{ Gearing Up for Big Change }

As mentioned before, change is on the distant horizon in this household. We will be losing 40-50% of our guaranteed income by this time next year. Perhaps we will be able to replace it but that isn't the focus. The focus is on preparing for the inevitability of it and shifting our life so as not to not miss it. First, let me say how fortunate we are to have time and forewarning. So many people have lost their jobs unexpectedly and without savings. We have the luxury of knowing and time to plan.
We are currently spending about 85% of what we bring in. That includes long term retirement savings, maxing out IRA's, paying off short term debt before this shift happens and squirreling away short term savings. If we assume that the debt is gone and the short term savings is adequate (and by that I mean 12 months of essential payments) by this time next year the 40% loss in income will actually only require us to cut our monthly expenses by about 10%. Our intention is to not focus on cutting stuff out as much as it will be about redefining what is fun. Current forms of entertainment are eating out, hosting dinner parties and "junking". We travel 2-4 times a year to see family and take about 4 long weekends away. If we eliminate eating out to special occasions only, expand the garden capacity and have more potlucks I think that we will save about 5-7% a month. If we fly to see family only once a year and limit our weekend travel to just day trips, well, that's more than the other 3-5% right there.
But how not to miss it? Well, to be honest, we have the life we do right now because of the money that we make. In order to have the extra income, the other half of this household spends 12-13 hours a day either working or commuting. (This is an island after all, you have to get to "America" somehow!) While we can't eliminate commuting costs (the job is still "on the other side", there's just 40-50% less of it) having someone else home by 3:00 every day is a big difference than having them home by 6:30. Suddenly, food production is, well, less of a production. Garden bounties don't have to be all or nothing taking up full weekends...they can spaced out for small daily harvests. (One of the reasons we downsized the garden this year.) Errands and housework can be more evenly distributed, leaving more time for my own work. There are hidden ways that money can be saved simply by being home more. We learned that years ago when I quit my job to go back to school. This change isn't about losing anything at all. It's about gaining back time and quality of life that we have forgotten.