Current Standing
Let me start this out by saying bad things happen but good people work their way out of it.
Due to2 babies, my health and several hospital stays the following is my situation.
Own my home. I bought it on land contract. I have a $18k on an equity line. variable based on Wall Street Prime currently 5.24% payment is $250 per month.
The property has a merged parcel value with parcel (Drive by appraisal 2013 at $20k.)House needs windows, gutters and siding badly.
$8k in card debt rates vary between 12 and 21,99%. $200 per month.
$46k in student loans. Income based $0 per month till May 2016.
$1,500 in medical debt. $25 per month.
$6,000 on an installment debt because the sewer line collapsed last year. 5.5% interest $175 per month.
Personal Loan $1500 repaid at $250 per month (balance of the land contract after deed was transferred.)
Own free and clear a 10 year old mini van that runs pretty well.
I have $2800 in a Roth 401k and $1500 in a Roth IRA.
I work in 100% commission sales as a mortgage originator and income varies per month from $0-10k.
We drained our emergency fund last month due to some health issues.
We budget $2k per month for bills and try to keep $1500-2000 in an emergency fund and liquid. Biggest individual expense being food as I have a special diet due to my Chron's and Celiac.
Everything left over goes towards paying down debt. There is not usually a lot left over due to getting caught up from the lean months.
Plans: Re-establish the emergency fund but boost to 6 months reserves. ($2000 x 6 months= $12k,)
Try save up to 10% gross of my pay check after the $2k budget is met then put the rest into debt reduction.
Find somebody I can work with/for in Real Estate Investing to learn hands on and observe their methods.
Use the 10% gross savings to invest in a property.
Get free of all debt but business and eventually be able to go all cash as it makes sense.
Establish at least 3 other streams of income (preferably 5) so we are not reliant on my commissions to meet the budget. Each stream being able to fully cover my budget.
Move out of downtown to a hobby farm and eventually do loans and real estate sales full time.
The reason for this post is two parts. 1 Know where you are at so you can know where you are going. 2. Publicly state your goals with a plan and it has a higher chance of success.