Hello All,
I was a little hesitant to come back to this thread because of how far I have fallen since the last time I posted. The guilt of falling off the wagon (really never getting on the wagon) has weighed heavily on me. No amount of disappointment from anyone here could affect me, however, as I am my own harshest critic. And so I return.
Other than changing my 401k to receive the maximum company match, nothing has changed since the last time financial freedom wise - except for one thing, my attitude. I realized that it wasn't the partying, the eating out, impulse buys, or any of that that was the problem; it wasn't even boredom like I had said before - it was addiction. I have an addiction to indifference. You work hard for a long time, make great ground, things get a little rocky and you revert right back to not giving a fuck. It's not an excuse, it is a victim mentality in way. I will no longer be the victim of my own deluded philosophies.
Frankly, I'm fed up. I'm fed up with myself. I'm fed up with the life I have been living. I'm fed up with being a sheep when I want to be a mustache.
I am ready to give this a good, honest effort. I have made some bad decisions since then, but I am already making the required changes from the knowledge I gained the last time I was on the forums, and rereading MMM's posts. I don't expect anyone to give a shit. You all helped so much last time, giving me your time and knowledge to help me with a path forward in my life. And I am forever grateful and apologetic. The time has come to put all that knowledge into practicality.
The last time I thought I was ready to change, now I know I am ready to change.
---
Note: Before I was somewhat vague on my postings here. I was somewhat ashamed to give the full knowledge of my current situation because I knew the reaction would be harsh. This time, I want to be 100% fully committed to the cause.
---
Current situation:
Savings
$7,582.86
401k (assuming I work two years at my company):
$10,059.48
Student Debt
$26,385.93
Net Worth
-7,873.59
Vehicle
2008 Toyota Tacoma, no payments (I know, I know). My Dad gave this to me as a gift for getting my Master's and I thought it was a great gift because it had no car payments. Ironically, I just reread Curing Your Clown Like Car Habit on MMM and he specifically mentions this vehicle as one no human should ever drive. Before I don't think I mentioned this because I knew it would get shit on. Now, I'm ready to sell it.
Based off my last ten or so paychecks:
Monthly take home:
$3281.04
I usually operate on the minimum income I will receive which is ~$2800/ month. With OT I can make a maximum of ~$4000 but that is if there is available extra hours.
Required Expenses as of July (Rent to go from $600-800 and potentially 950):
Rent: $800 (electricity and WiFi will be soon to come, I'm hoping combined this is $900) Assume $950.
Phone Bill/ Car Insurance: $215 (includes $30 for phone repayment - $630 left on payment)
Gym: $20
Groceries: $300
Netflix: $11
Spotify: $10
Medication: $10
Gas: $300
Minimum loan payment: $360
Shit that's worse than I thought.
Expenses:
$2176
Average month income: $1105.04
Minimum month income: $624.00
Now I say required expenses because last month I spent so much I actually dipped into my savings. I could elaborate on that one for you guys, but I don't see the point. I know it was all mainly stupid spending.
Actions taken so far:
I assumed my phone line from my Dad. We were paying out the ass for the phones and I couldn't justify the spending any longer. I lowered it to the $55 plan (lowest), but I'll still get fucked for May for $100 because of verizon being dumb. As for the phone (and I could use some guidance here), I have $205 in cashback already from my BoA account. I plan to open a CapitalOne Quicksilver Account (and potentially one more account) to get anywhere from $150-300 in rewards within one month that will allow me to almost fully pay off the phone for free essentially. I'm not so familiar with credit cards, etc. but I think this is a decent way to quickly get the phone bill to $55 without dipping into savings. Also, once I pay off the phone, I can ditch the line entirely if I want something cheaper.
Potential Savings $45
Rent
The increase in rent might actually prove very useful because of its location. Also, it is apparently a two month at will tenancy or something, so if we give them 60 days notice, we can move whenever we want.
Car Insurance
I was dragging my feet with the title to the truck but this month he should be able to sign it over to me giving me full control of it. I'm sure there will be some fees or something associated with this but I'll take it over, and shop for lower insurance. In short time, I plan to sell the truck to get something much more fuel efficient.
Hopefully a lot, but I've never outright dealt with insurance and car ownership so it's tough for me to estimate.
Groceries
I actually spent $298 last month on groceries which is terrible. But this was basically impulse buying diet sodas, water bottles, bagels, fiber one bars, whatever the fuck I wanted. The goal is to get this to $150 per month, including whey protein, to maintain my current bodybuilding lifestyle. I've already worked out a scheme, I think, that will keep me at or around $5 per day. If I can squeeze this even further to $100 per month and still hit my macronutrient needs this would be awesome. I'm also looking into a costco membership but that is approximately 20 miles away.
Potential savings: $150-200$
Netflix/Spotify
Cancelled. I don't even watch Netflix and only use Spotify at the gym, which I didn't before, and got along just fine.
Potential savings: $21
Medication
Nothing I can do there.
Gas
Obviously the problem here is the truck. But I recently moved to 0.4 miles from my gym, and 5 miles closer to my work (10 miles). I have a bike at my Dad's house (make sure it's still there), that I plan to ride around to the gym and for anything else that isn't the main work commute. I estimate this will save me $150 or more on gas based on mileage, mpg, etc. But we'll see. Furthermore, this new location is next to a bus stop that could take me directly to work for $1.50/ day. I could take the bus in and bike home for around $30 or so per month. It's an option to explore. I could even consider biking to work, but my endurance likely isn't good enough and I'll need somewhere to shower.
Potential savings: $150 or more
Loans
Group A
$6,474.56 @ 6.55%
Group B
$19,673.88 @ 5.96%
My goal is to pay off the $6,474.56 before July 13. That includes both a vacation (already paid for unfortunately) and a Bachelor Party (we decided against going abroad to save money). I want to focus on this debt and then look into things like HSA, IRA or just laser focus the other one too for approximately another year. I find for me the the retirement accounts can prove to be a little distracting in tearing down the debt but we'll see. Maybe I'm just being an idiot.
---
I strongly believe I have the potential to cut my costs by $500 - $600/ month, or more.
With the loans paid off and the changes made, I'm hoping that even with a take home of 41k, I can save 50% (after 401k deductions). Once I hit July, and make the 100% vested status, I can proceed to push for raises, promotions, and even different a different job that could pay me more. Until July I won't consider anything, and continue to work as much OT as possible (70 hours last week).
---
Of course with all his (and I know there is a lot to be desired), I must put in the work to achieve the desired result. I ask for a second chance from you guys as I demand a second chance from myself. Let me know what you think about my plan, and any tips on how to keep progressing.