Author Topic: Can you guys help me to start growing my Stache!?  (Read 3932 times)

CoreyDEEE

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Can you guys help me to start growing my Stache!?
« on: July 23, 2013, 12:06:58 PM »
So I am looking for advice to start up my stache!  My goal has always been financial free, just haven't figured out how to get there yet!

I feel like I am in a good situation (low debt) but I do like the consumer lifestyle - clothes, dinners, entertainment etc. but I am slowly shaving it away to make room for my stache!

My background was a little crazy; I played hoops and got college scholarships so I have no student loan debt, then I went and played overseas for a few years basically breaking even (had I had my stache then I'd be ahead of the game.)  Now I am in real estate, working for a small business with no perks, I am a licensed agent and have my own company (did around 30k last year all re-invested back into the company)

Currently:

Rent/Mortgage: $0 live at home, own a house that needs about 40k in work, isn't liveable and has 6k in unpaid taxes and water bills (carry over from previous owner - my dad)  Renovated, it could get about $1000-1200 in rent.

Car: 1998 Dodge Durango gas guzzler, 149k in miles, but paid off - It is on its last legs and I am looking for a new one. I am a big guy 6'6 so my options are a limited to what I can truly fit in. I spend between $200-$350 per month on gas - Driving on average of 20-30 miles per weekday and about 20 miles total on weekends.  Insurance is $840 per year, could drop it to $480

Food/Entertainment: $200-$500 per month

Credit Card Debt: $5,500 at about $200 per month

Health Insurance: $113, (employee paid)

Phone: Family plan (5 of us) $300 per month, I pay $100 of that we are locked in for another year. 

I work for a small real estate company, and my perks are limited at best (they pay my health insurance, that's it, no 401k, no car allowance) The owner is flexible and open to negotiations on certain things though.   I drive a lot for the job, as I am always showing houses, and driving around collecting rents.   I make 24k salary, and have about 20k in commission possible per year.  I also have my RE license and have a part time R.E. biz myself that I made 30k in last year (re-invested back into company)

I have about 10k in cash on hand (two savings accounts and bonds)

I will need a car in the very near future, my durango is worth about 1k-1.5k

So in a nutshell:
Incoming:
Salary: 24K Commissions 20K - roughly 2,566 per month after taxes
Occasional bball training - $1200 per year

Outgoing:
Monthly:
$200 on Credit Cards (5,500 total)
$100 on phone
$300 on gas
$500 on food/entertainment
$70 (car insurance, could be $40 with just liability)
$360 to pay back taxes and water bill at property owned

HELP! 

MissStache

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Re: Can you guys help me to start growing my Stache!?
« Reply #1 on: July 23, 2013, 12:25:36 PM »
Did I miss something?  I see you have $2560/month after taxes, but your monthly expenses are only $1530- where's the rest of your money going?

Lans Holman

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Re: Can you guys help me to start growing my Stache!?
« Reply #2 on: July 23, 2013, 12:38:49 PM »
So a 40k investment in the rental house would get you to a point where you could rent it out for 1200 a month?  That sounds like a pretty great return on investment.  Any idea how you could get going on that?

CoreyDEEE

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Re: Can you guys help me to start growing my Stache!?
« Reply #3 on: July 23, 2013, 12:43:41 PM »
My commissions only come in the summer months, so I've just started stacking those up.  My typical monthly income is about 1400 per month.  May-Aug is when I make that 20k so about 16k after taxes. 

That extra 1,030 has been going into my savings account

rtrnow

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Re: Can you guys help me to start growing my Stache!?
« Reply #4 on: July 23, 2013, 12:51:46 PM »
The most obvious things to me is to pay off the cc debt. Why have 10K sitting in the bank and $5,500 on the cc. You could always charge things later in an emergency.

Lans Holman

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Re: Can you guys help me to start growing my Stache!?
« Reply #5 on: July 23, 2013, 01:16:29 PM »
More thoughts: 
Food and entertainment should be separate lines in your budget.  Food is a necessity, entertainment isn't.  With 5,500 in credit card debit, you need to be finding cheap or free ways to entertain yourself.
It sounds like there are some complicated family arrangements with shared phones, houses, etc.  I'm in the camp of not seeing anything wrong with living at home if it makes sense for everyone in the family, but if it were me I would want to be paying a fair rent and moving toward separating out the bills.
Correct me if I'm wrong, but you made 44k last year working for an employer who's not necessarily investing in your loyalty, and 30k with your side gig?  To me that sounds like you should be thinking about making your own company your full time occupation.  Any chance of that happening in the next few years?

MissStache

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Re: Can you guys help me to start growing my Stache!?
« Reply #6 on: July 23, 2013, 01:38:30 PM »
I would agree that you should pay off the CC debt immediately.  Even with that, you'd have enough in your emergency fund to last several months, even more if you reduce your expenses.  Having that debt gone will be a big help. 

For your everyday expenses- food/entertainment of $500 seems crazy for just yourself.  How much is going to each?  Our budget is $400/month for two of us and that includes going out to eat more than once a month and a generous amount of beer.  You can cut A LOT out of that.

You car:  I get that you're a big guy, but here is a gentle face punch:  I have an uncle who is 6'4 and he comfortably drives a Toyota Camry and drove a Volvo before.  He regularly goes on 6-8 hour trips in that vehicle with nary a complaint.  I think the needing a big vehicle is bullshit.  Get that out of your head and learn to love a sedan!  If you're driving around as much as you do, you need to get that under control RIGHT NOW.  $300 on gas- holy crap!  Your car insurance would probably go down, too. 

And why are you paying $100 of a phone bill that 5 people are sharing?  I'm sure it is more complicated, but that doesn't seem fair!

MakingSenseofCents

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Re: Can you guys help me to start growing my Stache!?
« Reply #7 on: July 23, 2013, 03:30:30 PM »
Maybe I missed it, but what is your interest rate on your credit card debt? Knock that out! :)