Wednesday, August 26, 2009

Planning for the Future

I debated about whether to post this here or on my personal blog but decided that while it's not 100% related to running a business that it might be of interest to my readers here.

In case you didn't know this, I'm 27 years old and right now I still live with my parents because Noadi's Art is my main source of income. My parents have been incredibly supportive of me and helping me get the business going. A big part of that has been letting me live rent free in exchange for doing all the cooking, taking care of some of the pets, and keeping an eye on my disabled uncle when they aren't home. My goal of course is to be independent and in my own place.

Like a lot of people I spent much of my early 20s unfocused and not sure what I was going to do with my life, thankfully I didn't get into credit card debt but I do have student loans still. Right now my business is doing better than I expected it to be at this point. So I'm getting my ducks in a row financially to be ready to get my own place in the next few months. I'll probably be able to afford the move in the next month or two but I'm probably not going to actually move until after Christmas (just too busy a time of year personally and for the business)

Since this is a big deal financially for me I'm going to share what I'm doing over the next few months. Hopefully as a fun example of what you can do running a little home based craft business and how to plan for big changes in your life.

What I'm doing right now:
I have a savings account currently with about $350 in it specifically for first and last months rent plus any deposit I need to make. My checking account has enough for all my bills and spending for several months so I'll be putting most of my money in savings for now. My goal is $1500 since I'm lucky enough to live in an area where rent is fairly low, especially when you're only looking for a small 1 bedroom place. I want that money in place before I even start looking for an apartment. I'm also doubling my student loan payments to get them paid off faster. Whatever is left over in my savings account after I pay what I need to for the apartment is going to stay there and become the basis for an emergency fund. I have a separate Noadi's Art Savings account (this I think is important, all businesses should have a separate savings account to only be used for the business).

Part of my pulling things together is learning more about personal finance and planning ahead. I've started subscribing to a number of money related blogs and added some books to my amazon wishlist. I'll probably be reviewing those books here.
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