You’ve got a talent for telling stories! That’s good!
I’m once again amazed by the similarities that are exhibited between some of our fellow yakezies stories. Mine is not too dissimilar from yours as are several others I’ve read. It’s so nice to have people who I can relate to be a part of something as wonderful as the yakezie!
How could I take that the wrong way? Thank you!
Well, if you took it as me saying that I took enjoyment out of your situation rather than the delivery of the story…
Very compelling read … always nice to meat another code monkey that is interested in saving money and writing on the internet. I’ll try to stop by your site more often and comment. Glad to hear that you are kicking your debt out the door so fast!
a very interesting perspective. different strokes for different folks :) all the best to you Jason. wishing you all the best