Category Archives: Financial Independence

State of the Side Hustle

I fell off the frugality wagon. (I decided to update my 40K codexes.) So I have been refocusing by reading Brave New Life, Mr Money Mustache and Millennial Money Man. They all talk about getting a side hustle going.

Sadly for the past couple of years, I have had more than enough on my plate.

  1. Primary Job.
  2. Mowing and Weed Whacking.
  3. Help around the farm.
  4. Accounting for the Farm and Lawn mowing.

Getting side stuff going was problematic because I didn’t have time.

However, I have lost 4 of my side mowing jobs and we lost a cemetery so I should have more time. I can devote more time to my projects. I have some worries about the loss of income but I think I can make it up else where.

Life does seem to be coming together.

2016 in Review

2016 was a bit rough. I lost my part of my 2015 spreadsheets when my computer died. Here we go though.

 

2015 2016 Percentage
Hobbies 1808.86 1838.68 0.983781843496421
Insurance 2166.27 1955.54 1.10776051627683
Gas 979.27 874.39 1.11994647697252
Pets 339.81 339.35 1.00135553263592
Health 775.54 1857.57 0.417502435978187
Tools 2116.15 491.67 4.30400471861208
Subscriptions 1424.32 1249.04 1.14033177480305
Food 477.07 524.68 0.909258976900206
School 550 0 #DIV/0!
Clothes 0 239.04 0
Office 0 65.94 0
Repairs 0 283.06 0
Misc 0 708.2 0

I can just do tables. Why didn’t I do that before? Oh, I downloaded Libreoffice.

I’m going to do better in 2017. I’m going to work on finishing my projects and save money. Create better systems than I have currently.

2014 in review/2015 plans

2014 in review.

So in 2014 I got a machine shop job and lost the machine shop job. But lets review my income and spending.

Income:

Machine Shop(Net): 12,595.80

Side Jobs: 2,956.00

Dividends:233.40

Total Income (Net):15,785.20

Expenses

Gas: 1,445.16

Health: 895.16

Food: 394.58

Pets: 533.78

Hobbies: 1,003.91

Insurance: 1,717.87

Tools: 1,109.34

Machines: 500.00

Subscriptions: 391.66

School: 2249.47

Repairs: 248.89

Tax Preparation: 60.00

Stocks: 8,425.00

Miscellaneous: 380.57

Total: 19,355.59

From the looks of things, I spent far more than I took in. -3,570.39 to be exact.

But the expenses include the one time stock buy using the money I got out of my bank CD. 19,355 -7300=12,055. Now I am living within my means, though it could be better.

2015 Forecast

Rising expenses: Insurance, Gasoline, Health, Pets, repairs will most likely all increase.

I bought medical insurance on top of my life insurance. My jobs will be farther away so gasoline is going to increase. I got another cat that will need to be fed. Health I am unsure of. I got new glasses this year, but my medical visits will be out of pocket. Repairs because I will be increasing the distance traveled for work.

Stay the same: Hobbies and Tax prep.

The biggest amount I spent in hobbies was for GENCON and that amount stays fairly consistent. Warhammer 40K might be picking up again and I bought the BattleTech intro kit with plans to buy Leviathans. But my backlog of projects will prevent me from buying anything else for now.

I don’t think the accountant is going to raise his fee’s anytime soon.

Decreasing Expenses: Subscriptions, School, Tools, Machines, Food.

I accidentally bought two years worth of subscriptions to Make. Slacker and Netflix have been pretty stable.  I am not going to be a full time student in the next year so school will be cut in half at the very least. I don’t foresee any new tools or machines to be bought. Food will be cut down because I am not going to be going to school.

Plans for 2015

1. Make Mistakes.

2. Find another machinist job.

3. Do better book keeping.

Make Mistakes

I grew up watching way too much television. I was always fascinated by the master craftsman or superheroes that made their awe inspiring master piece. Problem is, television doesn’t show you the mistakes made to get that good. So I would build things and be disappointed that they were not what I had planned. So I would be discouraged and wouldn’t practice. So I think this year I am going to take a little advice and make mistakes. The goal will be to complete projects rather than make them perfect. Like today, I made a hammer. I already have one, this one isn’t centered and the handle is too long for the head, but damn it, the next one will be better.

 

DSCN0123DSCN0122Find a machinist job. I signed up at the community college for a machine tool class. In addition to sharpening my skills, hopefully they will have some leads. The last place I tried wouldn’t require anyone for another 2 months.

Do better book keeping.  As I was preparing to do this post, I found that my list approach didn’t hold up well to analyses. All my stuff had blended together and I had a hard time disentangling them. So I am taking a more proactive approach this year and creating columns.

2015 will be a better year than 2014.

2014 4th Quarter Buy

First things first, I finished my school semester. I am unsure if I will be able to go for next semester. I wish to have a job before I go back to school.

Alright, so the CD I had at the bank lapsed so I had 7,300 dollars to spend. I took that and the money from my dividends so I had 7,380 to spend. I bought 217 shares of AT&T stock at 33.99 a share.

The total number of stock I own is now at 334 of AT&T, 65 of Alteria and 6 of GDL Fund. These stocks should yield me 183.54 every quarter.

I will have to reassess my path to financial independence after I find a job. I will admit I didn’t expect that I would be unemployed this long. But I haven’t had to bite into my savings yet so that is a plus.

The Math of Financial Independence

Ah. It’s been a busy week.

First thing, a new Atomic Robo has been released, go support your local comic shop and buy it.

Second, the delay in posting was due to the fact we had no electricity from Monday to Friday. I am kind of glad though because it has convinced my brother that a generator station is required.

Third, my brother and I took time to clean out our shed. The plan for rebuilding the farm has jumped ahead by years from the timetable I had in my head.

Now, this weeks post, we get the calculators out to figure out the time frame. Figures that I would lose two days of work and it would screw up my pay rate for two weeks.

Mr Money Mustache recommends that you have 25 times your annual spending or whenever your spending is 4% of your assets.

My annual spending last year was 7,500. Both techniques render 187,500 as the goal. Current Net worth is 17,492.37.

17,492.37/18,7500=.093.    9% Percent towards goal.

Income

Machine Operator

400 dollars a week.

333.34 take home pay.

166.67 goes into savings right off hand.

Income from mowing.

1,100. As of June 30.

Stocks

263 a year in dividends.

My savings situation is a little complicated.

Currently, 77 dollars a week is added to the base amount. I figured that each quarter it would add up to be 1,000 dollars. This month’s schedule is

July 2: $4,310

July 9: $4,387

July 16: $4,464

July 23: $4,541

July 30: $4,618

Once every quarter I transfer the surplus amount to my stock brokerage to buy more stock. This combines with the dividends to buy more stocks.

This is going to be a snapshot of the time it will take.

((166.67×52)+263)= 8,929.84

187,500-17,492.37=170,007.63

170,007.63/8929.84=19.03 Years.

That’s not very encouraging, is it? Let’s add the mowing income to savings.

((166.67×52)+1100+263)=10,029.84

170,007.63/10,029.84=16.95 Years

Half my income won’t do it. How about 60%?

((200×52)+1100+263)=11,763

170,007.63/11,763=14.45 years.

We’ll throw 75% at it.

((250×52)+1100+263)= 14,363.

170007.63/14,363= 11.83 years.

Looks like I have a decade of work any way I slice it. I’ll have to look into some higher yield investments.