It’s been awhile since I did a post about my financial situation….so here goes.
I’ve already said this month is going to be tight. It is. Partly my fault because I overspent on business expenses in January, as well as on my personal budget as well. I’m trying to pay myself a 35K/year wage, which is just perfect enough for me to cover my bills, pay my mother, and still eat each month.
January Personal Expenses
Net Income (take home): 2408.54
Expenses
Mom StudentLoans Rent Savings Groceries Take-Out Utilities
400 340.5 450 329.92 188.8 155.04 271.5
Home Entertainment Transportation Church Fees
112.16 307.1 312.24 70 20
Total Expenses: 2957.26
I had a number of anomalies in personal expenses for January. I paid a large electric bill, which was my heat for about 3 months. My Entertainment expense was way high due to a wedding gift. Neither of those categories will be as large this month. Transportation included a plane ticket, also not in the budget. I was able to save over $300, but that doesn’t hit my goal of $400 a month, and I still would have been over my income. Not a good month, but I did what I had to do to stay sane.
Business Update
After net profits in Nov. and Dec. my business had a net loss in January. I made extra car payments (more on this later) that were behind, as well as invested money into a few ongoing projects. Revenue was around $7500, expenses just over 9K. February should be pretty even.
Bankruptcy Update
As far as I know, everything is moving along with the Bankruptcy. I’m hoping to see a discharge letter soon. At least my personal side (besides my mother) will be a little clean.
Car Update
I talked with Toyota about the car. If I decided to voluntarily give back the car (which I could have done in the bankruptcy), they would have made me pay the difference between the loan and the value of the car. That number is likely around 3-4K. So, I’m still 3-4 upside down in the car. Seeing that the loan on the car is at a low interest rate (under 5), it doesn’t make much sense to give it up at the moment. I’ll keep paying the loan down until it reaches it’s crossover point, at which I’ll try to sell it and get something cheaper. No real good options until then. (I can’t get a loan to cover that 3-4K so please don’t tell me I need to get rid of the car. If I could I would, this makes the most sense right now. Believe me, I’ve looked at all the options)
Other Stuff
Tricia at Blogging Away Debt tagged me on a book meme. Never done one of these before but what the heck.
The rules?
1. Pick up the nearest book (of at least 123 pages).
2. Open the book to page 123.
3. Find the fifth sentence.
4. Post the next three sentences.
5. Tag five people.
The closest book to me is “Getting Things Done” by David Allen. I’ve been reading this last week, and it’s already cut my stress levels dramatically. I should finish it this week. Here’s page 123…
“That item may be more attractive to your psyche because you know right away what to do with it-and you don’t feel like thinking about what’s in your hand. This is dangerous territory. What’s in your hand is likely to land on a “hmpppphhh” stack on the side of your desk because you become distracted by something easier, more important, or more interesting below it.”
OK, so I’m going to tag:
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Sometimes a bad month comes up and bites us in the ***; at least you know the reality of the situation and can compensate for it at least a little. Good luck in February!
You know, if you included your car in the bankruptcy, you are not responsible for a deficiency balance. That’s the main reason for filing a chapter 7.
I went through a similar situation almost 3 years ago now. I included my car in the bankruptcy, but kept paying the loan like I still had it. They never sent me a statement, because legally they couldn’t. When I got my income tax refund, I told Ford where to come pick up the car, and bought a brand new one. That debt shows as included in bankruptcy with a zero balance.
Good luck with everything, we all have bad months now and then.
@Dreamy1 – Yes, on the personal side, but unfortunately the business was also a co-signer on the loan. So while I would be protected personally, they would go after a the balance on the business side. Thanks for the encouragement though, this month should go better…
Debt Kid:
Thanks for the update – this was just what I was hoping you would do. After reviewing this I have a few questions:
First: Savings $329? What has your BK attorney said about this? Won’t they take this $$ when everything is done? I appreciate your efforts to put $$ in savings right now, especially since you are self-employed and need cushion $$ for those months when the business is in the red.
Second: That is a HUGE amount spent on take out. HUGE.
Third: Entertainment – you are being very generous to your friends at a time when you need to be generous to yourself and to your mother. What was it that you purchased and who was it purchased for? (i.e., family member, high school buddy, frat brother?) When you made your purchase was it based upon a gift registry the bride/groom had selected at a retail store? If so, where (i.e., Target? Macy’s? Saks?)? Did you attend this wedding or where you part of the wedding party (i.e.., groomsman).
Finally: What’s the plane ticket for?
You know what I see missing – medical insurance! What are you doing for medical insurance?
I think you’ve made the right decision about your car. If I recall correctly, it is still fairly new, so you still have the added benefit of it being under the mfg warranty. My car just hit the 4 year mark and the warranty ended. It doesn’t even have 40,000 miles, but some how, magically, it knew the warranty ended and I had a $1100 repair bill two weeks ago. UGH. At least it is paid for. But, I must admit, while at the dealership, I was really digging a cute little red sports car….. until I did the math on the payments and other stuff.
Again – thanks for the posting and update. I’d like to know more about the things asked above and what you are doing for medical insurance.
We are all trying to support you as you regain your life. As I mentioned in the past, you appear to have high/low mood swings and I wonder if it might be helpful if you were to start seeing a therapist.
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