New job, New state to payoff debt??

Good morning everyone!  Long time off and on user of Ynab.  This year decided to hit it hard and get out of debt!  So we have about 60K in debt, minus the house.  First off my current employer has a chance of being out of business in about 2-3 years.  So I decided to test the market.  Got a great job offer and I am pretty sure I am going to take it.  I figure with signing bonuses, my banked vacation, and the increase in pay, we can be debt free in about 3 months.  Just wondering what you guys think about this idea or if anyone has done it and regretted the decision.  I see no negatives to being debt free..lol!

Thanks for the help/advice!!

Art

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    • nolesrule
    • YNAB4 Evangelist
    • nolesrule
    • 1 yr ago
    • 3
    • Reported - view

    My advice would be to take the offer as it seems like it'll be an improvement for your situation, but don't count your chickens before they've hatched.

    Rule 1. Give Every Dollar a Job. That also means don't give jobs to dollars you don't have yet.

    Reply Like 3
  • Totally agree with rule 1, and I see what you are saying..that is often my demon and probably why I put the family in our current situation.   Thank you,

    Reply Like 2
    • Hi Burroboy11 !

      I know you mentioned the new job having an increase in pay, but 3 months seems like a short time to pay off $60k. If it's manageable, that's great! I just wanted to take a moment to point out that the important thing is not to create new debt due to paying off old debt. You don't want to shovel all of your income towards debt if it means needing to use the credit card to cover new bills.

      You want to have enough in savings that, should something happen, you don't have to go back into debt to deal with it. 

      Congratulations on your new position and good luck tackling things! :)

      Reply Like 1
  • You know what it feels like to be in debt, why don't you give debt freedom a try. If you don't like it, you can always go back into debt, it's not very hard.

    Reply Like 5
    • Jannelle
    • jannelle_ynabsupport
    • 1 yr ago
    • 1
    • Reported - view

    Hi Burroboy11 !

     

    It sounds like this new job will certainly put you and your family in a more stable position, congratulations on the offer! 🎉

    As for paying off the debt, you should do all you can to get out of it! Once you start the job, and you have a clear picture of pay/bonuses/etc, you (the whole family if you want, you're all on board here!) should take the "Create a Debt Paydown Plan" workshop! From there, create that plan and stick to it. 😉

    Reply Like 1
  • Thanks, Janelle, I took two classes yesterday.  I have come to the conclusion that I am not using ynab nearly as much as I should.  I love the goals and started using them yesterday.  Had to go thru my whole budget all over again.  But now it is more manageable, and I have a better picture of what I need to do.  

    Thanks!

    Reply Like 2
    • TheTabby
    • Just a common cat trying to budget uncommonly well.
    • TheTabby
    • 1 yr ago
    • 3
    • Reported - view

    I'm going to point out that a new state is a BIG move.  I've done it twice, moving ~1800 miles each time.  The first move was for my first job out of college.  The second was for a pretty lady.  I can't stress enough that you'll be walking away from all your local friends and family if you do this.

    That's not to say it's a definitely bad thing.  Sometimes there are people you just need distance from.  Sometimes the financial considerations are big enough that moving away from important people is worth while.  You can always visit after all.

    I don't know your job in particular, but I can definitely see the terminal lump sum vacation pay-out being a huge boon to the debt extermination, and sign-on bonuses are definitely a wonderful thing (I got one of those once, and it was an absolute life saver).  I'll second the opinion of not giving your dollars jobs until you get them in hand though.  I know I had a rude awakening when I realized how heavily they taxed the sign-on bonus when I received it.  It wasn't the end of the world, I had just expected to get a larger percentage of it in my hand, and I didn't.  On the other hand, if that means it takes you 5 months to clear the debt instead of 3, that's not such a terrible thing in the grander scheme.

    I guess what I'm saying is that on the financial front, this definitely looks like a good plan to me.  But look at the rest of the picture too.  Here are the questions I can think of that you need to think about before pulling the trigger:

    • Are you actually willing to move away from your friends/family/support structure?  It takes time to build a new one.
    • Are you actually willing to move away from your current job?  Do you have the BEST BOSS/COWORKERS EVER?  Cause my experience is that your next boss and coworkers won't be created equal.  Maybe that was because the second time I moved I didn't do enough research on where I was landing at the other end employment wise, and you've got that covered, but at least consider it.
    • How important is it to you to clear the debt?  Are you appreciably accelerating the process?  Based on the initial post, I'm assuming that it's a large acceleration, but if it's cutting it from 6 months to 3, that may not be worth the considerations above.
    • Is the destination culture a culturee you're willing to live for the long term?  Personally I have a dream of living in a big city, but there's no way I would want to live there for any length of time.  If I could move to, say, DC and know I had an exit strategy already in place for a year later, I'd jump on it, but I don't want to live there indefinitely, so I'm not even looking.
    • By the same token, is the destination location a place you're willing to live? Mmy first move was from central NC (read hills and trees) to western Iowa (read flat.  really flat) and the terrain made me twitchy for months.  In all honesty, I'm not sure I ever got completely accustomed to it in the 4.5 years I lived there.  It was just SO open.  I talked to people out there who had moved temporarily to the east cost, and they were twitchy because there were so many trees, and they couldn't see the horizon.  They felt closed in and almost claustrophobic, while I was feeling exposed.
    • What is the cost of living difference?  Especially compared to your income shift?  If you make 2x as much, but it costs 3x as much to live, you're not actually ahead.  If you make 0.9x as much, but it only costs -.5x as much to live, you're actually ahead, despite a nominal pay cut.
    • What if any family will you be taking with you, and how do they / will they respond to the above changes, or others I haven't considered?

    Okay, that's a huge wall of text and it probably has more than enough to chew on.  Best of luck!  Personally, I recommend moving cross-country or at least out of state at least once to everyone, but I also know that there are a lot of questions that need to be answered before pulling the trigger.

    Reply Like 3
    • TheTabby WE moved from TX to PA and then PA to CO, so we have been around.  The job was in Northern CA. Everyone is on board with the move.  Job comes with a relocation package so no out of pocket.  Technically we are about to lose about 40% of our business by 12/31/19.  There is one new player in my field and that is where I am looking at going.  We decided to turn down the job, but they countered with a better position and a significant increase in pay...I should get the new offer this week sometime.  The biggest difference I could find was housing.  Both the markets seem about the same, in my opinion.  Thanks for you input, I really do appreciate it.

      Reply Like 3
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