Quite a bit happened for me in November. Pretty much all of it good. One of the main things I’m working on right now is reducing my business down to just a few core projects. I’m winding down one project that hasn’t really panned out, and I sold off my alpha project that was producing decent cashflow, but was really wearing on me.
Commentary
- IRS balance is up even after my 2nd payment. I thought my payment plan included 940 taxes. Nope. Got a new notice on this and added the 2006 balance for those to the IRS row.
- I emailed the large investor in my old business about buying him out of his stake in the company. I originally guessed 65K, but it will take 63K to do this. Hopefully I’ll be in a position to do this early next year. Investor seems OK with this. This would be a huge burden off my back. Like, super huge.
- I invested a bit of money into my sharebuilder account. Apparently I’m a much better stock picker now that I’m a buy and holder ’cause my account was actually up a bit from earlier in November. I was very hesitant to make this move, but feel confident I will not return to any old bad, day-trading habits.
- I’m now in a position to start making some settlement offers on that 86K number of old business debt. Over the next month or so I hope to severely knock that big number down.
- I’ve dropped my salary to myself down to less than 20K a year. Now that I’m on staff at the peer to peer lending leader, Lending Club, I don’t need to draw as large a salary from my business at least right now.
- I still have a long freakin’ way to go….
{ 13 comments… read them below or add one }
No explaination for what the number are….
Inquiring minds want to know!!!
Whoops! I cut off the main column on the original picture. Fixed now. It's a bit big….maybe I can scale it down…
Yes, mostly software projects and some marketing work. I've been really focusing on my processes lately (ie, outsourcing what I can teach others to do). Working on the business rather than in the business. Reading the e-myth has helped.
jesus christ guy your'e able to pull in some serious cash!
Wow! You've been improving your situation by about $15K each month since summer. What type of business projects do you have? Are they all in software development?
You mean, e-myth the book?
If I may ask, what type of software projects do you do? Do you contract for big companies or small ones?
Yes, that book. I do more for small companies, but I don't talk about it much or want to for obvious reasons. My clients don't need to know my whole situation here.
DK, those pesky tax arrears should be in the personal section, even though business is paying. Ultimately, it's your hide on the line. Can you diddle around with your business (selling assets) with a tax lien in place? Doesn't it attach to your assets? Also, didn't you get an attorney to review your Installment Agreement to see that everything was addressed? I don't think we are getting the full story; that's fine if that is what you intended
Do you get your software contracts through friends/family, or do you market your business cold to potential clients? Sorry for asking but your revenues from the business are amazing.
Wow… what is the status of your bankruptcy – has the judge approved everything and are you in the clear of all old debts? What is your "Debt Destruction Fund" and where does the $$ for that fund originate from (i.e., is it proceeds from your businesses earnings)? The $30K jump from October to November is impressive. Where do the funds from this line item go? The business collections or IRS payoff?
Another question – your business shareholder liability – why was this not charged off on your bankruptcy? What exactly was charged off?
The personal bankruptcy has been done for some time now, probably all settled about 7 months ago.
The debt destruction fund is just a savings account for my business, so yes, proceeds from business earnings. I sold off an older project of mine and that's where the big jump came from.
The business shareholder liability is still there because I never bankrupted my old business. I probably should have, but that would have wiped that shareholder equity out. And since I'm trying to make good on that, I didn't want to do that.
The personal bankruptcy got rid of of my personal debt (credit cards, a personal line of credit, my personal liability on the business debt, etc). Not my Mom debt though of course.
$76K of progress in one year is EXTREMELY impressive. If you could repeat that for just FOUR more years, and throw every dime of it at the debt, you'd be free and clear! I thought my wife and I had done well to improve our situation by $51K this year, but I bow to you.
Did the BK Court make you sell your home or did you just decide to do that?