Need money to make money? Help me save!

[uhohspaghettio]

I live in a rural area, I have a good education (which I got kicking and screaming), I'm 26, and have basically retired. I have some credit card debt, but it's frozen at 1% interest (about $4,000) and some non-frozen debt at %13 ($1582). I also have massive federal student loans under an income based repayment plan (payment $0, $30,000 principal). I've decided to stop fearing this loan and improve my income significantly. I am currently in the process of purchasing another rental house ($20,000 bought from friend, no interest, paid off in two years, and will rent for more than costs). It will probably be another six months.
My job pays a small amount but I only work 3 days a week, love the job, and get free internet and cable this way. I have free health insurance though tribal healthcare.
I own my house but it's just now to the point of not needing major work done. Most of my money has been going into the house. But now it's livable. Right now I'm focusing on paying off my 13% credit card, and saving for the rental house down payment.
The Goal: In two years I want to move to the city. This will mean quitting my job (gasp). I don't want to work full-time so I plan to buy a small foreclosed home (<$15,000) live in it, renovate it, move out, rent it and buy another possibly while working part-time or temp. Here's the problem. I don't have the resources, credit, or desire to get a mortgage to buy a $15,000 dollar house, that's ridiculous, and I'd pay more for insurance than for the mortgage. So. How can I get monies?

Financial Details

Expenses
Propane - $20
Electric - $35
Car Insurance (2003 Honda Accord, 1992 Chevy Pickup used only for hauling, maybe once a month only adds $4 to insurance) - $26
Kid - $40
Animals - $100 (chickens, 2 dogs, 2 cats)
Groceries - $100
Phone - $8
Water - $20
Credit Cards Minimum - $180
Child care - $120 (but school starts soon, and she's next on the list for the free daycare)
Gas - $80
Total : $729

Monthly Income
Rent house - $300
Kid's Adoption Subsidy - $430
Wages - $800
Gas Subsidy from work - $75
People who owe me - $50
Total : $1655

I know staying in the area would keep my expenses low, but even if I end up staying I will still need seed money to purchase another rent house. The friend who was willing to let me pay it off was just dumb luck and sentimentality.
Analyze away please. I'll try to be active on here, but will be away from the internet until I'm back at work on Monday.

[Catbert]

[I don't have the resources, credit, or desire to get a mortgage to buy a $15,000 dollar house, that's ridiculous, and I'd pay more for insurance than for the mortgage. So. How can I get monies?


Work more!  I don't know how you can consider yourself "retired" when you have CC and SL debt!  You're just under employed!

[chatsc]

Your kid only costs 40$ a month?

I think my kid(s) cost me 40$ a day. 

[uhohspaghettio]

Working more once I'm living in the city is possible. Right now I have the only/best job for me in the area. The other options are all minimum wage food service, low-end retail jobs, or healthcare. So yes, I'm underemployed. But getting another job won't cut it. I need another way to earn money beside a job (thus rentals). The crux of the matter is, I could make more money in the city, but can't get there until I make more money. Right now my time is much more valuable than an extra $200 dollars a month which is all I would get out of working a different job. Even if it was full time.

By "retired" I mean that I could quite comfortably continue along with my current income if I was content to stay where I am. The student loans would never kick in as long as my income stayed where it is. The 13% credit card will be clear in two months and the other has such low interest I can keep paying the minimum with no real consequences. I own my cars, my houses, and provide quite well for my family. I enjoy my work and have a good life. But can't stay here much longer without atrophying my brain.

The Kid is three and doesn't watch television. She's also adopted out of the state foster care program so there are a lot of benefits that go along with that. Like free health insurance, free infant nutrition program, clothing allowance, and a monthly stipend. Her activities consist of tricycle riding and playing with the neighbor kids.

[AlexK]

Ideas to make money: Use your truck to haul junk to the landfill for the neighbors. Buy something broken on craigslist, fix it, resell for more, repeat. Offer to remove spyware on neighbors computers for a small fee.

BTW you can't get a mortgage for a house less than about $50k (at least where I live).

Being native american on a reservation gives you advantages in achieving FI, I would stay there if it were me.

[uhohspaghettio]

"Being native american on a reservation gives you advantages in achieving FI, I would stay there if it were me."

I think that's the first time anyone has ever said that.

[Rebecca Stapler]

LOL at your $30k in SLs being "massive"! So, your plan with the SLs is to make so little for 25 years that you never have to pay them and then they're forgiven? Is earning $15k over the next 2 years (plus the $$ to renovate the home) going to trigger a minimum SL payment?

[Eric]

So what you're saying is, you'd like more money, but you're unwilling to work more than 3 days a week at a job that pays nothing.  Does that about sum it up?

My suggestion would be to plant a money tree in the backyard and water it daily from your magical fountain and sleep under it nightly.  After the 3rd full moon, your tree will be in full bloom and you'll be rich beyond your wildest dreams.  Either that or get a real job.  Whichever sounds like it has the greater chance of increasing your income.

[Emg03063]

Learn to code; write apps.

[randymarsh]

LOL at your $30k in SLs being "massive"! So, your plan with the SLs is to make so little for 25 years that you never have to pay them and then they're forgiven? Is earning $15k over the next 2 years (plus the $$ to renovate the home) going to trigger a minimum SL payment?

Interesting to see different perspectives isn't it? "Massive" student loans these days means at least ~60K to me.

[arebelspy]

LOL at your $30k in SLs being "massive"! So, your plan with the SLs is to make so little for 25 years that you never have to pay them and then they're forgiven? Is earning $15k over the next 2 years (plus the $$ to renovate the home) going to trigger a minimum SL payment?

Interesting to see different perspectives isn't it? "Massive" student loans these days means at least ~60K to me.

No kidding.

If it's not six-figures it's pocket change.  ;)

[hoodedfalcon]

LOL at your $30k in SLs being "massive"! So, your plan with the SLs is to make so little for 25 years that you never have to pay them and then they're forgiven? Is earning $15k over the next 2 years (plus the $$ to renovate the home) going to trigger a minimum SL payment?

Interesting to see different perspectives isn't it? "Massive" student loans these days means at least ~60K to me.

Oh, what I would give for "just" 30K in student loans.

[DocCyane]

Uhohspaghettio's life reminded me of this story. I'm not as brave as UhOh, to just live in the moment.



An executive from America was standing at the pier of a Mexican village, taking a much needed vacation. It was his first in more than 10 years. He noticed a small boat with just one fisherman had docked. Inside the small boat were several large yellow fin tuna. The executive complimented the Mexican fisherman on the quality of his fish and asked how long it took to catch them.
The Mexican replied, “only a little while.”

The executive then asked, “why didn’t you stay out longer and catch more fish?”

The Mexican replied,  “I  have enough to support my family for a little while.”

The executive then asked, “but what do you do with the rest of your time?”

The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siesta with my wife, and stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life.”

The executive scoffed, “I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise.”

The Mexican fisherman asked, “But, how long will this all take?”

To which the American replied, “15-20 years.”

“But what then?”

The American laughed and said that’s the best part. “When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions.”

“Millions.. Then what?”

The American said, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”

[Rebecca Stapler]

The American said, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”

Which would be fine ... if that's what she wanted to do. But she wants to move and needs the capital to do it, while earning so little that it won't trigger higher payments on her SLs.

That said, this is a fabulous idea:

Learn to code; write apps.

Uhoh, you could learn to program and start freelancing, which you can do on your own time, in your own home, as much or as little as you want. 

[avonlea]

Uhohspaghettio, your story reminds me of Barbara Kingsolver's The Bean Trees.  Lovely novel.

You're currently living off of half your income, so you are definitely doing well on the "cutting back" side of attaining FI.  And it's great that you are now ready to increase your income so that you can tackle the SL's and move to an area that appeals more to you.

Am I right in understanding that you are planning to keep your current property/properties when you move to the city?  How far away is the city from where you live now?  If it's a far distance, trying to carry out the landlord duties could be a little hard.  Could you sell what you currently own and use that money to buy something when you relocate? 

For Income:
Learning to code is a good idea.  My husband has started nudging me in that direction.  Also, if you have the proper home computer equipment, you could look into teaching ESL through Skype.  Since most of the clients/students live in Asia, your lessons would take place during their peak hours, which work out to be when your daughter is sleeping (either late night or early morning).  I did that for a year when my kids were younger.  Less sleep for Mom is not exactly fun, but it does allow you to work from home and bring some $ in.

I think it's wonderful that you are taking such good care of your daughter.  Children require a lot of love and attention, and choosing to adopt a little one when you yourself are young is not an easy sacrifice.  So that makes me wonder: Do you enjoy working with kids in general?  Would you like to check with the local school district to see if there are any job openings since not all positions in a school require a teaching certificate?  You could sign up to be a substitute teacher on the days you are not at your other job.

Sorry this message is so long, but one more train of thought: I know that you are not interested in working full time. Perhaps it might be something you could consider doing just for the time span of now until the move?  To become a manager at a restaurant, fast food outlet, or retail store generally requires a 4 year degree nowadays.  Since these types of businesses are in your area, it might be worth checking to see if you could qualify for something more than a part-time minimum wage position.  Do you have any family member around that could regularly help you with the care of your daughter?  Or if the neighbor works, maybe you could help each other by swapping babysitting.

Good luck, Uhohspaghettio!  I'm rooting for you!

[chatsc]

I don't know how you only spend on 40$ a month on your kid.  I am curious if you are planning to budget more in the future.  I have 3 kids and I find that they do get more expensive as they get older.  Occasional swimming lessons, maybe soccer in the summer, a new bike helmet, a lost backpack on the school bus, end of year field trip, going strawberry picking at a Pick your own farm, a new pair of shoes for a wedding, a trip to a museum once a month,  going to a fancy water park in the summer, a lost mitt, downhill skiing lessons in the winter, new pair hockey skate laces.  It goes on and on...

I am not for you working more if you dont want to, I myself only work 3 days a week and I love it. I just wonder if you are planning for the future expenses of the future.

[NWstubble]

I don't know how you only spend on 40$ a month on your kid.

Occasional swimming lessons, maybe soccer in the summer, a new bike helmet, a lost backpack on the school bus, end of year field trip, going strawberry picking at a Pick your own farm, a new pair of shoes for a wedding, a trip to a museum once a month,  going to a fancy water park in the summer, a lost mitt, downhill skiing lessons in the winter, new pair hockey skate laces.  It goes on and on...

You teach your kids to swim instead of paying others to do it for you, kids backpacks can be found second hand for pennies on the dollar, you grow your own strawberries, you wear shoes you already own to the wedding, you find coupons or free passes to the museum, you teach your own kids to ski...it goes on and on.

[chatsc]

I don't know how you only spend on 40$ a month on your kid.

Occasional swimming lessons, maybe soccer in the summer, a new bike helmet, a lost backpack on the school bus, end of year field trip, going strawberry picking at a Pick your own farm, a new pair of shoes for a wedding, a trip to a museum once a month,  going to a fancy water park in the summer, a lost mitt, downhill skiing lessons in the winter, new pair hockey skate laces.  It goes on and on...

You teach your kids to swim instead of paying others to do it for you, kids backpacks can be found second hand for pennies on the dollar, you grow your own strawberries, you wear shoes you already own to the wedding, you find coupons or free passes to the museum, you teach your own kids to ski...it goes on and on.

My point is that kids do cost money at some point in their lives, and it needs to be in the future budget.  A free infant nutrition program and a tricycle are great while they last, but at some point kids cost money, essp if she is considering moving into a major urban centre.  No one can dispute that kids cost money, it is a fact.  And things come up. 

I will take the spirit of your message into consideration while planning my summer and fall, because in this busy life, it a reminder that we all need.

[Frugally-raised]

If you need to raise $15,000, then you need to look to your assets. Right now, that's the stuff you own and your brain (future earnings, etc.). Either sell something or get out from being underemployed. There really is no other way to change your situation.

Employment doesn't only mean taking the jobs that are offered. In fact it sounds like your only option is to make your own job opportunities. Which might mean working for significantly less money than minimum wage, especially in the beginning. That's fine, as long as there's a strong likelihood of earning more fast enough.

[uhohspaghettio]

How this went:

Instead of adding a job I opened my home to two more foster children. Since I adopted through the system previously I was approved and had already done the training. This means that I got about $800 more per month of non-taxable income. While still raising my household members to four. I also asked, and received, a $2 raise at work. All of which enables me to save about $2000 per month.

During this my best friend bought a house in the city I want to move to. And I realized that I can be easily satisfied with the occasional long weekend in town. Which I do about once a month.

I'm at the point now where I'm considering dropping my work hours to 10 hrs per week. Life is good.