What does your financial situation look like? Paint me a picture.

Right now, at this very moment, I'm in a lot of credit card debt. I'm at a point in my life that I'm relying on credit card debt and am comfortable with it. However, if I would paint a picture of my current financial situation - I'm walking on a 2x2 across a gaping hole the size of our own apartment. I'm able to cross it using the 2x2 but this excuse of a plank is held by people from the company that is providing my paycheck. The hole is an accumulation of life events that are yet to happen that may end up to my demise.

That is not the most beautiful picture or even depiction of my financial situation - it may not be that worse. But with how I am right now, and how I view and deal with my finances - I'm pretty sure the description above is pretty close.

So, what do I have to do?

I can think of three things I should prioritize at the moment.

1. Budget - take a close look at my finances. I need to get a hold of my finances first - how much I really make, what I spend my money on, and look at the actions I can take right where I am in my financial journey. I obviously need to tighten my belt and cut back on a lot of stuff right now. These are my only options (aside from increasing my income - but that's a different post) due to my previous financial actions before this point in time.

2. Eliminate Debt - this one will take some time but is possible. Like what I mentioned above, I'm under a lot of credit card debt and like a fool, continue to dig a bigger and deeper hole of debt for myself. I need to turn my gears first and get out of the hole. Instead of digging a deeper hole, I should start filling it up and getting rid of it. I can't expect myself to be able to build a financial fortress if I have a gaping hole under it that can make it very unstable.

3. Invest - I've started investing in the Philippines and due to my current status here in the US - I can't do that here while I'm working in this country. I can always send what money I can spare, after cutting back on my expenses  and getting a hang of my Budget.

Here is a quick rundown of what I need to do.

3 things. Budget. Eliminate Debt. Invest.

I'm going back to basics. I will learn from so many resources online and in books then apply and do what has been working for me. I'm  going to follow through with these actions and not just stop and quit because it's hard. In times of fatigue, I will review and re-assess my actions so far - be it monthly, weekly or even daily. The best way to crystallize this knowledge and habits is to share both successes and failures - extend my experience to others but always emphasize that what worked for me may not be the same case for other peopl. I going to show how flexible I can be and at the same time build consistency with new habits.

Tame your Ts,

Tony

What is my Crossover Point?

If you are a gentleman in his late 20s, just graduated with a Master's Degree and just trying to ease into the employed world - then you wouldn't be too familiar with your Crossover Point. At this moment, the concept has peaked my curiosity.

The Crossover Point is the point in time wherein your income from your investments match and even pass your expenses.

So essentially, for me, that would mean that my money is working for me - instead of me working for money. Which sounds so good - but the path towards achieving my Crossover Point will definitely be challenging as well as fun (I'll make sure of it).

Right now, my Expenses includes these important things;

Bills (non-negotiable)
Rent
Rent insurance
Internet
Gas/ Electricity
Water/ Sewage
Car
Car insurance
Car service
Phone/ Data
Gym

Flexible (expenses that vary from month to month)
Self-pay
Debt Management
Food
Gas
Clothes
Fun
Professional materials

I will quantify my progress towards my Crossover Point using percentage. Which means at the moment, I am at 0% because I have no investments or passive income that matches my expenses.

Passive income - income that you earn even if you are not working. This may be income from an online store that you've established and continue to work on. Those products can be video trainings, templates, school materials, online training programs and even as fun as planner stickers. It can also be income from profit after renting an apartment, a room in your house or a plot of land. There are a lot of ways to earn passive income.

Anyway, going back to the Crossover Point - it clearly depends on every individual but what is fascinating about it is that the concept is quantified, measurable. This makes the Crossover Point an achievable destination not to a limited few but essentially to anybody willing to do the necessary steps towards their own respective Crossover Point.

A person pursuing his or her Crossover Point may be on the same boat as me, or it can be a single parent with two kids or a younger generation which happen to stumble upon a financial blog post by accident. Time is essentially the biggest factor - and since my 25 minutes are almost up to finish this blog - until my update on this blog.


Tame your Ts,

Tony