January 2nd, 2013. Setting Goals, and Resetting Phase 1.

On August 29th, 2011, I posted "5 Year Plan: Phase 1 - Stability And Forward Motion."

Since then, my life has changed in so many ways, but now I find myself needing to get back on track with my 5 year goal. I've got just under 4 years left to achieve it. I'm broke as a joke, and even though some things in my life are far more stable, my biggest struggles right now are financial. It's time to get back on track and restart from Phase 1. So let's retune it for my life now.

Stability.

Ok, well at the time that I wrote the original Phase 1 post, my life was very unstable. I was on the verge of homelessness, and was clawing out of that situation tooth and nail. My living situation is far more stable now, and I'm not relying on my income alone to keep myself bathed and fed. But the problem is that I'm not contributing, and am not furthering my family's financial future in the state I'm in now. It's time to fight again for some financial stability.

I've already got things in place, including school, a 30 hour per week day job, and new revenue streams in development. My student loans will pay my tuition, which will help me gain an education. But they will also give me a decent overage to park in the bank for emergencies, or to pay down debts. Sure, this money is a liability since it'll be a debt that needs repaying later, but it'll be at a far lower interest rate than I'm currently paying on my debts. So it's a smart move to displace a higher interest liability with a lower interest one. These include my car, and a couple of credit cards. I had paid all but one credit card off last year, but my income lost it's stability just after that and I wound up maxing out the one I had paid off and never touching the one I didn't pay off. Now they are both closed accounts, and I've made an arrangement to pay down one of them. The other is in collections. Getting rid of these soul sucking liabilities once and for all is a major goal for this new year.

My car is another. I still owe money on it, even though I shouldn't, but I made poor choices about financing it in order to appease a previous relationship, and am paying the price now. One those credit cards are gone once and for all, it's time to snowball that car loan and get it out of the picture once and for all. My goal is to have the car and all credit cards paid off by years end. Once that is done, I can establish a savings again. Also, 2014 can be focused on cleaning up the nasty trail of unpaid debts I left around the country through my 20's.

I turn 32 in a few weeks. I pledged at 30 that I would be in better shape at 35. I'm running out of time.

Notice that I don't mention my family's needs. Well, I want to get married to Laura asap. The problem is that we've pledged not to get married until we're on better financial ground. This doesn't mean that we'll wait till I've built up a large savings or anything ridiculous like that. Rather it means that we need to be able to pay our bills together. There are certain details that I won't go into, but know that the above steps of eliminating liabilities is a key factor in that financial stability.

Right now, as stated in a pervious blog post, I'm in a tough spot financially. The next few weeks will be likely a 3x-day Ramen diet for me. Not fun, but I will do what I have to do. But in February, things will look a lot more stable. I just have to weather this month and then I can focus on digging out of this hole.

Phase 1 is officially back in action.