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Slow Motion posted:Updated budget. Nice. The budget makes so much more sense as a cash flow analysis. Now we can see that you actually had ~$310 more in cash at the end of January than in the beginning, whereas the first cut of that reconciliation you claimed it at $1,121. edit and that debt payoff schedule is awesome too. Now you can meaningfully track progress against it, we can see clearly how you plan to snowball, etc. Nice work. edit: BIG QUESTION Come April are you going to owe money to the IRS or get a refund? bam thwok fucked around with this message at 16:21 on Feb 6, 2014 |
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Feb 6, 2014 16:17
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bam thwok posted:Nice. The budget makes so much more sense as a cash flow analysis. Now we can see that you actually had ~$310 more in cash at the end of January than in the beginning, whereas the first cut of that reconciliation you claimed it at $1,121. That $310 is just a formula error. From the $4,871 in salary income in January I put a little over $1,350 towards principal on my debt (the $1,121 excess shown + $230 in principal in the minimums). BIG QUESTION: I should receive a small refund. I'm still waiting on a couple 1099s. Edit - and boy am I glad I waited till January to finalize the divorce. I would owe a kings ransom if I hadn't. Slow Motion fucked around with this message at 16:36 on Feb 6, 2014 |
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Feb 6, 2014 16:34
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Slow Motion posted:That $310 is just a formula error. From the $4,871 in salary income in January I put a little over $1,350 towards principal on my debt (the $1,121 excess shown + $230 in principal in the minimums). So are you going to owe that amount next year? Have you adjusted your withholdings or considered adding a line item to start saving some monthly now to put towards that?
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Feb 6, 2014 17:23
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April posted:So are you going to owe that amount next year? Have you adjusted your withholdings or considered adding a line item to start saving some monthly now to put towards that?
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Feb 6, 2014 17:27
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Fiedler posted:I believe he's previously said that his withholding was adjusted at the beginning of the year. He would have owed a significant amount had his divorce finalized in 2013, because he would be unable to file jointly with his ex-wife. (Or so he has said. I wouldn't know.) That's correct. My W-2 is up to date as well. Before you ask I billed 11.5 yesterday and studied 2 hours. Feb Totals: 29billed / 8studied
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Feb 6, 2014 19:23
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Neat. So far you're on pace for around 190 billed hours this month, or an extra $3000 gross earnings over your estimate. Or you could blow that off and visit Hawaii. 
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Feb 6, 2014 20:18
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Slow Motion posted:Updated budget. Slow Motion posted:And here's a conservative debt paydown schedule.
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Feb 7, 2014 02:35
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A reminder that it is not too late to save some money by getting blow jobs at a bathhouse (gay, I guess) instead of dating. Probably easier on the schedule too.
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Feb 7, 2014 04:09
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My Rhythmic Crotch posted:This looks like a really good start, Slomo. The budget especially, because now it's possible to quickly see dollars in, dollars out. Plus you budgeted every dollar earned, which is awesome. The only thing I might recommend is to combine the bars/alcohol, weed, and shows down into a single "entertainment" category. Mainly just to get the weed out of the "misc" category. Anyways, good job. For me, I track everything separately but I budget as a group like you suggest, Crotch. I like data, what can I say.
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Feb 7, 2014 04:14
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SiGmA_X posted:You haven't had over 100 posts during the day while I was working! I agree, it's nice to finally get on the right track. I think most of us are on the official ignore list, so what's the point of continuing?
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Feb 7, 2014 05:35
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Old Fart posted:I think most of us are on the official ignore list, so what's the point of continuing?  we're the rebels.
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Feb 7, 2014 08:39
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Slow Motion posted:Try to understand that I got here more on the back of an abusive marriage than drinking or partying. I have a knee-jerk hatred for the 'holier than thou based on my bank account' types because of it. Your mention of your net worth gave me the same rage. See where the debt starts at $35,000 at the beginning of the year? I had blood dripping down my face right about then. You've had a good January, keep it up this month. Try to figure out what your real goals are and how getting out of debt will help you achieve those goals. Buying a bunch of stuff usually isn't the main goal, so figuring out why you're buying an 80 dollar rug is going to help you curb those impulses sometimes. I'm not sure about this, but I get the vibe that you like to spend a lot of money to impress women. The good ones aren't impressed by poo poo like that, and if you just want to get laid you can do that without buying expensive cocktails. If your goal is "make my apartment fun and nice for me to live in", I'm guessing the fireflies project did a lot better with that than the rug. You'll forget about the rug in a few days and it'll just be something to walk on. The fireflies project you probably learned something building it, it's creative work, manual work which tends to refresh your energy more, and it's something you can feel proud of for building (despite what people's tastes are on the internet). Semi-irrelevant storytime: When I first visited my boyfriend's apartment a couple years ago, the car door handle broke off in my hand before I got out and then I walked into a mess of an apartment with no chairs or couch, nothing except a couple of pillows on the floor for seating. But there were books half-read on all the counters and handdrawn robot eyes on the cupboard doors, and I fell in love. This is not to say you shouldn't spend time fixing up your place. But you should fix it up for the right reason - because it makes YOU happy, not to impress anybody else. If it's important to you, spend time and energy on it, and sometimes money. Be wary about spending money to impress other people because you generally are going to have to spend 100x more to impress them than it would take to make you happy just by yourself. Go enjoy your fireflies and bill a bunch of hours tomorrow 
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Feb 7, 2014 08:52
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My Rhythmic Crotch posted:This looks like a really good start, Slomo. The budget especially, because now it's possible to quickly see dollars in, dollars out. Plus you budgeted every dollar earned, which is awesome. The only thing I might recommend is to combine the bars/alcohol, weed, and shows down into a single "entertainment" category. Mainly just to get the weed out of the "misc" category. Anyways, good job. I'll think about this for march budgeting. One of the goals of splitting everything out in such granularity was to think about what value I received for various things. Like the $40 in supplies to do my ceiling was way more valuable than a $100 bar tab. And the Opera for $50 a seat was worth at least 10 movies for $15 a seat. I'm starting to have a better feel for value to make the trade offs more natural. Thinking back I pretty much had binary judgements on value which completely ignored price. First it was: will it make my wife calm or happy? Yes? Ok. I'm buying it regardless of price. Then it was: will it make me happy, distracted, or well hosed? Yes? Ok. I'm buying it regardless of price. Nam Taf posted:
You're not ignored. Criticize my decisions all you want (I know you will  ). I appreciate your style of honest criticism. You only get to join the club by way of direct insults.Thanks for the honest post. I think it's pretty spot on. I'm glad to here writing all over cabinets is attractive: my kitchen is awash in chalk pen. Edit- also: 39.5/8 billed/studied Slow Motion fucked around with this message at 17:59 on Feb 7, 2014 |
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Feb 7, 2014 17:41
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Slow Motion posted:You're not ignored. Criticize my decisions all you want (I know you will  Nah, I've laid in to you a bit with even the direct insults. I've called you out because I've been frustrated with your pigheadedness. I wasn't willing to give you the benefit of the doubt because of one good month but the budget is a huge step in the right direction. I did the same with Cornholio and Tuyop in that I was incredibly vocal about their errors but once they started righting the ship I feel I gave support to both of them. I want to do the same to you man, I really do. e: I shoot straight with you because deep down, underneath all the hipster sweater vests, I know you can take it. You might baby out for a day or two but you'll harden up and front back to this thread. This is in stark contrast to e.g.: murder sandwich, who ended up just giving up and for all we know has been consumed by his debt. quote:Edit- also: 39.5/8 billed/studied BTW I finally saw the Superbowl. Congrats and I'm now a bit more impressed you kept it to $112. Next year I'm just going to take the Monday off and watch it live. Nam Taf fucked around with this message at 18:00 on Feb 7, 2014 |
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Feb 7, 2014 17:57
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No Sunday work that puts you at a 190 pace for the month.
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Feb 7, 2014 20:09
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Slow Motion posted:I'll think about this for march budgeting. One of the goals of splitting everything out in such granularity was to think about what value I received for various things. Like the $40 in supplies to do my ceiling was way more valuable than a $100 bar tab. And the Opera for $50 a seat was worth at least 10 movies for $15 a seat. I'm starting to have a better feel for value to make the trade offs more natural. Slow Motion posted:Edit- also: 39.5/8 billed/studied
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Feb 7, 2014 23:27
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I would guess it was when he made his pay off schedule and saw it will take a year of thrift and hard work to pay off all the loans. This type of document can really help drive home the situation and give you a nice kick in the butt to succeed. (For some it is overwhelming and it doesn't work at all though)
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Feb 8, 2014 00:00
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I'm hoping this thread dies the fast death it deserves. Because I'm hoping Slomo learns to both be nice to people but also get rid of his financial burdens and succeeds. 
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Feb 8, 2014 02:01
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I filed my taxes today. I'll be getting a refund of about $4,200. Of that I'll give about $400 to my ex wife. The education tax credit on her tuition is $2,500 and the student loan interest deduction pushes the tax effect up to $3,000. I deduct the $2,600 she owes me for the security deposit on the house and give her the rest. So that will leave me with $3,800. I'm thinking $3,000 of that toward debt and $800 for blow.
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Feb 10, 2014 03:11
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Slow Motion posted:I filed my taxes today. I'll be getting a refund of about $4,200. Of that I'll give about $400 to my ex wife. The education tax credit on her tuition is $2,500 and the student loan interest deduction pushes the tax effect up to $3,000. I deduct the $2,600 she owes me for the security deposit on the house and give her the rest. So that will leave me with $3,800. I'm thinking $3,000 of that toward debt and $800 for blow. Are you budgeting by %? If you are, consider applying this money the same way. So if ~20% of your income is discretionary, then yeah. But the other 3k could be split to buffer all your other budget lines according to their percent of your income.
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Feb 10, 2014 03:22
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tuyop posted:Are you budgeting by %? If you are, consider applying this money the same way. So if ~20% of your income is discretionary, then yeah. But the other 3k could be split to buffer all your other budget lines according to their percent of your income.
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Feb 10, 2014 03:54
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Please don't do cocaine, slomo!  j/k, sounds like a good plan to me. Are you trying to cut down on liquor consumption? Because do that as soon as you can. Trust me, as you get older it just gets harder to drink, and it's all empty calories... weed is better imo, plus you don't have the hangover that messes with your work productivity.
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Feb 10, 2014 04:22
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$800 for blow (phrasing!) sounds okay to me. You're lucky Slomo - Tuyop would have been crucified in his thread for the mere suggestion of it.
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Feb 10, 2014 04:27
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My Rhythmic Crotch posted:$800 for blow (phrasing!) sounds okay to me. You're lucky Slomo - Tuyop would have been crucified in his thread for the mere suggestion of it. Hey I spent 800 on fun stuff! In 2013.
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Feb 10, 2014 04:39
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So you're plan is to dump 100% of your bonus into paying down debt, but when you get a windfall that's basically exactly like a bonus you're spending $800 of it on "blow"? EDIT: Also, still no mention of putting money aside for moving and security deposit on a new place.
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Feb 10, 2014 04:42
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Rudager posted:So you're plan is to dump 100% of your bonus into paying down debt, but when you get a windfall that's basically exactly like a bonus you're spending $800 of it on "blow"? We could, however, use some clarification about his checking account and if that money is earmarked for handing moving costs, or if he's planning on using credit to cover the move (please don't).
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Feb 10, 2014 05:01
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Could you put more to the debt and less on coke and hookers? Sure, and someone more frugal would. Do I think your proposed split is fair enough given the SloMo of even 1 week ago? Definitely. BFC would be wise to let this slide to win battles over bonus splits later on. Make 79% of bonus windfalls to debt the first step and go from there.
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Feb 10, 2014 06:56
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Nam Taf posted:Could you put more to the debt and less on coke and hookers? Sure, and someone more frugal would. Do I think your proposed split is fair enough given the SloMo of even 1 week ago? Definitely. For as much flak as I have given Slow Motion throughout the life of this thread, I can't agree more with your post. His attitude seems to have changed dramatically in just the last few days after a total thread meltdown and hostility on all sides, and I am encouraged by the new way he's tracking budgeting and actual received income vs. bonus accruals and debt drawdown. I think the split SloMo has chosen from his impending tax refund for debt repayment vs. fun money is a reasonable one now. (Provided that he doesn't take any action toward one or the other until he has actually received this balance in his account). I would say, though, that all the money from the sale of the car should go directly to debt repayment. What I'd like to see over the next few months: He gets encouraged by the real reduction in debt he sees, rather than shuffling it around, and that propels him to further discipline in his spending category (and hopefully his earning as well). Then he may voluntarily choose to tip the balance of other bonuses or unexpected income even further toward debt payment and including a smaller slice as entertainment. But we'll get to that when we get to that. I'd gladly eat humble pie if Slow Motion can keep this up. And USSMICHELLEBACHMAN didn't even have to get permabanned!
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Feb 10, 2014 07:26
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Alternatively, allocate more money towards coke and bill 140 hours in a week.
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Feb 10, 2014 07:36
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My Rhythmic Crotch posted:My view of Slomo's situation is very 'glass half full'. I'm pumped for him that he wants to put any chunk of any windfall he receives towards debt. This actually doesn't make any sense to me. Let's play with a model that SlowMo is going to incur $2500 in total moving expenses (deposit, beer weed & pizza for friends, box truck rental, etc), he MAY put all of them on a credit card directly, and he's incurring avg 9.95% annual interest on his credit card debt. Whatever the cost is, it's fixed, two responsible options are: 1) Save $2500 total between now and June when his lease is up. 2) Save nothing between now and June instead putting ALL of the money he would have been saving into paying down credit cards. Put all moving expenses on credit cards. There are 4 credit billing cycles between now and June (rest of Feb, March, April, and May). The money he saves for the move cannot be applied to paying down credit card debt, and in these two options, Slow Mo's total debt load come June will be equivalent. If we take Option 1 as our null hypothesis, then Option 2: - Saves $516 worth of interest payments - Accrues an additional $2500 worth of credit card rewards not otherwise gained. - Leaves him with the same debt load in June Why not put it on credit cards? All other things being equal, paying down debt then re-incurring it for the move seems better.
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Feb 10, 2014 15:26
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In a purely rational actor you're right, however that's rarely the case. The main thing is that the moving money would likely in part (ideally in full) come out of discretionary income rather than from debt repayment. Consider moving costs costing $[x]. If you save it up over time, some percentage of that is going to come out of discretionary income (ideally 100%) so as to not affect downpayments. If you just put it on the cards at the end, then you have $[x] extra between now and then that you have to put on the credit cards to be even. The reality is that most people, and SloMo in particular as shown in this thread, lack discipline enough to put the entirety of that $[x] towards CC repayments before redrawing it on moving later. It's money, it's in their hand now, and so they'll blow some of it. As a result they're worse off. It also doesn't consider the risk of substantial circumstance changes at a bad time - no one can take money away from you if it's squirreled under your bed, but people can very quickly remove your ability to spend on a credit card or finance the repayments after doing so.
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Feb 10, 2014 16:59
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Dwight Eisenhower posted:- Saves $516 worth of interest payments What I wanted to get at, but did a piss poor job of, was the following two things: 1 - what is an appropriate level for his emergency buffer, and what things/situations/etc does that cover. 2 - is Slomo planning on putting the move on credit even if he has idle cash available (beyond what's needed for the emergency buffer) that he is otherwise not planning on paying down debt with anyway? My Rhythmic Crotch fucked around with this message at 17:34 on Feb 10, 2014 |
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Feb 10, 2014 17:31
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Chiming in to say that I have been following since day one, and until now I thought you were on the Zuarg path instead of the Cornholio path. I am pleased to say that there has been a noticeable shift in how you view and treat finances and debt. I hope that you keep on hitting the debt hard and keep a balance in all aspects of your life. Good luck man.
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Feb 10, 2014 17:54
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You're both making good points that make sense to me and are consistent with my own financial motivations and situation. However, we're talking about Slow Mo. I guess I have accepted more of Slow Mo's behavior as being intrinsic to the situation and unlikely to change, specifically: He has identified having very little "oh poo poo" fund, and a preference to maintain that status, taking anything that would be bolstering "oh poo poo" fund and applying it to debt repayment. Do you honestly think discretionary spending will drop to accommodate moving expenses when it won't drop to accommodate faster debt repayment? I do not.
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Feb 10, 2014 17:55
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moana posted:Please don't do cocaine, slomo! I have been and it feels amazing! in the past couple months I've only need drinking on the weekends and usually only one day of them at that. And not even every weekend. I have no idea how I handled 5 or 6 beers every day back in April and May, billing similar hours to what I'm doing now. Regarding moving costs I think you guys have a pretty good grasp of the situation. I wont be saving for it. And I'm not sure how I'll handle things when it happens. I'm not committing to anything yet. On emergency funds I keep my customary 3k buffer in checking. I feel comfortable at that level for the moment for two reasons. Number one: I have an extensive safety net of friends and family. My coworker who's spare room I occupied for 3 months after leaving my wife offered a year at "whatever rent you can spare". I gave her 700/month because, as someone noted in this thread, Slow Motion aint no mooch. I think I have five or six friends who would do the same in my life. Additionally I have a huge (not rich) family presence in the area. The family has been known to pass my wayward ne'er-do-well cousins around for a couple years before they run out of second chances. Number two: My 401k and available credit combine to form a pretty big pool of poo poo-hits-the-fan money. In a truly life or death emergency I could pull anywhere form $20,000-$50,000 out of my rear end, depending on if the credit cards cash advances stay available. I'm also well insured against most "normal" catastrophes. All that said I would prefer an emergency fund that doesn't rip into my 'future' the same way using the above financial options would. But to me it's a much lower priority when compared to paying off debt.
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Feb 10, 2014 19:36
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Slow Motion posted:Regarding moving costs I think you guys have a pretty good grasp of the situation. I wont be saving for it. And I'm not sure how I'll handle things when it happens. I'm not committing to anything yet. 1 step forward, 2 steps back......
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Feb 10, 2014 20:46
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Writing about safety nets reminded me of an odd situation. This might be a little e/n for my debt thread. But whateves, somebody asked for crazy stories a few pages ago. Back in April one of my very first rebounds after leaving my wife was a 38 year old heiress who offered to buy me a condo -in my name- on the condition that she could come and go as she please and 'take care of me'. I didn't accept, obviously. She was double crazy even by the warped standards set by my wife. Reality was so drat weird back then. Slow Motion fucked around with this message at 21:23 on Feb 10, 2014 |
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Feb 10, 2014 21:20
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Slow Motion posted:Number two: My 401k and available credit combine to form a pretty big pool of poo poo-hits-the-fan money. In a truly life or death emergency I could pull anywhere form $20,000-$50,000 out of my rear end, depending on if the credit cards cash advances stay available. This is a dangerous way to think. I'm pulling out of that "credit as emergency money" mentality. I don't have anywhere near the credit limits you do, and I still almost royally hosed myself. Using credit cards are not money, they are loans, they're almost the same as going to a bank and asking for a 50k loan, but at a much much higher interest rate. Using credit cards as "emergency money" will only put you right back to where you are.
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Feb 10, 2014 21:44
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SloMo - I think you've shown great progress as of recent. I also think you should consider saving up for your deposit at the least, if not your moving costs. Or save up from the prior 2 months before you move (March & April? Move in May?) I think you at least need a plan to absorb the moving expenses into your discretionary budget for the month of May, and from looking at your numbers, I think that may mean saving a month or two ahead of time. Estimate $500 for hard costs related to moving, plus the deposit on the new place. Have you narrowed down a list of potential new abodes? If so, what's the average move in cost (first month/deposit, first/last/deposit? I know it can vary). I'd just start thinking about how you are going to pay for it without going further into debt. If you decide (and it is your decision) to fund via credit, maybe you should make a cost analysis regarding interest incurred by funding with debt while continuing to repay your debts, vs cash flowing the move and cutting back on the lifestyle for a little bit. Its also entirely possible that you will cut your lifestyle spending by default because of studying for the test. Or go the other way! Gothmog1065 posted:This is a dangerous way to think. I'm pulling out of that "credit as emergency money" mentality. I don't have anywhere near the credit limits you do, and I still almost royally hosed myself. Using credit cards are not money, they are loans, they're almost the same as going to a bank and asking for a 50k loan, but at a much much higher interest rate.
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Feb 10, 2014 22:18
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I think $3K is fine until he's gotten rid of his debt (which is what I assume he means by "at the moment") Moving within a city is really not that expensive so while I agree that it would be nice for SloMo to save a bit eventually for a deposit and a truck, I don't think he really needs to start saving now. The one benefit to saving now is that it's a commitment towards moving, which is still something that needs to happen, but other than that I don't think there's a huge benefit to saving now.
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Feb 10, 2014 22:37
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