"Hello Mustachians!
I posted this first in "Ask a Mustachian" but was told it would be better received in this forum so here we go!
I recently found this site and am blown away by the content. Actually to be honest it is overwhelming. I really don't even know where to start to get my life on track in the most efficient manner. So what I decided to do was ask this wonderful forum for some help and/or guidance! I am going to give you guys some details of where I am in life right now and see what you guys all think would be my best direction for my first few steps. I realize many on this forum seem to be wealthy or financially independent already and I hope to move in that direction. So with the risk of some embarrassment and ridicule here we go.....
I am 44 years old and single. I recently got out of a business that cost me the bulk of my life savings and wasted many years of my life. My current income will be approximately 30k in 2018. I play poker player in small stakes games to earn my living. I played a bunch before I owned the business and a small bit during the years of running the business but am back at it full time now. I average about $15/hr over a large sample size and should play about 2000 hours in 2018. I am also dabbling in a bigger stakes game where I believe my earn should be in the $25-$35 range with the potential to be higher but for my purposes here I am counting on a solid 30k earn playing the small stakes. I am currently straddled with about 20k in credit card debt. (from the business) and a medical collection ($2000) so my credit is not good sitting in the 620 range.
Credit card balances are as follows:
Chase Freedom $3600 @ 27%
Chase Slate $1500 @ 0%
Capital One $4500 @ 19%
Barclay $5000 @ 0%
Discover $4000 @ 19%
BestBuy $400 @ 0%
Total Rewards Visa $1500 @ 24%
American Express Blue is at ZERO balance
I just sold off an asset and now have $40,000 liquid. I also started a ROTH IRA in 2017 and funded $1500 and have it set up to do $50 a week in 2018.
I have about $2500 worth of Crypto Currency in Coinbase.
So let's begin!
Do I pay off all the credit cards and medical collection and start fresh?
Do I pay off the credit cards that have an interest rate in full and just pay the 0% ones over time? (medical is also not charging any int or penalties)
Is there a better way to put my $40,000 to work for me to make money while I start paying down the debt more aggressively?
I'd also like to know what should I do as far as bank accounts? Right now I have a Chase Total Checking account and that's it. I closed my Chase Savings because it was charging a monthly fee since I didn't have enough of a balance. Should I look to online banking that offers some interest? Should I play the bonus game jumping around to different accounts? I'd also like advice on doing an optimal credit card strategy? Which should I use for rewards programs, etc. and I see some people talking about ways to make $1500 a year or so playing the credit card bonus game.
My expenses are pretty cheap as I have a cell phone for about $100/mo and pay Mom $350/mo rent. $100/mo in gas for the car. My car is paid off but might be near the end of the line! A lot of home cooked meals compliments of Mom and plenty of free food at the casino keeps my expenses down. (I'm a poker player not a gambling degenerate...don't worry. I am a profitable player.)
I know this is a lot all at once gals and guys but I'm hoping for some solid feedback. I understand that much of the information I'm asking for is probably available on the forums but there is just so much and some might be outdated, etc. So thanks in advance to anyone that takes the time to look over my situation and can offer some advice. Feel free to leave any questions you may have and again Thank you!
MrCleanShaven"
Please note that was my original post back on January 20th, 2018. So here we are 6 months later and I thought I would post an update.
Link to original thread.....
https://forum.mrmoneymustache.com/case-studies/*case-study-clean-shaven-but-hoping-to-grow-some-whiskers!/msg1872529/#msg1872529
Credit card balances are as follows:
Chase Freedom $0 @ 27%
Chase Slate $0 @ 0%
Capital One $0 @ 19%
Barclay $960 @ 0% (two payments of $480 left before interest kicks in)
Discover $0 @ 19%
BestBuy $0 @ 0%
Total Rewards Visa $0 @ 24%
American Express Blue $0 @ 18%
Credit Score has crept it's way up to 709 (CHASE,DISCOVER,AMEX) although MINT shows it at 768?
The medical collection has a balance of $1320. After the final two payments to the Barclay card I will up my monthly payment to the collection and pay it off by December.
I should have listened to you guys and dumped the Crypto as now it is worth $1363! It is still sitting in Coinbase...any further advice on that? It is Bitcoin and Litecoin.
I increased my weekly contribution to my Roth IRA up to $75. That account is with ETRADE and it's fun. Every 6 weeks I pick a stock and make a purchase or every 3rd time around I add to VTI. ETRADE is offering no commission or brokerage fees on ETF's.
Poker playing has been going well as I am earning more than expected thus far however that can change at anytime. For the year I have averaged $22.19/hr however I still base my numbers on a goal of $15/hr which should be a worse case scenario.
My emergency fund is sitting at $5500 which is just sitting in a CHASE savings account. Any better options for that?
A better breakdown of my monthly expenses:
Rent $350
Cell $100
Gas $100
Ins $220
Food $200
Misc $100
My poker bankroll is segregated from life stash and is currently at $5000. The first $1100 I profit each month goes to the pay bills account. After that I will pad the emergency fund and then the poker bankroll at a variable ratio depending on where the balances are at. The bigger the poker BR the less I will put towards it until the emergency fund reaches 10k. At that point all the money will go towards the poker BR and investments. The standard thinking behind a poker bankroll is to have about 20 buy-ins for your game. I play in a $200 buy-in game mostly so $4000 should be sufficient. As the bankroll grows I will take more and more shots at a bigger game until eventually moving up full time as the bankroll and skill level warrants.
I am also looking into doing some arbitrage via Amazon FBA for some added income. Real estate investing is something I've always wanted to do as well. Going to start studying that a bit so when the money is right I will be prepared.
That's all for now as always any and all feedback is appreciated. I expect some harsh comments as I do things a little outside the box of what you are all used to and that's fine. I don't take offense to any comments, advice, etc. Let me have it!
Thanks,
MrCleanShaven