• 02:00:12 am on December 4, 2008 | 3
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    You are here

    Photo credit: mapomatic.net

    You are here

    Ryan has (pleasantly) surprised me by charging out of the gate on this one. It’s clear from this post – and, “Ryan’s List” – that he is a logical thinker … and, it seems that he may be a bit ‘lateral’ as well … certainly in defining a small business as “passive” ; but, Ryan seems to know what he’s doing … ____________________________________

    We’ve been talking a lot about navigation, and it brings up the point (the one that I think Adrian is trying to make with this task) that directions don’t help you much if you don’t know where you are!

    So, for a full disclosure of where I am, look here. As you can see, I have no car payments, no credit card payments, and no student loans. Basically my expenses are:

    Personal Expense (groceries, gas, etc.) $1,100.00
    Business Expense (lease, gas, products, etc.) $2,163.00
    Mortgage $3,501.00
    Utilities $222.00
    Entertainment $237.95
    Life Insurance $38.50
    Auto Insurance $207.75
    Charity $250.00

    Total Expenses $7719.70

    So, if there is anything that stands out it would be my $3500 mortgage. It is not really something I am likely to do anything about though as it is pretty much a median price home in CA, and we are really happy with the location (kid friendly neighborhood, good schools, friends close by, etc). Not that it would make sense right now anyway as we are upside down on the mortgage. (bought for $685,000 two years ago and paid down $20,000, current value is about $650,000). I feel as though my other expenses are pretty low and while I’m sure I could get ultra frugal and cut them a little, I don’t think it would make a big difference.

    Now let’s look at income, which is approximately (I’m on commissions) $17,000 gross monthly. Leaving me about $7000 to invest each month. Which I was investing in my 401K (which just lost 40%!) , paying down my mortgage (which is now payed down to the point that 20% of my net worth is invested in it), DRIP funds, individual stocks, and a savings account for an emergency fund.

    I will now be seeking investments which will yield passive income while I try to develop some IP (intellectual property) for my big hit. I am trying to decide between rental properties or purchasing a small business (which I’m leaning towards after reading e-myth mastery, but am concerned about the upfront time commitment for.)

    I will also be focused on increasing my income from my current distribution business and not increasing my expenses to go along with it!



  • moneymonk 2:53 pm on December 4, 2008 | #

    What Ryan, you make a handsome salary for your age, what business are you in?

    Great financial plan you have

  • Diane 1:47 pm on December 5, 2008 | #

    Ryan – your utilities look good – I would think given CA, even your mortgage is reasonable but leave that to your discretion. What looks high to me is your auto insurance and your entertainment expenses. Still, I assume you got a couple of nicer newer vehicles and eat out – a few things that could be reduced perhaps. It might be worthwhile to shop your insurance around tho. Otherwise, you’re looking real good for this here journey. Great assessment!

  • Ryan 11:08 am on December 6, 2008 | #

    @ moneymonk – I am in medical device sales. Specifically, spine implants.

    @ Diane – I think you’re right about my auto insurance, I’ve been meaning to shop that around. Thanks for the input!

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