Author Topic: Case Study worthy of face punching (multitudes of face punches)  (Read 5812 times)

Bracken_Joy

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #50 on: September 05, 2017, 12:47:01 PM »
Laura- always knew you were smart. This just helps to confirm it. Thanks for constantly helping me develop my empathy and problem solving on case studies!
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Laura33

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #51 on: September 05, 2017, 01:42:13 PM »
Aww, shucks [blushes].  Thanks, guys.  :-)

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Goldielocks

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #52 on: September 09, 2017, 06:43:03 AM »
.......  So if you would like her to add that job, the time and energy has to come from somewhere else.  And -- critically -- and you want to make sure it is coming from the "right" thing, both in terms of finances and her own emotional health.  If she is making $250/wk from photography, and that is keeping her sane, you don't want her to feel like she needs to give that up to save $50/wk by taking over more efficient snack duty for the kids.


Good post from Laura33.   I caution that you don't really know how much the photography is NETTING in income.  Your wife might, so ask to sit down with her numbers, and look for net amounts (and then allow for taxes).

It is very possible to run a growing small side business for a while with not much net income, only break even (which is still fantastic), and that is OK, but not for long.  It often leads to running a medium size / FT business that only breaks even, which is a horrible waste of time, because I guarantee that the "happiness" factor also comes with "Work stress / businesss ownership stress" factor.

Have you looked into the finances for the business with her yet?  Do they seem to be well organized and complete with all purchases that you know of to set up her studio room and advertise and get a licenses?  How does it prevent any household money from going to upfront purchases?  Does it include taxes on any funds she is spending?  If not, can you help for a while to track so that the two of you can make fact based decisions about it?

11ducks

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #53 on: September 10, 2017, 02:16:16 AM »
Why did you have 10 credit cards at one point? Were they opened by both or one of you? Store cards or used for something else? It's awesome that you have paid 7/10 off, but knowing what was on there (ie what you accrued debt on) would help?
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tduff311

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #54 on: September 10, 2017, 08:28:03 AM »
Why did you have 10 credit cards at one point? Were they opened by both or one of you? Store cards or used for something else? It's awesome that you have paid 7/10 off, but knowing what was on there (ie what you accrued debt on) would help?

Mostly passions: mountain bike, bike parts, bike service, but 2 were car credit for repairs and such. There was one for furniture and one for my wife's Christmas camera gift. One for a large dental bill my insurance wouldn't cover.

Mostly the result of having no emergency fund, poor planning, and little discipline. All of this was
addressed  a year ago and we have been paying off debt, established a beginner efund, and cutting costs/increasing income - growing the gap.

The future is not some place we are going to, but one we are creating. The paths to it are not found but made, and the activity of making them changes both the maker and the destination.

former player

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #55 on: September 11, 2017, 02:24:27 AM »
I do think that either there is too much emphasis on the forums on having an emergency fund, or that "emergency fund" is taken to mean something different from the precise words.

I think spending on things which are not monthly expenses (bikes, furniture, gifts, car repairs) but are not emergencies needs to be planned for with a sinking fund - you set aside a certain amount of money each month for eg annual expenses and future expenditures, and put that into an accessible savings account to draw from when the payment comes up.  It means that you never again need to borrow money for consumer spending and never again buy anything you don't have the money for.  After a year your sinking fund should be pretty much at a steady state as you understand what those "regular irregular" expenses are like.

A true emergency fund is something different, to my mind.  It's having money that you can use for true emergencies.  Personally I think that because that need is so unpredictable both in timing and amount that it is futile to set aside a certain amount of cash for it and much better to plan how other existing assets (sinking fund, credit cards, fungible investments) can be drawn down as necessary.

You may want some kind of combined sinking and emergency fund.  Whatever you do, you do need to ensure that in future you are planning ahead for the kinds of expenditure that you previously ran as debt on credit cards.  It will give you a great sense of control if you do so and prevent you from accumulating debt again.
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tduff311

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #56 on: September 11, 2017, 08:39:43 AM »
I do think that either there is too much emphasis on the forums on having an emergency fund, or that "emergency fund" is taken to mean something different from the precise words.

I think spending on things which are not monthly expenses (bikes, furniture, gifts, car repairs) but are not emergencies needs to be planned for with a sinking fund - you set aside a certain amount of money each month for eg annual expenses and future expenditures, and put that into an accessible savings account to draw from when the payment comes up.  It means that you never again need to borrow money for consumer spending and never again buy anything you don't have the money for.  After a year your sinking fund should be pretty much at a steady state as you understand what those "regular irregular" expenses are like.

A true emergency fund is something different, to my mind.  It's having money that you can use for true emergencies.  Personally I think that because that need is so unpredictable both in timing and amount that it is futile to set aside a certain amount of cash for it and much better to plan how other existing assets (sinking fund, credit cards, fungible investments) can be drawn down as necessary.

You may want some kind of combined sinking and emergency fund.  Whatever you do, you do need to ensure that in future you are planning ahead for the kinds of expenditure that you previously ran as debt on credit cards.  It will give you a great sense of control if you do so and prevent you from accumulating debt again.


Very well said!

Thank you
The future is not some place we are going to, but one we are creating. The paths to it are not found but made, and the activity of making them changes both the maker and the destination.

ATR

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #57 on: September 14, 2017, 03:35:58 PM »
Posting to follow! Looking forward to continued progress and to seeing what fancy snacks the kiddos have been dining on.

craiglepaige

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Re: Case Study worthy of face punching (multitudes of face punches)
« Reply #58 on: September 16, 2017, 10:52:29 AM »
First I want to say thank you for your services :)

With that out of the way, I want to FACEPUNCH you super hard for that gorcery bill. Duuuuuude, what are you guys doing? That's insane.

Okay, so how to move forward?
First, I think you need to let your family know that you all have your HAIR ON FIRE. Honestly, you guys are drowning in debt. Your family may not realize it, but you are "two weeks without paid" away from some major shit. 

Do you have anything to sell?  You need money now!!!        Oh, by the way, Christmas around the tduff311 house this year is going to be rather weeeeeird... People are not going to be getting new iPhone X's or no other shit like that.

Anyways, you need to sit down with your family and figure out a way to cut food/phone/car insurance/internet down. Drastically!  They ALL - kids included - need to realize that money/debt has become the enemy and will crumble you if you all don't do something about it.

Food - shop Aldi's. - you need to cut this down in half.
Phone - Cricket - $35 per line.
Car Insurance - I can provide you with my insurance agent.
Internet - Time Warner/Spectrum $44.99 (maybe WOW)

Once you cut this down, you should have an extra $700+ to throw at the Chase CC with 0% so it can be paid by December. Then you take the $800+ to put into the 23% one so that should be done by March 2018. Now you are -$7k in debt.

At that point the Synchrony card will be almost out of the 0% interest, so you are shit out of luck there but what else can you do?  Take the hit but pay it off asap after the other two.


I'm in North Olmsted and I know that $250k buys a lot of house around here. Considered selling and moving?

We had a "Cleveland Meet" in the spring and had a good turnout. Interested in coming to the next (whenever) one?

PM me for insurance info.
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