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Changes to Our Income

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I have gone back and forth as to what to do from the income from the sale of this site. It could go towards our credit card debt…we could use it as a partial down payment for some land for the tiny home of our dreams…we could also go out and buy a sweet LCD TV (that one is always really tempting).

There’s another thing we could do. We could use the funds to invest in our future. That’s what we decided to do.

As you know, we have a budding business that is bringing in a small amount of income, but it is no where near full potential. We aren’t quite ready yet for full blown business, but we are close. Both my husband and I believe in this business. My husband has been doing a lot of the work right now with tasks that pertain to his specialty and he is almost done. That leaves the tasks that pertain to my specialty. I am so very far behind. I’ve been picking at it when I can, but there are not enough hours in a day. Without the completion of my tasks, we can’t go full blown. Once we go full blown, I’ll need to commit about 10 hours/week and my husband will need to commit about 30 hours (about 10 of his hours either of us could do).

I started seeing the funds from the sale as a way to help us get that business going. I would cut my hours at work and my husband would get a part-time job. So we both would be working part-time jobs and working the rest on our business. The sale funds would help fill the gap to keep us afloat until the business kicked up full steam.

So that is what we are doing. I’ve already gave notice about my hours and my husband already has a job lead. I tend to believe that things happen for a reason. I was struggling to try to keep everything together (as some of you noticed with my lack of daily posts and delay in email responses). I like to think that I can do it all, but I can’t. So with everything coming together as it has…this is our chance!

There will be no spending spree and I’ll have to just drool but don’t buy when it comes to those LCD TVs. The sale money is going to sit in a savings account and earn interest while we pull what we need each month to bring us to our normal income level with our new schedules. That means our business is going to be a big driving factor behind paying off the rest of our debt. If the business doesn’t succeed, we’ll be in debt for a while longer. It is a risk, but one that has been lessened thanks to the sale funds and because I am only going part-time at work (meaning chances are good that I can go back to full-time if needed).

We want this, though. There was no lack of passion, only the lack of time and resources. We can have that now, at least for a few months, so we are going for it. You can’t succeed if you don’t try. We want to succeed…we want this. I believe it’s time to make it happen.


9 Comments

  • Reply Sherri |

    I’m glad that the sale has made this possible for you! There are many people that I know that would like to start a business but the risk is too high for them (would have to quit their full-time job, don’t have a savings pad, etc). It seems that given your scenario you have lessened the risk and get to try something you both are passionate about. I hope it works out well! =D

  • Reply Frugal Dad |

    I like the idea of investing in your business, but I would hate to see that debt hang around for too long. I hope you still have plans to knock out the remaining $8k in the near future. You’ve come too far not to see the finish line!

  • Reply Tricia |

    We still have the goal date of May 2009 looming, so it is putting a fire under us to get the business generating significant monthly income ASAP.

    You are right – we don’t want to miss the finish line πŸ™‚

  • Reply Anonymous Reader |

    Hi Tricia:

    Wouldn’t it be possible for you to find 10 hours a week if you were extremely disciplined and not give up your hours at the regular job? It’s great to believe in the business, but if I were in your shoes, I would not give up the steady 40 hour paycheck until the business was consistently replacing the income I was losing. I certainly wouldn’t give it up until your husband had the part-time job and you knew it was going to last. It’s a slower, more conservative approach, but it’s a lot less risky, especially in this uncertain economic environment.

    I think I might save some of the money from the blog sale for working capital for the business, pay down some of the debt, and put the rest in the family savings/emergency fund. If your husband gets a part-time job, you can supplement all three categories with his earnings.

    If you make the short term sacrifice, you will be in a stronger position faster. You still have a lot of student loan debt to pay off after the credit cards. If the business grows as you expect it to, you will be able to pay those loans off and move on. If business conditions weaken or your projections are off, you will still be able to meet your debt repayment obligations and adjust your plan accordingly.

  • Reply Sal |

    Tricia,

    What type of business is it? Maybe I missed something, but I am always excited to hear about entrepreneuers and their ventures.

    I have to agree with Frugal Dad on this one though. How awesome would it be to have the debt gone and then start the new business? I know you guys are working toward your finish line, and I applaud you for that.

  • Reply Tricia |

    Anonymous – the 10 hours a week is after the business is full steam ahead. The problem right now is getting it to that point and me having the time to do my part.

    There were a lot of things that went into this decision. The business was a big one that affected our finances. But, there are family things going on as well as my health. Short term sacrifice (longer than the sacrifice we’ve already been in for a while now) could have great financial gain, but for other things it could have negative long term benefits. Cryptic, I know, but there is more going on and I don’t like blogging about family in-depth.

    It’s all about finding that life-health-money-work balance.

    Sal – I’ve chosen to keep the specific info about the business private. I’ll mention income from it, and that’s about it. At least that’s how I feel about it right now. I go back and forth sometimes in my head about it.

  • Reply Dave |

    Tricia,

    Based on the little I know from reading your blog, I believe you have seriously undersold yourself. If you can’t pay off your debt with the income from the sale of your blog (and then some), you have sold it for too little. I think the person who bought it from you is ripping you off. I hate to be so blunt, but you need to get your bearings straight here. The value of this blog is not based on the amount of income it currently brings in, but rather on the amount of income it could reasonably expect to bring in if all avenues of revenue generation were exploited.

    I don’t know what your readership is, but I imagine it is quite high. You cannot have sold it for under $10k. The blog (and your writing ability / compelling narrative) is worth WAY more than that.

    Please do yourself a favor and see if there’s a way you can get out of this deal.

    Good luck!

  • Reply Tricia |

    Hi Dave,

    First of all, thank you for the compliment on my writing. A lot of the value in the blog is with the blogger and when I leave, there could be loss of readership. As an interesting note, I retain all copyright to what I wrote here. That was valuable to me and of course finding good buyers was valuable as well. I could have auctioned off the site and made a lot more than I did. But who knows what would have happened to the site.

    Based on the numbers you gave, I think we’re okay πŸ™‚

So, what do you think ?