Making Ideas Happen The Dream Chaser Project

Lessons from a New Self-Earner: Finally Creating a Financial Plan (Part 2)

Photo Credit: Chris Potter

Photo Credit: Chris Potter

Putting a budget together sucks. Quite a way to begin a blog post,eh?

If you read part one of this piece, you know my current goal is to save $15000 (US) by July. This is a tall order for a guy who currently works part-time. I’ll go back to fulltime work if a worthwhile gig comes along. But in the meantime, I need to focus on the minimum amount of income I need in order to achieve this goal. Last time, I came up with the following numbers:

Per Month Income Goal: $4150
Per Day Income Goal: $135.50 ($150 in Feb, $140 for 30-day months)

Remember, this takes saving and bills into account. Honestly, I feel like this could be much worse. It’s by no means simple (I’m essentially starting my life over from scratch), but I’m confident I can swing this if I keep my head in the game.

Right now I make about $47 a day in part-time work. While I’ve applied this over the course of seven days, I’m actually only working about 20 hours a week. Also, I tend to make more because I log out late some days, but I don’t want to rely on that. I need to know what I’m guaranteed. I don’t know what works for you, but if some amount of money isn’t a sure thing (or a close approximation), I see no good reason to track it. It’s simply a bonus.

Like when you randomly find a 20 dollar bill in your coat pocket.

So I’m a bit more of 1/3 of the way there (depending on the month).

Awesome.

Sort of.

This puts me in a bit of a quandary. Either I need to get that fulltime job I’ve been avoiding or I need to simply earn more money. Truth be told, I became a bit spoiled over the last few months as time is a much better motivation for me than money. Earning more is awesome, but if I go that route, I want to ensure it’s an ideal situation for me. I’m not trying to be stressed out of my mind all day then take my work home so I can continue that feeling all night.

Been there, done that.

So I need to make up the rest of it with freelance work unless anything changes. This is where things get tricky.

I make my side moola freelance writing or editing. Recently I landed a somewhat steady editing gig, but I’m not getting any more than $55 a week from them. In this case, steady definitely doesn’t mean a lot of hours.Either way, let’s just reduce this to $30 a week because that $55 isn’t guaranteed. Per day, that’s about $4.29. Not much but it gets me over $50 a day.

Side note: I realize this is going to be a ballgame with a ton of singles and doubles. So be it. I should have been better at this months ago, but life (or in my case, love) became a higher priority than making money.

Yes, it’s actually true.

But with my fiancé stuck in Sweden until we have that K1 visa, I don’t mind putting forth some extra effort to reach this goal.

Anyway, if we’re talking about February, I need to make about $98 more per day to hit my goal. Actually, let’s just go with $150 per day as a nice, round goal. I realize this is totally stream of conscious and I should probably just update what I wrote before, but I’m lazy as all sin right now. Deal with it.

Most content writing gigs offer crap for pay and, quite frankly, are not worth my time. Some of them are decent if I need money in a pinch, but most of them demand a lot of effort with marginal returns. Next week I’ll dive into freelance writing more and what I’m doing to increase my odds of landing better paying gigs. But for now, let’s finish up the rest of this budget.

While income is a significant part of tracking finances, I would argue spending is far more crucial. That’s because any money that is earned will ALWAYS help. Spending, on the other hand, hinders monetary growth unless its an investment in something else that will generate revenue.

Luckily, getting laid off curtailed my loosey-goosey spending habits big time. All I need is food, honestly. I’m basically in stasis until my fiancé and I are back together. It sounds horrible, but I’m fine with limiting my outings, only spending when I end up exceeding my daily goal consistently. One or two days aren’t a green light to loosen up those purse strings.

January will end up being a proof of concept month. I will be tracking ALL of my spending. This way I’ll have a concrete idea of where money is going and where I can cut corners sans any negative repercussions. Here’s what I can estimate at the very least:

  • $25 a week on groceries (very doable living alone and being a vegetarian)
  • $5 a week on public transportation (I’m still debating selling my car. Right now it’s not on the road so I don’t have to pay for insurance)
  • $50 every two weeks miscellaneous spending

This is a strict budget. As you can see, I’m keeping it pretty minimal as I’m not factoring in much. This is because I don’t need much. This savings goal is more important than stuff I want to buy so I may as well act like it.

Okay, folks; that’s it for now. Join me next week when I start talking about things you can do to help snag more writing gigs (this should be appropriate for other types of freelance work too). I hope your journey is as exciting as mine and, as always, hit me up in the comments if you have any tip or feedback of your own!

Peace out, party people.

Previously: Finally Creating a Financial Plan (Part 1)

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5 Comments

  • AngO January 5, 2015 at 12:48 pm

    You seem to be on the right track! The first step is always saying things out loud. And yes…freelancing for the amount of work that is needed, the pay simply isn’t worth it.

    • Andre C Griffiths January 5, 2015 at 2:44 pm

      Thanks! Yeah, my friend once told me making goals public makes people accountable if they don’t do their best to meet them. So far, so good!

  • brickthomas January 5, 2015 at 3:06 pm

    Sounds like a solid plan and I wish you the best. It will be an interesting journey.

    • Andre C Griffiths January 5, 2015 at 3:37 pm

      Thanks a ton! It’ll be tough, but I figure if I work toward something, I may as well do it now while I’m still young(ish) and (relatively) sane. Fingers crossed!

  • Lessons from a New Self-Earner: Tim Ferriss Clones and the BS of Capitalism | Andre C Griffiths January 12, 2015 at 12:01 pm

    […] Previously: Finally Creating a Financial Plan (Part 2) […]

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