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.

The Debt

August Debt
August Debt
Yes, it was a craptastic month. I hardly made a dent in the debt simply because I finally finished renovations on the new house AND I had to evict my other tenant and make the other house ready for new tenants to move in. Because of those two things my credit card debt has gone from zero to sixty in no time flat. The good thing is that two out of the three units are rented and if I wasn’t being so picky the third one would have been rented too. Since I’m not accepting any government sponsored programs for my apartments, it might take a while.

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.

Blogging Income

Google Adsense YIAC: $157.76
Google Adsense MTFH: $1.61
Google Adsense Super Secret Site: $71.54
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
Total: $410.42

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.

Join the newsletter

Subscribe to get our latest content by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit
Related Posts Plugin for WordPress, Blogger...

23 thoughts on “August 1 Check In

  • Sandy, really sorry to hear about the accident and your real pain and the money pain. Life sucks when things like this happens but I guess they sadly do! At least you are not going to have any long term health issues from it.

    Your financials are quite complicated compared to my life so I glaze over looking at all the numbers but you seem to have a very good grasp of where you are going with it all.

    Maybe a middle ground older car would suit better than a $30k new or nearly new one. I know you won’t exactly be the coolest kid on the block but you’ll be far less out of pocket.

    Get well soon.

  • Man, that debt shot up this month! THat sucks you really got reamed!! As though car accidents aren’t bad enough, you have to deal with the financial fallout from it too. So sorry. But it seems lik the worst is past now, so now you can focus on slowly climbing back out. Again.

  • I am in awe of what you’re accomplishing, even with the setbacks. Thank you for posting all this on your site! It’s definitely helping us put some things in perspective and make some plans for our own debt load. It is overwhelming sometimes. My husband and I both have significant chronic conditions. He is a 28-year cancer survivor of a very rare type of cancer and was left with chronic problems from the intensive radiation treatment he received at NIH. I have been battling the effects of Systemic Lupus with kidney damage for over 30 years (though…the kidneys have significantly recovered over the last few years – yay!). Though we both qualify for permanent disability and were each on disability at one time in our lives, we both now work full time and have for many years. However, we know one or both of us could become unable to work again at any time. Like you, we want to eliminate our debt, become as self-sustainable as one can in the city, and retire early. I am in the process of changing jobs which should make some of this easier on my end anyway. I know it’s going to be difficult, but it’s so helpful to see folks like you doing this too. 🙂

  • Sorry to see all the setbacks you’ve been having lately. I am glad the accident wasn’t worse. You do seem to have a great plan in place, and I am sure that even with this past month’s results, you will meet your goals!

    • The frame is bent and it’s a unibody. It can move, but I will get tickets left, right and center since the trunk doesn’t close, the bumper is crushed in to where the trunk used to be, and the lights are gone. 🙂 I’ve gotten a whopping 3 days off…of which they called me all the damn time.

  • Really sorry to hear about the accident.

    “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.”

    That is not your call to make! You should 1000% see an attorney who specializes in PI. Was the accident in PA or in NY? If in NY I’d be happy to set you up with a really good friend of mine.

  • Wow, really sorry to hear about the accident. I was recently in one as well, but my car drove fine and I was able to cash out and come out ahead.

    As far a suing, the only reason I would suggest is for future medical bills. Once the claim is closed out, any recurring injuries will NOT be covered, and it would be good to have the savings to pay for it. I was in an accident and broke my neck, and though I didn’t sue my friend for driving like and idiot and crashing, we did settle with “their” insurance and helped me put money away for the future.

    Of course, I just blew it all, but you’d be much smarter with it and it could help with future medical bills.

    • Holy broken neck!!!! I’m glad that you recovered. I’m sitting here with my head tilted to the side from the neck strain and that’s painful enough! I can’t imagine what you went through.

    • Yeah, we’re looking at used right now as well. I just need something 100% reliable that won’t break down on me in the mountains of Pennsylvania.

  • How about checking with a car rental place like Enterprise for a used car to buy? They keep great maintenance records as well and don’t allow the cars to have more than 20k miles on them when sold.

    And get a car YOU need and can afford and not one your boy friend feels comfortable in. If he needs a bigger car he can buy one!

  • Wow sounds like murphy came a knocking!! but going into more debt and derailing long term plans?? i don’t know i might be off my rocker… but why not use the 30k towards paying back 401k loan like you originally planned.. and buy a car that will do “you” for around 3k-5k leaves a little money to go towards some of the credit card debt … i see the car incident and the house loan as two separate events.. why would you borrow 30k from your house to get a car!! .. get a good used and save up like the original plan.. even then am sure can get a nice suv for less than half of 34k.. sorry about my rambling..

    • Not rambling at all! I’m going to use the $30K to pay the 401K loan regardless of what I do. Having that loan ties me to a job that I dislike, so my freedom is totally worth the cost.

  • If it makes you feel better or motivates you, my dear Moose is worth about $3,500 and it does OK! No need to spend $30k! Big guys can fit in him too.

    Take the insurance money, spend no more than $5k on a second hand car and save the difference!

    • I’m fine with a used car for the next few years. Unfortunately, I’m not the sole decision maker,so we’ll see what happens.

      • That’s an interesting comment.. about decision making and finances when not married (aka legally binding contract)..

        • 30k I had a similar thought. If it’s my money buying anything then its my decision. Would hate to succumb to someones choices and then they bail in a few months, years etc and I am stuck with payments or a car that isn’t fuel efficient, and is literally to big for what I really need.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.