Wednesday, September 13, 2017

I got a 8.8% pay raise. Really, I got a Roommate. Really, I got a Girlfriend

I got a 8.8% pay raise.  Really, I got a Roommate.  Really, I got a Girlfriend

Either way you look at it, there’s more money in my budget and less money going out to bills.  The huge savings for me will be GROCERIES.  Groceries is one on my TOP budget items.  It will be interesting to see how much this one will drop.  Another added benefit to my grocery bill going down, should be my work lunch bill going down due to having leftovers from cooking at home more.  Hello higher savings rate!!!

This month has been straight chaos in my house.  My girlfriend is moving in.  We have been slowly moving her since she has until the end of the month to be out of her place.  We have been painting, decorating, spring cleaning, etc., essentially everything you would do when moving into a new house.  My house looks great and it stays clean (she owns a house cleaning business).

With more money starting at the beginning of October, I have decided to reverse my last debt/savings/investing decision and I’ll revert back to my investing plan .  October will see me once again adding to my company IRA and getting their match, putting $200 in my second savings account, $200 in my TD Ameritrade account, while also saving on groceries and other bills.  I expect my savings rate to jump slightly after my bills level back out and I see how much more I can save and invest.

Also, after some going back and forth to get the title straight from the previous owner, I have officially sold the sailboat that sat unused in my driveway.  I lost a little money on it, but I’m happy it is gone and the new owner loves it and will use it at his lake house.  

My last remaining debt balance is $3640 today.  I have about $300 to throw at it before payday this Friday and $1500 from the sailboat (if I don’t buy the camper I’m looking at this coming up weekend).  My $800/month debt repayment plan is still going and will continue until the debt is gone.
Expect a purchase of more (F) Ford or (O) Realty Income Corp as my next purchase, possibly before the new October pay increase starts.  I reckon I should see how (O) has been doing lately.  It's time to start investing again!!!

Wednesday, September 6, 2017

HOLY CRAP – It’s Happened Again – My SECOND Dividend

HOLY CRAP – It’s Happened Again – My SECOND Dividend

I was crazy excited to see my first dividend , and the excitement is equal seeing my second dividend.  Ford (F), who had been dropping like crazy in August, but has since recovered, had it’s ex-div date of 7/20/2017.  I had 27 shares at $0.15 per share, so I saw a dividend reinvestment yesterday of $4.05 which bought me another 0.357 of a share.  It’s so cool that this happens in the background, especially since I’m concentrating on debt right now and not investing .  I am pumped to keep seeing this happen and see my shares build, even if only fractional at this point.

Wednesday, August 16, 2017

Housing Expenses – Why I Rent


The price I pay to live in my home is, by far, my highest monthly expense.  For what I have, a 4 bedroom, 2.5 bath home with a sunroom and 2 car detached garage, in a really nice neighborhood, it is cheap.  In fact, most 2 bedroom – 1 bathroom (run down) apartments in my city, are near the same monthly cost.  I pay $1100 in rent for my home.  It belongs to my friend.  I often have conversations with him about whether he needs to raise the rent or sell the house as he recently bought another house for him and his girlfriend.  I tell him he can rent it out for at least $1450-$1550 per month, and he always counters with:

  • he doesn’t want strangers in his house
  • he doesn’t have time to get the house interior painted for renting (it still has personal paint designs from his ex like one bedroom painted with an underwater theme, sharks and all)
  • he saves money by not having a storage unit to store all his tools – we share use of the garage and storage shed
  • he saves money by not having to store his enclosed trailer that is parked next to the garage
  • he saves money by not having to store his 2 project trucks that are parked in the backyard

My utilities run around $400 per month, so I pay out around $1500 per month for my housing expenses.  This may not seem like much to most people, but it’s a significant portion of my spending.

Home Mortgage

I looked into purchasing a home recently, mostly for an investment, but it doesn’t make much sense financially right now.  I can find a few houses in my neighborhood that need to be renovated with asking prices around 160-175k and having post-renovation values of 200-225k.  My mortgage with taxes and insurance would be around $1050 per month on a 30 year fixed mortgage, and about $1350 per month on a 15 year fixed mortgage.  This would require me to save around 4% down and have closing cost money.  Since I’m still trying to pay off my last debt , I just don’t have any room to save that money right now or have any extra to throw at renovations.  A home, when it’s time, will be a great addition to my net worth, especially if I go for the project home and get moving at fixing it up.

Between the time of writing this and posting, MMM's latest post is an interview with Zeona McIntyre about her experience using airbnb for extra income.  I often wonder if this is a route I could pursue to get some extra income.  It's a great interview and worth the read.  Check it out and let me know your thoughts about renting space in my home.

I got a 8.8% pay raise. Really, I got a Roommate. Really, I got a Girlfriend

I got a 8.8% pay raise.   Really, I got a Roommate.   Really, I got a Girlfriend Either way you look at it, there’s more money in m...