Financial Freak-Out

So I’ll admit, I do occasionally have a melt down about finances. Generally I feel very in control, but about every other month it happens and I start questioning our entire way of living, our budget, our financial strategy. Needless to say this makes the evening unpleasant for Dad when he gets home from a long day of work.

Here’s our current issue. This month’s budget, surprise surfreakinprise, is out of control – close to $7500 – and that doesn’t include fees I have to pay for my real estate business which will run about $1000 this month. Usually I have a cushion in my business account and our checking account that prevents me from becoming a shivering, quaking mess sitting on the couch staring at the wall and snapping at whatever happens to come in my path.

However, my business has a problem. I sell foreclosures exclusively. I don’t have clients where I go to their house and tell them how pretty it is, nor do I drive buyers around looking at pretty houses. Most of the properties I sell are priced under 50k and are damaged and ugly. My largest client currently makes up 100% of my inventory, and I have 10 properties under contract waiting to close for a total of around 25k in commissions. The problem  is they all have the same title issue and can’t close. There is no timeline, some of them have been on hold for over 90 days. They could be on hold until next year. Which means I don’t have an income until January.

If you do the simple math, it’s impossible to live off of Dad’s salary which, after taxes, is $5500 per month. We do have savings, but I SOOOO don’t want to tap into them! I know most people would think that $5500 should EASILY cover us, after all our mortgage is only $1350 and we only have the one little baby. But after all is said and done we really spend a lot. And Christmas is coming.

I’m dying to buy another house to make more passive income, but it’s hard to buy assets when you’re scared of the monthly nut.

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5 thoughts on “Financial Freak-Out

  1. Hey, came over here from Financial Blogger. I’m a wanna-be-rich parent blogger too. I haven’t fully read your site but looks like you are self-employed realtor? I’m very interested in following your progress to $1M. I’m looking to retire in the next 3 years by 40 years old.

    • momequity says:

      Yep, I’m a realtor and exclusively sell foreclosures. My goal is 1MM in equity in 10 years – I’m 29 now. I know I can do it – the time has never been better for investing and since I know real estate I definitely have an advantage. My husband and I have a spending issue though, which I think might be our biggest hurdle. Because we have a good income I always say yes to things, mostly traveling and eating out, because “we can afford it”. In reality though, if we really want to get ahead quickly we have to curb the budget. I’m sure you can relate that once you have kids the motivation just increases to get the passive income so you can spend time with them. Looking forward to following your blog and good luck with the retirement plan!

  2. […] other day I came across a blog post from Mom Equity, who is a real estate investor living in the San Francisco Bay area who is chronicling her efforts […]

    • momequity says:

      Thanks for the mention! I actually live in Atlanta, GA (but was in Napa for a girlfriend’s birthday trip). You are so right, I definitely need to spend ONLY my husband’s income as it’s fixed, and put all my income toward investments after I pay my business expenses. I am definitely going to do a post where I list my entire monthly budget which is pretty detailed as I don’t have an “other” category. Thanks again, and I look forward to reading more of your posts!

  3. smallivy says:

    No problem. The issues you site in your post were just so typical of what everyone deals with it seemed like good fodder. It is amazing that most people see millions of dollars go through their hands during their lifetimes yet so most reach retirement with less that $50,000 in savings and a paid-for house if they are lucky.

    Of course, I guess there is something to be said for living for the moment. It just gives me too much stress.

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