Multi-Millionares and Homless

I love my neighborhood. The above photos is a house that is 3 blocks away from my house. Across the street from my house is a "Palm Reader". Women of the evening frequent my street. Where else is Dallas as this much diversity? I was headed to work last week and saw a couple walking down the street rolling their suit cases behind them. I strongly suspect they were carrying all of the their worldly possessions. I have learned to embrace my neighbors. Section 8 apartments quietly reside next door to my office. I have become accustomed to the frequent request for a job or some money followed by a tale of woe. I always politely decline and offer a cold drink for their departure. I consider them my neighbors and treat them accordingly. I have learned to walk in the neighborhood without fear; looking people in the eye and greeting them. I have in the Peak Suburban Historic District for over 5 years and have not encountered any problems walking the neighborhood. I think I will stay.

Small Organizational Fixes

I found some floating white shelves from the Container Store. I started with a small one pictured above. I intend to put up several more shelves in this blank space. You can see that I have made the side table into my computer table. It functions as a nightstand, computer table, and dinner table all in one.
I have also used several hooks for various items. This is my current key hook. Above are some of the crosses that made it past the cut.

Only dual use furniture for me

It has been an adjustment. More of one for Greg than me. I do not find myself missing anything. However, I noticed a pile starting to accumulate next to the dresser. I went through the pile and was able to rid myself of more things I just do not use. For example, one of the items was a bulky neck pillow I purchased at an airport. I have forgotten to take it on every trip I have taken since. I felt guilty getting rid of it because I only used it once and have justified keeping it because I will use it again. I hope this will remind me to quit buying that kind of crap on a whim.
Since spring, there are several blankets and heavy spreads that are too heavy. I stored them in the cabinet above the refrigerator. I have always had a cabinet above the frig in every house in which I have lived. This is the first time I have actually put something in it. This spot is so hard to reach it is perfect for seasonal items. I purchased a storage ottoman from target (only $80)for the rest of my sheets and linens. All of the sheets/pillow cases and duvets that I am currently using completely fit on my bed and in this ottoman. I love it. This was the same amount of bedding I was rotating in the large space; I just had many many other mismatched old, and unused sets. This piece also doubles as an extra seat and the new place I put my purse.

I Had Plastic Surgery!

I went to see Dave Ramsey live this past weekend and returned motivated. I have been a slave to credit and my credit score. I love my credit cards. The hardest thing I have done is to really let them go. A savings account can provide for emergencies. It still feels like I am limiting my options. Can you really live without any credit cards? It hurts. McDonald's did a study on the use of credit cards in their stores and found that people spent 47% more when they used a credit card as opposed to cash. When I stopped using credit and started to be on a strict cash basis I encountered a cash crunch. It takes some adjustment. Now, when I want to make a $5,000.00 impulsive purchase, I have to think it through. Here are the things I have wanted to put on a credit card since I started: $4,800 hearing aids, $4,000.00 for dental implant, a new drive way at the triplex, and that is just in the last 60 days. I have not made any of those purchases. I realized that things do not have to be done the moment they come to my mind. I can wait and save for it. The other thing I have done which I have not done since I started working for myself in 1995, is put myself on a set draw. My budget was the limit of how much money I brought in, not a preset budget for which I had to plan. This has already helped me tremendously. I always said when you are self employed without a set paycheck it is impossible to budget. Wrong. I am not an employee on a set draw. More about that later.

The Financial Inventory, Time to get Real

Dr. Phil says "You cannot change what you do not acknowledge". My first step was to make an accurate list of all of my debt and all of my assets. I set this up in an excel spreadsheet that calculates my net worth and automatically adjusts as any one item goes up or down. I have used this type of spread sheet numerous times with my divorce clients but never really did a complete one for myself. It was time to get real about the exact numbers. I had underestimated my debt in my head by $10,000.00. When debt is spread out in little accounts here and there it is easy to be unaware of the exact total of your debt. Each month when a mortgage statement or credit card bill comes in, I input the new number and I see my net estate increase each time. It is the positive feedback I need to keep motivated in this process. When I start to make a purchase, I think, what is this going to do to my net estate.
The hard part of this process was figuring out where my money was going. By most standards I make a very good living. When I told a friend of mine how much money I make she said, "There is no reason you have to have budgetary issues". Wrong. The more money I have made the larger my budgetary issues have become. I have historically spent 110% of everything I make. The more I make the more I am in the hole. I know I am not alone because I see this in my clients everyday. Families that have earned a fortune and have very little to show for it after a decade of high earning. I started with my QuickBooks. I set up a personal account and started entering every expense. It is not a checkbook ledger, it is an expense ledger. When I spend cash, it is entered into the QuickBook. I set up categories of all of my spending. I have been doing this now for less than a full month. Immediately something is becoming clear. I spend ALOT of money eating out. ALOT. I eat out 1-2 times per day. This has got to change. I will be posting on this topic later.

I got rid of the stove and put in a washer/dryer

It came down to a choice. What is more important, a stove or a washer and dryer. I cannot live without a washer and dryer. I learned about a new technology. It is a convection oven/microwave. It is the size of a large microwave and it can be used as a regular stove and a microwave. It can be built in or set on a counter top. In my case I put it no top of the refrigerator. It did not take away any functional space. I works better than a traditional oven. I have baked cookies, cake, pot roast and used the microwave. The convection aspects circulates air and everything is baked evenly. That solved the oven delemia but what about the burners? I bought an awesome burner online. It stays stored away unless it is being used. I notice how much I primarily use the microwave anyway. Planning a kitchen in a small space is an art. There are several websites, mostly aimed at New Yorkers, specializing in smaller than standard appliances.

Unexpected Shopping Withdraw

I have been on a self imposed spending freeze for all non essential items for the past month or so. I felt myself at a loss for something to do and depressed. I didn't realize how much of my time is spent, shopping, planning to shop, comparison shopping, online shopping, clothes shopping, gift shopping, electronic equipment shopping, furniture shopping, food/supply shopping, make-up shopping, accessory shopping, linen/bedding shopping, dog shopping, organizational supply shopping, and I could go on forever. With the downsizing, the space for shopping is eliminated. This will undoubtedly free up thousands of dollars in my budget. February is the first no car payment month. March will be the first month of decreased house-keeper expense. My plan is to fill my life with something other than shopping and eating out. That is all I have been doing! My mother said "my God, you are depressed because you have moved into a rabbit hole". Greg and discussed moving back. We both agree that is not what we want to do. Moving is one of the top 3 life stressors and we don't want to go through it again. I am mourning the loss of all that stuff and giving up my procurement habit. Not easy.