How It Happens

People our age live paycheck to paycheck all the time. Want to go to Vegas for the weekend? Pass up drink night for a couple weeks, forgo the double lattes, and voila - $1500 for a quick vacation. Need to upgrade to a 42" plasma screen? Buy it now and just shuffle the power, cell phone, and insurance bills for a month or two or, of course, charge it. You can go out to dinner this week. Just take the money from the grocery budget. Replace all the DVDs with new Blu-Ray. No worries because there's some overtime on this paycheck.

That's usually what I've done. Savings is just a place to put my money until I need it in the next few weeks. I've lived pretty good, not worrying about if it'll come to a screeching halt. It doesn't really matter, because I know that next week will be another paycheck directly deposited in my bank. Regular as clockwork. Sure, I may have to double up on the Visa payment come the first of the month, but so what. I'll just cut back on going out for a week or two.

Gina and I were having a conversation just last month about all the people struck by the recent economic downturn. How could they go from house, two cars, and security to living in a shelter? Didn't they plan for it? When nothing changes, and life moves along at a regular pace, people expect that it will never change. Then they get called into the bosses office and told to pack their desk. After that, the bank calls and wants the mortgage payment. Or, you can experience what happened to me.

On March 17th, I got hurt on the job. While bending over picking up computers, my back started hurting. I sat on the floor to lean under a counter, and my left leg went to sleep, numb. I got up and walked around the building a couple of times, but it was still numb. Worried, I made an appointment with the chiropractor right away. They sent me for an MRI, and we got the results the next day - a herniated disc pressing against the nerve that runs down my leg. Next was an appointment with a neurosurgeon. He put me on oral steroids to reduce the swelling and hopefully reduce the pressure on the nerve. That would give the disc a chance to slide back into place. Also, an appointment with my regular doctor got me pain medication (which makes me nauseous). The steroids seemed to work a little, so the neurosurgeon said to give it two more weeks to see if it improves more. If not, back surgery. All this means no work until further notice.

It was an on the job injury, so Worker's Comp should take care of it. Worst case scenario, I have major medical through the girlfriend's work. Unfortunately, the Worker's Comp insurance company denied my claim last Friday. After being out of work, I get no pay for the last three weeks. I had been expecting that income to cover rent, food, and gas, but not now. Gina’s paycheck is obviously helping, but we're down to a little over a third of what we had coming in. We're appealing the denial of the claim, but as anyone who has filed a Worker’s Comp claim knows, that could take months or years to resolve.

How do things get dire so quick? With a significant cut in income, it doesn't take long. The interesting thing is that we don't live high on the hog. We don't go for trips to Vegas, we don't have a high-def DVD player, and we don't have a plasma screen TV. Before all this, as a New Year's Resolution to cut back, we canceled cable. We go to the library for books and DVDs. When we went to the movies, we would find one at the second run theaters. We play board games at the house instead of going out. I drop Gina off at work on my way so we save on gas. When we go out to eat, we'd often split an entrée and limit ourselves to one drink.

Now, I've been out of work for three weeks. Not a long time, true. But when forecasting that the last paycheck of the month will be rent, it's a problem. Long term plans go out the window and survival is paramount. In this case, survival means don't default on any loans and don't get kicked out of the apartment. Any planning is shortened to the next few days. Turning in bottles and cans. Collecting all the change in the house and turning it in for bills. Going through the bookshelf for books and comics that can be sold for cash. Looking at anything sitting on a shelf to see if it can be sold on Craigslist. Doing laundry at friends' houses. Reworking the menu every week, especially since food prices have risen in the last six months. Where previously our food budget was $400-$600 a month, it's now $600-$800.

I've contacted debtors for a temporary reprieve. The bank will let the car loan go for one month. The rental company will take a couple of payments for April rent. The student loan will take forbearance for a few months. Power and gas will get $20 this month. My 401k is not a lot, so I cashed that in. Will that screw me on taxes for '09? Don't care - we need the money now.

I want to make something clear. I'm not asking for anything. I'm merely informing my friends about my current situation. This is about compassion and understanding. You want to know how those people lost their homes? They didn't say anything to anyone. They were too embarrassed. Too prideful. Well, I'm done being embarrassed. I'm humbled before my own situation. I want you to know where I stand.

I've always been curious about the Christmas Giving Tree at the mall. Or the Oregon Food Bank, United Way, or other charities. How do they know who needs it? How do they get a list of names? For those of us in suburbia, it's easy. Look for the person holding a sign on the freeway off ramp. Or the guy pushing a grocery cart, digging through dumpsters for cans and bottles. Or drive through the more rundown areas of town and just look for the ratty house with a broken car in the driveway and dirty kids playing in the weeds in front. I've got news for you – the people who need it aren't always that cliché. They are probably in your neighborhood. Or next door.

I’m not suggesting that I’m going to be waiting in line for a bed at a shelter. Gina and I will make it out of this situation. As soon as my back is better, I’ll be going back to work. It may take us a few months to get back on our feet, but we will. Then, we are going to plan so it doesn't happen again. I am imploring – begging – everyone else to plan for the eventuality that you won't have any money coming in. Build up a savings that will let you survive for at least 6 months. Get insurance to cover loss of work for any reason. If missing one paycheck will set you back at all, get control of your budget. Contact a financial planner to help. It doesn’t matter if you make $10 an hour or $100. The day may come when it’s zero.

In the meantime, we’re being reminded that life is a daily negotiation. Nothing is a given. We’ve realized that it is not the things we have obtained over the years that make us happy, but the quality of our living. We still talk to each other to check how the other is doing, to reassure each other. Because, what we had before is still there – friends, laughter, and conversation. And best of all, each other.