Plan 1 “The Contractor”
Columbus – Contractor – School (Political Science and Teaching)
-
- Columbus
- Contractor – Need $30,000 to get started
- School – Slowly acquire my PH.D and Teachers License
- House – Buy or Rent with money earned from working
Pros
- Can make $25,000-60,000 a year with open work schedule
- Great cash flow
- Slowly go through school without pressure
- Growth Potential in Cincinnati and other markets
Cons
- Borrowed money will take years to pay off (likely 5 years)
- Stress and workload will be high
- Long work hours (9-9)
- Potential for disaster, worst case scenarios could cost in the end
- Tied to Columbus
| Doing No Deliveries | Deliver Everyday | Work Weekends | |||
| Marcos | $550.00 | Marcos | $550.00 | Marcos | $550.00 |
| Pablo | $450.00 | Me | $0.00 | Part-time Worker | $200.00 |
| Fuel Costs | $500.00 | Fuel Costs | $500.00 | Fuel Costs | $500.00 |
| Weekly | $1,500.00 | Weekly | $1,050.00 | Weekly | $1,250.00 |
| Monthly | $6,000.00 | Monthly | $4,200.00 | Monthly | $5,000.00 |
| Yearly | $78,000.00 | Yearly | $54,600.00 | Yearly | $65,000.00 |
| Maintenance | $5,000.00 | Maintenance | $5,000.00 | Maintenance | $5,000.00 |
| Insurance | $2,400.00 | Insurance | $2,400.00 | Insurance | $2,400.00 |
| Cell Phones | $2,400.00 | Cell Phones | $2,400.00 | Cell Phones | $2,400.00 |
| First Year Cost | $87,800.00 | First Year Cost | $64,400.00 | First Year Cost | $74,800.00 |
| Yearly Income | $24,700.00 | $41,850.00 | $31,450.00 | ||
| Weekly Costs | $1,688.46 | Weekly Costs | $1,238.46 | Weekly Costs | $1,438.46 |
| Weekly Income | $475.00 | $804.81 | $604.81 | ||
| Plus Clerk Job | $35,100.00 | $41,850.00 | |||
Plan 2 “Home Owner”
Columbus – House – School (Teaching Degree) – Part-time Job
- Columbus
- House – Borrow money to buy house (instead of mortgage)
Objective: To save money for rent/interest while I pursue educational pursuits. Gain an asset. Funnel money from rent into something with value.
I would look to buy a house centered in Columbus. I would get my teacher’s license and work my part-time warehouse job. I would continue to work at the warehouse until I found a full-time teaching job. I would pay off the house loan with money from work and school loans.
–If I took out a mortgage for a house I would pay (No one is lending right now also)
$35,000 loan (20 year – 8% interest)
$350 a month payment
$36,000 interest paid over the course of the loan.
–If I borrowed money from 401k
$35,000
$9,800 in upfront tax hit
$3,500 in 10% withdrawal penalty
$
$13,300 in “interest” paid.
Savings of $22,700 in the long run.
Basically this keeps the money paid to a mortgage company in our hands. Even if we factor in the loss of growth in the account money would still be saved in the long run. And as my income grows I would gladly pay the same potential amount for your profit.
Reasons this would work well.
I am fine with living in Columbus. It has everything I need from being the political center for the state, a sports scene that coincides really well with my basketball story, I have a job that will always be there, the growth of the city means more potential for a teaching job. So buying a house here is pretty solid investment since I will owner-occupy it.
It also makes sense to buy a house now with the market low, the tax credit incentive.
I can pursue my education, work on my basketball story and possibly do my volunteering trip in between school breaks.
Plan 3 “The Student”
Dayton – Live On Campus – Teaching License – Student Loans
Move onto campus at Wright State. Finish my teaching license program. Live off of student loans.
No cost to anyone but me and the federal government.
The problem with this is I continue to lose money with no assets. I will pay basically $25,000 a year and half for tuition and living expenses for a teaching degree.
This will give me the freedom to pursue a job anywhere in the country since I won’t be tied to Columbus.
I could possibly find a better teaching job than I could find in Columbus or Ohio.
Plan 4 “Military Officer”
Join the Army – Fight for Uncle Sam
I would apply to the Officer Candidate School.
I am approaching the age limit of 29 so I would have to count on an appeal and scoring in the top 60% of candidates on the required test.
The commitment to the military will be tough. 8 years they own me.
Will look good on my resume for potential political or teaching career.
Chance of death is may be higher than living in the ghetto.
Plan 5 “Rambler”
Open Road – Beg, Borrow and Steal – Write
I would do the Volunteering in 50 States starting this summer.
Play music, write, drink, be free.
Money will be tight. I will have to pay minimum payments on everything. Use more loan money from Gene and possibly J.D.
A sacrifice for potential greater success commercially, if I can write a good book.
Continue to lose money and not have much to show other than the experience.
Things I want in life (5-10 Years).
House
- Home
- Cheap fixer upper in a not so great neighborhood on at least a 3,000 sq ft lot
- $25,000
Basketball/Sports watching room.
- 10 TV’s. 2 large ones (HD 40 inches), 8 smaller (27 inches Standard).
- Floor made out of hardwood where I can dribble a basketball, jump rope, life weights
- $8,000
Hybrid or Fuel Efficient Car
- Any of the variety of hybrid out there
- $30,000 new, $15,000 used, $300 a month
Gym Membership
- Membership to a basketball court
- $50 a month
Music Room
- Musical Instruments everywhere with recording equipment
- $2500 startup, $1000 a year
Hot Tub/Bath Spa
- $3000
Travel
- One good trip out of the country a year, hopefully tied with work/school
- $2000 a year
Video Gaming
- Sports games and various RPG’s
- $500 a year
Bed
- Tempurpedic Adjustable Base
- $2500
Classes
- Continuing Education Courses
- $1500 a year
Clothing
- Suits, business casual, real good shoes
- $3000 over 5 years
Financial Plan
I feel I have a guaranteed job making at least $25,000 within two years at the warehouse I currently work at. I currently make $12,000 a year working part-time. I believe I could make $50,000 a year as a contractor. I would make $30,000 a year as a teacher on a 10 year average (not including coaching money).
My current expenses are as listed
| Monthly Expenses | |
| Rent | $500.00 |
| Utilities | $100.00 |
| Cable | $45.00 |
| Wells Fargo | $64.00 |
| School Loans | $300.00 |
| HFC | $212.00 |
| Music 123 | $60.00 |
| Food | $200.00 |
| Carousing | $200.00 |
| YMCA | $45.00 |
| Contractor Payback | $0.00 |
| Car Insurance | $45.00 |
| Life Insurance | $15.00 |
| Transportation | $200.00 |
| Total | $1,986.00 |
| $23,832.00 |
The biggest thing for me is finding a place where I can lower my biggest expense which is rent/housing. I don’t mind living in a bad neighborhood or in a house that needs work. That is why I am focused on this some adamantly.
Over the next 5 years I do not see my expenses rising much at all. The only significant increase would be if I land a steady, secure job I would begin to fulfill my above want lists.
In the long run the first thing I want to tackle is paying off the $19,000 credit line. School loans are something I see as a continual cost that will be with me until I die, or the 20 year rule will kick in.
The biggest thing is to pay off HFC/Beneficial before the PLUS loans become due. That amount will basically be swapped for each other depending on the income of Mom (payback is based off a % of your income).
Some of these expenses will be paid off sooner, although I expect them to be replaced with others from my want list.
Goals in Life
Music
- Master musical theory/history by the age of 35
- Organize 1 or 2 good concert/shows a year
- America’s Child – Album
- Record songs with Gene long distantly
Writing
- Breaks of the Game (Basketball Story) * #1 Goal in my life right now.
- Fantasy story – Loyolla
- Songs to a Stranger – Screenplay
- Short Stories in a more frequent time frame
School
- PH.D in Political Science/Sociology
- Various amounts of writings within my discipline
- Teacher’s License in Social Studies
Health
- Stay athletic
- Balance in diet, maintain sobriety with bouts of excess
- Death with dignity – natural death, no long term health care – machines
Social
- Start a non-profit organization aimed at truth gathering and developing leadership in communities
- Coach High School Football for a few years
- Couch Surfing guru