Money Mindset

Choose Wisely – Side Hustle Edition

March 26, 2020 by tanya

When the status quo gets interrupted, one is forced to pay attention and make an assessment. I’m referring to a true, honest assessment. No delusion. No excuses. No fiending ignorant. Right now, one can either act like a deer in headlights, or recognize what’s happening and take action.

We’re in the midst of a pandemic. The novel coronavirus, COVID-19, has upended life in the United States and other parts of the world. Local governments are minimally operative, restaurants and many other businesses are closed (with restaurants being allowed to provide food via take out and delivery). Individuals are being asked (or in some cases, being mandated) to stay at home. Many hospitality and retail workers have lost their jobs. Others are working from home. When outdoors, many of us are practicing social distancing by staying at least 6 feet away from other people. If you’re living in the United States, you know that life is very different right now. People’s lives are at stake. So are people’s livelihoods.

The economy is in shambles. In addition to worrying about staying healthy, many of us are concerned about how we will continue to earn income and be able to provide for ourselves and our families.

We hear about multiple streams of income. At this point, we’ve heard it enough to know and believe that it is absolutely the way to go to not only increase income, but to hedge against risk. If one source of income disappears or becomes unstable, the other sources of income can take up some of the slack. We get that. It makes perfect sense.

To rely on one source of income is silly.
~ single girl

That’s why we have such a strong side hustle zeitgeist these days. In addition to someone’s day job, they also drive Uber (and Lyft). In addition to working as an employee for one company, people freelance on the evenings and weekends as a contractor.

I, too, totally understand and believe that multiple streams of income are necessary – absolutely necessary. To rely on one source of income is silly. So, like many, I have other hustles. In addition to having licenses to practice law in 2 states, I also have a real estate sales license, and 2 securities sales licenses (see my post https://singlegirlslaysdebt.com/a-14000-windfall/ about a $14,000 commission I made last year). I’ve also done some teaching.

My rationale in choosing these additional income sources was that they could provide me with higher paychecks. With real estate and securities sales, agents (in the case of real estate) and representatives (in the case of securities) get paid commissions. So, what you make is based on a percentage of the deal. If the deal is a small one, the commission will be small. If the deal is a big one, though, the commission will be much larger. Since the amount of work necessary on each deal isn’t always commensurate with the price on the deal, the idea of getting a commission seemed like a really good idea to me. But it wasn’t such a good idea – not when I want my hard work to be smart work.

When I got into my side hustles, I thought they made perfect sense. They relate to what I already do, so I thought I’d be in a good position to utilize the knowledge, network and background I already have. It was a good natural next step. From a short-term perspective, I guess it makes sense. At least, I thought it did.

Here’s where I made a misstep: I chose side hustles that don’t properly leverage my time, even though they’re “professional”. The problem is that my side hustles involve the provision of professional services – and I am the provider of the services. I didn’t use my knowledge and background to create products that could be sold time and time again and that could produce money even when I’m not actively working. Instead of taking the time to create at least one income stream that isn’t directly related to my time, all of my side hustles are based on my individual effort. Not the best idea.

I’m still trading my personal effort for money. He regrets it. I don’t want to be his age and be regretful too.
~ single girl

I recently spoke to a man who has been in the securities industry for over 30 years. I asked him what he would have done differently, knowing what he knows now. He said that he would have built a business that wasn’t so dependent on him – something that could be deemed an asset that could be sold. With the choices I made for side hustles, I am on the same track as this guy. I’m still trading my personal effort for money. He regrets it. I don’t want to be his age and be regretful too.

The good thing is that, with additional licenses and services I provide, there can be more checks and the checks can be bigger. The bad thing is that, if I’m not working, there are no checks. I’ve positioned myself to be able to make more money, but that position is one that ties me to trading hours for dollars. And all of my dollars are tied to me doing the work. None of my side hustles can function in my absence. I haven’t set up streams of income that don’t rely on my continued, individual effort. In the same way that a stock portfolio should not be limited to just one stock or one industry, my income streams shouldn’t all depend only on my individual efforts. This model that I’ve set up is stupid. Really stupid.

4 Great Things To Do While You’re Coronavirus Cooped Up

March 17, 2020 by tanya

The coronavirus has life around the world in upheaval. The crazy thing is that with me stating that “the world” is in absolute shambles, I’m not exaggerating – at all. Economic markets are volatile, people are staying away from each other in order to help contain the virus, and there is a general, heavy sentiment of uncertainty not just in the United States, but in many other countries.

That said, I understand and support the fact that we really, really need to isolate ourselves to reduce the spread of the virus. I’m all about that #staythefuckhome life.

In addition to the good staying home provides in helping to reduce the spread of the virus, staying home also presents some other great opportunities. While staying healthy (and trying to help keep others healthy), there are several things we can do to make the best of being cooped up in the house.

(1) Clarify and Decide

Are you in the same position now as you were during the 2008 economic downturn? Now is the time to think about and plan for how you will position yourself to be in a better position for the next downturn. It is important to see things for how they really are, then become very clear on what you want them to be.

What’s your current situation? What kind of job do you have? What is the likelihood that your employer will be able to continue to stay in business and pay you if the current circumstances continue for much longer?

What I’m getting at is that this is a chance to start playing chess, instead of playing checkers from a strategic life standpoint.

What you have at your fingertips is justified seclusion. That’s really an opportunity to think. It’s a chance to stop moving through life unintentionally and to devise a plan.

Write a clear vision for where and how you want to live the next time an event of this nature occurs. Economies are cyclical so be assured that another economic downturn will come – whether it’s due to a pandemic or some other reason. Something like this will happen again. Decide what you are willing to do to be in a better position when that happens.

(2) Stop Procrastinating

You know all that stuff you’ve been saying you “need to do” but haven’t? Now would be a good time to start addressing those things. You have nowhere else to be! Since it’s not safe for you to be in these streets like you have been, you can tackle some of the projects that have been on the way back burner in your life for too long.

Procrastination also applies to the other things that you’ve been saying you need to do, but haven’t. Yesterday, for example, I had someone reach out to me saying that he’s been putting off adding his wife to the deed on their property and he doesn’t want to put it off any longer. Since I’m a business and real estate attorney, he reached out to me so that he could get the ball rolling on that process.

Have you been putting off certain other “life stuff” that you need to start handling?

Do you have life insurance?
Do you have a will?
Do you have any of the pictures in your phone printed and hanging in your home? (There are online services that will do this for you.)

Now’s your chance to start getting some of those things off of your to-do list.

(3) Get Your House In Order

This one piggybacks on the previous opportunity. You’re stuck in your home, so get it together. You know all of that stuff you’ve got around the house that you’ve been saying you’ll handle, but haven’t yet? Now would be a good time to start working on them. When was the last time you did a deep, deep cleaning? Are your cupboards organized or in disarray? What about that stack of mail that’s been sitting in a drawer or in a corner somewhere? Aren’t you tired of it?

I’m a firm believer that one’s external environment is reflective of their internal environment – how they are thinking and feeling mentally. When I’ve got stuff all over my countertops and papers strewn all over my desk, know for sure that I’m mentally out of order. Sometimes the first thing I do to pull myself together is to pull my space back together. It makes a huge difference.

I have 3 friends whose homes are in shambles. That’s not judgment – it’s fact. They are embarrassed to have visitors and they, themselves, don’t like their physical environments. Since I know them well, I can say that their minds are often as cluttered as their environments. And their embarrassment about letting others into their living spaces impacts their personal relationships. I think it also impacts how they feel about themselves. They live in a constant reminder that, though they feel they have some areas of their lives together, there’s at least one area where they’re really falling short.

From the moment you start tidying, you will be compelled to reset your life. As a result, your life will start to change. That’s why the task of putting your house in order should be done quickly. It allows you to confront the issues that are really important. Tidying is just a tool, not the final destination. The true goal should be to establish the lifestyle you want most once your house has been put in order.
~ marie kondo

They won’t take the time and energy necessary to organize and to clean their environment. And it really takes time and effort. A significant amount of time and effort. What should you have more of right about now? Time. But cleaning up and organizing is worth every minute. As famous declutter and organizer, Marie Kondo, says, “From the moment you start tidying, you will be compelled to reset your life. As a result, your life will start to change. That’s why the task of putting your house in order should be done quickly. It allows you to confront the issues that are really important. Tidying is just a tool, not the final destination. The true goal should be to establish the lifestyle you want most once your house has been put in order.” So, clean up. Declutter. Get your house in order.

(4) Buy Some Stuff

I’ve been reading and listening to financial and market commentary. Prior to the COVID-19 outbreak, financial experts were predicting an impending recession – a recession that was anticipated by late 2020 or early 2021. Now, financial experts are saying that a recession is almost certain (though one hasn’t yet been officially declared) and will be coming sooner than originally anticipated.

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
~ WARREN BUFFET

If you’re in the position to take advantage of the “on sale” stock market, you have an opportunity. If this continues too much longer, there may be some real estate on sale as well. Remember, some people thrive in economic downturns. Perhaps that can be you.

Instead of considering myself to be “stuck in the house,” I view this as an opportunity to be “in the lab” (that’s a 90s hip-hop term). This is a time to do some evaluating and to get some things done. If you make this a Netflix and super chill situation, I’m pretty sure you’ll regret it later. Be well.

Is a $1,000 Baby Emergency Fund Enough?

March 13, 2020 by tanya

Photo by Fusion Medical Animation on Unsplash

It’s crazy out in these streets right now. The President has declared a national emergency and has restricted air travel to and from 26 countries. The Dow Jones Industrial Average posted the largest single-day drop since the 2008 economic downturn. Major events like the SXSW (South by Southwest) concert and Coachella have either been cancelled or postponed several months. The rest of the NBA (National Basketball Association) season has been suspended. Schools are closed. Disneyland, for God’s sakes, is closed! Worst of all, toilet paper on a store shelf is nowhere to be found. You can’t even get it from Amazon.

Though I’m not panicked, I’m now in a state of being reactive. I feel the need to obtain a bunch of household supplies because I’m concerned that they won’t be available in a few days or next week when I need them. I hadn’t planned on doing this, but am doing it now. Why? Well, because everyone else is taking all the stuff.

This comes amid concerns about the spread of the coronavirus in countries around the world, including the United States. It has now, officially, been declared a pandemic. What concerns me about this situation is not the virus itself (except to the extent that it could impact my parents and other elderly loved ones), but how people are responding to it. The level of fear and the corresponding actions that are being taken in response to it are concerning.

Though I’m not panicked, I’m now in a state of being reactive.
~ single girl

Seeing how people are responding and the corresponding changes that are being made in business, and general life in the United States, is making me ask myself, “Is $1,000 enough?” Considering the fact that I work for myself, will I be okay if things continue as they have been?

Anyone familiar with Dave Ramsey’s Total Money Makeover program knows that he advocates a baby emergency fund of $1,000 as the first among several baby steps to financial freedom. The idea is to use the small emergency fund to “cover those unexpected life events you can’t plan for.” In other words, this is supposed to cover those things that you cannot see coming . . . or that surprise you.

Among the exceptions to the $1,000 fund amount are situations in which an emergency is clear and eminent – an emergency for which $1,000 simply would not be sufficient. I’ve heard Dave identify such an emergency situation as one where, for example, someone has a baby coming and doesn’t have insurance coverage or when one knows that they will be losing their job.

(1) Given what is happening now, I’m asking myself some questions.

(2) Is the corona virus and the mayhem it is causing a sufficient emergency to justify saving more?

(3) For those who are self-employed, should one have a higher amount?

(4) Is a $1,000 emergency fund sufficient for someone in extreme debt (over $300,000) like me?

How will this impact my business? Can I turn it into a positive situation? If things continue as they are, will I have enough money? I do not want to borrow. I’ve turned over a new leaf. I. Will. Not. Borrow.

But I only have $1,000 in my savings account. I have a few sinking funds – for car maintenance, home maintenance, personal care and gifts, but those aren’t savings accounts. Those are accounts with funds for expenditures that I know I’ll need to make eventually, even though I don’t know exactly when or how much I’ll be spending. The sinking funds are accounts that allow me to protect my monthly cash flow by having funds already set aside for the handling of certain life things. While I like seeing funds in these accounts, having the money there is a proactive measure, not a safety net.

Since I started my debt free journey last year, I’ve had only the $1,000 baby emergency fund. Though some months have been better than others from an income perspective, I haven’t strongly considered increasing my emergency fund amount until now.

And nnnnoooooowwwwwww . . . I’m thinking that this is a certified emergency situation – one that would warrant me saving a bit more money and putting it to the side. What these circumstances will yield is very uncertain. I’d like to be in a better cash position, even though I hope I won’t need it.

What financial moves are you making in response to this pandemic? How much do you have in savings and are you comfortable with that under the circumstances?

Financial Responsibility Hurts So Good

March 10, 2020 by tanya

I recently paid the $8,600 HOA assessment for which I’ve been saving for months. YAY! YAY! YAY! YAY!

A Huge Payment to Me

Of course, everything is relative. For some people, an $8,600 expenditure is not a big deal – especially an expense related to one’s home. Despite the fact that I’ve owned my condo for a decade, I’ve never made a lump sum expenditure of over $2,000 on it. It wasn’t an intended rehab project, and I haven’t done any major renovations or upgrades on it. When I bought it, it was only 6 years “old” – an authentic loft in an old 19th century industrial building that was renovated and repurposed for residential use in 2000. It already had stainless steel appliances and hardwood floors. The most I’ve ever done at one time with it was getting it painted and getting a new HVAC unit. Fortunately, I didn’t even pay for the HVAC unit (a $5,500 value) because my boyfriend at the time owned a contracting company and he handled everything for me.

I was used to doing things the credit card shortcut way.
~ single girl

When you’re on a deft free journey, you’re watching pennies and not wanting to spend money towards things that may not move you further along the journey. So for me – right now – $8,600 is a lot of money. I saw this beast of an assessment as a significant hurdle. Between the assessment and issues I was having with my HVAC unit and water heater, I felt like my debt snowball was melting before I even got a chance to really get started.

Doing It Without A Shortcut

I was used to doing things the credit card shortcut way. Back in my Pre-Debt Free Journey (PDFJ) days, I would have simply resolved to pay for the assessment on a credit card, and make monthly payments on the card. The credit card would have been a means for me to handle what I needed to handle (which would be getting the assessment paid), but it would be without me having to even consider an alternative approach.

My old way of doing things would have got my HOA assessment paid and a new water heater installed without me worrying about whether or not I would save up enough money to pay what I owed prior to when the assessment was due or prior to the heater dying or flooding my home. But, it also would have cost me in significant interest charges over the long term.

Now that I’ve eliminated credit cards as an option, I’m forced to come up with alternatives that work.
~ single girl

Now that I’ve eliminated credit cards as an option, I’m forced to come up with alternatives that work. With this HOA assessment, it was saving towards it every month and and having the discipline to put the required amount of funds into a separate account. For 4 months, I saved at least $1,000 toward the assessment. The money went into an interest-bearing account. I included the amount to be set-aside in my monthly EveryDollar budget. And, I followed through in transferring the money from my main personal account to the Home Maintenance and Repairs Sinking Fund (the interest-bearing account). With the new water heater that I need, it’s been me completely delaying its replacement and praying that the thing doesn’t fall apart before I can address the issue.

Doing It The Smart Way

Though I’m so not delighted about the fact that I had to come out of pocket with the money, I’m grateful and happy that I was able to do it. I’m proud of the way that I went about getting this done.

As with all habits, self-discipline is a learned art, and to master this art requires two basic steps: First, you must consistently analyze the probable, long-term consequences of your actions. Second, you must be tenacious in acting in accordance with what you have determined to be in your long-term best interests.
~ ROBERT J. RINGER, MILLION DOLLAR HABITS

The payment hurt, though. Really hurt. The tough part was when I would think about what I could have done with that $8,600. I could have paid off the balance of my 2016 Federal taxes, and had some to spare to put toward the 2017 taxes. Clearly, I was trying to torture myself because that was a really futile mental exercise.

Short-term discomfort or pain is usually directly related to long-term gain. Patience. Consistency. Stick-to-it-ness. All of that matters. In order to become debt free, I’ll have to relinquish many of the short-term comforts and pleasures I’d like for the long-term goal of being out of debt. While I’ve gotten better at doing that over the last several months, I still have a way to go before long-term thinking becomes my instinctive default approach.

That said – there’s a lot of positive that has come out of this situation. The primary thing is that I proved to myself that I can save substantial amounts of money, consistently, over a period of months toward a goal. I haven’t done that since I was a tween and was working to save $60 for a Guess jean jacket that I wanted. Another great thing that comes out of this is that I found a way to have that amount of money ($1,500) in my budget. If I was able to reserve that money for an HOA assessment, I can have that amount of money available to add to my debt snowball. That’s huge!

What To Do With Budgeted, But Unspent, Funds?

February 7, 2020 by tanya

Before the beginning of each month, I prepare a budget using the Dave Ramsey’s EveryDollar app. Doing so is now a habit that I’m very proud to have. Ramsey points to the budget as the foundational element of financial control. He’s right. Having and using a budget is powerful. Very powerful.

I do a “zero-based budget” which means that I make sure that it balances completely. Every anticipated dollar of income is allocated toward an appropriate spending category. On paper, there are no extra, hanging funds that are not intended to be used for a particular purpose. There’s a budget category for everything from my pocket change to the additional funds that I’ll be contributing to my debt snowball that month.

Though my budget is zero-based, not every allocated dollar gets spent during the course of the month. I often underspend in discretionary categories like auto gas, drycleaning and pocket change. What I’ve been doing with these allocated, but unspent funds is . . . nothing. They’ve remained in my personal checking account. When I prepare the budget for the following month, I make it as if there isn’t any residual money available from the previous month or months.

The result is that about $1,500 has now accumulated in the account. Of course, I could take the excess for every month and apply it to the debt that I’m attacking in my debt snowball (right now it’s my 2016 tax bill) and start off every month fresh with no money in the account. But . . . I don’t want to do that.

Dave Ramsey would probably say that I should be using the excess funds every month toward my debt snowball. I’ll admit that having the money functions almost like another baby emergency fund. The point of having just one $1,000 baby emergency fund (under the Dave Ramsey Total Money Makeover Plan) is to make you feel a bit uneasy – so uneasy that you hustle as much as possible in order to pay off the debt as soon as possible. For someone who isn’t facing over $300,000 of debt (and the length of time it may take to pay it off) and who doesn’t work for themselves (like I do) that’s not as scary a proposition. For my self-employed, extreme debt-having self, the idea of some extra money in the account makes me feel good.

For my self-employed, extreme debt-having self, the idea of some extra money in the account makes me feel good.
~ Single Girl

Having come from a place of being so out of control with my money, I like having money in my account. I lllooooovvveeee no longer feeling out of control. Even though it’s “only” $1,500, having it and seeing it sends a message to my subconscious self that abundance is a part of my life. The presence of the money represents my ability to deliberately set intentions for my use of funds and to operate in accordance with a system. The $1,500 is not enough to make me feel comfortable by any means; it just looks and feels better than just the $1,000. Look, if it’s okay for someone with only $10,000 of debt to have a $1,000 baby emergency fund, it seems reasonable for someone with $300,000 of debt to have just a smidgen more than the $1,000 hanging around.

My plan is to use the accumulated funds to make large payments on my debt snowball, but I don’t intend to totally deplete the funds in doing so. When the amount gets to, say, $2,000, I’ll take $1,000 or $1,500 of it and pay it toward my debt snowball. Then I’ll let it replenish back to $2,000 and make another lump sum payment. I may change my mind later about how to handle these funds, but, for now, I want to do it this way.

What do you do with your budgeted, but unspent funds each month?

Do you only keep $1,000 in a baby emergency fund?

If not, what amount do you prefer to keep in your savings account?

2020 Goals for Single Girl

January 3, 2020 by tanya

New beginnings are meaningful to me. I love having the chance to reset and to put away the matters of the past with an eye toward the future. Making firm decisions and new commitments can be energizing and inspiring. That was then, we can say to ourselves. This is now. And though the dates we set around these decisions and commitments are pretty arbitrary, there’s something about a definite date that puts a metaphorical line in the sand. June 1, 19 blah-blah-blah was the day that I decided to stop smoking, one might say. Or, the day I turned 30, I made the decision to take control of my life and stop being self-destructive, another might say. Whatever it is, that first step – making the decision – turns on a switch and has the potential to send us in a different, better direction.

With this being the start of not only a new year, but a whole new decade, I’m really excited about the promises that the future holds. I’m looking forward to intentionally giving this decade of my life a different tone. I’m not on that “new year, new me . . . 20/20 clarity of vision” thing that folks are doing. I know that nothing changes until I do. I’m talking about real change – not just a declaration of the decision to change. I intend to make this year a really strong start. Ten years from now, I want to be able to look back and say that 2020 was the year that things really started to change for me. Quantum leap, amazing changes.

This year, I’m intentionally committing to less. I’m not doing my usual, which is to have 8-10 goals for the year. That hasn’t worked well in the past for me. I figure I better do something different if I want a different result.

My Word for the Year

That said, my word for the year is “Focus.” Focus. Focus. Focus. That’s a powerful word for me because I have a tendency to do a bunch of things, while failing to go as deeply into them (and being as successful in them) as I’d like. While I look forward to one day being a person who has multiple, reliable sources of income, I may have subscribed to that a bit too early in my entrepreneurial journey. I think I need to get a one or two things really, really right, then branch off into various other forms of income. I’ve come to terms with the fact that doing something really well takes time – and focus.

One of my favorite quotes from Warren Buffet is this: “The difference between successful people and really successful people is that really successful people say ‘no’ to almost everything.” This makes a lot of sense to me; I think it is just easier said than done. That would explain why this action applies to the “really successful people” – that world-class level of people who have accomplished more than others.

“The difference between successful people and really successful people is that really successful people say ‘no’ to almost everything.”
~ Warren Buffet, Gagillionaire American Investor and Money Guy

With “focused” being my modus operandi, below are my specific goals.

FINANCIAL GOALS

(1) Double revenues generated through business.

With this, I’m referring to top-line gross income, not the income on which I pay personal taxes.

(2) Reduce my total debt balance by $46,000.

This amount is double the amount by which I reduced my debt in 2019. In order to make this happen, significant changes will have to occur. This is definitely a stretch goal for me. I’m inspired by it because I will have to do things differently in 2020 in order to make it happen.

PERSONAL GOAL

My personal goal is to lose 18 pounds, through a habit of exercise (beyond playing tennis) and a sustainable, balanced diet. That would put me at my goal weight of 120 lbs. It takes significant work and sacrifice for me to get to 120 lbs, but I did it at points in 2019, 2018, 2017 and 2016. My aim now is to do it by creating a lifestyle that allows me to maintain it.

The balanced nature of the diet is important to me because I want to implement changes that are long-lasting. I realize now that my restricted diet wasn’t something that I would be interested in maintaining as a lifestyle. When I was faced with figuring out how to function within the boundaries of both my restricted diet and restricted budget, I started to reconsider why I was continuing to operate under such restrictions. I wasn’t enjoying food anymore. Figuring out what to eat was giving me angst.

I want to be healthy, look great and feel great. But I want to do it in a way that I can: (1) not have a tense relationship with food, (2) maintain a reasonable budget, and (3) maintain balance (i.e. enjoy food sometimes).

FUN STUFF

Here are 2 “fun” desires that I’m putting out into the universe for 2020 (but not considering an active goal per se):

Go on 2 out-of-state trips with a guy (doesn’t have to be the same guy) that I truly enjoy being with and with whom I have a great romantic relationship.

Have at least 2 spa experiences (either solo or with someone).

Be able to not do any client work the last 2 weeks of the year.

I plan to be rigid, intentional and diligent. Decisions will need to be filtered through the lens of . . . will this help me get closer to my goals?

Don’t new beginnings get you fired up?

What are your plans for 2020?

How many goals do you have? (More importantly, have you written them down? I’m sure you’ve heard that they likelihood of accomplishing your goals is significantly higher if you capture them in writing. So, do it. :-))

What will you do differently so that you can actually achieve these goals?

2019 Recap – What Went Down

December 31, 2019 by tanya

It wouldn’t be right to move into 2020 without a brief recap of what went down in 2019.

Debt-Free Decision

I decided to commit to getting debt free and taking the steps – the baby steps – toward accomplishing that. With the amount of debt that I have, it may be a long road, but I took the first step. I came to terms with the severity of my situation and decided to do something about it. With this decision, I took a position of control. As an example of how out of control things were, earlier in the year, I was so disorganized that I paid $957 in overdraft fees during the period of January through June. That’s insane – $957! But, I turned over a new leaf.

New Awareness

In addition to acknowledging my tsunami situation, I also became aware that I have an “operating system” (this is what my coach calls it) that is keeping me from earning and building wealth at the level at which I’d like. This means that I have some mindset/limiting beliefs issues that need to be addressed. Since mindset is everything when it comes to success in any endeavor, I will be focused intently on fixing this in 2020.

This means that I have some mindset/limiting beliefs issues that need to be addressed.
~ Single Girl

Romance of a Different Kind

In 2019, I dated in a way that I hadn’t before. Dating Mr. Nice For Now offered consistent companionship and fun dating, without the requirements that I would typically impose on myself if I had the title of “Girlfriend.” That suited me in 2019, but won’t suit me, moving forward.

Ate Some Stuff I Wanted to Eat

I’ve written about being on a very restricted diet. I wrote about how being on a restricted diet and a restricted budget were quite challenging. In late November, I started researching some different eating plans and started experimenting in early December. By the middle of December, I decided that I was going to eat the stuff that I had cut out of my diet for the prior 3 years. I hadn’t had chicken, dairy or regular (i.e. non-gluten-free) bread in over 3 years. I was over it! I’ll write more about this in a later post, but, suffice it to say, I went HAM on the food and had a great time doing it.

The Budgeting Habit

For years, budgeting has been that thing that I wanted to do (and knew I should do), but didn’t actually end up doing consistently. Dave Ramsey says that it takes about 3 months to get the swing of things with budgeting. I’ve now been doing it consistently (albeit with errors and oversights) for 6 months. I can now say that I’ve developed the budgeting habit. Taking the time to prepare a budget and allocate how funds will be spent throughout the month is such a helpful process – one that I’ve come to really value and consider a critical part of my financial life.

Debt Payoff

Despite not being intentional or focused during the first half of the year, I reduced my total debt by $22,959 in 2019. If I include the Federal and state taxes I owed for 2018 (which didn’t make my debt snowball because I paid them off the month after they were due) and the loan I got from my mom for our family trip, I reduced my debt by a total of $28,610.

Despite not being intentional or focused during the first half of the year, I reduced my total debt by $22,959 in 2019.
~ Single Girl

What makes me most proud about last year is that it is the year in which I started along the road of what I know will be a hugely transformational journey. A life-altering journey. That’s not to sound dramatic; I really believe it to be true.

Goodbye, 2019.

Water Heater Hack

November 20, 2019 by tanya

My hot water heater started acting up recently. I like to luxuriate in the shower so when I realized that the water was getting cold much too quickly, I was irritated that I had yet another home maintenance issue to address.

Audio version of this post, read by the author.

A couple of weeks ago, when a fuze on my HVAC system blew, I asked the guy who fixed that system to take a look at my hot water heater while he was up there handling the HVAC. He told me that the water heater is “about to go” and that I need to plan to replace it. The cost would be about $400 to $500 for the water heater and about $200 for the labor.

The old me would have decided pretty promptly to go ahead and get the thing replaced. If I didn’t have the cash, I would have just put the water heater and associated labor on a credit card.

The new me, however, makes decisions more intentionally and thoughtfully. I knew right away that, since I hadn’t budgeted $700 in November to fix a hot water heater, and it wasn’t an emergency (after all, the water was still getting hot, just not as hot or for as long as I like), I wouldn’t be spending the money right away for the water heater. I’m working on my credit sobriety, so the use of a credit card isn’t an option.

(Don’t get me wrong – I’ve taken cold showers before. When I studied abroad in west Africa, a hot shower wasn’t even an option because there was no hot water in the home of my first homestay family. I can tolerate a cold shower; I just really, really don’t want to have to take one.)

Last weekend, because the water in the shower was getting cold so quickly, I decided to wash my hair in the kitchen sink. Then, after I washed my hair, I did something in the bathroom (can’t remember what it was) that caused me to run the water in that sink as well. I was concerned that my use of the water in the kitchen and in the bathroom might infringe upon my available hot water for my shower.

To my surprise, the exact opposite occurred. I ended up having plenty of water to luxuriate in the shower. I even ended my shower when I felt like it, with the water still being hot. I’m assuming that this had something to do with me having already had the water in the house flowing from the other faucets. I assure you, prior to this weekend, the cold water was truly an issue for me.

I’m not sure why this is happening, but I’m delighted. I had a guy look at my dishwasher about a year ago (doesn’t it seem like my whole house is falling apart?) and he noted that my dishwasher water doesn’t get hot unless I first run the water in the sink next to it. When I did a quick Google search, I learned from an article by thekitchn.com that “Especially in the winter, the pipes in our homes can get cold even if the water heater is working. Running hot water will clear out any cold water from the pipes and warm them up, which helps any appliance in [the] home get hot water faster.” Maybe that’s what’s going on with the water heater/water in the shower.

Now, whenever I want to take a shower, I first turn on the kitchen and bathroom sink faucets and let them run for awhile. Then, I have more than enough hot water.

If I can delay the replacement of the water heater, I can focus on pulling together the $8,000.
~ Single Girl

The reason this discovery is such a big deal for me is because having the hot water reduces the level of urgency for me with regard to the replacement of the water heater. Yes, I know I need to get it replaced and am working that into my plans. I’m also in the face of an $8,000 HOA assessment. I need to come up with that money by February. If I can delay the replacement of the water heater, I can focus on pulling together the $8,000.

What makes me happy is that I’m being thoughtful in how I solve these unexpected money problems instead of engaging in knee-jerk spending. This is different for me. Looks like the girl is turning over a new leaf.