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Spiraling Out of Control Financially

August 15th, 2014 at 12:06 pm

Things have spiraled out of control financially this month. The summer is slower at tutoring to begin with, but to make matters worse I had a small chain of rotten situations take place. I had two parents bounce checks, which is really awful considering I live in a fairly wealthy area. I also had a teacher of all people not pay me at all. I am really angry at myself over that one. I always take payments up front, but since it was a teacher and her tutoring situation was unique (help with the new version of the Praxis test) I had to decide what to charge her and how many hours she would be tutored. Therefore, I told her she could pay at the end. In the end, I gave her a very fair price figuring she could recommend our services at school. I sent her an invoice and left her voice mails and she has ignored me completely. On her last day of tutoring, she was so grateful for how much I helped her. Oh well, live and learn I guess.

Anyhow, all of this has forced me to dip into my personal emergency fund to pay for overhead the last two weeks. In summary, I didn't have a lot of savings for the business because it was started last year as a last minute decision after the tutoring company I worked for shut down with nearly no warning. It's been a good year overall, but our first one. Many yearly costs (insurance, LLC, etc) renew this month. I also had to give up taking a paycheck this month.

Adding to the issues, my hubby and I already had separate vacations planned and paid for this month. His son bought him a ticket to see him in Seattle. However, he will still need bus fare to get back and forth from the Boston airport (our trips overlap and is flying at odd hours so a local ride from friends or family won't work) and money for eating on the trip. I had bought a plane ticket to go to see family in Michigan Labor Day weekend (I literally got notice of the two bounced checks two days after paying for my plane ticket). Fortunately, my costs will be nearly nil. I will stay with family and most of my meals will be paid for. I picked up a couple of mystery shops for restaurants while I am there too.

I really need to update all my financials here. I am embarrassed to do so because it won't be pretty. I will wait until I return from Michigan to see exactly where everything stands at that point.

8 Responses to “Spiraling Out of Control Financially”

  1. mamasita Says:
    1408106080

    Not a fun financial month, to be sure. But a small dip every now and then is to be expected. Very tacky of the teacher to blow off her financial obligation...

  2. creditcardfree Says:
    1408107530

    So so sorry! I hope all of those that have stiffed you will eventually compensate you. Do you rebill them? Will you insist on cash at any point. Often those who seem wealthy aren't really...because they are spending it all or very tight on cash flow.

  3. Joan.of.the.Arch Says:
    1408110692

    Three no-pays, yikes.

  4. PNW Mom Says:
    1408110916

    That really stinks....have you contacted the parents that bounced the checks? Are you planning on just letting it go with the teacher that didn't pay you? Hoping today is a better day for you!

  5. Laura S. Says:
    1408114741

    I will rebill, but I need to find a cost effective way to try and collect. The amounts are significant enough to pursue the money. I have a cousin in Michigan who is an attorney and is going to meet with me for advice on the issue while I am there.

  6. snafu Says:
    1408118224

    Can an NSF cheque be re-submitted? I'm thinking today is payday for a large segment of the population. If you went to a branch of the specific bank, would they honor the cheque if there is sufficient funds today?

    Is there any possibility the teacher is away or has school commenced in your community?

    I think I'd phone relative who is a lawyer to check before...e-mailing these deadbeats and tell them you'd be reluctant to embarrass them but this sum owed is important to you. If they don't fix the problem in the next 24 hrs, you'll go to social media [Twitter, FB etc.] to out them for financial irresponsibility. Alternatively, I'd say something like...ask your employer for their assistance in collecting the sum owed.

    I wouldn't actually do it, but they'd likely believe you.

  7. Joan.of.the.Arch Says:
    1408120051

    I think I would go to the physical address of your clients and ask for payment, cash, even though fewer people keep cash these days. Still, I'd let them put up with the discomfort of seeing that it is you ~a real person whom they somewhat know~ deserving payment.

  8. nhgirl1970 Says:
    1408186526

    I did use our Facebook and Twitter without personally calling them out. I stated that I will no longer be able to take personal checks due to clients who have had insufficient funds and have not rectified the issue.

    The bank did put each of those checks through a second time, but they bounced again. My lawyer relative said she could type up a letter demanding payment. Hopefully that will do the trick. Thank you all for your support. I feel a lot better.

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