I drove back from Houston yesterday just in time to shower and dash to an HOA board meeting. I am one of three on the board for our neighborhood. Fortunately, we enjoy each other, and each of us is willing to work hard, so it's a good board and I don't mind the rather long meetings (only once a quarter) with our management company rep.
My least favorite part of the meeting is our executive session in which we review violations of the covenants and restrictions as well as homeowners non-compliant with paying dues. With the latter, we ensure that all notices have been sent, and if the homeowner is well overdue and has not contacted our management company despite all the notices, we vote to send to legal. Which adds hundreds and sometimes thousands to the homeowner's bill (over time), so that an original bill of $170 can balloon to two or three thousand or more (with late fees, title searches, legal costs, etc).
I HATE doing that. I know that some of these people are probably suffering some hardship or other, perhaps an illness or loss of job or divorce. The thing is, if they would just call and tell us what's going on, we could work with them and not have to send to our attorney. We have in the past asked our rep to contact each of them by phone, even though it's not required, in a last ditch attempt to communicate the financial consequences of ignoring the bills and many overdue notices. We've discovered this doesn't do much good.
Recently I saw an article somewhere, perhaps a blog post, on the high cost of procrastination. I'm not sure if this situation would fall under that heading or would belong more to the act of burying one's head in the sand and hoping the problem will go away. It doesn't really matter in this case, the consequence is the same, and it is quite costly.
I have to say, I've been kicking myself recently for some costly consequences to issues I've put off dealing with. Mine were due to classic procrastination. My term life insurance expired earlier this year, and I've had looking into a new policy on my to-do list for at least three years. THREE YEARS. Finally I had a "just do it" day and took care of aged to-do tasks, including the life insurance. Because of the skin cancer I had removed in April, I fell out of the preferred category. If I had done this two or three years ago, my rate would have been much lower. Ooooh, that burns.
I have a few other old tasks on the to-do list that have to do with money, including contacting the cable company about lowering our rate and visiting Verizon to ensure our plan is right-sized. I'm due another "just do it" day.
Showing posts with label Finances. Show all posts
Showing posts with label Finances. Show all posts
Tuesday, June 11, 2013
Saturday, July 7, 2012
Awash in Cash (Sort Of)
Here we are into July, and I'm no closer to making a decision about my business.
Tomorrow Kat and I go on a 5 day vacation with my family -- parents, siblings and their spouses, and lovely nieces and nephews. It's a frugal vacation for all of us. We meet at campgrounds on the nearby San Marcos River, rent tiny duplexes (with the required AC), and haul our own groceries. Five days of visiting, napping, playing cards, reading, and tubing down the river. Bliss!
The sticker shock for us is the price of providing care for our pets while we're gone. Our two big dogs are geriatric now, both with arthritis in their back legs. I researched the best place possible to keep them and found a kennel with private suites and in-door play areas that will give them quiet rest and air-conditioned exercise. For both girls, it's $75.00 a night -- choke! That's almost the cost of our own accommodations!! It's worth it though. We also pay our neighbor's kids $120 to take care of our cats, fish, outdoor ferals, and plants.
We've thought about a house sitter for all the pets, but we have one cat who is very crafty about dashing out the door. She is a house cat and would not make it outside, and we're afraid to lose her if we had someone here letting the dogs in and out. Also, the neighbor's kids are able to make money for back to school stuff, and I know their parents more than appreciate it. So this is just the cost of our going places, which is why we do so little of it (Something I am fine with, being a homebody and not liking to travel much).
We have better cash flow this year than we've had in a long time, and much less worry as a result. All of our travel expenses, including the pet care, will be paid cash, and at the same time, we've managed to bring the balance of our credit card from over $9,000 at the beginning of the year to $2,900.
But I've taken a look at our finances, and a lot of our increased cash comes from sources other than my real estate business. Kat received a significant raise at work last August, and in January of this year, the city extended medical benefits to domestic partners. My being on Kat's health insurance saves us nearly $200 a month, and the insurance is much better than my private insurance, so we're paying less out of pocket for physicals and such.
The cash flow has felt so good, I thought I was making more than I am. If I take my gross and subtract ALL business-related expenses, taxes, and tithe, I've made nearly $5,000 in profit so far this year. The expenses are more than I realized. As you know, $5,000 is not a living wage!! It's a nice supplement, and a big part of the reason that we're not worrying over money nearly as much, but is it worth it for the aggravation and the hours I put in? Could be too early to pull the plug, but I don't feel momentum going forward, and that's my fault. If I can't be passionate about this, I don't think it will work, but God I don't want another failed thing.
So as not to end on a glum note, I have to share that I feel unreasonably happy right now. Well, maybe not unreasonably. I WILL be with family tomorrow, with the very people who would not at all see this as "another failed thing" (and neither would Kat). That's one bad thought I need to somehow bar from this decision-making process.
Tomorrow Kat and I go on a 5 day vacation with my family -- parents, siblings and their spouses, and lovely nieces and nephews. It's a frugal vacation for all of us. We meet at campgrounds on the nearby San Marcos River, rent tiny duplexes (with the required AC), and haul our own groceries. Five days of visiting, napping, playing cards, reading, and tubing down the river. Bliss!
The sticker shock for us is the price of providing care for our pets while we're gone. Our two big dogs are geriatric now, both with arthritis in their back legs. I researched the best place possible to keep them and found a kennel with private suites and in-door play areas that will give them quiet rest and air-conditioned exercise. For both girls, it's $75.00 a night -- choke! That's almost the cost of our own accommodations!! It's worth it though. We also pay our neighbor's kids $120 to take care of our cats, fish, outdoor ferals, and plants.
We've thought about a house sitter for all the pets, but we have one cat who is very crafty about dashing out the door. She is a house cat and would not make it outside, and we're afraid to lose her if we had someone here letting the dogs in and out. Also, the neighbor's kids are able to make money for back to school stuff, and I know their parents more than appreciate it. So this is just the cost of our going places, which is why we do so little of it (Something I am fine with, being a homebody and not liking to travel much).
We have better cash flow this year than we've had in a long time, and much less worry as a result. All of our travel expenses, including the pet care, will be paid cash, and at the same time, we've managed to bring the balance of our credit card from over $9,000 at the beginning of the year to $2,900.
But I've taken a look at our finances, and a lot of our increased cash comes from sources other than my real estate business. Kat received a significant raise at work last August, and in January of this year, the city extended medical benefits to domestic partners. My being on Kat's health insurance saves us nearly $200 a month, and the insurance is much better than my private insurance, so we're paying less out of pocket for physicals and such.
The cash flow has felt so good, I thought I was making more than I am. If I take my gross and subtract ALL business-related expenses, taxes, and tithe, I've made nearly $5,000 in profit so far this year. The expenses are more than I realized. As you know, $5,000 is not a living wage!! It's a nice supplement, and a big part of the reason that we're not worrying over money nearly as much, but is it worth it for the aggravation and the hours I put in? Could be too early to pull the plug, but I don't feel momentum going forward, and that's my fault. If I can't be passionate about this, I don't think it will work, but God I don't want another failed thing.
So as not to end on a glum note, I have to share that I feel unreasonably happy right now. Well, maybe not unreasonably. I WILL be with family tomorrow, with the very people who would not at all see this as "another failed thing" (and neither would Kat). That's one bad thought I need to somehow bar from this decision-making process.
Wednesday, May 16, 2012
How to Spend a Thousand Dollars
Monday I finally closed on the deal I thought was falling apart a month ago. Yesterday I picked up my check from the office. Finally, something substantial! The money is going into savings for taxes, into business checking for upcoming expenses, and on the credit card.
Next week, if all goes well, I close on a small deal which will net me a little over $1,000. I should put it on the card and toward business, but I talked to Kat and we're going to pick something from our long list of deferred household projects. Here's where things get tricky. We have a pretty long list, and with money (almost) in hand, it's more difficult to prioritize than I thought it would be.
Right now -- after much discussion -- the top two contenders are a sleeper sofa for the office or a new washer and dryer. We have a futon now in the office for company, and we have a LOT of overnight company. Our bed and breakfast lifestyle is due to living in the lovely city of San Antonio with our families nearby -- Austin, College Station, and near Houston. In fact a a sister and two nieces will be staying with us over Memorial Day weekend. How wonderful to simply pull out the bed and provide a nice mattress for them to sleep on.
BUT, we guesstimate our washer and dryer to be between 30 and 35 years old. They were old when my aunt and uncle got rid of them for spiffier models, and we've had them over 14 years. I'm sure we're committing crimes against the environment by using them, and in the last couple of months they've added a variety of noises to the cacophony they already produce.
Even as I write this, I see the better use of the money is in the washer and dryer. It seems more a need than the sleeper sofa, is something we use more often, and could actually save us money on our utility bill. But we both want the sleeper sofa more, and I know us well enough to know that we don't provide a good brake for the other when we're wanting the same thing. Hmmm. Perhaps we can find some bargains and make this a both/and instead of an either/or.
I have to say, this is the kind of dilemma I like to have.
Next week, if all goes well, I close on a small deal which will net me a little over $1,000. I should put it on the card and toward business, but I talked to Kat and we're going to pick something from our long list of deferred household projects. Here's where things get tricky. We have a pretty long list, and with money (almost) in hand, it's more difficult to prioritize than I thought it would be.
Right now -- after much discussion -- the top two contenders are a sleeper sofa for the office or a new washer and dryer. We have a futon now in the office for company, and we have a LOT of overnight company. Our bed and breakfast lifestyle is due to living in the lovely city of San Antonio with our families nearby -- Austin, College Station, and near Houston. In fact a a sister and two nieces will be staying with us over Memorial Day weekend. How wonderful to simply pull out the bed and provide a nice mattress for them to sleep on.
BUT, we guesstimate our washer and dryer to be between 30 and 35 years old. They were old when my aunt and uncle got rid of them for spiffier models, and we've had them over 14 years. I'm sure we're committing crimes against the environment by using them, and in the last couple of months they've added a variety of noises to the cacophony they already produce.
Even as I write this, I see the better use of the money is in the washer and dryer. It seems more a need than the sleeper sofa, is something we use more often, and could actually save us money on our utility bill. But we both want the sleeper sofa more, and I know us well enough to know that we don't provide a good brake for the other when we're wanting the same thing. Hmmm. Perhaps we can find some bargains and make this a both/and instead of an either/or.
I have to say, this is the kind of dilemma I like to have.
Monday, April 23, 2012
For God's sake Jim, I'm an Agent not a Plumber!
Miraculously the deal hasn't fallen through. Things are looking up, but closing is not until May, so plenty of time to worry some more.
The reason I started a business in real estate in the first place was -- not so much to start yet another career -- but to bring in extra money. It's a long story how real estate came up as a viable way to earn extra bucks, but let's just say that the person who got me into this assured me it was something I could do part time.
I don't think so.
Work part time and you have no business at all but LOTS of expenses. Maybe I should have done more research before jumping into the deep end. Too late now.
So here I am with a lot of training and some experience. I don't want to walk away from it just because my life has taken a turn I wasn't at all expecting. I made an impulsive decision to get into real estate, but don't want to make the same mistake getting out. (Or was it a mistake? Hmmmm. Telling. This blog is working already!!)
My partner earns enough to support the household, with some put aside for retirement and savings, but not a whole lot extra. I've been doing some not too lucrative writing, home-making, volunteering, paid consulting here and there. We've been ok with the frugal lifestyle, but we have some big expenses and a few wants and I'd like to sock away more for retirement.
The first thing I plan to do with this season of my life is lay groundwork, create habits that will support a more deliberate, informed decision-making process about what's next, and then a COMMITMENT to that thing. More on creating habits in future posts.
Today I should feel relieved and happy about that durn contract, but I feel kind of down. Maybe it's that I know it can still fall through, or maybe it's a completely unrelated phone call on a different house purchased by an out-of-town client that involves me going and checking on a water line or something of which I have no clue. That's why agents recommend their clients use inspectors and contractors. I'm not a plumber, people!!
The reason I started a business in real estate in the first place was -- not so much to start yet another career -- but to bring in extra money. It's a long story how real estate came up as a viable way to earn extra bucks, but let's just say that the person who got me into this assured me it was something I could do part time.
I don't think so.
Work part time and you have no business at all but LOTS of expenses. Maybe I should have done more research before jumping into the deep end. Too late now.
So here I am with a lot of training and some experience. I don't want to walk away from it just because my life has taken a turn I wasn't at all expecting. I made an impulsive decision to get into real estate, but don't want to make the same mistake getting out. (Or was it a mistake? Hmmmm. Telling. This blog is working already!!)
My partner earns enough to support the household, with some put aside for retirement and savings, but not a whole lot extra. I've been doing some not too lucrative writing, home-making, volunteering, paid consulting here and there. We've been ok with the frugal lifestyle, but we have some big expenses and a few wants and I'd like to sock away more for retirement.
The first thing I plan to do with this season of my life is lay groundwork, create habits that will support a more deliberate, informed decision-making process about what's next, and then a COMMITMENT to that thing. More on creating habits in future posts.
Today I should feel relieved and happy about that durn contract, but I feel kind of down. Maybe it's that I know it can still fall through, or maybe it's a completely unrelated phone call on a different house purchased by an out-of-town client that involves me going and checking on a water line or something of which I have no clue. That's why agents recommend their clients use inspectors and contractors. I'm not a plumber, people!!
Saturday, April 21, 2012
Welcome
I am in a place -- mentally, emotionally, and financially -- that I'd rather not be. Some things in my life are lovely -- my partner being the main joy -- and some are miserable -- the primary culprit being my business. I tend to over-think, over-worry, and work myself into confusion, and all the while, what I'm trying to figure out is how to live life well.
I'm in my mid-40's, and I'd like to have things figured out already. But that's a pretty amorphous goal, so a more focused goal, with a deadline of September, is to decide what to do about my business. This blog is part of my discernment process.
My business is real estate. I got my agent's license in Texas nearly a year and a half ago, and I am beginning to think I'm spectacularly unsuited to the business of buying and selling houses. For one, I'm struggling to break even. Expenses are high and closings (with accompanying paychecks) are few. Right now I'm working a contract for a nice house; my fee will put a good dent in credit card debt. And guess what? Today I'm watching it all fall apart, which does happen, but for me it's THE straw. (And so this blog. Cheaper than therapy).
I work hard every day, and some weeks, like the last few, I barely have time to eat, and so I'm feeling more and more disorganized and discouraged. I'm hoping this blog will help push me to organize and keep on top of finances -- I certainly need to do that to make an informed decision about my work -- and will aid me in sorting through the myriad influences that affect what I do now and may do next. Tall order for a blog, but I need to start somewhere.
So welcome to Fumbling at Joy, which really is the heart of it all. Ultimately I just want to live my life well, with as much joy as possible.
I'm in my mid-40's, and I'd like to have things figured out already. But that's a pretty amorphous goal, so a more focused goal, with a deadline of September, is to decide what to do about my business. This blog is part of my discernment process.
My business is real estate. I got my agent's license in Texas nearly a year and a half ago, and I am beginning to think I'm spectacularly unsuited to the business of buying and selling houses. For one, I'm struggling to break even. Expenses are high and closings (with accompanying paychecks) are few. Right now I'm working a contract for a nice house; my fee will put a good dent in credit card debt. And guess what? Today I'm watching it all fall apart, which does happen, but for me it's THE straw. (And so this blog. Cheaper than therapy).
I work hard every day, and some weeks, like the last few, I barely have time to eat, and so I'm feeling more and more disorganized and discouraged. I'm hoping this blog will help push me to organize and keep on top of finances -- I certainly need to do that to make an informed decision about my work -- and will aid me in sorting through the myriad influences that affect what I do now and may do next. Tall order for a blog, but I need to start somewhere.
So welcome to Fumbling at Joy, which really is the heart of it all. Ultimately I just want to live my life well, with as much joy as possible.
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