Before I share more about my finances or budgeting process, I wanted to give you all an update on the disability claim process.
I saw two of my doctors today. They both are in agreement I have significant cognitive loss. I tried to do some simple arithmetic for one doctor and failed horribly. Both doctors have no doubt the morphine has impaired my ability to think clearly. Yes, I’m able to write – but my posts take up to eight hours to draft and edit. And, of course, in my everyday job, writing is not what I do. My job entails more numbers, math and calculations - not to mention driving: both to client meetings and job sites.
Tonight I was looking at the disability forms – it was sad because so much of the forms are geared towards physical disability: the ability to walk, sit and stand. And, yes, while I am in pain – the morphine just isn’t as powerful or effective as the fentanyl – which does limit my daily activities and endurance, the skills which are involved for my ability to do my job center on my thinking, thought process, and problem solving abilities. My daily job doesn’t require physical strength but mental gymnastics. And at the moment I'm not able to perform.
Both doctors are in support for filing my long-term disability claim and I have appointments in the coming weeks with them to start the paperwork process. I hope it won't be too difficult and the insurance company is easy to work with.
Friday, June 20, 2008
Wednesday, June 18, 2008
Thank God For The Emergency Fund
There is no way I could or would be taking this medical leave if it weren’t for having my Emergency Fund (EF). Without the EF I would have tried to work, be making horrible mistakes, my performance would be suffering, my sick days would be sky high, and by now I would have been either on probation or fired. This was a situation where it was best I was honest, and take myself out before doing irreparable harm. My employer even shared with me that they had been questioning as far back as last November and December if it was appropriate that I had been working.
To make this medical leave work, I try to keep my finances simple – yet at the same time, I do need to keep some funds segregated, if only to keep them from becoming co-mingled.
Financial Accounts – Liquid Assets
Currently I have two checking accounts. “Old Checking” and “New Checking” – and in a future post, I’ll explain why this is so. I also have three money market accounts. One account is where I keep my deposits given to me from the tenant’s of a rental unit I own. I also keep in this account added funds to cover “emergencies” – such as needed funds if I should have to evict a tenant, clean and change the locks – as well as two to three months of “cushion” money equal to the monthly carrying costs (mortgage, HOA, utilities) in the event the unit sits empty between tenants. Every month I deposit a little money into this account to increase the “cushion” for future maintenance and repairs.
“Life Tossed Me a Lemon” EF Funds
The second money market account is where I keep the “Life Tossed Me a Lemon” Emergency Funds. This account has $5,000 for general – like when my car went on the fritz a few months ago – it was a $1,100 bill to my mechanic.
The third account includes are the funds earmarked as my “six months of earnings and salary replacement” should I not be working. In reality, these funds are usually kept in a variety of investment vehicles and CDs – but given my current situation and market volatility, it was best to have the funds consolidated into this account for the time being.
Why I Call it an Earnings Replacement Fund
I’ve heard many people refer to this type of an account as their “X months of living expenses” funds. However, it is my honest opinion that the first month or two of whatever catastrophic event (illness, termination, layoffs, resignation) that created the situation necessary to be using these funds, most people don’t curb their spending enough to live within what their revised budgeted amount should be. So, I figure it best to anticipate my spending as I always have for the first month or two as I adjust. Six months of take home salary replacement is $18,000
Current Financial Picture – Net Worth IQ Report
As of today, I have $29,165.23 of liquid and available cash in the accounts described in this post. I have $71,000 in retirement funds which include traditional and Roth IRAs, plus two 401(k)s. Also in the positive column, I own my own vehicle (2003 Volkswagen Jetta with 40,328 miles) and have a ton of beautiful expensive jewelry (that is a long story). The value on my condos are based upon the tax assessment – not a comp or internet appraisal.
On the debt side, I have $14,000 in student loans and the mortgages on my condos (the primary residence and rental unit). Because I’m thinking of selling the condo I live in and moving into the rental unit (more about that in a future post), I have been buying furniture and new light fixtures and other items to finalize the decorating and remodel of my condo. When I get the credit card bill (0% interest for 9 months), I’ll update the debts column.
Experiment: Budgeting
Over the years my finances and financial health have mirrored my physical health – ups and downs. It was only as recent as 2001 I had virtually no retirement and a net worth of negative $15,000. In a future post, I’ll share more about my financial past and how I got to where I am today. In the meantime, I’m starting an experiment – YNAB (You Need A Budget from www.youneedabudget.com) has a free 10 day on-line course to help people start and establish a budget. I’ve been very loose with my budgeting process (only at home, never at work), so I’m going to give it a shot.
I’m also doing this as a “self test” to see where I am with the morphine and how it is affecting me. Remember last week’s Excel test? This will be more of the same. I know there has been no improvement on my math skills – simple equations I was able to calculate in my head before I can no longer do – and it is frustrating me!
To make this medical leave work, I try to keep my finances simple – yet at the same time, I do need to keep some funds segregated, if only to keep them from becoming co-mingled.
Financial Accounts – Liquid Assets
Currently I have two checking accounts. “Old Checking” and “New Checking” – and in a future post, I’ll explain why this is so. I also have three money market accounts. One account is where I keep my deposits given to me from the tenant’s of a rental unit I own. I also keep in this account added funds to cover “emergencies” – such as needed funds if I should have to evict a tenant, clean and change the locks – as well as two to three months of “cushion” money equal to the monthly carrying costs (mortgage, HOA, utilities) in the event the unit sits empty between tenants. Every month I deposit a little money into this account to increase the “cushion” for future maintenance and repairs.
“Life Tossed Me a Lemon” EF Funds
The second money market account is where I keep the “Life Tossed Me a Lemon” Emergency Funds. This account has $5,000 for general – like when my car went on the fritz a few months ago – it was a $1,100 bill to my mechanic.
The third account includes are the funds earmarked as my “six months of earnings and salary replacement” should I not be working. In reality, these funds are usually kept in a variety of investment vehicles and CDs – but given my current situation and market volatility, it was best to have the funds consolidated into this account for the time being.
Why I Call it an Earnings Replacement Fund
I’ve heard many people refer to this type of an account as their “X months of living expenses” funds. However, it is my honest opinion that the first month or two of whatever catastrophic event (illness, termination, layoffs, resignation) that created the situation necessary to be using these funds, most people don’t curb their spending enough to live within what their revised budgeted amount should be. So, I figure it best to anticipate my spending as I always have for the first month or two as I adjust. Six months of take home salary replacement is $18,000
Current Financial Picture – Net Worth IQ Report
As of today, I have $29,165.23 of liquid and available cash in the accounts described in this post. I have $71,000 in retirement funds which include traditional and Roth IRAs, plus two 401(k)s. Also in the positive column, I own my own vehicle (2003 Volkswagen Jetta with 40,328 miles) and have a ton of beautiful expensive jewelry (that is a long story). The value on my condos are based upon the tax assessment – not a comp or internet appraisal.
On the debt side, I have $14,000 in student loans and the mortgages on my condos (the primary residence and rental unit). Because I’m thinking of selling the condo I live in and moving into the rental unit (more about that in a future post), I have been buying furniture and new light fixtures and other items to finalize the decorating and remodel of my condo. When I get the credit card bill (0% interest for 9 months), I’ll update the debts column.
Experiment: Budgeting
Over the years my finances and financial health have mirrored my physical health – ups and downs. It was only as recent as 2001 I had virtually no retirement and a net worth of negative $15,000. In a future post, I’ll share more about my financial past and how I got to where I am today. In the meantime, I’m starting an experiment – YNAB (You Need A Budget from www.youneedabudget.com) has a free 10 day on-line course to help people start and establish a budget. I’ve been very loose with my budgeting process (only at home, never at work), so I’m going to give it a shot.
I’m also doing this as a “self test” to see where I am with the morphine and how it is affecting me. Remember last week’s Excel test? This will be more of the same. I know there has been no improvement on my math skills – simple equations I was able to calculate in my head before I can no longer do – and it is frustrating me!
Friday, June 13, 2008
Character, Karma and all that Crap
I don't know who said it, but here's a quote I found in my inbox one day:
If God brings you to it, He will bring you through it.
People talk about character. Sometimes they'll say that a challenge in life, such as a medical illness or financial hardship, is a "character building experience." People have also told me, "God never gives us no more than we can handle."
I say, "No Way."
I was not at the end of some line and born character deficient, and now in life am subject to all sorts of negative karma to build character to assure my spot in heaven. Nor am I some amazing person who can handle infertility, divorce, and long-term illness. And, my best friend isn't the Senior VP of an international software company with a loving husband and two great kids because God decided she can't handle the crap I got.
I think things happen in life. It is what we do with what we get, the decisions we make, the paths we follow, and the journeys we take are what guide, define and shape us. We have free will. We all have capacity for kindness and compassion. And, when we need him/her, God is there for all of us - equally.
Sometimes life just sucks. And when it does - grab the tequila - or make some lemonade.
If God brings you to it, He will bring you through it.
People talk about character. Sometimes they'll say that a challenge in life, such as a medical illness or financial hardship, is a "character building experience." People have also told me, "God never gives us no more than we can handle."
I say, "No Way."
I was not at the end of some line and born character deficient, and now in life am subject to all sorts of negative karma to build character to assure my spot in heaven. Nor am I some amazing person who can handle infertility, divorce, and long-term illness. And, my best friend isn't the Senior VP of an international software company with a loving husband and two great kids because God decided she can't handle the crap I got.
I think things happen in life. It is what we do with what we get, the decisions we make, the paths we follow, and the journeys we take are what guide, define and shape us. We have free will. We all have capacity for kindness and compassion. And, when we need him/her, God is there for all of us - equally.
Sometimes life just sucks. And when it does - grab the tequila - or make some lemonade.
Thursday, June 12, 2008
Disability – Shame, Stigma and the Ultimate Price of Pain
I have a long complicated medical history and now, for the first time in my 20+ year career, face filing long-term medical disability. I've not been to the office in nine weeks. Technically, I could qualify for benefits in 25 days. With each passing day, I feel the hard earned success of my career spiraling down the drain.
My situation is this: I have had this disease/condition for over 20 years. I've had eight surgeries - the most recent being at Stanford two years ago. That surgery was done by the best physician/surgeon in the world and was considered the surgery of last resort. When the pain started back up, I consulted with my doctors: They were all in agreement I am no longer a candidate for surgery and at this point would benefit from a long-term pain management program.
Meeting with the doctors at the pain clinic I was given three options for pain management – all opiate medications. Because it came in a patch form, I chose fentanyl and started taking the generic prescription last fall. The side effects were considerable and I was unable to drive. Once we established the generic product didn’t work, the insurance company allowed me to be treated with the “brand name” drug: Duragesic.
Duragesic, however, was not without its problems, and in February of this year, the drug was recalled and there is now nothing available at local pharmacies. Due to the recall and problems with manufacturing process, my choice was to go back to the generic fentanyl patch or change to another medication. We tried an alternate medication.
When the change in medications first started, I needed to take time off from work to treat the withdraw symptoms I was experiencing from no longer wearing the Duragesic patch. The first drug my doctors chose to replace the Duragesic with was methadone.
Throughout this process, my employer and I have had frank and honest discussions. When the methadone treatment started, my employer shared with me was that when I was on the generic fentanyl and unable to drive, they were questioning my ability to work. They knew it was important for me to work, but they could see the changes in my performance caused by the medication.
Like most people, my employer is familiar with methadone’s prescribed use for only one thing: heroin withdraw. They aren’t familiar with its use as an acceptable alternative for pain treatment. With the start of the methadone, they asked I not return to work until I'm 100% with a note from my doctor that I’m able and capable to return to work.
I knew within a week methadone was not going to be an alternative pain medication and the morphine therapy started. I am not at a therapeutic dose for the morphine (I'm experiencing way too much pain) but I'm suffering tons of side affects that make it impossible for me to perform my job.
The ability to drive is a good benchmark for how I am doing. Last week, when we were increasing the frequency for when I could take the morphine, the pain doc and I spoke of my employer’s desire for me not to return to work until I’m back at 100%. The doc shared with me then that I may never be 100% like the way I was before.
It could be he’s said this before, and I’d just been in denial, but I really heard and understood the doctor for the first time during that visit. I saw all the years of education and hard work magically vaporize and disperse out of the room.
I have lost so much to the morphine these past few weeks, not just my ability to drive. I can no longer do easy or complex math (I'm a designer at an architectural firm; math is an essential function of my job).
This weekend I tried creating an Excel spreadsheet – a simple task which would normally take me 30 minutes to 1 hour took me almost 4 hours. Writing a post for this blog takes up to six hours. This loss in cognitive function is significant, for me, my employer and my clients. I'm expected to make real-time decisions that affect the lives, health, welfare and safety of many people and can't do so with any confidence because morphine clouds my thinking.
This is all very scary and sad to admit. I ask myself constantly if, by making this admission, I am doing lasting harm to my career and reputation? If other medications or pain treatment alternatives can be used successfully without the side effects of the opiates and I've made this admission and gone on disability, will my current employer ever take me back? Will a future firm take the risk and hire me?
My feeling is I've paid into the system... the future when I paid my premiums was uncertain - I may or may not have needed the benefits. Unfortunately I do need the benefits. Without them, I would be homeless. The private disability insurance pays 60% of my gross salary and is not subject to tax. It is good for 24 months. Later, I could apply for Social Security Disability... but the monthly payment will be far less.
I really want to work – however the effects of morphine at its current dose is significant – I fail self-administered field sobriety tests, doze at my computer constantly, suffer from dizziness and double vision. (In the plus column, I appear to have adjusted to the nausea.) All that said, and the morphing isn’t really touching the pain, which today, on a scale of 1 to 10 (1 being light, 10 being the worst imaginable) has be consistently between a 6 and 7.
I have two older sisters who are now on social security medical disability. One sister has Lupus, the other MS. Both suffer from fatigue, and then each has her own sets of symptoms for her condition. They find no stigma or shame in applying or accepting their SSDI payments. They’ve worked over their careers, would continue to be working if they could. The only difference between my sisters and me is they are both married and their husbands are the primary financial bread winner in their households. Being single, the responsibility is all on my shoulders.
My situation is this: I have had this disease/condition for over 20 years. I've had eight surgeries - the most recent being at Stanford two years ago. That surgery was done by the best physician/surgeon in the world and was considered the surgery of last resort. When the pain started back up, I consulted with my doctors: They were all in agreement I am no longer a candidate for surgery and at this point would benefit from a long-term pain management program.
Meeting with the doctors at the pain clinic I was given three options for pain management – all opiate medications. Because it came in a patch form, I chose fentanyl and started taking the generic prescription last fall. The side effects were considerable and I was unable to drive. Once we established the generic product didn’t work, the insurance company allowed me to be treated with the “brand name” drug: Duragesic.
Duragesic, however, was not without its problems, and in February of this year, the drug was recalled and there is now nothing available at local pharmacies. Due to the recall and problems with manufacturing process, my choice was to go back to the generic fentanyl patch or change to another medication. We tried an alternate medication.
When the change in medications first started, I needed to take time off from work to treat the withdraw symptoms I was experiencing from no longer wearing the Duragesic patch. The first drug my doctors chose to replace the Duragesic with was methadone.
Throughout this process, my employer and I have had frank and honest discussions. When the methadone treatment started, my employer shared with me was that when I was on the generic fentanyl and unable to drive, they were questioning my ability to work. They knew it was important for me to work, but they could see the changes in my performance caused by the medication.
Like most people, my employer is familiar with methadone’s prescribed use for only one thing: heroin withdraw. They aren’t familiar with its use as an acceptable alternative for pain treatment. With the start of the methadone, they asked I not return to work until I'm 100% with a note from my doctor that I’m able and capable to return to work.
I knew within a week methadone was not going to be an alternative pain medication and the morphine therapy started. I am not at a therapeutic dose for the morphine (I'm experiencing way too much pain) but I'm suffering tons of side affects that make it impossible for me to perform my job.
The ability to drive is a good benchmark for how I am doing. Last week, when we were increasing the frequency for when I could take the morphine, the pain doc and I spoke of my employer’s desire for me not to return to work until I’m back at 100%. The doc shared with me then that I may never be 100% like the way I was before.
It could be he’s said this before, and I’d just been in denial, but I really heard and understood the doctor for the first time during that visit. I saw all the years of education and hard work magically vaporize and disperse out of the room.
I have lost so much to the morphine these past few weeks, not just my ability to drive. I can no longer do easy or complex math (I'm a designer at an architectural firm; math is an essential function of my job).
This weekend I tried creating an Excel spreadsheet – a simple task which would normally take me 30 minutes to 1 hour took me almost 4 hours. Writing a post for this blog takes up to six hours. This loss in cognitive function is significant, for me, my employer and my clients. I'm expected to make real-time decisions that affect the lives, health, welfare and safety of many people and can't do so with any confidence because morphine clouds my thinking.
This is all very scary and sad to admit. I ask myself constantly if, by making this admission, I am doing lasting harm to my career and reputation? If other medications or pain treatment alternatives can be used successfully without the side effects of the opiates and I've made this admission and gone on disability, will my current employer ever take me back? Will a future firm take the risk and hire me?
My feeling is I've paid into the system... the future when I paid my premiums was uncertain - I may or may not have needed the benefits. Unfortunately I do need the benefits. Without them, I would be homeless. The private disability insurance pays 60% of my gross salary and is not subject to tax. It is good for 24 months. Later, I could apply for Social Security Disability... but the monthly payment will be far less.
I really want to work – however the effects of morphine at its current dose is significant – I fail self-administered field sobriety tests, doze at my computer constantly, suffer from dizziness and double vision. (In the plus column, I appear to have adjusted to the nausea.) All that said, and the morphing isn’t really touching the pain, which today, on a scale of 1 to 10 (1 being light, 10 being the worst imaginable) has be consistently between a 6 and 7.
I have two older sisters who are now on social security medical disability. One sister has Lupus, the other MS. Both suffer from fatigue, and then each has her own sets of symptoms for her condition. They find no stigma or shame in applying or accepting their SSDI payments. They’ve worked over their careers, would continue to be working if they could. The only difference between my sisters and me is they are both married and their husbands are the primary financial bread winner in their households. Being single, the responsibility is all on my shoulders.
Wednesday, June 11, 2008
Disability and the Loss of Driving
It has been weeks since I last drove my car which now sits in the garage gathering dust.
I miss driving. I miss the freedom running errands, grabbing sushi, or escaping to a spa for the weekend. Now I am dependent upon the kindness of my neighbors, strangers, and taxis to get me where I need to be.
When I started taking fentanyl last fall I was prescribed the generic product (this was per the formulary of the insurance company), and the side effects were similar to those I now experience with the morphine. I spent in excess of about $800 in cab fare going to/from work and running errands. I don’t have $800 in my budget for this luxury. (Once again, it was my emergency savings to the rescue!)
Years ago when I lived in NY and later SF I chose not to have a car. Mass transit was available at my doorstep and everything I needed or wanted was usually within walking distance – including the grocery store. Today, the closest grocery is over two miles away. I could walk, but between the dizziness, pain, and fatigue, it’s not easy. And, it is a bummer – because I’m supposed to be getting ready for a moonlight 6K fun run in Las Vegas in August.
There is one bright side – I haven’t been to a gas station for over ten weeks – so I haven't been seen the price of gas.
I miss driving. I miss the freedom running errands, grabbing sushi, or escaping to a spa for the weekend. Now I am dependent upon the kindness of my neighbors, strangers, and taxis to get me where I need to be.
When I started taking fentanyl last fall I was prescribed the generic product (this was per the formulary of the insurance company), and the side effects were similar to those I now experience with the morphine. I spent in excess of about $800 in cab fare going to/from work and running errands. I don’t have $800 in my budget for this luxury. (Once again, it was my emergency savings to the rescue!)
Years ago when I lived in NY and later SF I chose not to have a car. Mass transit was available at my doorstep and everything I needed or wanted was usually within walking distance – including the grocery store. Today, the closest grocery is over two miles away. I could walk, but between the dizziness, pain, and fatigue, it’s not easy. And, it is a bummer – because I’m supposed to be getting ready for a moonlight 6K fun run in Las Vegas in August.
There is one bright side – I haven’t been to a gas station for over ten weeks – so I haven't been seen the price of gas.
I H-E-A-R-T Blogger
Deciding to blog was not a spur of the moment thing. This is something I have considered for over six months.
My first concern, of course, “Would I have something to say that people would want to read?” Next, was the graphics – what would this look like? There are like a gazillion blogs, sometimes they all look the same. Then, of course, the web hosting and all the tech stuff that would be way over my head seemed just a bit too overwhelming.
My next concern, “What would I be getting myself into?” I’ve seen bloggers get the most hateful comments from complete strangers. I’ve seen other bloggers, plus those closest to them (family and friends), have their privacy compromised and all sorts of things, truth or lies, published or exposed on the internet.
Yet, 2008 has turned out to be such a bad year. Content jumps out at me everyday. Lemons are thrown left and right. So, I giving it a shot.
I corresponded with a couple of bloggers, finding out what was working for them – ideas, content, format, hosting, etc. After consideration, I started out at that other site. However, after a few days, I found I was really limited in my ability to manipulate the blog’s look and feel. Plus, where were those advertising opportunities everyone mentions?
So, I came over to Blogger and started to play around. It took a few hours. Like 12 hours maybe. Morphine makes me very slow. I think blogger will offer me and this blog more opportunities than I would have over at the other site. Only time will tell.
My first concern, of course, “Would I have something to say that people would want to read?” Next, was the graphics – what would this look like? There are like a gazillion blogs, sometimes they all look the same. Then, of course, the web hosting and all the tech stuff that would be way over my head seemed just a bit too overwhelming.
My next concern, “What would I be getting myself into?” I’ve seen bloggers get the most hateful comments from complete strangers. I’ve seen other bloggers, plus those closest to them (family and friends), have their privacy compromised and all sorts of things, truth or lies, published or exposed on the internet.
Yet, 2008 has turned out to be such a bad year. Content jumps out at me everyday. Lemons are thrown left and right. So, I giving it a shot.
I corresponded with a couple of bloggers, finding out what was working for them – ideas, content, format, hosting, etc. After consideration, I started out at that other site. However, after a few days, I found I was really limited in my ability to manipulate the blog’s look and feel. Plus, where were those advertising opportunities everyone mentions?
So, I came over to Blogger and started to play around. It took a few hours. Like 12 hours maybe. Morphine makes me very slow. I think blogger will offer me and this blog more opportunities than I would have over at the other site. Only time will tell.
Disability Insurance – Don’t Leave Work Without It
I love to work. It kills me not to work. And, the reality is, as a single female without a trust fund or wealthy husband (or ex-husband) to take care of my financial needs, I need to work so that I can eat, live and survive.
My creativity, business acumen, communication skills, and a variety of talents make me a valuable employee. While at work, my employer receives 100% from what I have to offer. I can analyze difficult business problems, come up with creative solutions, and identify a variety of options to explore when faced with difficult challenges. I can multitask on a variety on different projects, all in various phases and stages.
The problem is though I really want to work, I can’t. In my case, morphine and the office are not a good mix. Clients would not be receiving the value they’ve come to expect for their billable hour. An example - where in the past it might have taken me 30 to 45 minutes to write this post, it has taken over six hours.
So, obviously, not working means I have no income.
Fortunately, while I have six months of savings set aside for living expenses in case of emergencies just like this, my employer got us disability insurance about 18 months ago. We didn’t have it before, but a few people really lobbied for it.
There is much to be done to start a claim if it becomes necessary (I still haven’t made the final decision): however, when we got this policy for the office, my boss did a few great things:
First, each person paid for their own premium out of their paycheck with after tax dollars. What this means is that when you file a claim and get payments, the payments are not considered taxable income.
Second, when I got the paperwork I was pleased to find out that I can file my claim at 90 days. I thought it was 180 (6 months). This is great because the monthly benefit is approximately 60% of my gross pay. Before went on my leave, I was contributing to my 401(k) and HAS – between taxes and those contributions what I receive in benefits could be the same as what I was taking home previously from the office.
My hope is that I won’t have to completely deplete my emergency savings and am able to live with in budget allowed by the disability insurance.
My creativity, business acumen, communication skills, and a variety of talents make me a valuable employee. While at work, my employer receives 100% from what I have to offer. I can analyze difficult business problems, come up with creative solutions, and identify a variety of options to explore when faced with difficult challenges. I can multitask on a variety on different projects, all in various phases and stages.
The problem is though I really want to work, I can’t. In my case, morphine and the office are not a good mix. Clients would not be receiving the value they’ve come to expect for their billable hour. An example - where in the past it might have taken me 30 to 45 minutes to write this post, it has taken over six hours.
So, obviously, not working means I have no income.
Fortunately, while I have six months of savings set aside for living expenses in case of emergencies just like this, my employer got us disability insurance about 18 months ago. We didn’t have it before, but a few people really lobbied for it.
There is much to be done to start a claim if it becomes necessary (I still haven’t made the final decision): however, when we got this policy for the office, my boss did a few great things:
First, each person paid for their own premium out of their paycheck with after tax dollars. What this means is that when you file a claim and get payments, the payments are not considered taxable income.
Second, when I got the paperwork I was pleased to find out that I can file my claim at 90 days. I thought it was 180 (6 months). This is great because the monthly benefit is approximately 60% of my gross pay. Before went on my leave, I was contributing to my 401(k) and HAS – between taxes and those contributions what I receive in benefits could be the same as what I was taking home previously from the office.
My hope is that I won’t have to completely deplete my emergency savings and am able to live with in budget allowed by the disability insurance.
Tuesday, June 10, 2008
Emergency Funds Save The Day
Yesterday I explained it has been two months without a paycheck and this time off from work is an unpaid medical leave.
Expecting the unexpected can and will happen make it easier to plan for difficult times.
What this entails is smart budgeting, living frugally, and aggressively saving until you have a cushion you feel comfortable with. For me, the emergency savings includes three parts:
Income Protection – A saving account or fund (i.e., short-term CDs) that is equal to six months of take-home pay/salary.
Investment Protection – I have a rental unit – a 2bd/2bth condo in Vancouver (WA). I keep in a separate account my renters’ last month’s rent, security deposit and cleaning fee. I also keep in this account funds to cover two or three months of unit expenses (i.e., mortgage, HOA fee, utilities) should the unit be empty without a renter. I also deposit a small amount ($50) into this account every month to build a cushion for future maintenance, HOA assessments, etc.
General Emergency Fund – This is a fund for those small emergencies that come up – like when my cat died and I needed to pay the vet. Or, when my car (a 2003 Jetta) had a little mechanical problem that set me back $1,100. I try to keep this around $5,000.
Currently I have about $5k in my checking (though I just paid some bills, so week’s end, it will be down to about $2K) and I have liquidated my various savings and have $25,000 in my money market account for my living expenses. Then I have my rental investment account. These funds don’t make up my entire net worth, but they represent the cushion I need to see me through the next few months.
Anticipating the unexpected is essential – especially in today’s economy. My personal belief is that we all need to examine our needs versus our wants.
Over the past few years I wanted to drive a BMW… I would have loved (wanted) to live in a trendy loft and travel the world. The reality is, however, I know my body and its limitations. I need financial security and an emergency savings fund more so than fulfillment of momentary wants of immediate gratification.
Expecting the unexpected can and will happen make it easier to plan for difficult times.
What this entails is smart budgeting, living frugally, and aggressively saving until you have a cushion you feel comfortable with. For me, the emergency savings includes three parts:
Income Protection – A saving account or fund (i.e., short-term CDs) that is equal to six months of take-home pay/salary.
Investment Protection – I have a rental unit – a 2bd/2bth condo in Vancouver (WA). I keep in a separate account my renters’ last month’s rent, security deposit and cleaning fee. I also keep in this account funds to cover two or three months of unit expenses (i.e., mortgage, HOA fee, utilities) should the unit be empty without a renter. I also deposit a small amount ($50) into this account every month to build a cushion for future maintenance, HOA assessments, etc.
General Emergency Fund – This is a fund for those small emergencies that come up – like when my cat died and I needed to pay the vet. Or, when my car (a 2003 Jetta) had a little mechanical problem that set me back $1,100. I try to keep this around $5,000.
Currently I have about $5k in my checking (though I just paid some bills, so week’s end, it will be down to about $2K) and I have liquidated my various savings and have $25,000 in my money market account for my living expenses. Then I have my rental investment account. These funds don’t make up my entire net worth, but they represent the cushion I need to see me through the next few months.
Anticipating the unexpected is essential – especially in today’s economy. My personal belief is that we all need to examine our needs versus our wants.
Over the past few years I wanted to drive a BMW… I would have loved (wanted) to live in a trendy loft and travel the world. The reality is, however, I know my body and its limitations. I need financial security and an emergency savings fund more so than fulfillment of momentary wants of immediate gratification.
Monday, June 9, 2008
Planning for the Unexpected
One of my favorite personal finance blogs is Dual Income No Kids authored by Meil and James. (You can find them at www.dinksfinance.com)
They had a post yesterday regarding emergency funds – which is significant given my current medical situation. I’m on an unpaid medical leave from work. I haven’t had a paycheck in two months.
One of the reasons people declare bankruptcy and lose their homes is due to medical illness – their inability to pay medical bills and loss of income because they can’t work due to illness.
I’m lucky in that I’ve worked hard and built a savings for emergencies like this. This isn’t my first medical leave due to illness. And, I’m hoping to someday return to work. It is, however, the first time I’ve been on a medical leave without short-term disability insurance.
Over the years I’ve had eight surgeries; tons of biopsies; a few general hospitalizations (for pain); countless radiographic procedures (i.e., CAT scans, IVPs, ultrasounds, endoscopies) to identify the source of the pain; and, of course, many trips to the ER for medication and assistance to control the pain when it has become unbearable.
I’m not sharing this for pity or because I have a “poor me” syndrome. I just want visitors to have an understanding for the impact and magnitude of how illness and the management of pain have altered my life.
For every five productive days I’ve provided my employer, I’ve probably had one day missed work due to pain and the resulting fatigue. Now, due to the morphine, I am unable to drive – my balance is shot and if I were to take a field sobriety test, I would fail.
Just like many people suffer from “chemo brain” – the term used to describe the loss of cognitive function resulting from the use of chemotherapy – I’m certain there is a “morphine brain” syndrome too. I know I am experiencing cognitive losses – particularly around numbers. Things that used to be basic (addition, subtraction) are now difficult and complex. I am unable to remember numbers – simple repetitive numbers, like my ATM PIN and phone number. And don’t ask me to figure out how to pay a bill using cash – trying to split a lunch check and calculate the server’s tip left me in tears last week.
All of my previous employers had some form of disability insurance – both short- and long-term. The exception was in California. However, in California, the state has a program, so the three occasions I had surgery while a resident of California, my time off of work and loss of income was covered by the state disability program.
So here I am… two months without a paycheck on an unpaid medical leave of absence. How am I doing it?
Read tomorrow and I’ll explain.
They had a post yesterday regarding emergency funds – which is significant given my current medical situation. I’m on an unpaid medical leave from work. I haven’t had a paycheck in two months.
One of the reasons people declare bankruptcy and lose their homes is due to medical illness – their inability to pay medical bills and loss of income because they can’t work due to illness.
I’m lucky in that I’ve worked hard and built a savings for emergencies like this. This isn’t my first medical leave due to illness. And, I’m hoping to someday return to work. It is, however, the first time I’ve been on a medical leave without short-term disability insurance.
Over the years I’ve had eight surgeries; tons of biopsies; a few general hospitalizations (for pain); countless radiographic procedures (i.e., CAT scans, IVPs, ultrasounds, endoscopies) to identify the source of the pain; and, of course, many trips to the ER for medication and assistance to control the pain when it has become unbearable.
I’m not sharing this for pity or because I have a “poor me” syndrome. I just want visitors to have an understanding for the impact and magnitude of how illness and the management of pain have altered my life.
For every five productive days I’ve provided my employer, I’ve probably had one day missed work due to pain and the resulting fatigue. Now, due to the morphine, I am unable to drive – my balance is shot and if I were to take a field sobriety test, I would fail.
Just like many people suffer from “chemo brain” – the term used to describe the loss of cognitive function resulting from the use of chemotherapy – I’m certain there is a “morphine brain” syndrome too. I know I am experiencing cognitive losses – particularly around numbers. Things that used to be basic (addition, subtraction) are now difficult and complex. I am unable to remember numbers – simple repetitive numbers, like my ATM PIN and phone number. And don’t ask me to figure out how to pay a bill using cash – trying to split a lunch check and calculate the server’s tip left me in tears last week.
All of my previous employers had some form of disability insurance – both short- and long-term. The exception was in California. However, in California, the state has a program, so the three occasions I had surgery while a resident of California, my time off of work and loss of income was covered by the state disability program.
So here I am… two months without a paycheck on an unpaid medical leave of absence. How am I doing it?
Read tomorrow and I’ll explain.
Sunday, June 8, 2008
Why Blog
I became fascinated with blogging a few years ago. At first I thought they were a new form of fiction – a type of cyber novel – then I found out more as I began reading and following a few. I became intrigued. With a few, I became hooked.
The first one I followed with some regularity had to do with a young man from Sacramento, California, named Casey. He was facing foreclosure on a number of houses he had purchased over a short period of time. Of course, he did this at the height of the market, right as it imploded. He owed over 2.2 million dollars. His blog became its own form of webtainment. It had its own cast of characters – from Casey himself, to his readers, including “Sputnik the Cat” and “The Trailer Park Boys” to what later became his Haterz. His blog created many more blogs and forums – mostly those dedicated to haterz.
Casey’s blogging experience was probably, as a social experiment, the best of and the worst of the internet. It brought out the kindness of many who offered assistance, who over time were thrown under the bus by Casey and his own selfish needs and desires. It also illustrated and gave readers a glimpse of the worst of the internet universe – the predators who wanted to ride on Casey’s growing media celebrity.
With Casey, they’d found the goose that laid the golden egg.
Since that time, the blogs I follow mostly surround the subjects of personal finance and money. Some of these blogs are very informative. Some of these blogs tell a great story. With some blogs, it’s obvious the author is using it as a money making venture. And, some of these blogs are just great webtainment.
For me, the purpose of Future Unknown multiple: In part it is a journal as I navigate the unknown waters of what it means to be disabled, to redefine my life, to challenge myself in ways I’ve not been challenged before. It is also a journey of personal finance, facing the reality of disability and unemployment. The physical and psychological toll of how I accept the changes taking place within my body, adapt to the medication (morphine) that robs me of my cognitive skills and functions, leaving me unable to do the work I so love. And finally, it is an experiment. Can this blog, in someway, assist me in using my creative skills and talents, to earn money? Can some of the loss in income I am experiencing by being on an unpaid medical leave of absence somehow be recouped?
I’ll share more soon.
The first one I followed with some regularity had to do with a young man from Sacramento, California, named Casey. He was facing foreclosure on a number of houses he had purchased over a short period of time. Of course, he did this at the height of the market, right as it imploded. He owed over 2.2 million dollars. His blog became its own form of webtainment. It had its own cast of characters – from Casey himself, to his readers, including “Sputnik the Cat” and “The Trailer Park Boys” to what later became his Haterz. His blog created many more blogs and forums – mostly those dedicated to haterz.
Casey’s blogging experience was probably, as a social experiment, the best of and the worst of the internet. It brought out the kindness of many who offered assistance, who over time were thrown under the bus by Casey and his own selfish needs and desires. It also illustrated and gave readers a glimpse of the worst of the internet universe – the predators who wanted to ride on Casey’s growing media celebrity.
With Casey, they’d found the goose that laid the golden egg.
Since that time, the blogs I follow mostly surround the subjects of personal finance and money. Some of these blogs are very informative. Some of these blogs tell a great story. With some blogs, it’s obvious the author is using it as a money making venture. And, some of these blogs are just great webtainment.
For me, the purpose of Future Unknown multiple: In part it is a journal as I navigate the unknown waters of what it means to be disabled, to redefine my life, to challenge myself in ways I’ve not been challenged before. It is also a journey of personal finance, facing the reality of disability and unemployment. The physical and psychological toll of how I accept the changes taking place within my body, adapt to the medication (morphine) that robs me of my cognitive skills and functions, leaving me unable to do the work I so love. And finally, it is an experiment. Can this blog, in someway, assist me in using my creative skills and talents, to earn money? Can some of the loss in income I am experiencing by being on an unpaid medical leave of absence somehow be recouped?
I’ll share more soon.
Saturday, June 7, 2008
My Story - The Lemons of 2008
"Good Evening" - Imagine Alfred Hitchcock's opening words from his classic television series. This is the opening narration of this blog, my story, and the journey we will be taking.
I'd like to think I'm your typical 44 year old single female, but I know that's not true. There have been bumps in the road along the way. 2008 has been the worst year of my life.
Seriously.
I'm not kidding.
Since the beginning of the year, I have encountered or experienced the following:
Bottom line: Life has handed me a ton of lemons during the first six months of 2008 - normally I'd be reaching for the Patron (Silver) Tequlia - but I'm on morphine and am unable to drink.
I'd like to think I'm your typical 44 year old single female, but I know that's not true. There have been bumps in the road along the way. 2008 has been the worst year of my life.
Seriously.
I'm not kidding.
Since the beginning of the year, I have encountered or experienced the following:
- The flu - very nasty, missing two weeks of work
- Pneumonia
- Broken Ribs (caused by caughing from the pneumonia)
- Evidence of damage to my heart muscle discovered during an x-ray when I had pneumonia
- The death of my mother (including being her hospice care giver for two weeks prior to her death)
- Arguments with my brother over my mother's property and estate prior to her dying
- A raging kidney infection following my mother's death resulting in four missed weeks from work
- I am now into week nine of a leave of absence from my job due to a serious illness (more about that later) and I'm not sure if I'll ever be healthy enough to return to work.
Bottom line: Life has handed me a ton of lemons during the first six months of 2008 - normally I'd be reaching for the Patron (Silver) Tequlia - but I'm on morphine and am unable to drink.
Subscribe to:
Posts (Atom)