It feels good to be back.
My week-long vacation is over, and although I did work a bit last week, I mostly stayed away from my computer and away from my work. I’m back in Seattle now and feeling refreshed and energized to take on my ongoing battle vs. my 300K debt.
You’re going down debt. Your butt is mine!
Can I cut any major expenses?
My biggest financial choice I need to make in the coming weeks is in regards to my living/work situation. My lease on my current place is up at the end of August, and I need to let my landlord know by the end of this month (July) what I intend to do. My current rent is a $975/month. Bear in mind, I also have a “home office” that my employees work in here as well. It’s still steep though. Considering I used to pay $4,000 a month (house payment + office lease) for my home and business, it’s not terrible. But that was also really dumb.
The options:
1. Renew my lease for 1 year
2. Try to get a 3-month or 6-month lease
3. Go month to month on my lease (which would likely increase the monthly payment)
4. Move to Portland (live with parents or find cheaper rent until I can find a portland, or homes)
5. Live in my car (really cheap!) and store some stuff. Have employees and self work in a coffee shop.
6. Find a cheaper apartment in Seattle (would be very difficult. I couldn’t pass a credit check anywhere)
What I’m thinking
My gut says to stay put for the short term, although longer term (6+ months out) I want something different. My business is in fairly big transition right now, and I still may be talking a half-time W-2 job soon, and so I’m not sure moving is the best thing right now in terms of keeping turbulence down.
{ 6 comments… read them below or add one }
move out of Seattle to a cheaper area like Auburn, Tacoma, Fife, even Olympia…. either that, or move in with the mom and arrange to pay for the utilities and pay her rent of $500 or so and arrange an agreement that the rent money applies toward your debt to her. The paying of the utilities is too see to it that you are not taking unjustified advantage of the situation and to lower your overall monthly payment… either way get out of Seattle… it seems to be a luxury that you are clinging to and is a seemingly unnecessary expense.
don’t live in your car… maintain some level of dignity and take the offer of a place to live with your parents… I’m sure you could use the moral support that they seem to offer you. And the idea that it will get annoying to be in a boomerang situation should provide the proper motivation to get you to get out of this financial peril and in a more solvent condition to start your own family. I know it did for me.
I would suggest the parents option. I don’t think theres any shame for someone your age and in your situation to live with the folks. From prior entries they seem to be supportive of you as well.
Can you explain what you mean by “My business is in fairly big transition right now”? I think what you should do depends on where you see your business going over the next year.
Dude.
Move home. Get a W-2. Run your business on the side (if you can).
I had debt trouble too. I had almost 37K in debt and was able to get it all paid off in 2.5 years. The only way I was able to do it is was by moving home. Sure it sucked being 33 years old and moving home, but it was the only way.
Unless you are going to have some “breakthrough” with your business and start raking in the money I think you are treading water in the middle of the ocean.
Since you owe your Mom a lot of money I think moving in and helping her would be very admirable.
I’m guessing #5 and #6 aren’t totally viable options, although I don’t know enough about your business to be sure. If #4 is actually viable given your circumstances, I think that you should go that route. Otherwise, I would try for the 3 month lease route, and aim to have the questions about change in direction of the business sorted out in 6 weeks or so.
But then, what do I know? I’m sure you’ll make the best choice.
Don’t live in your car. Unless you think living with your mom would be helpful emotionally (ie family support, someone to talk to, etc) and you think you need that now, or you think that the W2 job you will get is in Portland, stay on your own and in your current place.
There is alot to be said for stability. Many landlords look for that in rental history. It is also good for you emotionally. Make a deal with your LL for a 6 month or so extension.It seems that unless you have a particular W2 job in mind, the market in Seattle would be much better than in Portland.
You have an affordable place, limited options to find another rental, the rental you have works for having an employee come in and work, so there really are no problems with it. Keep it stable and focus on other areas of your business and life. Don’t try to fix what is not broken.