I have to admit, I haven’t really worked out all the details yet. I am inspired by Dave Ramsey and the whole notion of financial freedom . I DO want my status symbol to be the Paid Off Home Mortgage. I’m tired of working two jobs, 12 hour plus days etc and barely making ends meet some months. I have started this blog for personal accountability and also, because I know there are others out there, like me, looking for a better way. Looking for some method that works for them to help secure their finances. There are four areas I want to focus on for my financial life.
The more the merrier right! I have two “jobs”. I am the founder of non-profit which pays me a performance based salary and I also have a regular W-2 job that pays me a salary plus commission for sales. I have an uncapped ability to earn commission based on how much product is moved and so that is the area I will focus on for increasing income.
Loan Repayment: I have quite a bit of outstanding “loans” to my non-profit in the process of getting it up off the ground towards becoming financially sustainable. I still have to calculate out how much. I previously didn’t want to look at the numbers!
Side Projects: OK…I also have various ideas or “side projects” I am working on to gain additional income. Those are a bit of a conundrum because on one hand I am REALLY busy with my other income sources BUT I don’t want to “lose out” on potential income these ideas can generate. So I’ll continue to develop that idea as time goes on.
My non-profit was previously run as a for-profit business. It is successful but doesn’t really earn a profit based on the amount of time and dedication. I incorporated the business this year and am processing non-profit paperwork to open up other avenues of funding for that venture including grants and private donations. I mention that here because previously running that business was my big monthly expense. This year the focus is to get that entity to a point where it can sustain itself financially. The first of the year was rocky but as of now it is self sustaining and I am just about to cut my first payroll check to myself.
Realistically I am not a big spender. The work my non-profit does is an absolute passion of mine and I truly love the work we do. I’d rather be furthering the non-profits goals than shopping. My splurge items are frozen yogurt, a movie about once a month and the occasional trip to the hardware store (I LOVE home improvement projects).
My family unit is three so my husband and child do incur some expenses as well. The biggest expense my husband creates is buying drinks for friends / socializing. Its once a week on the weekends but I do want to start budgeting / tracking the spending because for now it just kind of happens with no plan.
My child is pretty low maintenance. She is 7, helps around the house and is pretty happy to be doing whatever mom and dad are doing. For her the biggest expense is trips to the craft store and frozen yogurt. Otherwise she is pretty easy. I am sure that will change as she gets older.
Right now we have no savings. There really needs to be a plan in place for that. We took our first cruise last year and had a great time! It was our first true family vacation. I really want to be in a place where we can do that more often. Even if it is a local camping trip, but more fun stuff outside of home. Because my non-profit is still operating out of my house, sometimes its nice to get away from it all!
OK, you probably knew it was coming. In order to reach my goal of a Paid Off Home Mortgage I need to be debt free. I have been in and out of very tight situations. I was in the “pay day” loan cycle for a while. Thankfully, I am current now on all but one credit card and my first goal is going to be working towards paying them all off. I also have a student loan.
Over the next few days I’ll work on a complete financial analysis. In order to set a goal I need to establish and define my starting point. To start, I’ll outline each of my debts and interest rates, look at minimum payments etc and post them here.
Wish me luck! I hope you’ll follow my journey!