My Big Hairy Goal for 2009…

Improve my net worth by 200K

Money Goals

• Max out $12,000 in payback to Mother
• Pay off IRS Debt ($30,000)
• Pay off car ($10,500)
• Settle old business debts (86,000)
• Save $70,000 for house down payment (20% of 350,000)
• Buyout old investors in my corp ($63,000)
• Large emergency fund ($20,000)
• Hire part-time employee to full-time ($55,000/yr)

Personal Goals

• Get Private Pilot’s License
• Develop long term romantic relationship
• Bench Press 225 (1 rep)
• Take (1) 7 day vacation somewhere exotic and relaxing
• Take (5) 3 day mini-frugal getaways

I’m feeling ambitious right now. The last few months of 2008 went well, and I don’t see any reason I can’t continue that success into this year.

I have other personal goals as well not listed, but those are just for me.

What’s your big hairy goal for 2009?

So, now that I have a girlfriend, I figure I should share the love, right?

Anyway, eHarmony has a free communication weekend that started yesterday and goes until the 4th.

New year, new love maybe? My Dad met his wife online, so I won’t be a hater and say something lame about online dating. The reality is that in today’s world, it’s not a bad way to meet someone.

Get started here.

Balance sheet as of Jan 1, 2008.

My blog timeline. Or these past 3 years in 17 posts…

17′ish Posts For 3 Crazy Years

1. losing money like water, pre-blog
2. realize out of money, hit rock bottom, tell parents
3. Start writing at debtkid.com
4. Home in foreclosure, no hot water, taking baths with a pot
5. Living in my office, getting a bit crazy
6. Get small apartment, working Friday nights
7. Meet new girl, went on one date
8. Filed for bankruptcy
9. Bankruptcy discharged, a few months after fun 341 meeting
10. $3000 payment debacle
11. Feeling down about lots of things again…
12. Start seeing counselor again
13. Decide the last thing I need is a girl
14. New job at lending club
15. Financial situation stabilizing
16. Girlfriend : )
17. Still in a big hole…

I had fun putting this together. One thing with the chart I noticed is that I typically have had bad summers. I would say the past three I’ve been down pretty low. I’m hoping to avoid that this year.

My blog here is almost 2 years old. Craziness. I originally just starting writing to process my own thoughts and keep myself accountable. While those two goals are still the main focus, I’ve met a lot of great people because of this site, and it has opened many doors for me.

So, a kind of big thing has happened to me in the past few weeks…

I’ve been dating someone!

It’s been amazing so far. I won’t go into too many details here…this isn’t a relationship blog. But I am really excited about it, and so far I think it’s going well.

But, I’ve established a mental “dating fund” in my mind. But how big (or small) should I make the fund?

My budget on the personal side is solid right now. Even after sending $800 a month to my Mom, I can still save around $500 a month if I want. (remember, besides my mom, all my debt now is just on the business side)

A few things to keep in mind:

• She makes significantly less than I do
• We are both pretty frugal people, don’t need $ to have a good time
• We enjoy food (but made dinner together last night at home)
• I like paying for her

So, what should my monthly dating budget be? $50? $100? $200?

With my LendingClub.com account : )

If you haven’t become a Lending Club member yet, sign up now and get all setup for 2009!

Get started: HERE

Last Christmas, I was still completely broke and every penny spent was full of guilt. Plus the shame of seeing some of my family and not being sure if they knew of my mistakes or not.

The Christmas before was spent checking my phone for forex and stock quotes while I traded the last few thousand dollars I had to my name.

The Christmas before that I think I lost like 30K over the week I was home.

In other words, my last few Christmas’ have completely sucked.

Why did they suck?

Well, because it was all about me. I was a selfish, self-absorbed, loser.

I’m being harsh, but it was true for the last few years.

This Christmas is my first “non-selfish” Christmas in a long time.

I spent money on gifts, and I don’t feel guilty about it. I’ve had a good last few months, and it was with my personal money (not business where I still have a ton of issues).

For the first time in a very long time….I’m not thinking about myself this Christmas. I’m enjoying time with my family, and laughing with my Mom as I type this in her home.

It’s been my best Christmas in a very long time.

As the end of the year approaches quickly, tax season is coming and faster. Here are some simple tips for preparing for taxes:

1. Get up to date on all accounting.  If you’re behind on your books now is the time to get them up to speed.  If you don’t have a personal accountant and you’re a bit behind, you may want to hire one to take care of the detailed work for you.  This will save you a ton of time so you can focus on other important aspects of your business.
2. Hold off on getting rid of assets.  If there is anything you’re looking to dispose of, such as old equipment, you will want to wait till the start of the New Year.  If you don’t your Capital Cost Allowance Claim will be reduced for the year.  Consider being a pack rat for the month of December and once January comes around – dump it all!
3. Encourage clients to hold payments till January.  By deferring your customers to pay in January, you will avoid raising your income bracket.  All monies deferred to January will not be taxed until April of 2009.  A ton of money can be saved in taxes by simply differing payments.  You can also push charitable donations that were made at the beginning of 2008 back to 2007 to get higher deductions (you’ll need a receipt with a 2007 date).
4. Spend money now.  This is the best time of year to buy those large items you’ve been holding off on.  As you know whatever you purchase will be logged as an expense which, in the end will be a deduction.  Take an inventory of what you have and what you could use for the next business year.  If you need supplies, equipment, travel plans and even bills due next year.  By spending more, you’ll save more!
5. Take an inventory of losses.  Everything you purchased but cannot use may be categorized as a loss.  Damaged merchandise, items that you can’t use, a failed marketing expense can all be classified as “loss.”  Take advantage of every attempt you made in the last year that flopped.
6. Make a charitable donation.  If you need to decrease your income, then give some money away.  You can donate to a number of charities or grant money to a local college student.  Whichever way you want to do it, you’ll save money on your bottom line.
7. Add funds to your retirement plan.  Another great way to reduce your income is to place money in your retirement plan (401k, IRA, SEP and KEOGH).  This is a simple way to move your money around and help balance your budget for the end of the year taxes.

I love my mother. She took care of me for more than 18 years and was more concerned about me than herself when I told her that I had wiped out her brokerage account with my day trading addiction.

She’s pretty much 99% of the reason It’s past midnite and I’m still up working.

Sure, I have a lot of debt to payoff. But it’s taking care of my mom that really motivates me. I lost my home. I had to declare bankruptcy at age 24. I’ve made a lot of mistakes. But the fact that I involved her money is what continues to haunt me.

But for not it’s mostly a good haunt. It wasn’t always. I still feel a ton of guilt, but it isn’t as bad as it used to be. Yeah, I screwed up big time. But I’ve been working my butt off, and I’m doing everything I can to get myself to a place to pay her back as quickly as possible.

The other part that of this whole mess of losing 150K of my Mom’s money is that my mother is sick. I don’t write about this much, because this site here is about my journey, not hers. But her illness is why I was put in charge of the account in the first place (at age 19). She has mental health issues. Her insurance is a ridiculous $500 a month. She works part time (which is good for her) just to pay her health insurance.

Anyway, my Mom is constantly on my mind through this whole mess for all those reasons listed above. I’ve been sending $800 a month lately home, but I want to get that number over a thousand a month in 2009.

And just in case you’re reading (you shouldn’t be! I asked you not too!):

I love you mom.

I love snow.

I know it’s a pain for alot of people, but I absolutely love it. It just makes everything so serene, so quiet, so beautiful.

Here’s Pike St. in Seattle. Closed. (photo from flickr by moohaha)

I’ve lived in Seattle for about 5 winters now, and I think we’ve had real snow (a few inches or more vs. just a dusting) for 3 of those. Cool beans.

It’s been a really good week. I’m excited for Christmas. I’ll be heading down to Portland for about a week. I’ll still have to work, but I can work from down there. My family understands.

What else. Oh yeah, so my really close friend (the only friend who knows about my whole financial mess) and I have been hanging out again quite a bit. So, that has been nice to see her more.