September 4, 2008, 6:00 am

I Failed… For Now

by: The Financial Blogger    Category: Project $1500
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About a year ago, I started to post about my $1,500 project. The goal was pretty simple: increase my income and decrease my expenses so I can generate a sufficient cash flow to allow my wife to stay home. I have given myself a year to fully compensate for her income. 12 months was the time left to her maternity leave. We now have a 3 years old young boy and a 1 year old little fairy. Unfortunately, they will have to go to the daycare since I failed in creating $1,500 a month.

What was done

I tried a lot of things to save money first. A dollar saved, is 2 dollars made. Since I am calculating the $1,500 in net income, saving money was quite productive.

I first look at my financial situation. By restructuring our debts, I was able to save a couple hundred bucks. We basically consolidate what was left of our car loan into our mortgage. While decreasing the payments, it was surely increasing the amount of interest to be paid overtime. Still, having my wife with my children at home is priceless so it’s not a thousand dollar in interest that scared me.

Then, I looked at my insurance. I was able to save by consolidating my insurance (car and home) at the same place. I got a 2 year contract and increase the amount I have to pay in case of a declaration.

I also resisted to buying another car. By having one car, we can save a lot of money. We also made a few changes in the house so we can drop our energy bill by about $15.

On the income side, I changed job back in February. While this was giving me a very small raise for now, the bonus perspective over a few years is great. Therefore, this switch should bring more money on the table over the long run.

I also created an alternative source of income throughout a web site company. I will start receiving about $400 in dividend every month pretty soon.

What didn’t help

All my effort to increase my income over the past years also got a bad side effect. In fact, my government children allocations were decreased by about $200 a month. While having two children were increasing my overall budget, the government was giving less since “I am making enough” on my own.

The grocery bill keeps increasing since the price of oil is kicking us in the teeth day after day. We had to increase our monthly budget by about another $100. There is not much I can do on grocery since we are buying healthy stuff most of the time. I can’t cut on good food.

The Final Result

After all my calculation an effort, I was able to generate a net income of $700 a month. It is quite a deception and it was quite hard to admit to my wife. It is never fun to fail. While this is definitely not enough to achieve my goal (I’m only at 50%), it is still more money in our pocket in the meantime.

I will continue to work on my side projects and look for other ways to save money. Therefore, I have no other choice but to give myself another year to get to my ultimate goal: generating $1,500 a month.

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Comments

The only way to fail, is to quit. Something we do in our office for these kinds of goals. Double the goal and half the time.

Besides, you are still up $700/mo. I would say use that to start paying down the house until you get the $1,500 extra income. I bet you already do that though.

by: The Financial Blogger | September 4th, 2008 (6:21 pm)

Richard,
this is exactly what we are doing right now 😀
it’s a great thing to have a heloc in place for this kind of flexibility

You may not have succeeded in your quest, but $700 is an impressive increase nonetheless. Congrats on that!

$700 is $700 and I’m sure you’ll make $1500 eventually. Well done!

[…] Failure can be short-term […]

You rock. What an upfront post. And I totally agree with the sentiments in the comments above: Well done, sir, on increasing your income by as much as you did! I think that’s an amazing accomplishment, and of course in time, with that continued dedication, you’ll meet and exceed your $1500. High virtual five to you.

You have certainly not failed. That’s for sure. Maybe the time frame was underestimated.
You have focus, have clearly defined your goal and have taken concrete steps towards getting there. THis doesn’t look anything like failure to me.

In fact I think you inspire!

Cheers

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