Here we go for another MFS post. November is going to be an interesting month as I’ll be moving out of my apartment and into temporary housing at the start of December while I look for a new place to live. Today, I’ll discuss my net worth, my budget, expected expenses, and what I’m doing to improve my situation.
Net Worth Recap
Here’s where my net worth is at as of November 3rd, 2015:
- Assets: $52,605.14
- Bank Accounts: $8,044.94 (Rent still hasn’t been taken out…)
- Investment Accounts: $37,135.20
- Rollover IRA: $15,730.45
- Roth IRA: $16,314.29
- 529 Plan: $5,090.46
- Property: $7,425
- Car (completely paid off, no loan attached): $7,425
- Debts: -$109,953.05
- Student Loans: -$74,918.50
- Chase Credit Card: -$20,173.26
- Barclay Credit Card: -$3,861.29
- Personal Loan: -$6,000
- Ex-wife’s Attorney: -$5,000
- Net Worth: -$57,347.91
There’s a couple of things to note here. First, my rent still hasn’t been taken out, so there will be another $2,115.00 knocked off the top in the next couple of days. Also, I miscalculated last month on my student loans, so it looks like I paid off more than I actually did because I didn’t factor in October’s payment when I did the October 2015’s Net Worth Recap (NWR). I took a trip in October, which I paid for with the Barclay card (bad Jarrett), which is the reason that the balance on that went up. The reality is that the Net Worth total is probably closer to -$59,500 than -$57,347.91 as it says here.
Dave Ramsey is big on having a zero-based budget, but with the divorce in progress AND the apartment ETF this month, that simply won’t fly. I have to bite the bullet and go in the hole. Luckily, the personal loan I have has enough left over to cover the apartment ETF. Here’s what the numbers look like for November:
- Income: $6,056.16
- Day Job: $6,056.16
- Expenses: $6,828.75
- Rent: $2,115.00
- Water: $75.00
- Electric: $75.00
- Internet: $82.00
- Car Insurance: $84.34
- Student Loans: $1,253.00
- Chase Credit Card: $453.00
- Barclay Credit Card: $71.50
- Personal Loan: $197.50
- Cell Phone: $45.00
- Renters Insurance: $18.00
- AWeber: $27.00
- WPEngine: $24.16
- Amazon Prime: $8.25
- Alimony: $2,000.00
- Food: $200.00
- Gas: $100.00
- Apartment ETF: $2,115.00 (covered by personal loan, so no new debt accrued)
- Net: -$2,887.59 (-$772.59 if you don’t count the ETF as it was covered by the personal loan)
Negative Two Thousand Eight Hundred Eighty-Seven Dollars and Fifty-Nine cents. Ouch.
It’s not particularly great this month. I’m probably still missing a bunch of expenses (like attorney’s fees, which I haven’t included since I haven’t received October’s bill), so the net for this month is even worse. I’ll probably have to dig into the emergency fund to cover everything, but I expect to build it back up next month without issue.
In future MFS posts, I’ll be more explicit about what I’m spending my money on and I’ll be able to follow an actual zero-based budget. I do think that spending every paycheck you have on paper before you get it is a good thing as it helps you make the right moves and sets you up mentally to make certain steps to improve your situation.
Improvements to the Budget
The good news is that I’m getting out of the expensive 1-bedroom apartment I’m living in at the end of the month. No matter how much I like the apartment (and I really like it), sacrifices must be made for the good of my financial health. I’ll be hopefully starting a sublet or room rental come January 1st, maybe a little sooner. For the first half of December, I’ll be taking up residence in an AirBnB rental and house-sitting for the other half. This will bring my “rent/utilities” down to about $800 for the month of December 2015, which will allow me to mostly bounce back from this big gap. Also, I’m hoping to sell some of the items I bought for the apartment and reclaim some of that money I spent and use that towards any deposits I’ll have when securing a new place to live.
I’ll also be doing a fair bit of driving for Lyft/Uber this month as I’ve got an Uber sign-up bonus in effect that could potentially bring in some extra cash. If Uber turns out like a normal night of Lyft, then I should have the requirement hit in my first day or two of Uber driving, bringing me an extra $300 ($600 if the objection I have goes through). After I take out taxes, tithe, gas, and car maintenance from the bonus, this will be $120 in my pocket, on top of whatever actual fares I get. Lyft driving brings in about $10/hour after taxes, tithe, gas, and car maintenance, so I expect Uber to bring in the same.
Side note: The way I distribute my earnings from rideshare companies is the rideshare companies pay my LLC and once a month, the payments are broken down as follows:
- 10% goes to a “tithe” for my company
- 30% goes towards taxes,
- 10% goes towards car maintenance
- 10% goes towards gas for the car
- The remaining 40% goes to me as my pay.