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It is currently Wed Jul 23, 2014 6:45 pm

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 Post subject: Dirty Laundry
PostPosted: Tue May 27, 2014 1:15 am 
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Joined: Fri Mar 14, 2014 4:10 am
Posts: 50
I'm not in the financial shape I expected to be in at 30, but a recent change in my life (quitting a full-time job) is forcing me to face the future a little blind.

I am lazy so most of my numbers are approximations, but accurate as I check the balances monthly.

- 450, rental income from a one-bedroom house. I check in but tenant self-manages the property in exchange for lower rent; tenant is also responsible for paying for repair services and yard maintenance. When tenant leaves (or by Oct of next year) I'll probably go up to 600 as I know I am undercharging...Zillow says I can rent out for 980, but that's a bit overkill, especially with no laundry hook up.
- 2500 (not counting the 6% employer 401k match), full-time job
- 550, part time job
TOTAL: 3550

Take-home, effective June 1st (last day at my full-time job)
- 450, rental income
- 950, part time (expected income after picking up more hours)
TOTAL: 1400

Clearly my focus has been on reduced expenses, not income:
- Housing: 535 PITI payment
100 to my grandmother for letting me stay in my old room. I also
buy most of the household staples since I have a Costco card.
- CC: 50 for minimum on 0% interest Home Depot card, due in full in Feb 2015
- Groceries, including household stuff: 200 (I don't spend much now because of not eating out anymore, and bulk buying. Also my parents have a small homestead so I cook many meals straight from their gardens). As of today I have not bought a single thing in two weeks.
- Gas: 90 (rarely do I have to fill it up more than twice/ month, if that; about $45/ per fill)
- 110, car insurance
- 145 health insurance, through marketplace starting June 1st since I'll be losing employer coverage May 31st.
- 100 misc
- 30, cell phone
TOTAL: 1360

- 5500, Home Depot cc, 0%
- 58,000, mortgage
- 350, Amex 0% until Dec 2014; this will likely grow by about $500/ month as I'll be using it to finance my under-employment until I work full-time again. Insurance premiums, and gas and groceries will go on here.

- 22,000, 401k
- 7000, ROTH
- 4000, CD (matures June 2015)
- 6000, cash

GOALS for 2014
- Don't touch any cash or investments during underemployment
- Don't use more than 50% of the AMEX limit, which I'll be using to finance everything that doesn't require cash payments
- Have fun on my trip to Africa and not worry about getting a full-time job until I get back LOL!
- Get a full-time job in the hotel industry as soon as I return and get right back to saving 50% of my income so I don't have to use savings to pay off any credit cards before the 0% promotions are up. I have one expiring in Dec 2014, and another in Feb 2015.
- I basically want to get through the next 3 months of underemployment without having to touch any cash or CDs, and come into 2015 having paid off the credit cards and even adding to my savings.

Goals for 2015
- Prepare for the set-back of earning up to 30% less from full-time job by reducing expenses - I will no longer have to pay the full health insurance premium, or $100 in CC minimums
- Raise rent by $150 as I am way undercharging
- Double my hours at the part-time job (I've been given more responsibilities which allow me to work after-hour events...big help since my availability is only nights and weekends).
- Somehow using the above to come as close to replacing the income of my current full-time job as possible.
- Save a min of $1000/ month, and work my way up to $1500 by the end of the year
- Invest in some index funds (well, first learn about investing in index funds)

Clearly I don't have children, or a S.O. with a second income (hence my heavy use of 0% credit cards, or else I would get nowhere really fast). I trust myself with using credit cards as a budgeting method because I've always been very responsible with them and have never paid a penny of interest in my 12 years of using credit. I understand though that my "reliance" on them may cause some people to clutch their pearls, and rightly so. I totally realize that I am dancing with danger, but I'd feel more anxious about draining my cash than I would running up debt. And I need to get through the next 3 months with a clear head and without panicking because although I am not in the ideal position to quit a job and jet set across the world for two could be worse, right? riight?!

Last edited by LMoot on Sat Jun 21, 2014 6:16 am, edited 1 time in total.

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 Post subject: Re: Dirty Laundry
PostPosted: Fri Jun 20, 2014 11:01 pm 
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Joined: Fri Mar 14, 2014 4:10 am
Posts: 50
Well I got my last paycheck last Friday from my former job. It's going to be weird not being paid every week as my part-time job pays on the alternate week, and even weirder (scarier?) not getting the larger of my two paychecks anymore. I've been able to pick up a lot more shifts at the PT job, but I make less than half what I made with the FT one; keeping my chin up and being thankful for still having some income, afterall this was a decision I happily made with a (mostly) clear head.

I'm still getting rental income and my tenant is always on time with rent since they moved in last October (thank you!). I checked in on them and in their words they plan on staying until I "kick them out". Good to hear since I won't be able to work full-time again until end of Aug - Sept.

Finished buying plane tickets for my trek across the world. NYC to Casablanca for 2 days, then off to the Ivory Coast for 5 weeks! I cannot wait, it's been years since I've had a real vacation and I was starting to get cabin fever. I'm hoping to come back renewed and invigorated and ready to rejoin the full-time work force fullforce. Just gotta get my resume in top shape and create the best cover-letter ever. I already have a list of hotels and positions I want to apply to as soon as I get back so hopefully the search will be easy. Now to practice those interview questions.

My 0% cc balance is creeping up and I'm trying not to panic as this was expected. I just have to have trust in my skills and track-record that I will find a good job and quickly. Technically I'll be okay even if I don't get back to work full-time until next year (though that's not an option for me!) but I really don't want to have to use savings to pay off my 0% balances which are due in full by Dec and Feb. The plan is to get the hotel job and save 50% of my income (doable with my low expenses and side incomes) and pay those cc's off. Officially one month into my under-employment and I have not had to touch savings at all which is good. I've been funding my cash-only expenses--mortgage, heath insurance, cc minimums, cash to grandmother for letting me stay in her house--with income from the rental and my PT job, and am even able to continue putting money into savings; everything else goes onto the 0% cc. My plan has not collapsed onto itself yet....whew!

I've managed to keep pre-vacation spending under control though I haven't gone shopping for the personal things I'll need for the trip yet. So far I've spent $250 on deodorant, vitamins, and various other medications (things my family in IC needs and asks for). My sister and parents will be getting other things as well. I'm going to limit my personal things (clothes and shoes, especially rainboots and gear since we're going during Monsoon season) to $250 as well so I see Good Will and garage sales in my near future. I want to keep my spending at less than $1000 while on my trip. I don't have to spend money on lodging and food is cheap, but we'll be expected to feed everyone in the house while we're there and provide any other household needs.

I'm just going to do the best I can without stressing and then when I come back. I leave in a week and probably won't be able to check-in, so I will update again in 2 months, hopefully with news of interviews and a new job.

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 Post subject: Re: Dirty Laundry
PostPosted: Sat Jun 21, 2014 2:12 pm 
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Joined: Sat Jun 14, 2014 8:50 am
Posts: 25
Have you checked out YNAB?

Jameson Triplett
Triplett Advisors

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 Post subject: Re: Dirty Laundry
PostPosted: Sat Jun 21, 2014 3:50 pm 
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Joined: Fri Mar 14, 2014 4:10 am
Posts: 50
I've looked at it because I've heard so many others refer to it, but I don't think I'd benefit much from it (at least not enough to justify the time and effort) as I'm already pretty frugal. I regularly saved 50% of my income for the last 6 months, and about 35% prior to that. All of the "financial feels" they refer to on the website "the stress, the frustration and fear of not paying bills, living paycheck-paycheck", luckily has never applied to me. My issue at the moment is income so that's what I'm focused on.

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 Post subject: Re: Dirty Laundry
PostPosted: Sat Jun 21, 2014 5:34 pm 

Joined: Tue Oct 29, 2013 2:14 pm
Posts: 119
Eek! If I hadn't read your other posts around the forum I'd call you crazy. But based off of that, I'd say if there was someone who can handle what you're doing, it's you!

Best of luck, and HAVE FUN!!

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 Post subject: Re: Dirty Laundry
PostPosted: Sat Jun 21, 2014 7:07 pm 
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Joined: Fri Mar 14, 2014 4:10 am
Posts: 50
LOL Thanks Lis! Oh you can still call me crazy, I do :)

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 Post subject: Re: Dirty Laundry
PostPosted: Sat Jun 21, 2014 9:18 pm 

Joined: Tue Jun 30, 2009 9:44 pm
Posts: 273
Location: Atlanta, Georgia
Wishing you safe and happy travels, LMoot! I admire your bravery with the move and job change. Looking forward to hearing more from you in the future :-)

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 Post subject: Re: Dirty Laundry
PostPosted: Sun Jun 22, 2014 2:58 pm 
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Joined: Fri Mar 14, 2014 4:10 am
Posts: 50
Thank you LeRainDrop. I can't wait to have something to update on (that is I hope I have something to update in the next couple months).

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 Post subject: Re: Dirty Laundry
PostPosted: Sun Jun 22, 2014 3:51 pm 

Joined: Sun Jan 06, 2013 10:30 pm
Posts: 103
Hi Lmoot,
Have fun and a safe trip, I am planning to do a trip to Peru in October and can’t wait. I will be actually doing volunteer work for about 2 week. I have never done any volunteer work oversea before, so this will be a good experience. I wish one day I can also quit my job and do more traveling but I’m not financially ready yet. Enjoy your trip and give us some update on your trip when you get back.


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 Post subject: Re: Dirty Laundry
PostPosted: Sun Jun 22, 2014 6:14 pm 
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Joined: Fri Mar 14, 2014 4:10 am
Posts: 50
wow jpham that sounds exciting! I've always wanted to go to S.A., and to volunteer overseas...maybe one day. Traveling is definitely something I've always wanted to do on a more regular basis and find it hard to do not just for financial reasons, but because of the lack of time. Working to get both is hard but hopefully worth it.

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