BACKGROUND

This summary is about a personal experience, or rather transformation, which my wife and I experienced recently in terms of our finances. Our financial health had been in a steady decline for years, although at the time we were not aware of it. This change occurred when external forces alerted us to the situation at hand, and we decided to take action.

In the aftermath of the internet bubble burst, I had been laid off in 2002 and subsequently been hired into a high paying position of responsibility in a start-up company headquartered out of Seattle, WA. Operationally, the company's footprint was in the Midwest and I was hired to manage those operations. The salary was approximately 1.5 times as much as I had ever received before.

During this time, my wife and I bought a house. We always had more than enough money to do whatever we wished. Our expectations and spending habits rose to a level this newfound income could support. We did a little investing and saving, but not much. After all, we were young and felt this success would continue indefinitely.

I was laid off after 2 years with the company, shortly before they went out of business. The venture capital situation was always tenuous, and finally one of the major investors decided to pull out of the business. I was unemployed for approximately 6 months before I found another position, which was more in line with what I made prior to the start-up company. 6 months later, I was laid off again. I found a new job relatively quickly, but at a significant pay cut. Now my salary was approximately half of what it had been at the start-up venture.

CATALYST FOR CHANGE

Although we had cut back our spending in response to job and salary losses, we had not done so nearly enough. In January 2006, an event occurred which was the catalyst for a dramatic change. Our checking account balance went negative, and we bounced a few checks, resulting in nearly $130 in bank fees. For many people this event may not seem so catastrophic. For me, it was like hitting bottom financially. Although I had lived paycheck to paycheck, truth be told, it had never felt that way until then. This event caused immense pain for me, and the impetus for avoiding future pain. Pain often results in positive change. As Nietzsche said, "What does not destroy me, makes me stronger."

Immediately, I took an action which had never occurred to me before. I took my knowledge and experience with business

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