The game: Quarterly report
October 5th, 2009My personal challenge is to amass $500,000 in cash, and I call it “the game” (please read the June 14, 2009 article: “The origin: A game within the game”). Although it has been only three months, I feel as though it has been three years because I have financially scrutinized myself. It has been very difficult, but I am determined to win it because I know that the greatest reward is waiting for me at the end of the rainbow.
My Expenses
Overall, everything has stayed the same except for one unexpected event that occurred in July when our air conditioner broke down on a Saturday. I was charged a total of $300 ($125 for emergency service and $175 for labor and parts). The technician advised me to trim the bushy shrubs surrounding the external unit because they were blocking airflow. The obstruction forced the unit to work harder and ultimately caused it to crash.
My wife understands the reason why I am saving money, and she is very supportive. However, because she is a serious believer of branded products and organic food, it is very difficult for me to convince her to go with the cheaper ones. For example, we buy organic milk, eggs and cheese that cost twice as much compared to the regular products. I disagree, but I am willing to compromise because I simply believe that nothing in life is more satisfying than knowing that my wife and daughter are happy. I just have to find other ways to increase my take-home money.
My Income
About a month ago, I accepted a new position that would allow me to pocket $1200 more per month. The bad thing about this new job is that every morning I have to drive 25 miles to go to work (50 miles both ways). Usually, it takes me about 35 to 45 minutes depending on daily traffic, and I don’t drive fast at all. So far, I am happy with my decision because the new working environment is very good, and the company’s benefit is more lucrative. Also, I have a chance to see a larger and more technologically sophisticated operation that will definitely broaden my experience.
To create more money, I continue to invest in dividend-paying stocks because I believe that the stock market will bring me home in the long run. Currently, the total number of shares is 1505 compared to 1192 in June, 2009. My goal is to reach 2000 shares by the end of 2009, and I am waiting for the market to correct itself in the coming months.
On the other hand, my rental unit has been vacant for about two months. Basically, I am giving back the profit that I have collected when it is occupied. My goal is to hang on to it for five more years, and I will sell it. One can make money in this business, but it requires that one must take control of it and devote one’s time to it. And, time is what I don’t have because I am holding a full-time job. I believe that if one has money and wants to invest in real estate, now is the time.
My Debt
In June of 2009, the total debt was $365,485, and as of today it is $361,657, a 1% decrease. I know that I must be more aggressive in paying down my debt because it eats up a big chunk of my income. However, currently, I am favoring the stock market, so I am keeping my cash and waiting for the right moment to pull the trigger. Although I don’t believe in ”good debt”, I understand that it is alright to carry the debt because it is tax-deductible.
My Self-evaluation
Progress is slow, but I am getting closer to the finish line. I must keep on fighting to win, and I know that I will continue to fight because it has been fun for me. In the end, it is my game, and my enemy is myself.
