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.

One Step Closer to the 300 square foot committment

As part of our small living journey we have left ourselves an "out" by keeping the old place while we transition into the small space. I have been floating between two places having the security of an extra 2000 square feet to house all the "stuff". Finally got rid of all the stuff. And I do mean stuff. I must have had 4 different pairs of pink tennis shoes, 30 small white frames from IKEA, every manual of every piece of electronic equipment I have ever owned, and 4 sets of dishes. It became so overwhelming I ditched the idea of having a sale and had my handy man Gilbert come over. I said "Gilbert, please make it all go away, I do not care where it goes, make it gone." Next thing I knew there was 3 generations of the Rodriguez family thrilled to be carrying away my extra stuff. I was immediately relieved that I wasn't contributing to some land fill somewhere. I wanted the stuff to be used, I just became overwhelmed with trying to place it in the right home. I have had the old place repainted and cleaned and it is ready to rent. The question is, am I ready to close the door to moving back? YES. Door close please, I am ready. I began to feel the stuff suffocating me. I found things I had been keeping because I was told that it was some family member that died that I didn't know and therefore had to be kept. Why am I the keeper of garage sale crap of decades past? My new policy, once something has been giving to me, I will not feel obligated to house it if it does not fit in my life. If someone gives you a fruit cake are you obligated to eat it? The leasing company has been called and final decision has been made.

Ten Bags of Clothes

Ten bags of clothes were removed from my house on Tuesday. My current closet is pretty big but nowhere near the walk-in at the old place. I took the creme de la creme of the lot. I found clothes I hadn't seen in years. Clothes I love and haven't been wearing because they were lost in the swarm of second class clothes. My goal now is to keep only clothes I really love and wear. I have become a fan of Coldwater Creek Iron Free white button down shirts. I want to have a more simple uniform. One like men do, in which you have your basic white shirt, black pants and accessories. Shopping was one of my biggest forms of entertainment. The self imposed space constraints are a major deterrent of sport shopping. I am quiting shopping for the sake of shopping. I am embarrassed to admit how many unused and barely used purses, shoes and dresses I own. I continue to read that in order to simplify constant "editing" is required. Tuesday was the first round of "edits". I brought more clothes to the new place than I really want. For some reason I was buying multiples of the same item. I must have 10 pairs of black leggings, 6 pairs of a various pink tennis shoes, and the list could go on forever. My new motto is to entirely use something before purchasing another. I routinely bought mass quantities of anything I used on a regular basis. I am resisting the current urge to go on line right now and buy more Coldwater Creek shirts; the rationale being that I just purged all those clothes and now I can start building my new "uniform". This is the behavior that landed me with all this extra stuff to begin with. I took everything in all closets piled it in the middle of the living and dining rooms. I looked around and thought "this looks like a bad scene for the TV show "Hoarders". There are still many things in the old place that have to go. The weather has been bad and I haven't been able to have a garage sale. The task is so daunting, I am tempted to hire someone to just come and take it all away. Any ideas on how I can quickly and easily rid myself of all the extra stuff?

Finally Practicing What I Preach

Since I am a divorce attorney, I have represented many women who are facing a financial shift in their life. For example, I had a client who had never had a car valued at less than $50,000.00. She was facing a shift from having “spending money “in the amount of $6,000.00 a month with all of her bills paid, to having to live on $2,500.00 per month and whatever she could earn (which wasn’t much). The lease on her Mercedes was up and she had to get a new car. She could not grasp the concept that she could drive anything else. She kept telling me “Well, John drives a $60k car I should have at least a $30k car.” She was unwilling to drive a car that cost $10k. I tried to explain to her the freedom she would feel if she paid cash for a car instead of getting into a $800.00 a month car payment. I know now because I am living it that it can be done. The good news is that it doesn’t really hurt. Once you stop worrying what other people think. “What will the mothers in the car pool think of my Kia”? It doesn’t matter. Being able to live within your means and afford to save for you and your children’s future is more important. Unfortunately, I think her game plan is to quickly find another rich husband. The sad thing is that she will not know the freedom of being self supporting, the freedom of being debt free or, the freedom of having a secure future.

Bye Bye McMansions Please

The McMansion trend is finally reversing. I read this article by Steve Brown in the Dallas Morning News http://http//www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/DN-homesizes_22bus.ART0.State.Edition1.3cf8490.html
A 400 square foot average reduction is size is huge! While growing up my family and I lived in a 1,300 square foot tudor and we were quite happy. When traveling to other countries it becomes clear to me that our "standards" of size and proportion are not simimlar to the rest of the world.

New tiny kitchen

This is what I am calling a " murphy table". We had it painted white. Just enough room for a coffee maker.

Photos of the new place

This is what it looks like so far. New bed isn't here yet. We kept our favorite art. That table serves as the computer table, bedside table, and dining table.

First night in the new place

Tonight will be the first night in the new place. I still have the old place. We decided to keep it to allow ourselves to change our mind. It is not failure to change your mind. It also allows us to slowly move the items we need and get rid of others. I have away my giraffe head to my friend Keith and he has also agreed to take possession of some of my favorite art for safe keeping.

Small Bathroom

Who knew I had 14 partially used bottles of lotion. 9 various hair products. 4 body washes. 3 different sets of shampoo and conditioner. No more. From now on, I will only keep one item of each. The upside is that Iwill stick with what I really like. I have been holding on to all this crap because I would use it someday. Well someday is here and it wasn't used. Only items I have actually been using will be making the move.

Final choice on the new Bed

I have searched the Internet and world over for the right bed for this space. I made a trip to Ikea. Pictured is a pottery barn bed. I have looked for other alternatives but I am now convinced this is the best for the value on the market right now. I also looked into having one made and the cost was almost the same if I used hardwood. The good thing about this bed is that it completely eliminates the need for one dresser. We are choosing a queen since it is literally 16 inches more narrow than a king. Since one side of the bed will be agaisnt the wall we will store out of season clothes in those baskets.

Financial benefits of downsizing (none yet for me)

The paint is done and the new frig is in. Six months ago my dad moved in with us. For the past 6 months we have been virtually living in the bedroom. This has helped me realized I can be happy in less space. The efficiency apartment was originally for him. We have managed to find a fabulous assisted living facility for him. This leaves me with the luxury of moving downstairs without having to purge everything first. Dish network came. Can't live without the satellite. I have yet to experience the financial gain of downsizing. Actually it has cost me money thus far. I asked my housekeeper to give me a quote on the new space. She quoted the same price!!! I know she needs the money, I am thinking of offering her the same price for twice a week. I will keep you posted.
Mortgage/rent is not the only financial benefit of downsizing; there is a trickle down effect. Here are the other savings
1) less utilities
2) reduced house cleaning expense
3) money saved on shopping to fill the space
4) less environmental impact
5) increased consciousness of clothes shopping (no unlimited closet space)
6)less taxes

Huge Dinning Table

This is my current dining table. I love it. It can seat 10. We have probably used it 6 times in the last year. I will be taking this table with the matching chairs to the office to be used as a conference table.

No not crazy

I have had several good friends tell me my move is crazy; that I don't "have" to live like this. To me, I see it as I have the freedom to "get" to live like this. The thought of getting rid of the clutter and "stuff" feels like a relief to me. I am very lucky to have a man in my life that is willing to go on this ride with me with very little complaint. His only requirement is that we keep the 52" flat screen TV. Today we went to Fry's and purchased a new frig for the apartment. We needed one that is only 67 inches high since I am reconfiguring the appliances. The painting is almost finished. New photos coming soon. I will be having a big SALE. The only thing I own that I will miss is my art. I have collected some really cool art that needs a good home. I have been reading some other blogs I am wanting to share on this site and haven't figured out how yet.

The Big Move

I own a triplex in Old East Dallas. It is a great historical building. It actually won a preservation award by Preservation Dallas. I have been living in the best unit which is 1,700 square feet. Recently, my efficiency apartment came open. I have always loved that space and have secretly desired to live in it. For the past year I have been reading other blogs about decor and small living such as ......I am also a big fan of Apartment Therapy. I made the decision to move into the efficiency. Once I rent out my current unit the rental income will cover the mortgage payment on this building. This move along with selling the car will free up about $1,800 per month.

Step One The Car

The first step was getting rid of the car payment. I drove a 2007 FJ cruiser. I purchased it new and financed it for 3 years. The payments were $554.00 per month. It had $8,000 equity. I sold the car and paid $8,000 for a new car. I am very happy with the result! It doesn't even feel like a sacrifice. I now own a 2007 PT Cruiser with 21k miles. The gas milage is about double the old car and it looks and feels new. Prior to this I had owned 3 red mercedes in a row. When I bought the Toyota it was a move from materialism. Why do I need to drive a Mercedes?

Getting Started

Wow, this is my first blog and who knew it was so easy. I am taking a journey of simple living. By choice. I am an attorney. I make a good living but have lately felt like my things were owning me instead of me owning them. I am taking a journey of Simple Living. Come along for the Ride