HI all
bad news but using this as a diary too
Bad news
I 'assumed too much and too positively."" on items that were out of my control
Assumed tenant (who moved out of the 2 flat early) would pay me $810 on time.. it is late and may be a week or more out or I may have to fight for it. I have to pay utilities on that the 2 flat til it sells and this would have gone towards it. potential $2-400 utility bill outstanding??
and assumed 2 flat would not confirm til the end of May. it is confirming on the 13th
also roofs will likely be $2000+ more than I budgeted (low budget!)
Thsi means I have an $800-1200 hole for this month (plus roofs) and owe the other 2 flat people $400 out of their security (which I already reclaimed)
I already used the security..so this represents $400 i have to come up
BAD assuming..
Here is my plan
1. sell my stuff (sold $310 worth so far.. got more to sell and appointments this week).. potential of $300+ more and may list other stuff ($300 more.. but not this week likely)
2. stop 401k for next check. potential $730 more $ to me
3. stop unnecessary costs (getting refund on 'just answer' website subscription and stopped that, stopping my fico.com, getti8ng refund of $120 on something else (potential $175 but refunds not coming instntly)
4. see if I can delay confirmation one more month (got a call into the bank).. worth $1025
5. start consulting ASAP (now).. probably can do $200-300 by end of the month
6, take $2000 out of rental emergency fund to pay for roofs AND maybe delay unti that one house is turned over
7. call that guy who owes me $6000.. see where that is at.. that will go towards the rental emergency fund by the way
8. stop auto savings plan for this month or next check
and lastly DO BETTER next time.. stop cutting things so close with stuff out of my control in the air
Onward.. hoping to update with good news.
tenant who owes $810 contcted me today but says they are short and do not have it.. trying to come up with when they will
also my not for profit is in a cash crisis.. which is stressing me and I have very little time to deal with it.. want to close that thing.
with the money shortage..'Necessity is the mother of invention!". I do not want to reduce my emergency fund accounts.. trying to make up as much as I can with adjustments etc.
Feeling short, made some mistakes
April 21st, 2014 at 06:56 pm
April 21st, 2014 at 07:07 pm 1398107241
The point of having an emergency fund is to save you the stress of having to come up with money that you don't have on short notice. So use it, learn from the experience, replenish it, and do better next time.
But don't beat yourself up. Be thankful that you have an emergency fund that available!
April 21st, 2014 at 07:40 pm 1398109228
Can the roofs wait a month?
While you are looking at unnecessary costs, get rid of everything that isn't critical. Cable, newspapers, magazines - all subscriptions should be examined. You can always add them back once the mess is cleaned up and your income is stable.
April 21st, 2014 at 07:56 pm 1398110171
April 21st, 2014 at 09:36 pm 1398116161
April 21st, 2014 at 10:09 pm 1398118160
In CA when you have rentals and require a security deposit you are required to keep that money in an escrow account and not use it for anything until the renter vacates the property and you need to do repairs or return to renters. I had to do that when I managed apartments when in college and for my grandparents.
I'd recommend that in the future for you security deposits. They are not part of your cash flow but are an escrowed account.
April 21st, 2014 at 11:26 pm 1398122776
April 21st, 2014 at 11:55 pm 1398124519
April 22nd, 2014 at 12:00 pm 1398168014
April 22nd, 2014 at 01:30 pm 1398173434