DH’s company is back in business

But it will be a while before he gets paid…

As regular readers know, the company for which DH telecommutes has been having cash flow problems and they had to shut down for a couple of months.  They were supposed to get back to work in July, but the contract that was supposed to put them back in business for the next 2 years (give or take) kept not getting signed.  Finally it did get signed!

DH and I were able to save up enough to not worry about his lost income and DH’s direct boss is in a similar situation.  It’s been a bit tougher for a couple of the other employees, but it seems like they’ve stuck around.  Anybody who was going to leave left when the company started showing signs of trouble.

Sadly, even though the grant has been signed, it’s going to take 20 days from the first pay request for the grant to start paying out, so that will mean a month and a half without pay even after people have started back to work.  Again, not a huge problem for us since we saved for this, but I feel bad for a few of DH’s colleagues.

Also, annoyingly, they’re keeping the 10% paycuts for now (and any retirement matching) which is irritating, but I don’t think we’ll complain about it until things settle down a bit and the boss is able to pay back some of the debt he’s taken on keeping the company’s health insurance paid.

So what does that mean for us financially?  Well, we’ll be back to being upper-middle class again, but I’m not sure that I’ll feel quite so much like throwing money around like water.  So we probably won’t redo the kitchen and we’ll probably stick with a Prius or something when my car finally bites the dust.  And I won’t be signing up for silly overpriced subscription services (#notallsubscriptionservices) even if they look fun and so on.  I think some of the worry about our income will be sticking.  Though it took a while to start feeling free with money the first time around too.  We will still continue to give money to charity and politics at higher levels.

I think I will probably start putting more money away in stocks so it’s out of sight, even though I don’t know when the market is going to crash.  Or I might keep it in cash in case we need to flee to Canada.  I don’t know.  It really sucks to live in interesting times.  But it’s nice worrying about what to do with extra money.  And we’ll have quite a bit of time to decide– I don’t get paid until October so we’re still spending down our savings and if and when DH’s paycheck starts up it will only be covering expenses.

I definitely see an allure of being truly financially free– instead of thinking, well DH can just not work for 3 years and we won’t be putting a crimp in our lifestyle, how nice would it be to say he never has to find a job unless he wants to?  Don’t get me wrong, he likes work, but it would also be nice to have more options.  Or if we could afford to move to Paradise without anything lined up if we got too fed up with our state government.  But again, even at an upper-middle-class salary, it would take a long time to build up that kind of savings.  So are they worth sacrificing for now?  Probably not.  But I could do a better job of feeling artificial scarcity so our lifestyle doesn’t inflate too much.  Or maybe I should just embrace the benefits that having so much income brings.

In any case, this is something I can worry about after school starts.  Until then, I’ll be spending down our savings account on things like daycare (technically we just gave them the last check), insurance, and groceries.  Mark in your calendars that our money posts will probably start getting obnoxious again sometime in November.  ;)

16 Responses to “DH’s company is back in business”

  1. monsterzero Says:

    Congrats to DH!

  2. Leigh Says:

    I’m glad his company is back in business even though it’ll take a while to get paid! Thanks for sharing these musings. I’ve been having troubles putting pen to mine.

    • nicoleandmaggie Says:

      What parts are you having trouble with?

      • Leigh Says:

        There have just been so many moving parts! We wrote our household budget for the year with many assumptions, the vast majority of which have been broken, so we’re trying to figure out how to course correct. We are talking through this and figuring out how we should adjust things, but he isn’t the quickest to react to change so it’ll probably take us a few months to sort something out. As we’ve been talking about this, my husband commented that when we wrote the postnuptial agreement, our focus was on my higher assets and we completely ignored his now very substantial income. (If we lived off of his income alone, we would still save over 2/3 of the net total income without changing our lifestyle, or about 40% before his bonuses. He also doesn’t fully realize how large his income is because he only sees half of it monthly and the rest in stock.) The catch is that (I’m not fully sure about his feelings on this) my principle of not wanting to be financially supported by him until I start working again is still there. As you said I might have done earlier, I’ve possibly oversaved in retirement accounts, leaving my net worth relatively illiquid. I’ve been only talking to my husband about it because most immediate responses are “Why don’t you just live off your husband’s income and stop worrying about all of this?” which if that’s the person’s immediate response is pretty clear that they have different principles on this than we do and the intricacies of all of this are far more complicated than such a simple response like that.

        My husband got promoted, which was a promotion I had spent much of the last five years hoping to find a path to find, so that has its own emotions attached to it. With that, his gross income is about $35k more than we had estimated at the beginning of the year.

        We estimated that I would go back to work in October/November, making about what I was making before, which meant we were comfortable leaving more lifestyle inflation in the household budget than we would have otherwise done. (My plan now is to write a thesis and figure out what’s next.) The condo is now worth about $100k more than what we estimated in our postnuptial agreement and my lawyer didn’t agree with what we were doing, so if something went wrong, the way our agreement was written would rip me out of a huge chunk of equity in the first few years. (Which, avoiding that, was honestly the entire point of doing the postnuptial agreement for me.)

      • nicoleandmaggie Says:

        Wow, the best-laid plans… That’s definitely a lot to think about!

        Congratulations to your husband on the promotion, but also gender discrimination sucks.

      • Leigh Says:

        That was about my response! I feel terrible that I can’t be more excited for him, but when I actually wanted the promotion and he didn’t because it required him to talk to more people? Sigh. A very large chunk of our male friends from college now have this promotion, while we have female friends who still don’t have the previous one…

      • nicoleandmaggie Says:

        I hope when he’s in a position to do so that he helps to pull some of those women up.

  3. Omdg Says:

    Yay for being able to do obnoxious money posts! Looking forward to them!

  4. Revanche @ A Gai Shan Life Says:

    Yay I’m so glad they stayed in business.

    “how nice would it be to say he never has to find a job unless he wants to?”

    This is part of my ultimate goal – that we don’t have to spend our lives working unless it’s something we care about and is meaningful, without sacrificing our health. And if there was any chance it would get y’all out here, that’d be pretty cool too.

  5. Obnoxious post: things that being rich (and high income) makes easier | Grumpy Rumblings (of the formerly untenured) Says:

    […] we’ve climbed up and fallen down the income distribution we’ve talked a lot about how things have changed.  Mostly they’ve been big things like not having to […]

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