View from our porch
Sunrise December 30th 2016
Spent this past Friday and Saturday crunching numbers.
The following thoughts are a continuation of this post.
I am self-employed carpenter/ remodel-er/landscaper/ table maker/ concrete pour-er/ whatever pay the bills, kind of guy.
Because I have chosen to be a self-employed carpenter/remodel-er/landscaper/ table maker/concrete pour-er/ whatever pays the bills kind of guy in small town Iowa, I did not know my net income for 2016 until all of the bills were paid and all of the checks came in….
Most of you reading this are no strangers to financial pressure.
It is part of life.
I also think it’s fair to say, most of us are uncomfortable telling someone else what our income is. It feels like letting someone see us in our underwear, (vulnerable)
I have no qualms talking to someone about these things in private..for me it’s like, what’s the big deal..this stuff is a lot of smoke and mirrors in the first place.
I had a friend who was an accountant for two trucking companies…Both had dozens of semi’s on the road. Company A owned everything on paper. Owner was making his monthly truck payments to the bank and everything worked. Company B owner did not believe in debt. All of his trucks were paid for. This was about the time diesel prices spiked. Friend told me, he would be very surprised if company A would be able to stay in business… Company B, he felt, on the other hand should be able to weather the storm.
I am a Company B kind of guy…I hate debt, (although we do have a little again)
The model I use for coming up with how much money we have to work with is by coming up with a 3 year average. Take the net income from 2014, 15, and 16, add them all together and divide by 3. I totaled up the numbers Sunday morning and it looks like we may need to figure out a way to chop $400 a month out of our already lean, (we’re talking lean) lifestyle.
ie. our food budget for the two of us is currently $225 a month…and that includes toiletries.
The next few months may require some major life choices (again).