I just made payments.
I feel better.
The last week I’ve been putting off making some payments (internet for the office, office lease, car payment, ect) that are essential. Basically, I didn’t have the cash. I feel alot better now. I paid one payment on the car, paid office rent for April, and $100 to comcast, so hopefully they won’t shut off my interenet at the office (which runs our vonage phone lines).
The House
My real estate agent requested a 6 month Profit and Loss statement for my business. I guess the 2nd mortgage company isn’t just right away approving the short sale. I didn’t think it would be that easy. I hope they realize I’m not trying to screw them. I really have no $. I hope they approve the short sale. My 6 month P/L looked pretty bad. Granted, its improved the last two months…but still nowhere near enough to pay the 4K a month I need for the house.
Crossing my fingers on this whole housing situation. I just don’t want people showing up at my door talking to my roomates about buying the house because its now in pre-foreclosure. (which, I’m sure it is pretty darn close to being in that state. I’m hoping that my realtor talking with the mortgage companies will prevent this). I don’t need another thing to think about at the moment.
Selling Crap
I finally got my motorcycle sold this past week, which gave my a little under 2K is very much needed cash. I put together my first $960 payment for the Debt Management Plan, send $400 to my Mother, and put the rest in the bank.
I can’t for the life of me find my digital camera, and I’ve got a crapload of things to sell in the next 3-4 weeks. I went through my room and house and office this weekend and wrote down what I’m going to put up on craigslist and what I’m going to put on ebay. I think I can get another 2K for all my junk without too much effort.
Business
Business stuff is going OK. The good news is that our advertising program is starting to stabilize and our cancellation rate is dropping. We started selling packages again last week. Some of our sales won’t begin bringing in revenue till next month though. So, this month is gonna be tight (see selling crap above!).
I think I worry that our advertising packages are too highly priced….but then I look at some people who have been in the program since Nov. and they are still with us. They wouldn’t pay monthly for 6 months if it wasn’t working? Right? I have so much more I want to do with the program, but my bare minimum seems to be working at the moment, but that is no way to build a long term business. For now, it’s all I can do though.
Me
I’m doing OK. I get really down on myself when I don’t get enough accomplished at work. I’ve been oversleeping (like till 10/11am) lately, and I just don’t know why I do it. It’s been hard to really get motivated as of late. I know my little niche can generate more than the 7K a month I making in it now.
I had a good talk with my younger brother last week about telling my friends about this whole mess. It really just comes down to my pride and where I find myself worth from. Is it from others? or myself? or a higher power? I like to think its the last two options, but this whole mess is showing me how much I really value what people think of me. It’s easy for people to say, “who cares what others think!” It’s harder for me to think that way when I know most people DO have a very high opinion of me (that is not a boast, I think I just get along well with people).
In any case, I’m going to tell one of my friends after this month is over. There is no way around it come June 1 since I’ll be living in the office and keeping that under wraps would just be silly. I will tell my one friend before then, and perhaps one of my employees that is going to work full time in the summer for me as well. (since I’ll be living in the office then).
Living in the Office
This isn’t going to be horrible. My gym ($30/mo) is two blocks away, and so I’ll have a shower right handy. Plus, it will make me work out more (I’m a pretty fit person) than I already do.
I’m not sure about the legality of it all of course, but of all the things I’ve done, I don’t think doing this will weigh super heavily on my conscience. And I just can’t afford a place, there is no way. After next month I am losing the $1500 a month from my renters, and I just ADDED the $960 payment for the debt management plan debts. Yikes.
Spartan Life
From a readers suggestion I read ‘the millionaire next door’ this weekend. I checked it out from the library. It was good. Interesting. I’m trying and having to readjust my whole thinking on money and wealth because of all my mistakes and the book gave me some good ideas. I really liked the ‘big hat, no cattle’ line. ie…you have lots of stuff (crap), but no wealth/money in the bank (the cattle). So, if I ever get out of this mess and have extra money…I’m buying cattle.
{ 15 comments… read them below or add one }
There was a comment left to you previously that talked about selling stock off in your company to get some cash to at least get you most of the way paid off. Any thoughts on that?
Zintradi
I doubt anyone would want to invest in me, giving my past track record. If there was a way to pay off my business debts or consolidate them, I would look into it more. I just don’t think that route will work at the moment.
Further down the line, if I can get the business generating more in the high teens or 20K a month zone, this would be a possibility I would feel comfortable with. Thanks for reminding me about this.
so, assuming that your short sale gets cleared and your business is still running at 7k, where will that leave you overall per month? and how long term is the payment plan that you have worked out? it seems like you are really headed in the right direction. i know how bitchy overdraft fees can get. i had someone forget to cash an $800 check for six months before i kept some semblance of a budget and it destroyed me. i ran up $200 in overdrafts before i figured out what was going on. i guess that how they will pay for the subprime implosion.
good luck man, it looks like you are really taking this thing head on.
I’ve been reading your blog for a little while. I recently read The Millionaire Next Door as well. It gives you a lot to think about. Just stay the course, do what you need to do and you can dig your way out of this hole.
Rock on! Progress may be slow to start, but I truly believe you are moving in the right direction. You’ll work your way out of this spot, and things will starting turning for you. It’s been said that the harder you work, the luckier you are…. Keep at it! Don’t give up…. once you get some momentum going, you can look back on March/April of 07 as a turning point….
Inspirational blog. Good luck, mate!
well, then I say sell, sell sell!!!
In a good way, your raises in salary are totally up to you, and in a bad way, your raises are totally up to you:-)
what about selling the business to get out of (at least most) of this mess, and then start over?
Just curious, how does a 23 year old get approve for that much credit? what type of business do you have?
It’ll take some time, but if you get around to being honest with your (closer) friends about your situation, I think you’ll find them supportive. Part of the wisdom that comes with age is realizing that people aren’t as perfect as they seem and that people have a lot of respect for someone who overcomes adversity. At my work today I heard two stories of people overcoming problems, including from one person I’ve known a long time and have a lot of respect for. I had no idea before today that among his problems, he had a $200k unsecured debt problem four years ago that today is $0. The people hearing his story thought a lot more of him, not less, and you’d be surprised how many people are in recovery in one 12-step program or another. So, take your time, but don’t be afraid to tell your story–I think you’ll find your self-worth increases when you do.
I have the utmost respect for you and I applaud what you are doing. I think that when you open up to your friends about the state of your current affairs you will have a huge weight lifted off of you. Don’t underestimate true friends.
Regarding sleeping in till 10: it sounds like you might be getting a bit depressed. Not unexpected under the circumstances.
I’d make sure to work out hard at least three times a week. Make yourself go even if you don’t want to.
That always does it for me. I wind up with more energy, spend less time whirling around inside my own head.
The beginning is always difficult. Soon you will get your plan fully in place, and then it will go better. We’ve been rolling along for awhile now on a very limited budget, and it’s actually okay, once you get used to it.
Millionaire next door… that was me! Yeah, I liked that cattle line too. If you haven’t read or podcasted Dave Ramsey’s book, I’d read that one too, probably before millionaire, it’s an easy read, takes a couple of evenings in bed to cover.
There’s a chance living in your office is against zoning. It depends upon where your office is, and if the authorities in your area are in a mood to enforce whatever rules they have. You’ll want to keep your office living arrangements as low-profile as you can. Good luck!
Debt Kid, I like the “Big Hat, No Cattle” metaphor. And like Jiggy’s comment above, I have to say it’s good to see someone trying their best to work their way out of trouble rather than just blag their way of it. Best of luck with the crap sale, be sure to link to the online auctions, with a decent amount of traffic from your blog it should bump up the amount of money you can raise. Might be worth you’re while registering with pfblogs.org and pfblogs.com to build your traffic too. Best of luck.