The Imaginary Vacation Home
If you have read the About April page of this blog you know about the business loan we took out for Clay to be an owner in his firm. It was a HUGE, HUGE, HUGE business loan that was a lot like owning a vacation home. Unfortunately, it was a vacation home that we only got to visit in our dreams. This summer we sold out of the stock and Clay has moved on to another firm. That loan was a wild monkey on our backs. Although it allowed us to share in the profits of the company, there were years where we lost money due to the payments being more than the profits. We were constantly wringing our hands when it came time for profit disbursements. Would it be enough to cover the loan? Would it be enough to cover this big expense or that big expense? Would we even GET a disbursement. There was a lot of poor communication on behalf of the business to the owners and it was very frustrating and stressful for us. Clay came to the decision that it was time for him to move on to a different firm for many reasons, but the loan was a big part of him resigning, it just wasn’t worth the financial risk to move up in the company.
The biggest disappointment was this spring when an expected disbursement didn’t come and we had pegged it to gift Ellen money to help for college. We still gave her some cash, but it wasn’t nearly as much as we’d hoped to give her. We hadn’t promised Ellen anything, so she wasn’t disappointed by the small gift. We also aren’t paying for her college, so any cash she receives from us to help with school is viewed as a bonus. I’ll talk more about that later.
Now that huge loan is gone, we don’t have to worry about the payments and it is a great sense of freedom. We will never buy into another company without having the cash in hand. Lesson learned.
I think we’ll start seeing the affects of the job change and income in the next few months. For now, I’m just pretending we still have no wiggle room and reducing debt is once again, a huge priority and possibility.