Posts Tagged ‘passive income’

Debt Consolidation complete for now!

January 30, 2008

Ok, I’m card hopping – not the best routine, but better than getting killed with high interest rates.  Now I the most I’m paying is 4.99% at Bofa for about 11K of debt.  The rest of my $15K debt is at zero percent.  This means that I’m paying about $525/year in interest charges down from $2100 just a few months back.  Also, I increased my credit limit on my bofa card to 16K.

FALLING BACK INTO THE DEBT PATTERN

Since my rental check didn’t come in, I have not been able to pay the bills so I had to put it on my credit card.  This is the same pattern that happens so quickly with falling into debt.  I have not at all been able to spend time focusing on film – especially my own projects which I direct and/or produce.  I have people pissed off at me, but I’m trying to make them understand that working on a non-paid project is hard to justify when I can’t pay my bills.

TO BLOG OR NOT TO BLOG? 

A few weeks back I was studying about blogging intensely, but realized that if I put that same effort to learning about real estate my wealth will increase even more.  So I have been focused on that. I’m not going to discontinue blogging, but it will be much further back on the priority list.  I do see a passive income stream there, but a slower one.  I have one site already set up with google adsense and will maintain it.  However, I don’t think I will start anything soon.

I’m also looking to get a job with an airline or some other franchise or both.  This way,  I can visit my parents more frequently.

MY PRIORITIES

My priorities are in a state of flux.  Previously, it was in this order:

1. Film/Acting
2. Family
3. Travel

Then last month it was:
1. Family
2. Finance
3. Film
4. Travel

Now since I’ve seen my  parents recently it’s:
1. Finance
2. Family
3. Film
4. Travel

I have a pretty clear vision now of where I’m going.  A few variables are getting a job to pay the bills until the passive income kicks into a higher gear (at least $2K/mo).

To Blog or Not to Blog?

January 2, 2008

I spent almost all of yesterday 6+ hours learning about blogging as well as this morning for a couple of hours.  I’m becoming slightly disheartened by the amount of time I’m spending and the potential return. I’m expecting to make $1K/mo.  I’m not looking to do this full time.  However, after watching Donald Trump on a show and seeing how if I were to put this same effort into real estate then, it might pay off much bigger.  Which is still a plan, but I have not taken any steps yet.

FOCUSING ON ABES OVER SUSANS
I keep thinking about what Robert Kiyosaki says in Rich Dad Poor Dad about how much time people spend clipping coupons to save fifty cents, but they won’t put that same amount of time into learning about finances which would bring them much bigger returns.  However, the plus side of this blog thing is that 1) I write in my journal anyway, which I’ve been doing for 5+ years, 2) I just need to set up a system (the blog site, adsense) and then it becomes just a maintainence issue of writing and analyzing and it is passive income if set properly.  I’m not saying it’s going to be easy, but that’s why I’m spending so much time right now learning about what not to do, so I don’t waste 6mos and end up making enough to buy a pencil every week via google adsense.

I have even shied away from the financial stuff and have not really looked at the balance til this morning.

Looking for lucky zeroes! (APR, that is)

December 28, 2007

This morning (actually Thu morning), I got up with a vengence to transfer my high-interest card to 0% for 6 mos. I had two “preapproved” offers. Once I filled out the website form, I got a confirmation page saying that they’ll let me know in 30 days! 30 Days?!?!?! I have a bill of $390 due tomorrow! I thought it was going to be paid off. So, I’m not sure what to do. I think I should put the minimum onto another card – which I have thankfully at 0% for 6mos.

I told my wife to find out her balances and APRs and told her to call and tell them that she got offers. She got 3 of her interest rates down from 22% to 17%. At first, she was kinda sheepish when calling them, I told her that she’s doing them a favor by keeping the account with them. Just say that you have better offers. Instantly, the customer service operators switched it down.

She’s really good about doing what I recommend. However, I need to listen to myself more. She has been doing the 10% savings ever since I told her to last year and has now saved up about $2.5K. Me on the other hand saw my 2K depleated mysteriously. I live like a miser (which I’m getting sick of). I have holes in the crotch of all my pants – actually only have 3 pairs total.

So tomorrow, I’m going to try and build out a site and see if I can make google adsense work for me based on this ‘get rich quick scheme’ (which I totally don’t buy into). I figure if I make a fraction of what she claims to make, it’s still passive income. However, I’m also trying to make some money before the end of the month to pay rent. Not sure how I do it as I have $300 in my account and need another $450 for rent. My tenent from my condo moved out so, that’s going to delay any funds coming in for a few weeks, possibly. So, I’m preparing for the worst. Been on craigslist and actorsaccess, but paid gigs are few this time of year.

Also, I posted this response to Greengirl’ who’s an actor unlike the others on the site who are pulling in 100K or so on mymoneyblog.com when I was trying to figure out if I should pay down my credit cards or to keep funding my Roth-IRA:

Greengirl:
I’ve been doing the actingfilmmaking thing for about 7 years now. I didn’t care at all about my finances til last year when I got married (to an actress as well). We’re both determined to NOT get a ‘real job’ and keep at our dreams.

FICO FICO FICO!
The main thing I learned in this past year was to concentrate on getting my FICO score up to get my debt down. I managed to go from a 630 to a 725 in one year. Now, I have all these 0% credit card offers to which I’m transferring my high interest rates – some as high as 30%.

PASSIVE INCOME IS ONE OF THE SECRETS OF LIFE
Also you gotta keep your eye on the ‘passive income’ like your website (read Rich Dad Poor Dad if you haven’t already).
Last year I worked on over 35 passion projects (indies, student films, etc) which won many awards at festivals, but didn’t pay a dime – actually I lost money if you count the gas involved. This year I was determined to only get paid acting gigs, but didn’t enjoy them as much even though I made about $3.4K in acting – which I thought would’ve been impossible a year ago. FYI: The average SAG actor in LA makes about $6K/yr through acting. So having passive income from another source will let me choose passion over trying to get a gig just because it pays, but which I can’t stand.

I’ve been living on $1200/mo for everything. I’m usually in the hole by a 100 or 200, so I totally understand what you mean about Roth and 401K as not even being an option. So at the end of almost every month, I’m kinda scrambling for background work or something to the like. On paper, I look like crap, but in reality, I’m more stable than some guy who’s been at a job for 30 years is about to get laid off.

SAVING 10%
I got my savings account up to about $2K by just saving 10% of everything I brought in even if it was a $10 gas money from a student film. However, it went away b/c of medical bills (no health insurance previously, but got it now). I fell off the horse, but I’m determined to get back on.

The main reason I read this whole thing to the end was the debate b/w Roth funding or debt payment. I think I’d go towards clearing the debt til I become a financial chess-master like Jonathan. I’d rather write a screenplay than jump my credit cards around – even though I have autopayment now for the credit cards, I still miss something now and then and can lose the low APR. If I get rid of it and don’t accrue more (I only put $150 this year on credit. Everything else was paid in cash (aka debit card).

After 7 years, I’m kinda getting tired of the starving artist thing, but am determined to be financially smarter yet not get a day-job. I’ve been getting into real estate as well (flexible enough to make every audition). The main reason is that my parents are getting older and I want to see them and not have lame excuses like I don’t have enough money to fly out there.

Good luck, or um , break a leg. Keep me posted.