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Early Retirement Extreme Forums » ERE Journals

1. 

   Ralphy
   

   Journeyman
   Joined: Jul '10
   Posts: 191

   BACK STORY
   Once upon a time I was really good at saving money. While I was in high school I did lots of babysitting, lawn mowing, farm work, and worked weekends as a convenience store clerk. I think I graduated with about $10,000 in the bank. I also earned a full-ride scholarship for undergrad. Life was good - I was looking like a case study for ERE at 25.

   Then the bad decisions piled up. Enrolled in law school for no reason other than that's what my friends were doing and surely there was a big income waiting for me in a few years. Unfortunately my 'education' up to that point never involved any studying, so law school completely overwhelmed me. Barely passed my first semester classes, dropped out during second semester. Congratulations kid, you're $20,000 in debt.

   Lived like a bum for a while, wrote a basketball blog that eventually got mentioned in Sports Illustrated, but didn't make much money over the next year, and managed to max out a couple credit cards. Then I got the bright idea that I'd go back to school to get an education certification to teach high school math. But halfway through that first semester I met a girl and was far too distracted to be bothered with school again (discipline wasn't my strong suit back then).

   Finally got my wake-up call a few months later when my car broke down. I was at the shop with my boss/mentor and my girlfriend. I needed about $900 for the repair, which I didn't have. The shop offered to finance it at 0% for three months - good enough. They swipe my card and - DENIED - bad credit. Having that happen in front of two people important to me was probably the most humiliating experience of my life. To top it off, my girlfriend paid for the car repair with her Christmas bonus (cue self-loathing). Time to make some changes! I hated the feeling that I was giving away control of my own life.

   Started listening to a lot of Dave Ramsey (still do), delivered tons of pizza, and paid off about $12k in debt that first year, but still had $18k to go. Made it my New Year's resolution to be debt-free by the end of the year. I had to dig deep (and sell my precious Monte Carlo), but I made my last student loan payment on New Year's Eve, about eight months ago. The life I had to live in those two years was great training for ERE.

   I've since cut back on a few of the extra work hours. My income isn't great right now, but I've been putting away about $1,000 a month since I broke the chains of debt slavery.

   More to come....
   - current lifestyle
   - future plans/goals
   - solicitation for advice

   Posted 2 years ago #
2. 

   Marius
   

   Journeyman
   Joined: Jul '10
   Posts: 258

   Hi Ralphy!

   Congrats on turning your life around! Looking forward to reading about your plans.

   Posted 2 years ago #
3. 

   The Dude
   

   Master
   Joined: Jul '10
   Posts: 392

   Thanks for sharing. That Dave Ramsey must be something else. A friend of mine (web designer/graphic artist) liked his stuff so much that he quit his job to go work for him. It changed his life a lot as well.

   Posted 2 years ago #
4. 

   HSpencer
   

   Master
   Joined: Jul '10
   Posts: 770

   I can recommend the Dave Ramsey program. He has a "Financial Peace University" that you can order and import to your own organization.
   On his TV show, he gets pretty pointed with the people that call in if they are doing crazy things. But turning it around, he is very uplifting to them when they are making good, sound, sensible progress. I like watching his show.

   Posted 2 years ago #
5. 

   Ralphy
   

   Journeyman
   Joined: Jul '10
   Posts: 191

   I think Dave was my first big influence in changing my money habits. That led to regularly reading GRS and TSD, which led to YMOYL, and somewhere along the way I found ERE and it matched my interests perfectly.

   Since then I've drifted away from TSD and starting to do the same with GRS, but I still listen to Dave's radio show if I'm in the car when it's on. Now though I listen less to learn about money and more to learn about coaching/teaching. As Jacob has noted, personal fitness and personal finance parallel extremely well, so I like to borrow ideas from Dave for coaching my runners.

   Posted 2 years ago #
6. 

   Q
   

   Master
   Joined: Jul '10
   Posts: 346

   I gotta read this Dave Ramsey guy!

   Anyways - nice to see you join the journal crew Ralphy. I need to get to updating mine, been awhile...

   Posted 2 years ago #
7. 

   Zev
   

   Master
   Joined: Aug '10
   Posts: 437

   This is quite a charming story. Looking forward to the next episode.

   Posted 2 years ago #
8. 

   Ralphy
   

   Journeyman
   Joined: Jul '10
   Posts: 191

   CURRENT INCOME
   As posted elsewhere, I'm currently working three jobs - apartment maintenance technician (part-time spring/fall, full-time summer/winter), coaching high school athletics (spring/fall), and pizza delivery (weekends). This adds up to an OK income, but doesn't allow a lot of free time yet.

   My current maintenance position doesn't pay very well (though I should be due for a raise soon), but there are some perks that keep me around. Access to our work areas on personal time is nice - I can work on my car in the big heated garage, play in the wood shop, borrow tools, etc (heck of a lot cheaper than owning any of those things). My employer also includes part-timers in the 401k program. And my supervisors have been very good about teaching me when I want to learn new things. For example, this spring/summer I learned how to operate a medium-sized swimming pool and re-key locks. And it's within a mile of my apartment - 12 min walk or 4-5 min ride.

   Coaching track/cross country is something I really enjoy - it's probably my answer to the question of "what would you do if you had $1 million?". Getting paid for it is a bonus, as is staying in shape by running with the team. The biggest downside is that it's 20 miles from home.

   I thought I'd given up pizza delivery a few months ago when my old employer closed, but I wanted to ramp up my income again to pick up my ERE pace, so I found another driving job for weekends. The money has been good. This new place was the direct competition of my old employer, so the latter's closing has made for lots of extra income for the owners and employees alike. Between Friday and Saturday night I usually make about the equivalent of 4-5 days at my full-time day job. And since I drive a pretty fuel-efficient car 1989 Ford Festiva, my gas compensation is enough to cover both delivering and the commute to my coaching job.

   OTHER INCOME
   I've dabbled a little bit in operating arcade games and vending machines - all were located at my old pizza restaurant. Since they closed I've been looking for new locations. Might be able to get an arcade machine set up in the resident lounge at my current apartment complex (helps that my girlfriend is the property manager :)

   Have also been bringing in some decent cash via eBay - got inspired by Jacob's ideas to get rid of everything that wasn't getting used on a regular basis.

   Posted 2 years ago #
9. 

   Ralphy
   

   Journeyman
   Joined: Jul '10
   Posts: 191

   I don't know that most people on the way to ERE would learn much from Dave - he really targets people who are in debt and need to see how their lifestyle is damaging their long-term prospects (which fit me pretty well).

   I'd describe his approach as basically 'don't do stupid stuff, work really hard, enjoy the fruits of your labor.' He bills his program as "common sense advice that your grandmother would give you" - which is about right, since none of the ideas are really new or revolutionary.

   Posted 2 years ago #
10. 

    The Dude
    

    Master
    Joined: Jul '10
    Posts: 392

    This is why I never looked into it. People on this site most likely don't have use for it.

    Posted 2 years ago #
11. 

    Q
    

    Master
    Joined: Jul '10
    Posts: 346

    Every time I read a post from Ralphy I feel like pizza. Then I think about owning a Pizza place...

    I just checked on a side job bartending like Red suggested in another post to boost income and experience, but it would be nearly full time on top of my way over full time job.

    How do you manage staying "rested". Is GF on the same sorta path as you?

    Do you contribute to the 401k?

    Posted 2 years ago #
12. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    GF and I are still working that out. I definitely got the head start, but she decided to get serious about her debt about a year ago, too. I don't think she has any ERE aspirations yet, but I've been pretty impressed with the lifestyle changes she's made (she's much more social, so staying home more often was a big step for her).

    Staying rested is a challenge. I work typical day hours M-F, but then Fri and Sat night I won't get to bed until 5 am or so. I'll sleep in Sat and Sun and tinker with stuff that doesn't take much brain power :)

    It helps that pizza delivery has off-periods - our student-centric shop slows way down during school breaks (ie Thanksgiving, Christmas, spring break, all summer). I usually try not to work any shift that won't be busy, so I get a lot of those weeks off.

    Posted 2 years ago #
13. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    I'm not eligible for the 401k until November. I posted some 401k questions around here a couple weeks ago to try to feel the situation out, since I've never had one before. But I think the tax break and the 4.5% match will draw me in.

    Posted 2 years ago #
14. 

    rePete
    

    Journeyman
    Joined: Jul '10
    Posts: 278

    I think it always makes sense to take the match, i.e. free money. Do you have any running goals of your own?

    Posted 2 years ago #
15. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    I don't have any concrete goals right now. It's been quite a while since I trained consistently for a long period. I picked up some injuries during college that plagued me for a few years, and I pretty much threw in the towel on my own running.

    Then I discovered barefoot running and the whole minimalist footwear sub-culture, which seems so obvious now but was a total game-changer for me at the time. I was running pain-free within a short period of time.

    So I was pretty excited when I could run on a regular basis all of this spring, and I was very excited when I ran a race time in June that was comparable to what I used to run in high school, but then in June I fell off my bike and broke my collar bone. That put a hold on running for the past couple months.

    Sorry for the ramble, but no current running goals. Like a lot of runners, though, I do still harbor fantasies of holing up in a cabin in the woods for a couple months and just eat, sleep, train, and see what happens (a la Quenton Cassidy in Once A Runner). Unlike most runners, though, I plan to have the free time to actually pursue that.

    *Reminder to self - type up Once A Runner quotes for "Inspiration" forum.*

    Posted 2 years ago #
16. 

    rePete
    

    Journeyman
    Joined: Jul '10
    Posts: 278

    I think the barefoot running movement is good for form. I still run in shoes for track, trails, and tempo runs though. If you haven't already, I recommend Christopher McDougall's 'Born to Run' recent book.

    Have you read the follow up to 'Once a Runner,' which is 'Again to Carthage?' It's on my wishlist.

    Posted 2 years ago #
17. 

    runrunruneateateat
    

    Novice
    Joined: Aug '10
    Posts: 26

    Congratulations, Ralphy on turning everything around! $1000/month is incredible. I'm interested to hear more about what it's like being a track coach. I imagine it must be tough but rewarding.

    I second Pete's recommendation of Born to Run. Ultramarthoner Scott Jurek (featured in the book) is going to be publishing his own book next year about his vegan diet and running regimen, which should be interesting.

    I'm not sure if you need it but I also recommend Halhigdon.com for running plans, weight lifting regimens, and stretching exercises. Hal's a former Runner's World editor and veteran runner--for his 70th birthday he ran 7 marathons in 7 months! When I started training in January I was unable to do a single push-up or run for more than 5 miles without hurting my lower back. I've always been slim but fairly weak. Now I can do 11 push-ups in a row and do 12-mile runs pain-free. I know that's nothing for someone like Jacob, but I'm happy with how much I've progressed in the last 9 months. Plus day-to-day stuff like carrying the groceries and the 25-lb. laundry bag aren't a struggle anymore. Hal's info is pretty basic so you might already know all of it, but it appealled to me when I started out because it seemed to cover all the bases in an old-fashioned, common-sense sort of way.

    Either way, best of luck to you with your training and financial goals!

    Posted 2 years ago #
18. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    @ rePete - I agree with you on keeping shoes around for certain runs. I probably only go completely barefoot on grass once a week, then maybe once a week on trails with the Five Fingers, and the rest of my runs in Puma Speeders - very light, flexible, and low heels.

    http://mensfashion.about.com/od/shoesbeltsandmore/ss/RetroSneaks_6.htm

    I read (nay, consumed) Born to Run last summer. It changed my ideas on running like YMOYL changes a lot of people's ideas on lifestyle. Haven't read the OAR sequel yet...should check to see if it's in at our library.

    @ run...eat - I'll be happy to post about coaching sometime - little busy right now with our home cross country meet coming up next week. Haven't read much Higdon (or Runner's World for that matter, I'm more of a Running Times guy, especially since the school picked up the tab for a subscription:)), but I have come around to the value of strength training for distance runners. I used to treat it as unnecessary, maybe even detrimental, but it's helped me personally and our kids (the CC team, I don't have kids) seem to be a lot better off since we've started to implement it. Fewer injuries, more ability to handle hard workouts, just better athleticism, etc...

    Posted 2 years ago #
19. 

    Kevin M
    

    Journeyman
    Joined: Jul '10
    Posts: 211

    Good reading, great progress! Look forward to follow up entries.

    What's your favorite pizza topping(s)?

    Posted 2 years ago #
20. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    Barefoot running has a heavy crossover with the Paleo movement. True barefoot running and walking, without Vibrams, strikes me as really compatible with ERE, since it doesn't require any expenditure on shoes, nor does it cause any depreciation to your current shoes. It's a win-win once you build up your callouses and fix your gait--save money, increase health.

    The founder of our NYC Paleo Meetup Group also does a barefoot running group, and they've recently had a high-profile 8-mile run in NYC, featuring none other than McDougall himself, with another one coming up I think next month.

    I've been to only one barefoot running meetup, and Barefoot Ken Bob, who's mentioned in Born To Run, gave a little primer--he walks and runs everywhere barefoot, carrying only a pair of flip-flops for when he has to go inside private establishments.

    Posted 2 years ago #
21. 

    Steve Austin
    

    Journeyman
    Joined: Jul '10
    Posts: 178

    runners, I am a former varsity sprinter (high school and college), and still feel some knee pain even though I only run on grass / play soccer now. Would one of the barefootists explain to me why my (albeit) aging Achilles tendons / lower calves are invariably strained by a light, short (< 3 km) jog on a beach? Bad form, bad surface, bad judgment?

    NYC ERE, you going to hunt deer barefoot?

    cyclists, any ERErs ride barefoot?

    Posted 2 years ago #
22. 

    jacob
    

    Expert
    Joined: Jul '10
    Posts: 3,297

    @runrunruneateateat - I'm pretty sure that while I can run 12 miles without running out of air or gas, it would hurt the day after.

    Posted 2 years ago #
23. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    @Steve Austin LOL. I think the deer might smell my feet and get spooked. re: barefoot cycling, I experimented riding in my vibrams last week--it was a fail. would probably require a specialized pedal.

    You're running on grass/sand barefoot or shoed? Barefooters claim to have cured a lot of joint/tendon issues by barefoot running--you must ramp up gradually, though.

    Posted 2 years ago #
24. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    @ Steve - I think most 'normal' people experience similar Achilles/calf pain when switching to barefoot running - I know I did. Most traditional running shoes have a big, thick heel, so when you run barefoot your heel drops a lot further than you're used to, and your calf and Achilles have to work through a bigger range.

    Like NYC ERE said, gradual adaptation is the key. My two big initial changes were to spend a bunch of time walking barefoot and wearing the minimal Pumas.

    A common analogy is to view regular shoes as a cast. They restrict natural motions and atrophy the musculature. So I suppose it's to be expected that it's stressful to jump straight from normal footwear to running barefoot. Gotta learn to crawl before you walk...er walk before you run?

    Posted 2 years ago #
25. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    @ Kevin M - I really like a good Buffalo Chicken pizza, but otherwise I like pizzas pretty plain - just one topping at a time.

    Posted 2 years ago #
26. 

    S
    

    Journeyman
    Joined: Jul '10
    Posts: 288

    I've cycled barefoot around a neighborhood, but most platform pedals have a lot of texture for shoes to stick to which is uncomfortable on bare feet imo. Maybe if you had calluses from running it wouldn't be so bad. I ride frequently in my sandals without any trouble, so perhaps that's the way to go for barefooters.

    Posted 2 years ago #
27. 

    rePete
    

    Journeyman
    Joined: Jul '10
    Posts: 278

    I don't understand the interest in barefoot cycling. In cycling, you want your body to transform into the bike. That's why road shoes have such stiff soles. Mountain Bike (MTB) and commuter shoes are flexible because those activities involve walking. The difference is that MTB shoes still allow for the energy transfer in the upstroke with the [clipless or clip] pedal, where road shoes also provide the upstroke energy transfer and they eliminate inefficient energy transfers via the stiff sole.

    I think the appeal of running barefoot is in developing better form as well as increasing the stabilizer muscles used in running.

    Posted 2 years ago #
28. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    yeah, it's just for convenience--not having to carry a second pair of shoes.

    Posted 2 years ago #
29. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    HOUSING
    My living quarters are very non-ERE, except for the fact that they're free, which I suppose swings that judgment strongly in the opposite direction. I don't imagine many couples intent on cutting expenses would live in a 4-bedroom, 2-bath apartment, but that's what you have to put up with when it's included in your SO's job benefits (she manages the property). We pay all utilities, which is more than I'd like, given the size of the place, but with no rent, I think we'll manage :)

    What do you do with 4 bedrooms? We have a bedroom for us, a guest bedroom, and a 'play' room for each of us. Mine's pretty spartan - my bike, computer desk, homeade book shelves, and a couple filing cabinets.

    One very nice perk of this place - the previous tenants pretty much destroyed it, so it got a very good makeover before we moved in. New paint, carpets, vinyl, new closet doors, all new appliances...I think the toilets are even new. The complex also has a decent fitness center, swimming pool, and game room, though I've barely been to any of those (usually either working or at home).

    Biggest pet peeve of such a huge place (besides the utilities)? Every space 'has to' be filled/decorated by something. e.g. we got by fine with one shower curtain in our old 1-bedroom, now we 'have to' have two. Instead of one window covering, now we have several. Etc. I'm sure it's something I'll remember when the day comes to look for a house.

    Location? About three blocks from a busy bus stop. Less than a mile from my primary job. GF obviously gets to walk to work, too. Unfortunately, not near much else - we're very much at the edge of town. Library is 5 miles away, as is my favorite grocery store. There's another grocer about 2 mi away that is much pricier.

    Question to you - if the apt is paid for via GF's work benefits, would you feel obligated to pay her some nominal rent figure? I should note that when we first lived together, she moved into my 1-bdr place, which I continued to pay for (for a matter of months until we found a different apt, which we split 50/50).

    Posted 2 years ago #
30. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    to answer a question you didn't ask, the ERE thing to do might be to rent out your "playrooms," thus clearing a profit from this arrangement.

    Posted 2 years ago #
31. 

    AlexOliver
    

    Master
    Joined: Aug '10
    Posts: 461

    I agree with NYC. Also I wouldn't pay her rent, but half utilities, of course.

    Posted 2 years ago #
32. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    The idea of renting rooms out has definitely crossed my mind. This place is ideally set up for that, too - it's basically split up into two 2-bdr, 1-bath units, each are in separate hallways off the living room, so privacy would be a non-issue

    Don't know if that arrangement would be frowned on by her employers or not, but I've always envisioned inviting another couple to live with us for well-below-market-rates in exchange for not advertising the specifics of the situation.

    Posted 2 years ago #
33. 

    Kevin M
    

    Journeyman
    Joined: Jul '10
    Posts: 211

    Pay half utilities and cook her dinner :) The sub-letting of the other side is a terrific idea if you don't mind the roommates and possible frowning upon.

    Posted 2 years ago #
34. 

    Q
    

    Master
    Joined: Jul '10
    Posts: 346

    Frown shmown! Do it! That is a great perk.

    We saw a job opening for renting apartments at a sister site of the one we are at now, and they offer discount rates. Dunno the discount, but it was a thought - I think we would have to move tho, and that isn't in my cards right now...

    Favorite Pizza myself is cheese pizza. Or sausage pizza.

    Posted 2 years ago #
35. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    PIZZA DELIVERY BY THE NUMBERS
    In case anyone is curious about the money that can be made delivering pizzas on the weekend, here's a look at some income and expense numbers from my Friday night shift.

    Clock in - 6:53 pm
    Clock out - 4:38 am
    Hours worked - 9.75

    Deliveries - 35
    Gas comp ($1 per del) - $35.00
    Miles driven - 95
    Gas cost @ 25 mpg, 3.00/gal = $11.40
    Gas cost @ 30 mpg, 2.50/gal = $7.92

    Tips - $96.00
    Avg tip = $2.74
    Wages ($7.25 x 9.75 hrs) - 70.69
    Income = $166.69
    $/hr = $17.10

    THOUGHTS
    For 35 deliveries I'd usually expect to drive a few more miles. I was fortunate that I took multiple orders every time I left the store, which racks up more del/mi.

    Average tip for the night was right in line with my overall average.

    Gas comp and tips paid in cash.

    Assuming these numbers held up, I could cover my average expenses with about 5-6 shifts per month.

    Now that I've been up for 23 hours, I think it's time for bed :)

    Posted 2 years ago #
36. 

    il-besa
    

    Journeyman
    Joined: Jul '10
    Posts: 107

    Just read now the part about barefoot running, and it's amazing how there's a connection between ERE, minimalism and barefoot running.... it really looks like many of us have "walked" the same path :)

    I run a marathon 3 years ago (with shoe) and now I run every now and then with Vibram FF.
    So far I did go up to 10K in training, but I'd like to run some events with them.

    Posted 2 years ago #
37. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    @ il-besa - Do you still wear a normal running shoe for most of your runs? I had a hard time going back to what I used to wear after adding in the minimalist running. Seemed like I could feel my old aches and pains in my knee and Achilles when I ran in my traditional shoes, so the Puma Speeders have been a good compromise.

    Posted 2 years ago #
38. 

    il-besa
    

    Journeyman
    Joined: Jul '10
    Posts: 107

    No, I switched totally to the Vibram FF and never went... but I have to say that now I'm not running that often.
    I consider myself easy to adapt, as I didn't had many problems (beside taking it easy and soar calves/skin) compared to some of my colleagues that tried the same :D

    Posted 2 years ago #
39. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    Here's a pretty awesome video of Barefoot Ken Bob running on a treadmill in slow-motion; a most graceful barefoot gait.

    Posted 2 years ago #
40. 

    Ralphy
    

    Journeyman
    Joined: Jul '10
    Posts: 191

    AUGUST EXPENSE REPORT

    97 - Food
    30 - Rent
    82 - Utilities
    43 - Car parts/maintenance
    167 - Gas
    87 - Health insurance
    18 - Entertainment
    491 - Medical

    1,015 - Total

    NOTES

    Food expenses could always be better if I really worked at it, but I eat most meals at home and get to eat pizza to my heart's content on the weekend, so they usually end up around 100.

    In my final analysis, I won't count "Gas" or "Car parts/maintenance" as expenses because my Vehicle Compensation from delivering pizza was around $240, so I just take the $30 net as income. That knocks expenses for August down to $805.

    The big 'ouch' for this month was the medical bill, which was paying off the remaining balance from a bike accident earlier this summer. Had I not had to pay for that, expenses could've been all the way down to $313, which would be a pretty big record for me. Of course, it seems that each month there is a new "one-time only" expense - sometimes it's a an expensive car repair, or the tax bill in April, or pre-payment of car insurance premium, etc.

    September does not currently have any major planned expenses (besides a $100 or so tune-up to my car), so I'm hoping to finally have that month where everything comes together and I can write about a new record low in a few weeks.

    Posted 2 years ago #

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