Creating Your Own Financial Misery

So, I’m reading this article in the Bulletin based off the original NY Times article about unemployment trauma and I cannot believe how the family portrayed in the article creates their own misery and “trauma”.

“Mrs. Newby and her husband were forced to walk away from their home in suburban Detroit and are now living here [South Carolina] in a rented house with their three children.”

• Mrs. Newby makes a six-figure salary.
• The mortgage for the house they had to leave was $1,300, but the house they’re now renting is $1,600. WTF! They’re spending more now because they “fell in love with the house”.
• They’re worried about getting a new car in June when the lease on their current car expires. Who hasn’t learned that leasing cars is stupid?

So, you’ve got a family that was living beyond their means and apparently is continuing that pattern. Instead of renting a house for $1,600/month, get a 3-bedroom apartment for $900/month. The smaller space should encourage the selling/purging of the unnecessary crap we chain ourselves to. With the extra $700 month, save for a used car. Then, start paying off the debt.