The day is quickly coming when Budgets Suck will point to another site. I, the mysterious Fifi, am expanding this project to be bigger and better and help even more people! But to do this, I must reveal myself! Here is a hint. A BIG hint, but a hint, none the less. I am trying to be a True Generalist. That is my pursuit. I can help you get everything done you desire as well.
Don’t you want to know how to MAKE THE FUTURE WHAT YOU WANT?! All will be revealed August 1st!
We’re all doing em: lose weight, get fit, quit drinking soda… Why not for your finances? You know, I don’t like to call them resolutions. Even though the name means you are RESOLUTE in fulfilling these tasks, the truth in how we see new years resolutions is more like something we hope to get done, or may get done, or would be nice to do. It’s almost expected of us to fritter away the resolutions just because that’s what everyone else does. No, I like to call them New Years Goals. These are goals that I WILL accomplish in 2012!
That’s it for my New Years Goals. How bout you guys? Got some NYGs?!
I started out with more than most on student loans. In fact, I've NEVER met anyone with more student loans than me outside med students. When I graduated from a private university, I owed $120,000! Thank goodness I'd never had credit problems and I live pretty cheaply. Given the amount of debt I've had, I'm actually quite proud that I've been able to live my life pretty fully even paying more than $1000 every month to student loans.
I've had to make it work, and I have. But last year, things got a little crazy and I lost touch with my financial situation. That's why I started Budgets Suck in the first place! I try not to think about what might have been had I not had to pay these student loans. An extra grand a month could've gone a loooong way, not to mention the life dreams and careers I could've pursued had I not had to worry about money. But that's negative thinking and regardless of truth, will get you nowhere. So instead I think of how the debt is decaying and soon will be no more.
I am still on schedule to have my loans paid off by the age of 35! That's five years from now and I am stoked. To be exact, here's my current loan stats.
| Loan | current balance | interest | monthly payment | months to pay off |
|---|---|---|---|---|
| Sallie Mae | 11217 | 4.13% | 240 | 52 |
| Citi | 7349 | 3.75 | 162 | 49 |
| Citi | 9429 | 3.25 | 205 | 49 |
| Citi | 8799 | 2.75 | 190 | 50 |
| Citi | 11131 | 2.75 | 240 | 59 |
It's really important to go back and revisit these amounts at least once a year. I just recently reexamined my Sallie Mae loan and I was only paying $132/mo which meant it was going to take 107 months to pay off! By just upping the amount paid every month by $108, I'll not be done on time in 52 months. I used an online calculator to figure these things out. Remember to use whatever tools make your life easier. BTW, my 35th birthday is 55 months from now. So that's gonna be a helluva party!
Five years is a while from now and I hope I'll be settled down with someone by then. Either way, I already know that extra cash is either going to a monthly mortgage for a place of our own or (if we can afford it) straight into savings. I've lived off little for this long, no sense changing it up if I can be more secure in the future!
It's a long haul, ladies and gentlemen. It's much easier if you start young. If you're in your teens and reading this blog, you're already ahead of everyone else. Please feel free to email me with any questions or post up here. I'm more than happy to help. I wish I had someone to teach me about money when I was young, all I can do now is pass on what I've learned through life.
Upon further review of my projected net worth, I noticed that sometime next year, my net worth will finally pass the Zero mark and into the positive! I was so focused on the $100,000 mark I didn't even notice this milestone. I will definitely be having a Zero Worth party! According to the projections, it should happen early next year, but I'm gonna say probably more like June. That would be a lovely birthday present.
Worst case, by the end of the year, but definitely in 2012. As long as the market doesn't completely blow, all should be well. Finally I'll have a positive net worth, and just in time for the end of the world!
At long last, I paid my final settlement payment totaling $7500. So that’s an extra thou I’ll have each month. Even with paying $1000/mo to the settlement, my net worth has been rising, so I’m doing well. Just gotta keep with it, spend less, save more. Looking to that $100,000 net worth in 5 years goal.
I am so bad at single tasking. I am all over the place most of the time to the point where I get next to nothing done. I take whole weeks off of work so that I can be closer to home, but for what reason? To hang out with friends mostly, for I get very little done. I get more done on my projects on a work week than I ever do on weeks that I'm off. Why? Because when your mind is in work mode, you work. That's just the way it is. I've tried so hard to get into that place when I'm off, but my brain knows I don't have to work, so I end up playing video games instead. :P
I currently have so many projects going on right now: marketing a book, writing another one, managing this website and another one along with the blog that accompanies my book. Plus, a friend wants to start another business project so I'm doing stuff for her. Oh and there's the two real estate properties, my actual job, and looking for a new job. Not to mention all those other things I'd love to be working on, like my next stand up comedy routine, cleaning and organizing my room/house, building something, looking into other real estate opportunities. With all these thoughts and ideas reeling about in my head, it's really difficult to keep it all straight and quite often I end up overwhelming myself and doing nothing.
Then I had the thought, what if I had a baby today? What if by chance, a baby came into my life that I would have to take care of? That's a full time job right there: sleepless nights, feeding, changing, making sure it doesn't kill itself. There would be very little time for any of these other projects I have. I'd have to burn most of them. That's called crushing your dreams for procreation. So, if this did happen, which projects would I keep on? Which would I continue to pursue?
Real estate would have to stay cause I can't really get out of that. Other than that, I think I would focus on my book. So does that mean I should drop everything else now and focus on my book? That's what this post is all about; what it's trying to convey: simplification of life. But unfortunately, saying the words is not quite as easy as living the life. :P
Just did a new financial statement and projected forward for my Net Worth and the results are quite promising! If my calculations are correct, even though I currently have a net worth of -$20,000, if I continue at the same pace I am, I should have a net worth of $100,000 in 5 years. I know that seems unlikely, so let’s break it down.
120,000 / 5 = $24,000 per year. 24000/12 = $2,000 per month. I will have to save/gain $2,000 per month from now until September of 2016. That sounds very difficult I know, but in the financial statement I have put together, by that time, I would’ve bought another rental property, creating passive income, as well as gotten a new job and started a business. In my new job, I’m making $80,000/yr instead of $55,000 and my business is generating $1000/mo extra income. This is a super happy view of the future I know, but quite within the realm of possibility. So it gives me some goals to work towards. Furthermore, at my current rate of net worth increase, i should actually be at $100,000 by January of 2014, a cool 3 years from now.
You can see the tiny graph in the lower left of the actual values thus far. Assuming growth, on average, stays the same, this trend line will hold true and bu January 2014, my net worth will be $100,000. I still see it as a rather fantastically positive outlook, but the more I crunch the numbers, the more I start to believe. And if I, the cynic of all financial cynics, can believe I can reach this goal, then I will!
Main thing, just keep with the system! Keep saving! Don’t blow it on some company or investment. Use proper judgement and risk only what you are allowed to lose. It’s just like gambling in Vegas. Never bet the rent money. 
I just ran across a great article about the qualities held by many millionaires. How many of them do you have? Let me test myself…
Here are twelve distinctive characteristics of millionaires.