7Wannabe5 Journal Take 2
Re: 7Wannabe5 Journal Take 2
Correction to post above. My problem is that for a number of years I was able to support myself as a used/rare book dealer/scout but then the market changed/crashed and I simultaneously had to deal with expenses related to having college-age kids which I should have foreseen but didn't so I went underwater for a while and lost my confidence. Now the market seems to have stabilized and my kids are independent but my self-confidence in my ability to remain self-employed/self-sufficient is still shaky for reasons that are partially rational and partially irrational. Therefore, I need to diversify and/or accumulate a bigger "emergency fund" and/or alternate source of passive income/savings but I am not sure to what extent so my motivation is sort of wave-patterned. If I currently had a 9-5 job I didn't like that I wished to quit my motivation would be more straight-forward.
Re: 7Wannabe5 Journal Take 2
Day 9: Budgeting
Since I trade goods for a living, my categories might be more like:
1) Money I spend on myself
2) Money I spend on goods I hope to sell for a profit
3) Money I keep
So, in my situation, NRV (net realizable value) of my inventory is more relevant to my calculation of financial independence than SWR of investment in the stock market. When I spend money on inventory, I am simultaneously earning a current wage for myself and increasing NRV of my inventory but I don't have complete control over this division because lowering the price I am asking for a rare good does not proportionally increase demand and pent-up demand for a rare item currently not available on the market is hard to gauge except by intuition.
Anyways, I have been doing conventional budgeting in Category 1 by dividing my spending into categories and then giving myself an allowance in each category. So, even though my total is quite low ($715/mo average last couple months since I moved) , I could probably do better if I simply tried to spend as little money as possible. I am rather intrigued or challenged by Jacob's theory that money can infinitely be replaced by skill.
Also, I simply need to work more.
Since I trade goods for a living, my categories might be more like:
1) Money I spend on myself
2) Money I spend on goods I hope to sell for a profit
3) Money I keep
So, in my situation, NRV (net realizable value) of my inventory is more relevant to my calculation of financial independence than SWR of investment in the stock market. When I spend money on inventory, I am simultaneously earning a current wage for myself and increasing NRV of my inventory but I don't have complete control over this division because lowering the price I am asking for a rare good does not proportionally increase demand and pent-up demand for a rare item currently not available on the market is hard to gauge except by intuition.
Anyways, I have been doing conventional budgeting in Category 1 by dividing my spending into categories and then giving myself an allowance in each category. So, even though my total is quite low ($715/mo average last couple months since I moved) , I could probably do better if I simply tried to spend as little money as possible. I am rather intrigued or challenged by Jacob's theory that money can infinitely be replaced by skill.
Also, I simply need to work more.
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Devil's Advocate
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Re: 7Wannabe5 Journal Take 2
Enjoyed reading your journal, 7W5.
Jacob's right, it's absurd to conflate identity with occupation. But in your case at least, it's moot. Dealing with books, sometimes rare books, how COOL is that! Shout it from the roof-tops.
Your speaking of reducing expense on make-up reminded me of a pet peeve/thought of mine. So as not to appear to be making a perhaps inappropriately personal comment (it's a long-held idea of mine about women in general, which your journal entry about make-up expenses reminded me of), and also so as not to derail your journal, I started a fresh thread to comment on women and the war paint.
Jacob's right, it's absurd to conflate identity with occupation. But in your case at least, it's moot. Dealing with books, sometimes rare books, how COOL is that! Shout it from the roof-tops.
Your speaking of reducing expense on make-up reminded me of a pet peeve/thought of mine. So as not to appear to be making a perhaps inappropriately personal comment (it's a long-held idea of mine about women in general, which your journal entry about make-up expenses reminded me of), and also so as not to derail your journal, I started a fresh thread to comment on women and the war paint.
Re: 7Wannabe5 Journal Take 2
Day 10: Calculate Net Worth
This is rather difficult for me since my rare/used book inventory is by far my most valuable asset. The current automatically-repriced-every-day-to-match-competition retail value of my share of inventory (my sister who was previously my partner still owns part) is around $162,000. My monthly overhead for storage, fees and services is around $130. At the time of sale, I take about a 30% hit in commissions and further fees. Old inventory (doesn't matter much whether it is 1 year old or 10 years old) sells off at a rate of about 6% with seasonal fluctuations. So, if I didn't have any new inventory in the pipe, my passive income from sales of old inventory would likely be about ($567 -$130) next month, ($564-$130) the month after that, etc. etc. ,continued decline for maybe another 133 months until I hit break even or something like that. Actually, it would be somewhat worse than that because value would likely be re-priced down rather than up, although much less so than with new inventory.
It is my expectation that I will collect around $1100/month in social security starting in around 18 years and that should be more than enough for me to live on given my current monthly expenses. So, if it is the case that I wish to not work at all rather than continue on part-time self-employed, I need to fill in the gap.
This is rather difficult for me since my rare/used book inventory is by far my most valuable asset. The current automatically-repriced-every-day-to-match-competition retail value of my share of inventory (my sister who was previously my partner still owns part) is around $162,000. My monthly overhead for storage, fees and services is around $130. At the time of sale, I take about a 30% hit in commissions and further fees. Old inventory (doesn't matter much whether it is 1 year old or 10 years old) sells off at a rate of about 6% with seasonal fluctuations. So, if I didn't have any new inventory in the pipe, my passive income from sales of old inventory would likely be about ($567 -$130) next month, ($564-$130) the month after that, etc. etc. ,continued decline for maybe another 133 months until I hit break even or something like that. Actually, it would be somewhat worse than that because value would likely be re-priced down rather than up, although much less so than with new inventory.
It is my expectation that I will collect around $1100/month in social security starting in around 18 years and that should be more than enough for me to live on given my current monthly expenses. So, if it is the case that I wish to not work at all rather than continue on part-time self-employed, I need to fill in the gap.
Re: 7Wannabe5 Journal Take 2
Day 11: Connecting Your Stuff With Your Neighbors
Well, I asked my next-door neighbor if it was okay if I took the pears from the tree in her yard that were going to fall in my yard anyways but that's about it so far in this neighborhood.
Well, I asked my next-door neighbor if it was okay if I took the pears from the tree in her yard that were going to fall in my yard anyways but that's about it so far in this neighborhood.
Re: 7Wannabe5 Journal Take 2
Day 12: Start a Savings Account
Done.
Done.
Re: 7Wannabe5 Journal Take 2
Day 13: Insurance
I only carry health insurance. Since I am low-income, self-employed I qualify under the state plan so it is quite inexpensive. I don't have any health problems or prescriptions so I doubt I will even hit the $400 deductible.
I only carry health insurance. Since I am low-income, self-employed I qualify under the state plan so it is quite inexpensive. I don't have any health problems or prescriptions so I doubt I will even hit the $400 deductible.
Re: 7Wannabe5 Journal Take 2
Day 14: Investing-Part1
My take-away:
My take-away:
I will continue to invest primarily in the used/rare book market. My next choice will be investing in a primary residence/rental real estate (one shared/divided property only.) My third choice will be intellectual property. My fourth choice will be the stock market. These choices are roughly in order of my competence/experience and/or ability to gain sweat equity. It is moderately likely that I will never get around to investing in the stock market.Jacob said: Incidentally ,I believe it is superior to invest within your field of competence whether it is the stock market, real estate, or plumbing. I use the stock market, but you may find the other things work better for you. This is where the investment-introspection I mentioned above becomes important.
Re: 7Wannabe5 Journal Take 2
Day 15: The First 14 Days
I give myself a solid B+ on Days 1-14. Of course, my main problem is with Day 0 since I do not have a full-time job or a highly lucrative part-time job. If I want to save/invest more, I need to increase my income. I am ambivalent about this because I do not think/feel that the fact that I would have to continue to work part-time as a self-employed rare/used book scout in order to provide myself with at least $8000 in cash money makes me unhappy. To me it's no different than gardening to provide myself with food. It might just be that I need more liquid cash reserves to provide me with security/flexibility.
I give myself a solid B+ on Days 1-14. Of course, my main problem is with Day 0 since I do not have a full-time job or a highly lucrative part-time job. If I want to save/invest more, I need to increase my income. I am ambivalent about this because I do not think/feel that the fact that I would have to continue to work part-time as a self-employed rare/used book scout in order to provide myself with at least $8000 in cash money makes me unhappy. To me it's no different than gardening to provide myself with food. It might just be that I need more liquid cash reserves to provide me with security/flexibility.
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George the original one
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Re: 7Wannabe5 Journal Take 2
> It might just be that I need more liquid cash reserves to provide me with security/flexibility.
The temp job would be a quick boost to get you the cash reserve. If I didn't hurry the calcs too much, it looks like $500/mo if you worked weekends at CA minimum wage? One year = $6k.
The temp job would be a quick boost to get you the cash reserve. If I didn't hurry the calcs too much, it looks like $500/mo if you worked weekends at CA minimum wage? One year = $6k.
Re: 7Wannabe5 Journal Take 2
Yup. Should be an easy fix if that is my problem. Fine line between being semi-extreme-retired vs. under-employed is informing my attitude regarding my "free" time.George the original one said: The temp job would be a quick boost to get you the cash reserve. If I didn't hurry the calcs too much, it looks like $500/mo if you worked weekends at CA minimum wage? One year = $6k.
Re: 7Wannabe5 Journal Take 2
Day 16 : The Stuff You Actually Use and Keep
I am very absent-minded so I worry about losing some expensive items before they would lose their usefulness. Also, I think it's almost always possible to buy quality items on the used market at a significant discount if you aren't too particular about what you want but if you are selling something on the used market then you want the buyer who is being particular. I mean shopping for shoes is no different than shopping for produce. The best deal is had by thinking "I want anything quality/fresh that would work in a stir-fry or for hiking." or by knowing when you see something of quality that is also a good deal which will prove useful for you because you can predict when you will run out of chicken in the freezer or sole on your sandals . IOW, instead of buying 1 pair of quality shoes for $120 vs. 6 pairs of cheap shoes for $20 on the new market, I would buy 6 pairs of quality shoes for $5 on the used market but I wouldn't expect to be able to go out and find a pair anytime I needed it so I would have to plan on storing a back-up pair or two. Also, indestructibility and quality don't always go together. For instance, thick plastic drinking cup vs. glass. Otherwise, makes good sense to me.
I am very absent-minded so I worry about losing some expensive items before they would lose their usefulness. Also, I think it's almost always possible to buy quality items on the used market at a significant discount if you aren't too particular about what you want but if you are selling something on the used market then you want the buyer who is being particular. I mean shopping for shoes is no different than shopping for produce. The best deal is had by thinking "I want anything quality/fresh that would work in a stir-fry or for hiking." or by knowing when you see something of quality that is also a good deal which will prove useful for you because you can predict when you will run out of chicken in the freezer or sole on your sandals . IOW, instead of buying 1 pair of quality shoes for $120 vs. 6 pairs of cheap shoes for $20 on the new market, I would buy 6 pairs of quality shoes for $5 on the used market but I wouldn't expect to be able to go out and find a pair anytime I needed it so I would have to plan on storing a back-up pair or two. Also, indestructibility and quality don't always go together. For instance, thick plastic drinking cup vs. glass. Otherwise, makes good sense to me.
Re: 7Wannabe5 Journal Take 2
Day 17: Maintaining and Repairing Things
Also, I must admit to holding some Midwestern mid-20th century sexist values which inform me that if I am fixing the plumbing all by myself then either it is the case that I don't have a man or the one that I do have is either useless or useless-to-me.
I must admit that I am not the best all-around at this but I wish I was better. Pretty much my tendency is to buy most things on the used market and then make use of duct tape and Reader's Digest Manual as necessary or simply try not to own things I don't want to learn how to repair (like a car.)
1) You must acquire things that have been constructed to be repairable(*).
2)You must learn to do some or most of these repairs yourself.
Also, I must admit to holding some Midwestern mid-20th century sexist values which inform me that if I am fixing the plumbing all by myself then either it is the case that I don't have a man or the one that I do have is either useless or useless-to-me.
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Spartan_Warrior
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Re: 7Wannabe5 Journal Take 2
Wait a minute! Is this what my GF meant when she said I'm only good for laying pipe?7Wannabe5 wrote:Also, I must admit to holding some Midwestern mid-20th century sexist values which inform me that if I am fixing the plumbing all by myself then either it is the case that I don't have a man or the one that I do have is either useless or useless-to-me.
Re: 7Wannabe5 Journal Take 2
Well, a wise woman is capable of applying multiple standards.SpartanWarrior said: Wait a minute! Is this what my GF meant when she said I'm only good for laying pipe?
But, seriously, being a competent generalist doesn't mean that you need to know how to do everything and it might be sensible to consider what you are most likely to be able to get in trade within your own social network. However, the standard problem with trading along sexist lines is that anything that is seen as women's work is undervalued. OTOH, I think there is a level on which this is changing simply because nobody is doing it anymore.
Re: 7Wannabe5 Journal Take 2
Day 18: Join a Challenge
I like challenges and I think they are fun and beneficial even if not completed. For instance, I once challenged myself to read one book by every author in the literature section of Borders starting from Z. I don't think I got any further than W but if I hadn't even made the attempt it is possible that I never would have gotten around to reading Zola or Zukofsky. So, it was a worthwhile attempt.
I have already done some frugality related challenges such as feeding myself on $1/day. Buy bulk flour/grains/legumes and discounted/discard vegetables. Bake bread. Make soup. Problem solved. However, I didn't quite make it a month on this challenge because I was trading cooking for rent reduction with a friend and after a while he got sick of the monotony and made me go to Trader Joe's. Sometimes cooking skill applied to more expensive ingredients ends up being more of a savings if you are sharing/providing/trading food with other people. Depends.
In his book, Jacob suggests that the 3 possible money-making models for the Renaissance Lifestyle could be financial independence, intermittent employment or part-time employment. My challenge is going to involve changing my self-employed status from part-time to intermittent/seasonal and also expanding/diversifying the skill set with which I earn or save money. I am pretty sure that in the future I can crunch my money-making activities into the months of September/October/November and then live on the proceeds for the rest of the year but this year (because disorganized and starting from scratch) I am going to give myself until mid-January to pile up enough funds to live on until September 1st without working for money at all during the intervening months. Whether or not I then choose to continue to work in order to save up more funds for other projects (such as buying a foreclosed house for cash) will be up to me to decide at that point. Additionally, I will challenge myself to do something I have never done before in order to make/save money every week until I reach my goal of intermittent independence.
My financial problem is that I am skinny but weak so I hope that this will prove the equivalent of upping the weight I am lifting and number of sets or something like that.
Since I am turning 50 early next year and I do not want to become frail, I also challenge myself to be able to do 3600 overhead pounds in 10 minutes. In my case, this will be 30 lbs./10 sets/12 reps/set.
I like challenges and I think they are fun and beneficial even if not completed. For instance, I once challenged myself to read one book by every author in the literature section of Borders starting from Z. I don't think I got any further than W but if I hadn't even made the attempt it is possible that I never would have gotten around to reading Zola or Zukofsky. So, it was a worthwhile attempt.
I have already done some frugality related challenges such as feeding myself on $1/day. Buy bulk flour/grains/legumes and discounted/discard vegetables. Bake bread. Make soup. Problem solved. However, I didn't quite make it a month on this challenge because I was trading cooking for rent reduction with a friend and after a while he got sick of the monotony and made me go to Trader Joe's. Sometimes cooking skill applied to more expensive ingredients ends up being more of a savings if you are sharing/providing/trading food with other people. Depends.
In his book, Jacob suggests that the 3 possible money-making models for the Renaissance Lifestyle could be financial independence, intermittent employment or part-time employment. My challenge is going to involve changing my self-employed status from part-time to intermittent/seasonal and also expanding/diversifying the skill set with which I earn or save money. I am pretty sure that in the future I can crunch my money-making activities into the months of September/October/November and then live on the proceeds for the rest of the year but this year (because disorganized and starting from scratch) I am going to give myself until mid-January to pile up enough funds to live on until September 1st without working for money at all during the intervening months. Whether or not I then choose to continue to work in order to save up more funds for other projects (such as buying a foreclosed house for cash) will be up to me to decide at that point. Additionally, I will challenge myself to do something I have never done before in order to make/save money every week until I reach my goal of intermittent independence.
My financial problem is that I am skinny but weak so I hope that this will prove the equivalent of upping the weight I am lifting and number of sets or something like that.
Since I am turning 50 early next year and I do not want to become frail, I also challenge myself to be able to do 3600 overhead pounds in 10 minutes. In my case, this will be 30 lbs./10 sets/12 reps/set.
Re: 7Wannabe5 Journal Take 2
Okay, gonna revise the challenge a bit. In order for the financial challenge to be more analogous/symmetrical with the physiological challenge, I will also attempt a different physical activity each week. However, I am going to loosen up the requirement of "never done before" to "have not done in a number of years" or "have not done to this extent." However, I will make it a bit tougher by requiring both an activity that saves money and one that makes money each week.
Re: 7Wannabe5 Journal Take 2
Day 19: Get Rid of Your TV
I haven't owned a TV in a number of years and I can't remember ever buying one myself (I do remember finding one by a dumpster) but I frequently and currently live in a household where there is one available to me for free. I'm not sure if I would financially benefit all that much by abstaining from video entertainment completely because if I wasn't watching "Downton Abbey" I would just be reading Trollope instead etc. etc.
Day 20: Own Classics
Definitely the least expensive choice except for choosing to buy used things that are currently completely out-of-fashion.
Day 21: Investing for Early Retirement (Part 2)
If I ever get around to investing in the stock market rather than used/rare books, I will read this one again.
I haven't owned a TV in a number of years and I can't remember ever buying one myself (I do remember finding one by a dumpster) but I frequently and currently live in a household where there is one available to me for free. I'm not sure if I would financially benefit all that much by abstaining from video entertainment completely because if I wasn't watching "Downton Abbey" I would just be reading Trollope instead etc. etc.
Day 20: Own Classics
Definitely the least expensive choice except for choosing to buy used things that are currently completely out-of-fashion.
Day 21: Investing for Early Retirement (Part 2)
If I ever get around to investing in the stock market rather than used/rare books, I will read this one again.
Re: 7Wannabe5 Journal Take 2
My plan is moving forward quite well. My core (need) monthly expenses are down to around $480 and my discretionary (want) spending is hanging around $240. I've been shipping off about $3000/month competitive retail value of new inventory to the Amazon warehouses and I diversified my income stream by signing up to be a plasma donor ($200-$300/month) and substitute teach ($85/day.) and do tax preparation (approx. $18/hr. ?-some commission involved.) All three of these are totally as part-time and flexible as I need/want them to be. I am also continuing my computer programming studies with my first planned project to be an improved website linked to Amazon for my book business. I also plan on bidding at auction on some sunny vacant lots in one of the decrepit neighborhoods where I have been teaching which I will use for a craft supply market garden and assorted produce for personal consumption. Maybe I will even build a tiny house if it is not in violation of code. I would also like to do some writing and paper construction projects. In the interest of balanced lifestyle/physiological-well-being, I also started dating again but, hopefully, I will be able to limit/boundary the time/expense I allot to that realm.
Anyways, pretty much back in happy camper groove : )
Anyways, pretty much back in happy camper groove : )
Re: 7Wannabe5 Journal Take 2
I think things are going very well. I would say I have my ideal semi-retirement lifestyle about 80% up and running. I do not have the every day freedom afforded by complete financial independence but I do have any day freedom and I am enjoying all of my cash-earning part-time, flexible activities. Unfortunately, dating is the activity that is feeling the most like "work" to me at the moment. I think I have hit the reject button (sent polite note indicating thanks but no thanks or offered stiff, awkward hug goodbye) or simply dropped the ball with over 60 men in the last month. I am so exhausted I think it is somewhat likely that I will just let the next attractive dominant who circles in take me out of my misery. Yeah, yeah, yeah, I know, I know, opposite of stoic behavior/attitude (sigh.) Do not go into the donut store unless it is your intention to eat a donut etc. etc.
OTOH, I am so happy, happy, happy about the 3 vacant lots I bought for $800 at auction. The only bad thing about this is that although my net worth is definitely on an upwards slope and I have diversified my money-earning activities and my forms of capital investment, my liquidity is still terrible. It doesn't make sense for me to stop buying/shipping more inventory until the end of the holiday season but starting in January I really need to focus on building up/maintaining more cash reserves so I can go vagabonding some time early this spring and not have to work at too much besides my gardening in the early summer.
What else? I am debating whether the ongoing expense of taking a dance or yoga class is warranted. Since I am already semi-retired/self-employed and quite reasonably happy with my lot, my decision can be made at the margin. One more half-day substitute teaching each month would equal dance class tuition each month or something like that. A group class is so much more fun for me than doing it alone at home. OTOH, I could force myself to go to more free social dance events or similar activities but that's not quite the same thing and there are usually extraneous expenses involved.
OTOH, I am so happy, happy, happy about the 3 vacant lots I bought for $800 at auction. The only bad thing about this is that although my net worth is definitely on an upwards slope and I have diversified my money-earning activities and my forms of capital investment, my liquidity is still terrible. It doesn't make sense for me to stop buying/shipping more inventory until the end of the holiday season but starting in January I really need to focus on building up/maintaining more cash reserves so I can go vagabonding some time early this spring and not have to work at too much besides my gardening in the early summer.
What else? I am debating whether the ongoing expense of taking a dance or yoga class is warranted. Since I am already semi-retired/self-employed and quite reasonably happy with my lot, my decision can be made at the margin. One more half-day substitute teaching each month would equal dance class tuition each month or something like that. A group class is so much more fun for me than doing it alone at home. OTOH, I could force myself to go to more free social dance events or similar activities but that's not quite the same thing and there are usually extraneous expenses involved.