August 1 Check In
With all of the car accident things to take care of, I didn’t even realize that the new month had crept up on me. Oh well, time to see how this debt things is going. Oh yes, for those of you new to this whole train wreck, the whole point of this blog is to see how I get out of debt. I’m slowly working it down and sharing everything that I’m doing along the way.
Before I get to the numbers, I have to say that crap happens. This whole car fiasco is going to add to the debt and I was totally not prepared for it. My car was paid for and I did not plan on making any kind of automobile purchase for at least another 3-4 years. People have been telling me to sue the pants of the other driver, but really, I just need my medical bills paid and my car back, and my insurance will cover that. Unfortunately, just because someone decides to text and drive then smash into you, you’re are not automatically entitled to extra money.
I’ve been dealing with pretty bad whiplash and a strained muscle in my neck which is no fun, believe me, but I know that the pain in my pockets will be even worse, and have lasting repercussions. Let’s get to the numbers and then back to the discussion.
With the two apartments rented I will now have $1,175 of rental income every month. Out of that I will have to pay for water and gas on one house. Since I don’t have a full month of comps yet, I’m not sure how much that will average out to be.
Before the car accident, my plan was falling nicely into place. I had been approved the Friday before my accident on a home equity line of credit on the house that I just purchased in May for what I asked, $30,000. Remember, I bought it for a little over $37,000, so that’s in line with 80% of the home’s purchase price. I could have gotten more out, because the value came back higher than I was expecting, but I was fine with $30K.
The plan was to use that money to pay off the 401K loan that I used for the home purchase. That would leave me with no bi-weekly payroll deductions and no 401K loan to pay back when I jumped ship from this job into something new. With just one apartment rented, I can afford the monthly payments of a little over $300 per month plus utilities (it’s a ten year term) without dipping into my own pockets. With the now empty unit rented, I would actually have positive cash flow from that house putting close to $600 per month into my pocket.
But, you know what they say about the best laid plans. I want to bang my head against a wall every single day, but my neck won’t allow me. At best, the insurance company might give me $8,000 or so for my old car. My BF and I had already been talking about SAVING for another car purchase in the next three years. He is a tad over 6’4″ tall and was really uncomfortable folding himself into the Jetta. We had been thinking about purchasing an SUV and expected what he liked to cost between $34K-$38K with taxes. Hey, I’m in New York. Things aren’t so cheap here.
Now, I am facing the prospect of spending that much money RIGHT NOW with only the money that I’ll get from my insurance company as the down payment. I’ll have to sue my little texting friend to recover my $1,000 deductible. If I could squeeze in pain (in the ass) and suffering, I would, but the law says that I need proof of three months of suffering. Instead, my pockets will be suffering for at least three years.
This is completely derailing my plan to quit and retire by 40, since I didn’t plan on spending an extra $30,000 any time soon. I am so mad, I can’t see straight, but maybe that’s the whiplash talking. Sigh. I’m too pissed off to even write any more.
Google Adsense YIAC: $157.76
Google Adsense MTFH: $1.61
Google Adsense Shirataki Noodle Facts: $0.43
Google Adsense other: $2.50
Lijit Networks: $11.06
Ad network #1: $120.00
Ad network #2: $42.00
Private ads: $0
Webmaster Work: $0
Sponsored Tweets: $3.52
No, my blogging income wasn’t spectacular, but I did absolutely nothing for ad income in July. I was either too busy with renovations or at the end of the month, laid out from the car accident. This does show that I can still make a decent monthly income, at least enough to pay what my monthly mortgage will be per month. That still shows that you CAN make money online.
Now, next month, since I’m going to have a car note and crap, I’ll be ramping up my online income to the best that I can do. I’m not promising lots, but I’ve already secured some web work that should pay a car note or two if I can pull it off. The key for me will be reducing the amount of time that I spend traveling for work, and spending more of my time doing things for myself. I just came back from a two day trip to Los Angeles, and I already know that I’ll be traveling for a full week at the end of the month. That leaves me little time to make some serious cash.
Either way, my goal is still to pay all of this off within 5 years. That means the houses, car note, student loans, credit card, line of credit and a partridge in a pear tree.
See you next month.