Preparing for a budget with real housing expenses

Nov 28, 2015

The year is almost over. I've taken a long break from gazelle intensity although I still have debt. I don't want to be in debt forever and never want to go back to where I was (hungry and penniless at times).

So, here we go again. 2016 will be a different year because I want to get my own apartment again, mainly because I plan to get my dog back and finding a room/basement to rent with a dog is almost impossible. So, I'll have to manage the money with less going towards debt because I will housing expenses.

Sooo....

I'm making my December budget in Every dollar and updating my finances.
1. I got everything out of storage saving 110 a month.
2. I am canceling the gym membership.
3. I am contributing to the car fund again.
4. I am tithing this month.
5. I am simplifying the envelopes to just 4 (I had 6) - food (reduced by $100), clothing, gas, everything else (used to be fun, household, hair). Instead of thinking about them in terms of how much I spend each week, I think in terms of the month.
6. I will eat simply and start cooking at home more starting this month to save money on food.
7. It looks like the student loan is not moving at all. Let's pay off the personal loan then throw money at the student loan until it becomes a tamer monster.
8. I haven't finished paying off the HOA loans, but I will. It's not priority right now.
9. I'd like to buy a newer car in December. The heat and defrost have stopped working in my Honda - just in time for winter.

I was looking over old bank statements and they tell a story that only I can decipher. Like the two storage units I had for a time because I suddenly lost a job and needed a place to keep all the items from my classroom. Or the first time I opened my po box account and gym membership.

Not homeless anymore

It’s official. I am not homeless anymore. For the past 2 months, since I got back from the South for the summer, I have been renting a friend’s basement. It’s large and spacious. I sleep on the couch bed with the same memory foam mattress that I used in the back seat of the Honda. I am going to move the rest of my things from storage and cancel that monthly payment. I am going to cancel my gym membership since I can shower at home now. I don’t like the extra $700 I pay in rent, but it’s the cheapest around, and my place is clean, large, and shared with a loving, Christian family that I trust and feel like care about me. The only drawback is that they don’t allow dogs here. Yet,

I AM SO BLESSED.

My emergency fund and car sinking fund are fully funded. That reminds me of this: 
There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up. Proverbs 21:20. 

I updated my financial records. Since the short sale was successful in August, I was able to throw out a lot of old forms related to the property I used to own. My financial bin got lighter. 

My parents’ house is almost complete. New kitchen coutnertops are coming and the last big piece will be installing carpet. My mom has been moving furniture around to prepare for the carpet installation. This summer we started painting rooms. I cleaned all the walls and dusted thoroughly. Mom threw out a tremendous amount of furniture.

I hope that by next summer, when I visit the South again, I can pick up Jefferson and bring him to a new apartment with me. 

My new job pays 10% less than the other. However, that means a dent in my extra savigns, or not beign able to apply so much to debt each month. What it doesn't mean is that I have to reconsider eating, wear clothes past their usable point, or worry about money at night. 

Breaks from Gazelle Intensity can be good

July 21, 2015

Things are moving slowly. 

a. I still owe money to the HOA, and they won't release a lien without a large lump sum payment (I'm not comfrotable with the amount that they're asking for, but they have rejected my counteroffers). 

b. My parent's kitchen has been gutted and we will order cabinets next week. I tried to save money going from granite to laminate countertops, but the amount saved was less than $1000. I'm disappointed. (Granite is expensive, but it's a tiny kitchen, so I may switch back to granite since the cost savings are so little). 

c. I had to pay $700 for condo documents and I wasn't expecting to pay that much. 

d. I went on a trip to San Antonio this summer while I was visiting the South. I wanted to visit Denver while I was out and about, but the funds were too tight. I'm glad I canceled that leg of the trip, but I did reconnect with my Denver family on FB and over the phone. I'll hit them up in the future. 

e. My plan was to rent a portbale storage unit for the month and clean the house out while we paint and put down carpet. The storage units were too expensive. That's ok. We have moved all furniture to the middle of each room and are preparing to paint ourselves. That will save a few thousand dollars. 

Being gazelle intense about debt really helps you find creative ways to get things done. I'm not as gazelle intense as I used to be. Here's how I see things. I started gazelle intense, then I think I've been taken small breaks during the summer months, then starting up again when school starts. Even during the breaks, I don't splurge - I create monthly budgets, I use cash, I'm mindful when I spend adn I say "no" more often than in the past. However, when I create a budget, I might take some debt paydown money and use it for something that is important to me but not necessarily urgent. I think it's been good to take breaks to keep me from getting totally and completely exasperated with the gazelle intensity run. 

debt is 

HOA = $11,000

LOC = $8,500

NAV = $45,000

Total - $64,500

No house, no problem (not for me, anyway)

June 24

This month I have been staying in my old condo with no electricity. There's no point in turning it on when I will need to turn it off any day now. In fact, I'm supposed to sign my closing documents tomorrow and drive down South. The buyer will sign his documents later and I hope all goes smoothly. 

In my devotional today, I read about what problems teach us about ourselves and God. This was from Pastor David Jeremiah's magazine Turning Points (March 2015).

When it comes to my housing, Idon't see a problem. (Do you have a problem with that?)

He writes "Problems say a lot about our character, our strengths, and our weaknesses."
I hope my housing "problem"says that I
-am grateful in every situation
-am focused
-believe in my self and am self-reliatn
-trust in God's ability and willingness to protect and provide for me

Ismael

June 24
Yesterday at Kenya's house, I met one of her friends, Ismael. He and his wife are separated although he hopes to recondile with her. In the meantime, she has kicked him out of the house. He slept in his truck two nights ago. Because it was hot, he had the windows down. He heard a sound and opened his eyes i time to see 3 young men running off with his wallet, phone, and keys.

Kenya and her husband said Ismael has a good heart and works well and is talented. They believe if her were around the right people, he could really flourish talent-wise and maybe financially.

Because it has been so hot at night lately, I offered to pay for a hotel for him for the night, but he politely declined and said he was sleeping in the garage where he works. He stayed with Kenya's family for a while, but the arrangement was not a good long term solution since they have kids. They also couldn't sublet the basement to him because their lease forbids it. Kenya's husband didn't feel like he would be a good friend offering to let him sleep in the driveway.

I went ahead and told Kenya that I slept in my car for a while when left my Uncle's house. She was in disbelief that I didn't tell her at the time. But I told her I needed the money to pay down debts, so Icouldn't pay any friend rent. I didn't tell her that it is a big sacrifice for people to let you live in their homes, as they learned by trying to help Ismael, so I didn't want any friends to go through that for me. I know it would make people uncomfrotable if I slept in my car in their driveway. While I would love to be able to do that, I know I couldn't ASK anyone to do that favor.

Dog Sitting Weekend

This weekend I am dog-sitting for a friend. She live in a spacious house less than 5 years old. Everything feels so new. Some of the furniture and plants still have tags on them. I am pretending this place is mine.

I have air conditioning, a bed I can stretch my legs out on, and a refrigerator to store food when I can't finish it in one setting. It's AMAZING what you learn to be thankful for when you make financial sacrifices.

I can legally sleep in my car

June 3, 2015

I finally got the question answered that I’ve been wondering about. I teach Engish in the evenings, and tonight an attorney, a public defender, as a guest to the class. He mentioned that if you have been drinking and you fall asleep in your car, you should not leave the keys in the ignition. I told him after class that I have a friend who is staying in his car to pay off debt and he heard that it is illegal to sleep in your car. He said confidently several times absolutely not. He said if your car is parked legally you can sleep in it in the state of Maryland. He actually didn’t seem surprised that someone would sleep in his or her car to pay off debt.

I wasn’t very concerned about being arrested anyway. It just makes me nervous to run into cops period. I don’t want to get in any trouble. My plan all along was just to explain to cops why I’m sleeping in my car. They will probably suggest some reousrces, such as homeless shelters. If I get caught on hospital property, I’m sure I will have to leave and never return. However, publics streets are open game.

June 13, 2015
UPDATE
update: I went to a community forum this week and spoke to a public official who is an expert on local parking issues. He laughed when I asked if it was a problem for someone to sleep in their car to get out of debt. Like the attorney, he said as long as the car is parked legally, sleeping in it overnight is not illegal.