E&I For 9/21-9/27

Expenses:
Total CC: 87.33
Total Debit: 0.00
Total Cash: 5.00
Total Expenses: 92.33

Income:
Paycheck: 600.51
401k: 24.64
Total Income: 636.15

Difference:
+543.82

Expense Breakdown:
Grocery/Household: 40.89
Gas: 0.00
Other/Extras: 51.44 (~23.00 over available budget)

Expenses: 14.5%
Savings: 81.7%
Retirement: 3.8%

I did pretty well this week.  I came in with a 16.00 available budget from going over last week, and I was doing good until I bought dinner for some friends and had some folks over, a $21.00 hit.  But I am still doing well and had a strong week with over 80% savings!  Next 5-7 days will be big with 400 for rent, 80 for utils, and 60 for student loan coming out.

CC Total: 788.06 (All in 0 APR payment balance)

E&I for 9/14-9/20

Expenses:
Total CC: 199.08
Total Debit: 0.00
Total Cash: 34.00
Total Expenses: 233.08

Income:
Paycheck: 575.35
401k: 23.54
Total Income: 598.89

Difference:
+365.81

Expense Breakdown:
Grocery/Household: 62.53
Gas: 26.62
Internet: 10.50
Gym: 34.00
Other/Extras: 100.33 (17.66 over available budget)

Expenses: 38.9%
Savings: 57.1%
Retirement: 3.9%

Not a terrible week when I break the percentages down.  I went over my available budget by quite a bit due to homecoming this weekend.  Luckily I had done pretty well the past few weeks and had a surplus and only ended up going over by 17 or so bucks.   Made my available budget for this week 16 bucks instead of the usual 50+ to try to compensate.  Would love to start building my portfolio with something like Loyal3 but with the upcoming layoff I am keeping everything on hold until I get another job nailed down.  Oh the joys.

E & I For 9/7-9/13

Expenses:
Total CC: 149.35
Total Debit: 59.70
Total Cash: 6.xx
Total Expenses: 215.29

Income:
Paycheck: 570.33
401k: 23.54
Total Income: 593.87

Difference:
+378.58

Expense Breakdown:
Grocery/Household: 27.17
Student Loan: 59.70
Amazon Prime Membership: 99.00 (50 will be “reimbursed” making this 49.00)
Other/Extras: 29.42

Did pretty well this week, coming out nearly 400 on top.  Big hits were student loan payment and my Amazon Prime membership.  I will save $50 on that by not sending $50 to parents for cell phone and insurance bills, since we all share the same Prime acct and it’s in my name.  I should remain fairly steady with this upcoming week as well.  Only a $10.50 hit for internet, one gas fill-up and maybe some groceries.  I’ve done some early “extras” spending already today, and will be spending a bit more this weekend for the college homecoming, but I’ve got a bit of a reserve for my available budget.

E & I For 8/31-9/6

Expenses:
Total CC: 284.42
Total Debit: 400.00
Total Expenses: 684.42

Income:
Paycheck: 532.43
Cash Back: 33.26
Total Income: 565.59

Difference:
-118.83

Expense Breakdown:
Rent: 400
Utils: 79.11
Grocery: 69.79
Gas: 61.5
Other: 74.00 (30 will be reimbursed, making this 44.00)

Not a bad week.  Considering I had two huge payments for rent and utilities, I did pretty well.  I stayed under my “Other” budget of $50.00 (since 30 of the 74 will be “reimbursed” making it 44), which is the most important thing.  I kinda need gas, grocery and utils/rent, so not much I can do there other than drive less and eat less, LoL. 

 

How I Would Spend $1,397,480.

As I sat back on Thursday night and watched the Green Bay Packers (my team) vs. the Seattle Seahawks play on national television, I wondered what it would be like to be an NFL player.  Between the two teams, the average yearly money being pushed through for the player salaries is 239 million dollars.  Taking 239 million / 106 (one 53-man roster per team) comes out to be 2,254,716 dollars per year, per player.  Taking that average and deducting approximately 38% for taxes, that leaves a net of 1,397,480.  Here’s how I think I would spend that money.

How I Would Spend $1,397,480:

1.  Pay off my student loan: 29,000

2.  Pay off my parent’s house, dad’s student loan, and buy them a garage: Est. 75,000

3.  Pay off my sister / brother-in-law’s house & student loans: Est. 90,000

4.  Assist in grandparent’s health care costs: Est. 25,000

5.  Donate to local animal shelters: 50,000

6.  Assist friends with various debts: 50,000

7.  50 years worth of $1000 college scholarships for my alma mater high-school: 50,000

8.  Pay off girlfriend’s student loan: 20,000

9.  Open my gym (finally!): 150,000 (539,000 : 858,480)

10.  Buy silver coins for emergency economic collapse: 30,000

11.  Purchase three (3) four (4) bedroom homes in my current college town: 330,000

12.  Purchase my own dream home: 150,000

13.  Purchase a solid, decent-MPG vehicle: 30,000

14.  Invest in a diverse, mixed-aggressiveness portfolio of high-dividend yield stocks: 318,480

15.  This is an option that I would most likely do, but it would elimate the “non-income” generating numbers 1-8 and 13, which could be made up with income generated over time.  BUY FARMLAND!: 419,000 – 42 Acres

And that does it… For now I can’t think of much else that I would include.  There are a few income opportunities included in these at numbers 9, 11 and 14 and 15.  Things like future parent medical bills, future help with my unborn children and sister’s children would be taken care of with the residual income as needed.  I will delve deeper into my expected earnings for income as well as a portfolio outlook below.

For the income aspects of it, here’s what I’m thinking:

– The three houses would be in a college town, They would rent at 1200/month or “advertised as” 300/room.  As a DIYer and with access to a Master DIYer in my father, I would put maintenance at an estimated 2400/yr per house, or 200/mo.  I would add 25% tax onto the gross rent total of 1200, and come out with 900.  Subtract the estimated 200 for maintenance and I get 700.  For 3 houses, that would net me 2100/month or 25,200/yr after tax and maintenance.  Gross would be 43,200 without tax or maintenance.

– My gym would be next.  The cost for this gym includes all equipment, land, and a brand new building of 60×100 feet.  Luckily there would be no loan, but I would put monthly utilities at around 500, and monthly insurance at around 1000.  If I were to have it as a 24-7 access, no staff would be needed as long as I put in 14-20 hours per week to maintain and clean everything up.  I would price membership below market average.  I would assume average (just from my experience) is at over 35/month.  If I were to price membership at 25/month, I would only need 60 members to cover costs.  This is very attainable.  Let’s put the membership at 100 and make 2500/month.  Subtract 1500 for costs and we bring in 1000 gross (12,000/yr) per month, or about 800 (9.600/yr) net per month.

– Farmland is something that I have always wanted to own and something you can make a killing and a living off of just renting it.  It’s nearly impossible to get without mountains of money, and as you can see even with 419,000 I would only be able to purchase about 42 acres.  Prime till land is going for about 10,000 per acre around my parts.  Average rent is 270 per year per acre.  Take that times my meager 42 acres, and it comes out as 11,340/year.

– Lastly comes the low-moderate-aggressive dividend portfolio. Stocks would ideally be diverse and well-established.  Some would be prototype funds that would include high-risk, but mostly a conservative portfolio.  I would put this portfolio at an average of 4% per year in dividend returns.  If the money wasn’t needed, the dividends would go into re-investment.  Included would be companies/stocks like TGT, SO, RAI, AEP, VNQ, ETR, FE, MO, MCD, PEP, PM, T, PFE, COP, EFC, WMT, JMI, NYMT, CVRR, CYS, ORC, ARP, AT, AI, ARR, NLY, AGNC, VVC, TEG, NWN, DBD, IEP, VZ, CSCO, UNP, GD, BA, DE, CMI. CAT, GE, NVDA, ATI, MSFT, AAPL, SDR (RISK), and RNO.  These are just a few of the many promising stocks out there that provide solid fundamentals in terms of solidiity and longevity, and also offer a strong dividend yield.  Take 318,480 x 4% and come out with 12739.  That’s approx 1060/month.  1060 by about 20% tax comes out as, let’s call it, 800/month.  That’s another 9,600 per year (same as the gym)… Meant to be?

Total income:
So, after all the fun and dandy, here’s what it comes out to be.  With 798,480 of the 1.397,480 invested, I come out with a yearly gross income of 67,939.  Add the farmland and it’s 79,279.  After taxes, maintenance, and other stuff, it comes out to be approximately 49,450 or 57,950 with the land.  This is with an approximate monthly expense of about 700.  This includes cell phone, property tax, food, gas, and entertainment.  So, after all basic monthly payments, I am making about 41,000/49,500 extra per year.  This means I would more than likely be able to re-invest all of the 9,600 per year of the portfolio, as well as hire more employees or trainers for the gym, bringing in more income and more people.  I do realize I would be missing things like health insurance, etc. but the general jist of things is there.  I would be making a great income with an investment of 800,000+, and I would also be attaining my main goal of financial freedom and the ability to spend most of my time with my family, eventual children, and  friends.

This was an awesome lesson and took me over two hours to completely accomplish.  I did a lot of thinking and it was very humbling to sit down and divvy out over a million dollars to have my way with.  It makes me think how extremely blessed those players are, as well as everyone else who makes that kind of money.  They are financially free, and in a world where money is king, they have the ultimate gift.  I hope they all take advantage of their situation and never take it for granted.

Take care readers and thanks for stopping in!

EDIT: I forgot one of the most important things, a Roth IRA.  I would of course dump the max into a new Roth IRA, which I think is 5500 a year.  So it wouldn’t be much but I would definitely do that, and then max it out each year following using my net income.

August Expense/Income Numbers

I’m going to be putting up a monthly post on expenses and income numbers.  It’ll be pretty basic but include everything.  Cash expenses are hard to track but I don’t make too many of them either.  August was a terrible month for me on expenses. I went to Packers training camp, bought a recliner that was necessary for the living room, spent money on my car brakes getting repaired, bought my girl an iPad for our 2 year anniversary, and upgraded my cell phone which was dying.  On top of the usual expenses of rent, food, gas , student loan, cell phone and others.  Not to mention I was laid off for 14 days rendering three severely hampered pay checks.  All in all, I had a terrible month for expenses and will be making it up by budgeting hard and having full paychecks again.

Expenses

Rent
400

Insurance and Phone
88.00

Student Loan
57.70 

Credit Card
2322.55 (1400 Payment)

Total Expenses:
2868.95

Income

Check 1
429.48
Check 2
331.11
Check 3
265.00
Check 4
265.00
Check 5
514.10

401k
30.72

Credit Card Cash Back:
~33.50

Ford Dividend:
.63

Money Market Dividend:
.70

Total Income:
1870.24

Total Difference:
-998.71

Again, a very tough month for me.  Extra expenses killed me this month.  I have started a budget and will no longer be spending money on silly stuff.  I could have prevented all of it other than my car, but I had a splurge month.  Now with my indefinite layoff at work announced, it’s hardcore budgeting and responsible spending/saving!

Net Worth – September 2014

I’ve done some tinkering here and there about my net worth, but have never done a full analysis.  I will do one here.  It won’t be too in-depth but I will cover the basics!  I will do this assuming it is after payday (Friday) and my check is going towards my current Pay in Full balance on my card.  I hold a payment  balance but only because I have a 0% APR period for another 11 months.

Assets

Lil’ Sizzlers Portfolio:
87.35 Value +1.88 Div = 89.22

Cash:
3745

401k:
219.15 Value

Motorcycle:
3500

Caddy:
1700

Personal Assets:
3500

Total Assets:
12,753.37

Liquid Assets (cash, stock and retirement):
4,053.37

Liabilities

Chase Freedom:
950 Payment Bal (ZERO % APR)

Student Loan:
28,129.83

Total Liablities: 
29,079.83

Net Worth:
-16,326.46

Net Worth w/o Student Loan:
11,803.37 (woot)

Well, that was kind of depressing.  I could be on top of the game without those darn student loans.  They just keep growing and growing.  Once I land a steady job that won’t lay me off without notice, I will get those loans pounded out and out of here.  All they are doing is sapping potential income.  All in all, a total net worth is pretty humbling.  Even without the student loans, I am barely worth anything.  It’s crazy to think of the people who are worth millions, or even billions, of dollars.  

I can’t wait to reach the million dollar mark someday!