So, I had a few ideas on how to accumulate $10,000 in a year to pay off my consumer debt. 4 to be exact, but they need some fleshing out. Some REAL (or real enough numbers) tagged to them. So, I developed a rough sketch as follows. It didn’t need to be perfect down to the decimal, but it needed to be something to give me an idea
I have a merit raise, based on performance review, and a possible title promotion (read: more hourly income) to take effect by September. While this may only bump me from $17.20/hour to somewhere closer to $19.00/hour (I’m personally hoping for $20.00), every extra bit helps. I have also been approved to work a full 40 hours/week, instead of the allotted 37.5 hours/week associated with my job description. This is an extra 2.5 hours of time and a half (currently $25.80).
Roughly considering taxes (estimated math, not exact), this gets me an extra $150-$180 per month or $1800-$2160 per year.
I have two pieces of jewelry to sell: an old engagement ring (estimating value at $450 without appraisal) and an old promise ring (estimating value at $100 without appraisal). Other odds and ends (books, DVDs, electronics, clothes) should total to another $150-$200.
This gives me a rough extra $700-$750 (which would pay off a single credit card)!
I have editing/writing/proof reading/design skills that I can market for extra, supplemental income from home. More on this later in this post.
1.3 miles from my front door is a FREE shuttle that travels to and from work, dropping me off right infront of my building. There is no excuse to not take it. My city also has a very workable public transit system. There is no excuse to not take it.
The entire idea (and a scary one at that) is to eliminate the need of a car for 2 reasons.
1. Save Financially (duh):
Right now, I spend anywhere from $50-$100 per month in gas and $70-$80 per month on insurance. My city sticker to park on the street costs $100 per year and renewing your license plate stickers costs $101 per year. Oil changes range from $40-$50 every 3 months. I do not have a car payment as the car was a gift at graduation.
At best, I spend $2,000 per year on my car. That isn’t including any repairs, maintenance, tires, or extra road trips, parking, or the inevitable city-living parking tickets (“Wait, does that sign mean 12 noon or 12 midnight?”).
2. Be mindful of your carbon footprint and seek intentional, alternative transportation:
I can take the bus/train/carpool/or ask to borrow someone’s car.
The next natural question that popped into my head was:
What does successful independence from a personal car look like? What would I have to do to prove I could be independent of a vehicle in my current situation.
I decided to define it as:
- Travel to/from work for free 90% of the time.
There are roughly 250 working days per year, with consideration of holidays. 90% of that is 225 days of free commuting with 25 days of admitting the use of a personal car (weather, emergencies, etc…).
- Trips to see my family or personal travel do not need to include using a personal vehicle. I can train home, or I can rent for personal travel.
But then I came to an impasse. What about emergencies? What if there was a family emergency I needed to go home for and I couldn’t rely on Amtrak or I didn’t have the funds to rent a car? This lead me to ask myself, “Do I keep a car for emergencies only?” I allowed myself to sideline this question for now and focus on immediate action: taking free and public transit. I also researched and KBB quoted my car at $7,200 selling independently.
OK! That is a lot of numbers and planning! Including the option to sell my car, I’m resting at a nice $11,700 potential. That’s $1,700 over my goal! WHOA!
But… We’re not done yet. What if I don’t sell my car? Or, what if I keep it for emergencies only? At best, then, I’d be saving $600 per year on gas and that brings my total potential down to $3,100 and that simply isn’t good enough.
How much could I potentially earn with a supplemental income? I’m still missing $6,900 towards my goal. I would need to make an extra $575 per month to make up that difference. This is a red flag, but not necessarily impossible with proper planning and implementation.
Giving myself permission to consider selling my car IF I prove to myself, based on the above measurable goals, that I can be successfully independent of a car? A scary, but firm, “Yes!”
Giving myself permission to seek ways to make an extra $575 per month? An even scarier and quieter, “Yes.”