I figured I’d post a response to some of the insightful comments the past few days…
…Advice: take a really hard look at where you spending money (then stop it), get a part-time job (instead of going to the gym and writing a blog), use the part-time money to help pay off the loans… – amazed in austin
I have cut my spending dramatically, no more eating out, cancelling a few superfluous (ohh, smarty pants word!) programs, ect. As for the gym membership, it really helps me work and feel better to work out, so even it is $30/month, I use it quite regularly (it is only a block from my office), and net-net I think it helps overal more than hurts my present situation.
As for geting a part-time job. Not an option at this moment, unless I figure out a sweet way not to sleep! (then I could get a graveyard shift somewhere). I am already working 11-12 hour days at the office, not counting commute time (another 40 minutes total).
So? have you thought of putting your business on hold for a while and going out an getting a job? You are 23. You have PLENTY of time ahead of you to be self emplyed. – Chris in Boston
Running my business is the best option I have at this point. I also have 5 part-time employees (10-20 hours a week each) that I would have to fire. I have been running my own business since I was 20, and when it is going well, I do pretty well. Example: In March of last year we did over $13,500 in Gross Profit on $18,000 in revenue. Net/Net 9K to me that month if needed. So, if I can ramp up my business again to those levels, I might have a shot at avoiding BK. If someone were to offer my a $150K salary job right now…of course I would take it! But, I don’t see that very likely being 23 with a bachelor’s degree.
My question is how on earth did you get this far into the hole? Did you have a margin call? I mean even a bad trader would see warning signs and perhaps take action sooner than later. – Chris in Boston
I deluded myself into always thinking I could make it all back (classic addiction…right?). So, over a period of 3 years, it all added up and snowballed as I got more credit to cover expenses and such from the loses I was taking. It wasn’t fun, and I didn’t get a “rush” from trading, I did however for a long time think it was the only way I could get back to even. Dumb. I did have numerous margin calls trading stocks, options, and forex (currency). Should have traded with Zecco.
Good question though, I mean really, who does this? I’m still trying to figure out why I let myself get into this sitution. From all outside appearances I have a successful small business, a half-million dollar house, and lots of friends, all at 23. If some people only knew the real sitation I’ve got myself into…
have you tried selling some things? I know it takes time to go through the process but Craigs List and eBay can be great resources for generating a little extra money. – Kim L.
I am working on this front. I have a box of things I need to put up on ebay/craigslist. I think this will be a weekend project at some point, because I do need the extra cash. Thanks for the tip Kim L.
get a part-time job (instead of going to the gym and writing a blog) – Amazed in Austin
Why write a blog about my experiences? Two main reasons:
1. Mostly for myself, writing helps me process things, and also keep progress of my goals, successes, and failures. I think writing is good for the soul.
2. Advice. Already I have gotten some great advice. And I need it. I cannot do this all on my own (to quote my father), and the wisdom of many can come up with better ideas than my little brain can.
Thanks to everyone so far for the helpful comments.
Keep them coming, and please subscribe! (I’m a very goal orientated #’s person…so it feels good to see any numbers in my life going up!)
{ 1 trackback }
{ 4 comments… read them below or add one }
Please don’t stop sharing your experiences in your blog. I’m confident that it has and will inspire many others to continue their battle against debt vs. bankruptcy.
Keep up the good work.
I’m going to make a suggestion that comes straight out of the book Your Money Or Your Life (I’m combining 2 steps actually so bear with me)
For the next month write down *every penny* you spend. If you shop some place where you get a receipt (like for groceries or gas) then by all means save the receipt and you can skip the write down process provided you take excellent care of that receipt and hang onto it for dear life. But if you put two quarters in a vending machine for a cup of coffee you have to write down that you spent 50 cents and what you spent it on (a cup of coffee). This means you need to keep paper and a pen or pencil with you (a little notebook or sticky notes or index cards and a writing instrument are all you need for the no receipt expenses
At the end of the month you are to go through *every* purchase and mark them down in terms of whether you feel good about what you spent your money on. So for example if you spent $12 on a dinner out with friends but didn’t feel like you got $12 worth of food and entertainment and enjoyment, put a minus sign behind that receipt entry. If when you pay your gym bill you feel like the $30 you paid contributed to your health your psychological well being your happiness etc was worth $30 BUT NO MORE, you would put a zero on that bill. If you feel like you got MORE THAN $30 worth of value from the gym for the $30 you spent then you put a plus sign on the bill.
Now you sort your expenses into piles. The minuses are where you make your first cuts in spending, then you cut spending on the zeros and then finally on the plusses. So in your case you would stop going out to dinner and suggest having friends over for dinner (maybe even potluck) for much less than $12 for a meal to keep enjoying their company but at a more realistic price (and personal value) than what you paid at a restaurant. There are going to be a lot of places where you the entrepreneurial person can apply your creativity and willingness to think outside what you’ve done in the past to get rid of the minus expenses, minimize the zero gain expenses and maximize the value of the positive expenses.
Anyhow I hope this helps you to start seeing your expenses differently and that cutting spending doesn’t have to be a completely negative stressful experience.
If you are only working these people part time, firing them is not going to kill them, it may actually motivate them to go out and get full time work, If they have earned enough they can get unemployment while they are seeking employment. I would not use them as an excuse not to go belly up in the business world for a while, take on a job for yourself and earn money as “chris in boston” suggested. You need to look at the big picture, maybe you are not cut out to do what ever you are doing. Get a job, live in a realistic world and then you will have a better concept of what it is like working for the man. It may give you a better grip on what you are trying to accomplish. Seems like you need to be more realistic, maybe it is your age that makes you live in this dream world, not everyone is cut out to be a Bill Gates. You use alot of “IF’s” when you speak and alot of “BUT’s”, these are only excuses. It just does not seem like you are making much progress these days. What did you do with the $1000 you won?
Hi DK,
You posted on my blog- I read your 7 things to know about SS’s and would love to link to it from my blog. Short sales are a moving target with so many variables. We are certifying agents in our office, to handle the increase in short sale listings.