It has been a while since I wrote about Sally and Jesse. Things have come to an end, at least for Sally. After a lot of fighting and a lot of money spent on lawyers and the legal system, Sally and her husband are now divorced. In the end Sally walked away with very little and believes that her ex hid money via his business. Did he or didn't he? At this point only he knows. Sally doesn't have a job since she spends her time with her young child who is border line special needs and wants to concentrate on improving her child academically to give the child a better chance of success in school. Sally received a lump sum of $38,000 and spousal and child support for 5 years until she can get on her feet. At the end of 5 years the spousal support will end and Sally will need to support herself and her children. Child support will continue until each child turns 18.
Sally didn't want to rent an apartment or house as she didn't want to be moving the children from place to place during their school years. Since she doesn't have a job she didn't qualify for a mortgage and she didn't receive a large enough settlement to pay cash for a house. She chose to move in with her boyfriend who had the ability to purchase a home in the desired neighbourhood close to a good school for the children. It has only been a few months but some cracks are starting to show in the relationship. Only time will tell how this will play out.
There's not much to update with Jesse. She is still in the family home and she and her estranged husband are continuing to co-operate with regards to the children and paying the bills. The legal costs are being kept to a minimum due to their co-operation on child care, support, and splitting of their 'stuff'. At this point they are waiting out the one year separation period until they can finalize their divorce.
Watching these two women go through their separation/divorces, it has driven home that as women or individuals we should not become dependant on anyone for our lives. Sally is dependant on her ex-husband for her income and her current boyfriend for her home. I understand needing to look after the needs of your child but at the same time if the current relationship ends she could end up worse off than she is now. Sally would be smart to start a part-time business, even if it doesn't make a lot at the beginning that she could grow over the 5 year time period that she has to work with. If she begins now and the worst happens at least she would have something to fall back on and she could grow it faster if necessary.
Jesse, at this point is independent of a husband/boyfriend. She is supporting herself with her husband paying child support for the children. Jesse, as well as Sally, would be wise to start building another stream of income in case she loses her job, at least there would be a second income even if it's small to help out.
Have you been through a divorce? How did you survive it? Were/are you still dependent on your ex? Do you have advice on how to survive a divorce emotionally or financially? Please feel free to leave a comment!
Wednesday, August 18, 2010
Wednesday, June 9, 2010
Receive John Chow's new ebook and a chance to win a new iPad!
I just read a new ebook by John Chow call The Ultimate Blog Profit Model and it’s awesome. I think you will really enjoying read it as well. Download the eBook here: The Ultimate Blog Profit Model by John Chow
John Chow runs one of the biggest and most profitable blogs in the world. He makes over $40,000 a month just from blogging! His new eBook details exactly how he does it. Best of all, the book is free and can even win you an Apple iPad! John will be awarding a new 16GB Apple iPad to one lucky person who downloads The Ultimate Blog Profit Model. You can’t lose on this deal. You get a free eBook detailing how John makes over $40K a month from blogging and you get a chance to win an Apple iPad as well.
Here’s the download link again: The Ultimate Blog Profit Model by John Chow
John Chow runs one of the biggest and most profitable blogs in the world. He makes over $40,000 a month just from blogging! His new eBook details exactly how he does it. Best of all, the book is free and can even win you an Apple iPad! John will be awarding a new 16GB Apple iPad to one lucky person who downloads The Ultimate Blog Profit Model. You can’t lose on this deal. You get a free eBook detailing how John makes over $40K a month from blogging and you get a chance to win an Apple iPad as well.
Here’s the download link again: The Ultimate Blog Profit Model by John Chow
Tuesday, June 8, 2010
Book Review - The Wealthy Barber
The road to financial freedom is as easy as or as hard as "live on less than you earn, invest the rest for long term growth, rinse and repeat." Ask any wealthy person and they will tell you the same thing, possibly in different works, but the gist is the same. Human nature being what it is and living in an "I want it now" society has left quite a few of us spending everything we make and then some. We end up living paycheck to paycheck and never getting ahead. We make budgets but they end up going out the window before the month is up. Trying to save what's left at the end of the month doesn't work because there is rarely anything left.
In 1989 David Chilton wrote - The Wealthy Barber - The Common Sense Guide to Successful Financial Planning. Chilton explains successful financial planning by using the tale of Dave, Sue, Tom, and Cathy. The setting is a small town in southern Ontario. Dave and Sue are expecting their first child and are looking at purchasing their first home. Dave approaches his father for some financial advise and is advised to talk to the small town's barber. Dave, Tom and Cathy make arrangements with the wealthy barber to get a financial education during the men's monthly haircuts. During the next 7 months the three learn how to get their financial houses in order.
What are your thoughts on the advise found in the Wealthy Barber?
In 1989 David Chilton wrote - The Wealthy Barber - The Common Sense Guide to Successful Financial Planning. Chilton explains successful financial planning by using the tale of Dave, Sue, Tom, and Cathy. The setting is a small town in southern Ontario. Dave and Sue are expecting their first child and are looking at purchasing their first home. Dave approaches his father for some financial advise and is advised to talk to the small town's barber. Dave, Tom and Cathy make arrangements with the wealthy barber to get a financial education during the men's monthly haircuts. During the next 7 months the three learn how to get their financial houses in order.
- Month 1 - The ten percent solution. Save ten percent of your income but instead of waiting until the end of the month to save it, have it automatically taken off your paycheck or out of your bank account before you can even touch it. Invest it for long term growth. This is to be used for the finer things in life not regular day to day living.
- Month 2 - Wills and life insurance. Everyone needs a will so that your wishes for your money/estate are followed. If you pass on without a will the government steps in and disposes of your estate according to their rules and not your wishes. Life insurance is important to protect your dependents from financial hardship. All life insurance is not the same though. Term life insurance provides the most coverage for the least premiums.
- Month 3 - RSP's. Use Retirement Saving Plan's to provide for your retirement. If you don't have a company retirement savings plan you will need to use RRSP's to provide your retirement.
- Month 4 - Your home. This month the Wealthy Barber explains how valuable owning your home can be over time. Paying down or paying off your mortgage can help your financial success
- Month 5 - Saving Savvy. After following the previous advice will it hurt if you don't have and follow a budget?
- Month 6 - Insights into investment and income tax.
- Month 7 - Graduation!
What are your thoughts on the advise found in the Wealthy Barber?
Wednesday, March 3, 2010
Financial Freedom - The End!
Now that you've found out where you are, you need to figure out where you want to go. If you don't have a destination you tend to wander aimlessly. If you say that you just want more money or to be rich, you will never get there. Your destination has to be defined. Even if where you want to be is to be financially free, you need to define what that means to you. What would it take for you to be financially free. What dollar figure would it take monthly for you to make the choice to work or to pursue your interests? What monthly dollar figure would it take to live the lifestyle that you want? The answer to these questions won't be the same for everyone. One person might want just enough to pay off their debts and to live simply in the country. Another person may want a lifestyle with a nice house and regular frugal travel eg., camping and hostels. Another may want to buy a large sailboat and sail around the world. Another might want a lavish lifestyle of travelling and staying in 4 and 5 star resorts.
As you can see there are many lifestyle choices that you can have. So how do you figure out what you want? You need to take some time alone and sit quietly and imagine what you want for your life. Do you want to travel? Do you prefer camping or do you prefer hotels with all the amenities? What size house do you want? Where do you want your house? Do you want to spend your time volunteering? Do you want to take up golfing, sailing, or another expensive sport? Do you want to ......? Write down all of the things that you see in your ideal lifestyle and beside each item figure out what the yearly cost is. Add up the numbers and make sure to add in expenses such as food, clothing, housing costs (mortgage, utilities, insurance, etc.) and any other day to day expenses. This is your yearly income goal. Next multiply your yearly income goal by 20-40 to get your total goal. Multiplying by 20-40 will allow for a safe withdrawal rate. This is the number you are striving for. These calculations are found on 7million7years.
Now that you know your goal you can begin looking at different ways to get there. Next we will look at brainstorm ways to get to your number. Feel free to share you number in the comments section.
As you can see there are many lifestyle choices that you can have. So how do you figure out what you want? You need to take some time alone and sit quietly and imagine what you want for your life. Do you want to travel? Do you prefer camping or do you prefer hotels with all the amenities? What size house do you want? Where do you want your house? Do you want to spend your time volunteering? Do you want to take up golfing, sailing, or another expensive sport? Do you want to ......? Write down all of the things that you see in your ideal lifestyle and beside each item figure out what the yearly cost is. Add up the numbers and make sure to add in expenses such as food, clothing, housing costs (mortgage, utilities, insurance, etc.) and any other day to day expenses. This is your yearly income goal. Next multiply your yearly income goal by 20-40 to get your total goal. Multiplying by 20-40 will allow for a safe withdrawal rate. This is the number you are striving for. These calculations are found on 7million7years.
Now that you know your goal you can begin looking at different ways to get there. Next we will look at brainstorm ways to get to your number. Feel free to share you number in the comments section.
Monday, February 22, 2010
On to Financial Freedom - Starting Point
I've mentioned some stories where the worst case scenario has happened. Now it's time to make plans for our financial freedom and take action on those plans. You need to figure out two things, where you are, and where you want to go.
Where you are - This is a snapshot of your financial life with two parts. Let's start with day to day happenings. Are you living paycheck to paycheck? Do you have money left at the end of the month or more month at the end of your money? Are all your bills paid every month or do you 'choose' which bills have to be paid that month? If you don't know these answers you need to figure it out. Take your bank statements and credit card statements (yes all of them) for the last 3-6 months and figure out how much you spend on average each month. If there's money left over every month Great! If you're in the hole every month growing those credit card balances We have work to do!
Next - What's your networth? Do you owe more than you own? Do you have credit card balances? Auto loans? Mortgage? Any other liabilities? What are your assets? Own your own home? Own stocks, bonds, real estate, or any other assets?
Definitions of liabilities and assets. I like to use Robert Kiyosaki's definitions of liabilities and assets from Rich Dad, Poor Dad. His definitions are very simple to use.
An asset is anything that puts money into your pocket e.g. income producing real estate, book royalties, dividend paying stocks, a business you have built, etc.
A liability is anything that takes money out of your pocket e.g. credit cards, loans, cars, expensive toys, etc.
Now take a sheet of paper and list all your liabities on one side. Credit card balances, loans, mortgages, student loans, anything that takes money out of your pocket. List all of your assets on the other side. Stocks, bonds, bank accounts,
401ks and Roths, (RRSP and TFSA in Canada), real estate (this can include your home for these calculations), etc. Add each column then subtract the two. Do you owe more in liabilities than you own in assets? Do you have a negative networth? Do your assets total more than your liabilities? Do you have a positive networth?
The house - asset or liability debate. Robert Kiyosaki calls a house a liability because it takes money out of your pocket. You pay mortgage, insurance, heating, maintenance, repairs, etc. In other words a house takes money out of your pocket every month and doesn't put any back in. On the other hand as long as you maintain your house and don't let if fall into disrepair a house will retain it's value and even become more valuable over time. Depending on your starting point you may choose to include your house in your assets. For me, I will be once I purchase a house in the next two years. Since when I buy a house I will be using a good portion of my networth to use as the downpayment.
Tomorrow I will discuss where we want to go.
Anything I may have left out? Any questions? Please feel free to leave a comment.
Where you are - This is a snapshot of your financial life with two parts. Let's start with day to day happenings. Are you living paycheck to paycheck? Do you have money left at the end of the month or more month at the end of your money? Are all your bills paid every month or do you 'choose' which bills have to be paid that month? If you don't know these answers you need to figure it out. Take your bank statements and credit card statements (yes all of them) for the last 3-6 months and figure out how much you spend on average each month. If there's money left over every month Great! If you're in the hole every month growing those credit card balances We have work to do!
Next - What's your networth? Do you owe more than you own? Do you have credit card balances? Auto loans? Mortgage? Any other liabilities? What are your assets? Own your own home? Own stocks, bonds, real estate, or any other assets?
Definitions of liabilities and assets. I like to use Robert Kiyosaki's definitions of liabilities and assets from Rich Dad, Poor Dad. His definitions are very simple to use.
An asset is anything that puts money into your pocket e.g. income producing real estate, book royalties, dividend paying stocks, a business you have built, etc.
A liability is anything that takes money out of your pocket e.g. credit cards, loans, cars, expensive toys, etc.
Now take a sheet of paper and list all your liabities on one side. Credit card balances, loans, mortgages, student loans, anything that takes money out of your pocket. List all of your assets on the other side. Stocks, bonds, bank accounts,
401ks and Roths, (RRSP and TFSA in Canada), real estate (this can include your home for these calculations), etc. Add each column then subtract the two. Do you owe more in liabilities than you own in assets? Do you have a negative networth? Do your assets total more than your liabilities? Do you have a positive networth?
The house - asset or liability debate. Robert Kiyosaki calls a house a liability because it takes money out of your pocket. You pay mortgage, insurance, heating, maintenance, repairs, etc. In other words a house takes money out of your pocket every month and doesn't put any back in. On the other hand as long as you maintain your house and don't let if fall into disrepair a house will retain it's value and even become more valuable over time. Depending on your starting point you may choose to include your house in your assets. For me, I will be once I purchase a house in the next two years. Since when I buy a house I will be using a good portion of my networth to use as the downpayment.
Tomorrow I will discuss where we want to go.
Anything I may have left out? Any questions? Please feel free to leave a comment.
Wednesday, February 17, 2010
Divorce and Money - Jessie's Story
When I first met Jessie she was a stay-at-home mom who worked in a retail store in the evenings to help with the family finances. She eventually went back to school for a career that she liked and was in demand. She finished school and got a job in her field. She has changed jobs twice since then, each time getting better pay and better hours. Her life, while stressful at times, seemed idyllic. Jessie and her husband were all about family and fun. Their summers were always booked for camping and family and friends get togethers.
Then the crap hits the fan. Six months ago Jessie and her husband decided to separate and divorce. Unlike with Sally's nasty divorce, Jessie and her husband are doing their best to get along, both for the kid's sake and financially. Jessie is staying in the family home with the kids and her husband still pays half the mortgage until such time as they agree to sell it. They are working things out as best they can without using lawyers unless absolutely necessary.
Just like with Sally's story these breakups could not have been predicted from the outside. Both couples looked and acted like happy families. I've told these stories to illustrate how unpredictable life can be and you never know when it will change. There are many more stories out there about divorce, widows, and job losses all unexpected challenges facing women. Women need to take charge of their own financial futures, not only just being financially literate but by adding new income streams, so that if one income stream disappears there are others to fill in the gap.
30, 40, 50 years ago the majority of families lived off one income. The husband worked and the wife stayed home to look after the family and house. If there was an interruption in the husbands job the wife could start earning an income to keep the bills paid. As we have moved to two income families and became dependent on having two incomes there is no longer the safety net of creating an income from a spouse that doesn't work outside the home. With the poor economy and loss of jobs over the last year or two, parents have had to take on 2 or 3 jobs at lower wages to make ends meet. Having multiple income streams helps take off the stress of having to rely on your job. You can weather the latest round of layoffs with less stress if you have other streams of income coming in.
In a future post I will discuss possible sources of income and the pros and cons of each.
How about you? Do you have more than one source of income?
Then the crap hits the fan. Six months ago Jessie and her husband decided to separate and divorce. Unlike with Sally's nasty divorce, Jessie and her husband are doing their best to get along, both for the kid's sake and financially. Jessie is staying in the family home with the kids and her husband still pays half the mortgage until such time as they agree to sell it. They are working things out as best they can without using lawyers unless absolutely necessary.
Just like with Sally's story these breakups could not have been predicted from the outside. Both couples looked and acted like happy families. I've told these stories to illustrate how unpredictable life can be and you never know when it will change. There are many more stories out there about divorce, widows, and job losses all unexpected challenges facing women. Women need to take charge of their own financial futures, not only just being financially literate but by adding new income streams, so that if one income stream disappears there are others to fill in the gap.
30, 40, 50 years ago the majority of families lived off one income. The husband worked and the wife stayed home to look after the family and house. If there was an interruption in the husbands job the wife could start earning an income to keep the bills paid. As we have moved to two income families and became dependent on having two incomes there is no longer the safety net of creating an income from a spouse that doesn't work outside the home. With the poor economy and loss of jobs over the last year or two, parents have had to take on 2 or 3 jobs at lower wages to make ends meet. Having multiple income streams helps take off the stress of having to rely on your job. You can weather the latest round of layoffs with less stress if you have other streams of income coming in.
In a future post I will discuss possible sources of income and the pros and cons of each.
How about you? Do you have more than one source of income?
Win an Apple Ipad from John Chow and Urban Data
John Chow dot com is hold a contest to give away an Apple Ipad. The contest is being sponsored by Urban Data a website that gives you advanced information about any website on the internet.
To enter write a blog post and tweet it. For more information go to John Chow dot com.
I'm entering since I blew up my laptop and have taken over my husbands. An Apple Ipad would allow me to give him back his laptop yet still be able to keep up with my blogs.
Your blog post is worth 10 entries, enter today. Why do you want an Apple Ipad?
To enter write a blog post and tweet it. For more information go to John Chow dot com.
I'm entering since I blew up my laptop and have taken over my husbands. An Apple Ipad would allow me to give him back his laptop yet still be able to keep up with my blogs.
Your blog post is worth 10 entries, enter today. Why do you want an Apple Ipad?
Monday, January 25, 2010
Divorce and Money
All names have been changed.
Sally's story. From the outside Sally and her family seemed to have a golden life. They met and fell in love at sixteen, quit school, but with intervention from family went back to school and then on to college. They got jobs and eventually he started his own business which did very well. Sally continued to work until she had their first child and then she became a stay-at-home mom. Baby number 2 came along and they decided they were happy with just two children. When child number 2 turned 2 Sally went back to work part-time but child number 2's immune system wasn't the best and Sally eventually had to give up her job for her child's health. Eventually Sally starts doing daycare for teachers at the local school. They live in a little village so there isn't a lot of call for daycare spaces.
Fast forward a few years and Sally's marriage falls apart and it gets nasty to the point where they are court ordered not to talk to each other except through their lawyers. Sally wants to stay in the house with the kids so that their lives aren't disrupted too much. He wants the house sold and has even found a buyer. Sally fights to stay in the home. They just had a court date and Sally has to vacate the home by the end of February. Sally can't afford to purchase another home in the rural community and as a result her only source of income (daycare) is in jeopardy and now has to move into the city to live with her retired mother to save some money to purchase another home.
Sally's daycare income only comes to about $1500 per month, child support payments will be approximately $600-$1000 per month. At best her total income will be $2500 per month. Sally plans on purchasing a single family detached house worth $250 000 after she gets her share of the marital home. She plans on recieving $50 000 after the dust settles which would leave her with a mortgage of $200 000. Running the numbers through Bankrate.com for a 25 year mortgage at %5 the monthly payment would be $1097.75 and adding in utility costs and the house will cost Sally over half of her income. Sally may have to lower her expectations and purchase a townhouse. The problem is housing prices in this city are quite expensive and even renting a 3 bedroom apartment is over $1000. Sally has a boy and a girl and they can't share a bedroom due to child protective laws.
How many times does this scenario get repeated? If you have ever met a divorced woman who was a stay-at-home mom during the marriage this scenario pops up time and time again. I'm not saying women can't be stay-at-home moms, we can, we just have to be aware of the pitfalls that can happen to us and put in place a plan to protect ourselves. I'll go into some choices you can put in place to make your financial life better. Whether you end up on your own or are one of the lucky %50 that stays married for 50+ years or you prefer to live on your own, just imagine the lifestyle you can have if you don't have to worry about where your monthly expenses are coming from and you have a nice chunk of disposable income to do with as you see fit.
Does that seem like I'm dreaming? Well it can come true with some work and dedication. Join me on my journey to financial freedom!
Sally's story. From the outside Sally and her family seemed to have a golden life. They met and fell in love at sixteen, quit school, but with intervention from family went back to school and then on to college. They got jobs and eventually he started his own business which did very well. Sally continued to work until she had their first child and then she became a stay-at-home mom. Baby number 2 came along and they decided they were happy with just two children. When child number 2 turned 2 Sally went back to work part-time but child number 2's immune system wasn't the best and Sally eventually had to give up her job for her child's health. Eventually Sally starts doing daycare for teachers at the local school. They live in a little village so there isn't a lot of call for daycare spaces.
Fast forward a few years and Sally's marriage falls apart and it gets nasty to the point where they are court ordered not to talk to each other except through their lawyers. Sally wants to stay in the house with the kids so that their lives aren't disrupted too much. He wants the house sold and has even found a buyer. Sally fights to stay in the home. They just had a court date and Sally has to vacate the home by the end of February. Sally can't afford to purchase another home in the rural community and as a result her only source of income (daycare) is in jeopardy and now has to move into the city to live with her retired mother to save some money to purchase another home.
Sally's daycare income only comes to about $1500 per month, child support payments will be approximately $600-$1000 per month. At best her total income will be $2500 per month. Sally plans on purchasing a single family detached house worth $250 000 after she gets her share of the marital home. She plans on recieving $50 000 after the dust settles which would leave her with a mortgage of $200 000. Running the numbers through Bankrate.com for a 25 year mortgage at %5 the monthly payment would be $1097.75 and adding in utility costs and the house will cost Sally over half of her income. Sally may have to lower her expectations and purchase a townhouse. The problem is housing prices in this city are quite expensive and even renting a 3 bedroom apartment is over $1000. Sally has a boy and a girl and they can't share a bedroom due to child protective laws.
How many times does this scenario get repeated? If you have ever met a divorced woman who was a stay-at-home mom during the marriage this scenario pops up time and time again. I'm not saying women can't be stay-at-home moms, we can, we just have to be aware of the pitfalls that can happen to us and put in place a plan to protect ourselves. I'll go into some choices you can put in place to make your financial life better. Whether you end up on your own or are one of the lucky %50 that stays married for 50+ years or you prefer to live on your own, just imagine the lifestyle you can have if you don't have to worry about where your monthly expenses are coming from and you have a nice chunk of disposable income to do with as you see fit.
Does that seem like I'm dreaming? Well it can come true with some work and dedication. Join me on my journey to financial freedom!
Thursday, January 7, 2010
Money and Protecting Yourself
I started this blog to help women and myself realize how important it is to be financially responsible for themselves. I homeschool my daughter and as a result a lot of my friends are stay at home homeschooling moms. Most live on one income and the husbands take care of most of the finances. the women gave up careers to be stay at home parents, a choice made by both parents. In these families everyone is happy, the children are being educated and looked after, the wife gets to spend quality and quantity time with the children, the husband gets to come home to a (usually) happy family and makes sure the lights stay on and roof stays over their heads. It seems idyllic doesn't it? In the families that I'm close to, this is their reality. The only thing is, it can change in a heartbeat.
Currently in North American society the reality is approximately 50% of marriages end in divorce. In most cases the women become the custodial parent and now have to provide the roof, the lights, the food and the clothing. While the men do pay support for their children, combined with the woman's (quite often) lowered income reduces the lifestyle that the children grew up with. Add in marital debts and the cost of the divorce itself and it can become difficult to put food on the table or even keep the roof over their heads never mind try to put money away for emergencies, college or even retirement. The man also has a reduced standard of living. Now he not only has to pay for his own expenses and his share of the debts, but he has to help support a second household through child support. There aren't any winners in a divorce.
What does this have to do with you? You are in a wonderful relationship. You may have decided to not have kids so you can continue with your career. You may have had kids but decided to go back to work after your year off. The thing is your life might be perfect (or close to it) right now and you can't imagine anything going wrong. The future looks rosy. The reality is at some point in your life without the proper planning something could go wrong. It might not be divorce. It could be a death, a serious illness or a serious accident. Anything can happen to send your life into a downward spiral which can turn your comfortable, cozy, perfect life upside down.
Over the next three posts the lives of three women that I know that have recently had their lives turned upside down and their future isn't as great as it used to be. If you would like your story told, leave me a comment and your email address.
Currently in North American society the reality is approximately 50% of marriages end in divorce. In most cases the women become the custodial parent and now have to provide the roof, the lights, the food and the clothing. While the men do pay support for their children, combined with the woman's (quite often) lowered income reduces the lifestyle that the children grew up with. Add in marital debts and the cost of the divorce itself and it can become difficult to put food on the table or even keep the roof over their heads never mind try to put money away for emergencies, college or even retirement. The man also has a reduced standard of living. Now he not only has to pay for his own expenses and his share of the debts, but he has to help support a second household through child support. There aren't any winners in a divorce.
What does this have to do with you? You are in a wonderful relationship. You may have decided to not have kids so you can continue with your career. You may have had kids but decided to go back to work after your year off. The thing is your life might be perfect (or close to it) right now and you can't imagine anything going wrong. The future looks rosy. The reality is at some point in your life without the proper planning something could go wrong. It might not be divorce. It could be a death, a serious illness or a serious accident. Anything can happen to send your life into a downward spiral which can turn your comfortable, cozy, perfect life upside down.
Over the next three posts the lives of three women that I know that have recently had their lives turned upside down and their future isn't as great as it used to be. If you would like your story told, leave me a comment and your email address.
Wednesday, January 6, 2010
Happy New Year 2010
With the new year I thought it was time to revive my old blog. My financial life hasn't changed in the past 11 months since I blogged last. That means I'm still deeply in debt and not on my path to financial freedom. I haven't held myself accountable and I only have myself to blame. I've decided this is a perfect time to get on track with taking care of my future and becoming financially free. It's time to become accountable for my future.
Every year I have a lot of goals that I would like to achieve. So many in fact that they become overwhelming and I end up not doing anything towards achieving them. This year I'm going to simplify things and only work on 3 main goals to achieve by December 31, 2010.
1)Increase income by $500 per month
2)Pay down my credit card debt by $2000
3)Increase efund to $1500
At this point I don't have extra money to throw at my debt. Even cutting back my spending would only produce an extra maximum $50 per month. I don't eat out, I don't buy coffee regularly (so no latte factor), I also don't purchase clothes unless absolutely needed. So with all of that my best option is to increase my monthly income. I will be using this blog to document my extra monthly earnings. I plan on earning the extra income through blogging and other internet businesses.
We only have so many hours/minutes each day and while I could get a part-time job to earn the extra income, I only have so many hours with which to devote to working. With internet income, while it takes time to build up that income, the income continues to roll in even while I'm sleeping. Internet income can (with a lot of work) outpace any $10 an hour job. Minimum wage here in Ontario will be raised to $10.25 at the end of March. In order to earn my goal income of $500 per month, I would have to work 50+ hours. Taxes will have to be considered to allow for a net of $500. With an internet business it is quite possible to earn $100 per day without leaving the comfort of your home.
Back to my debt. Just so I have a starting point to gage my progress throughout the year I will state it here.
My credit card debt stands at $14 350. Ouch! First priority will be to earn extra money so I have something to work with. Second priority will be to get the efund built up to $1500 so that I won't need to add to my debt. And finally the debt has got to go!
What are your plans for 2010? Do you have debts that need to be paid down/off? Do you have an emergency fund? Do you have a plan for becoming financially free?
No matter what stage you are at make a plan to make 2010 the best year ever and continue working towards your financial freedom!
Every year I have a lot of goals that I would like to achieve. So many in fact that they become overwhelming and I end up not doing anything towards achieving them. This year I'm going to simplify things and only work on 3 main goals to achieve by December 31, 2010.
1)Increase income by $500 per month
2)Pay down my credit card debt by $2000
3)Increase efund to $1500
At this point I don't have extra money to throw at my debt. Even cutting back my spending would only produce an extra maximum $50 per month. I don't eat out, I don't buy coffee regularly (so no latte factor), I also don't purchase clothes unless absolutely needed. So with all of that my best option is to increase my monthly income. I will be using this blog to document my extra monthly earnings. I plan on earning the extra income through blogging and other internet businesses.
We only have so many hours/minutes each day and while I could get a part-time job to earn the extra income, I only have so many hours with which to devote to working. With internet income, while it takes time to build up that income, the income continues to roll in even while I'm sleeping. Internet income can (with a lot of work) outpace any $10 an hour job. Minimum wage here in Ontario will be raised to $10.25 at the end of March. In order to earn my goal income of $500 per month, I would have to work 50+ hours. Taxes will have to be considered to allow for a net of $500. With an internet business it is quite possible to earn $100 per day without leaving the comfort of your home.
Back to my debt. Just so I have a starting point to gage my progress throughout the year I will state it here.
My credit card debt stands at $14 350. Ouch! First priority will be to earn extra money so I have something to work with. Second priority will be to get the efund built up to $1500 so that I won't need to add to my debt. And finally the debt has got to go!
What are your plans for 2010? Do you have debts that need to be paid down/off? Do you have an emergency fund? Do you have a plan for becoming financially free?
No matter what stage you are at make a plan to make 2010 the best year ever and continue working towards your financial freedom!
Wednesday, February 25, 2009
Just for Fun
What's Your Personality Type?-->
You Are An ENTP
The VisionaryYou are charming, outgoing, friendly. You make a good first impression.You possess good negotiating skills and can convince anyone of anything.Happy to be the center of attention, you love to tell stories and show off.You're very clever, but you are not disciplined enough to do well in structured environments.In love, you see everything as a grand adventure. You enjoy taking risks for love.And if things don't work out, you're usually not too much worse for the wear!You would make a great entrepreneur, marketing executive, or actor.At work, you need a lot of freedom to pursue your own path and vision. How you see yourself: Analytical, creative, and peacefulWhen other people don't get you, they see you as: Detached, wishy-washy, and superficial
You Are An ENTP
The VisionaryYou are charming, outgoing, friendly. You make a good first impression.You possess good negotiating skills and can convince anyone of anything.Happy to be the center of attention, you love to tell stories and show off.You're very clever, but you are not disciplined enough to do well in structured environments.In love, you see everything as a grand adventure. You enjoy taking risks for love.And if things don't work out, you're usually not too much worse for the wear!You would make a great entrepreneur, marketing executive, or actor.At work, you need a lot of freedom to pursue your own path and vision. How you see yourself: Analytical, creative, and peacefulWhen other people don't get you, they see you as: Detached, wishy-washy, and superficial
