Denali Northern Expenditure

January 2019 Plan Update

I CANNOT BELIEVE WE’VE PAID OFF THE MORTGAGE! Nothing else major is happening in January. It’s been a good month.

The Numbers:

Want to know how easy it is for us to write these every month? I literally just log into my Personal Capital and revel in all the numbers being in one place. Do you like checking numbers? Do you like graphics? Do you like playing with calculators like retirement calculators and how much your fees are costing you? Then, you should obviously use my affiliate link to Sign up here to help yours truly speed toward financial independence! (Also feel free to read my more in-depth review of Personal Capital.)

Our mortgage is now at $ZERO! I haven’t yet decided if I am going to include this in every single plan update from now until the end of time or if you will all get annoyed by that. 🙂 NO MORTGAGE BABY. NONE. ZERO. Read the story of our mortgage pay-off here.

Investments have moved to $222,960. To be honest, I haven’t really been tracking this for the past year. I mean, I’ve been updating the numbers correctly and adding them here, but I haven’t really cared. Now that the mortgage is gone, I feel so free with so many possibilities. I have already upped Mr. T’s 401k contributions to the maximum he can get with work rules ($18,600) and I’ve upped my 401k contributions to the maximum of 50% of my pay (which will only end up being like $10,000). And without a mortgage, there’s STILL money left to save! I can’t wait to see this investments number rise this year even if the market tanks.

2018 Financial Goals Update:

  • KILL THE MORTGAGE – DONE! Please eat chocolate in my honor.
  • Merch Challenge Update (paying for our 27-night Europe trip and our extra mortgage payments with t-shirt sales) – WE DID IT!!!
  • Max out Mr. T’s 401k – We got to $18,000 – His work has weird administrative rules, so we were only able to get $18,000 in there last year and we’ll hit $18,600 in 2019.
  • Stretch Goal: Put $5500 into My Roth IRA – NOPE. But there’s still time for 2018’s contributions!
  • Market-Based Goal: $250,000 in investments by the end of 2018 – Nopety nope. But as we know, market-based goals are always just for fun. We have no control over the market.

INTRODUCING: 2019 Financial Goals!

  • Max Out My 2018 Roth IRA ($5,500) – I didn’t manage to put a penny into my account in 2018, but I still have until April 15th to make up for it! $5,500 by April 15th with no mortgage seems totally doable. ANYTHING seems doable these days!
  • Max Out My 2019 Roth IRA ($6,000) – Self-explanatory.
  • Max Out Mr.T’s 2019 Roth IRA ($6,000) – Self-explanatory.
  • Replenish Emergency Fund ($5,000) – I’ve depleted all cash resources around here because when the mortgage got low enough that being mortgage-free was in our sights, I lost all sense of reason and sanity and started throwing everything at it possible. I’m coming clean that I don’t have an emergency fund anymore and I plan to remedy that in 2019.
  • Extra Investments ($10,000) – I haven’t figured out what this will look like yet (ie: brokerage, self-employment account etc.) because our income sources and amounts will impact that, but the goal is to invest another $10k.

If we manage to hit ALL of our goals this year, in addition to the 401k savings, we’ll be saving a total of $61,100! That’s NUTS! Fingers crossed!

Notable Expenses This Month: The Story Our Money Tells:

These are expenses that tell an interesting story. A peek into our lives through our pocketbook:

  • $367.20 – I signed Lui up for preschool Parkour classes. It lets him run around in a safe space for an hour a week and he loves it. It’s HILARIOUS to watch. He basically just slams him body against the walls and flails around. Classic.
  • $35.90 – Mr. T and I were FINALLY able to see Crimes of Grindlewald. We had tickets for the day after the earthquake and the movie theater was closed because of damages. So, we finally saw it this week and the local brewpub theater. Yummy pizza and root beer. So good.
  • $35 – Took the whole family to see the new Mary Poppins. I enjoyed it greatly.
  • $8.23 – I had to order my parents gifts from Amazon FOUR TIMES. They kept refunding me and then I’d have to reorder. With credits and refunds, I think I had to repay this much this month. Good news is they finally got them the third week of January. Sheesh.
  • $1,199 – Plane tickets to family in the Northwest and explore some Alaskan islands this summer.

Financial Phrases:

These are things said by actual people that were either talking to me or near me enough that I could hear them:

  • “We moved into an apartment so my husband could change jobs and put our house up for rent.”
  • “I think the pressure to buy his wife expensive gifts really motivated his career.”
  • “I went through Hell to pay off my student loans. They better not forgive everyone’s loans now!” Though I prefer Matt Lane’s (over at Optimize Your Life) response:

The Mortgage is DEAD!

8 days ago we paid off the mortgage. The moment itself was completely anticlimactic. I had anticipated paying it off Friday afternoon after receiving my paycheck and when I had my family around me. I would get off the phone, pop the Martinelli’s and we’d party. Instead, on Thursday, I called the bank to verify the amount due, noticed I had enough in my Escrow account to cover the last of the mortgage, and asked about it. He said: “Oh yeah. We can use that. Do you want me take care of that right now?” And just like that, the mortgage was paid off. And I was alone in the house on the Thursday. I message Mr. T at work. I called my sister. I called my parents. And my family popped the Martinelli’s while I was at a meeting that night. Yawn.

As soon as he “took care of it” and paid my mortgage, the banker, in the very same breath, offered me a home equity loan. I’ve never flipped anyone off in my entire life. But at that moment, that felt like the very best reaction. Because I was on the phone, I did not actually flip him off. I politely declined like a good citizen, but it really ruined the moment.

I’ve had all the feels in the past week. I had to figure out how to move my taxes and insurance into my name. In the process, I discovered that for the past ten years, we haven’t had the residential exemption applied to our property tax bill which means we’ve been overpaying our property taxes by a third for 9 years! ANGER. I think I solved that for 2019 anyway. Hilariously, I’m so happy that the house is totally paid off that I can’t even be that mad about this. I’m trying. But the house is MINE. We are DEBT FREE!

It has felt so. dang. good. Also, I’m totally counting that we paid it off in December 2018 because I didn’t actually pay a dime toward it this month. WINNING! In the past 8 days, I have had so much fun figuring out where to send all of our money. An advance copy of Tanja’s new book, Work Optional, came this week as well (perfect timing). I’m still neck deep in new spreadsheets, calculations, and possibilities. It. is. glorious.

Does is Make Sense to Pay off the Mortgage Early?

There are fairly sound economic arguments that say no. However, I work in behavioral economics which takes into account that people are irrational beings. We aren’t good with following strict economic principles because FEELS. Ultimately, the answer of whether or not to pay it off early is entirely based on your own emotions. If your mortgage doesn’t bother you at all and you’ve locked in a good interest rate, don’t even worry about.

Here are the 3 things that have changed the most for me with the mortgage payoff:

  1. My Savings: It’s been 8 whole days and already my savings rate is up (I immediately changed my 401k contributions to 50% of my pay). I learned a couple of years ago that I am a terrible financial multi-tasker. If I wanted to accomplish more than the average, I had to go all in. So I decided to kill the mortgage. Now that we’ve done that, it’s time to go all in on savings!
  2. My Peace of Mind: At least a couple times every single day since paying off the mortgage, I take a deep breath and think: it’s mine. No more payments to any bank. My money is MINE.
  3. My Risk Tolerance: With that peace of mind comes possibilities. As I mentioned in my 2018 recap post, I hired a couple of designers last year. When one of them offered to design for me nearly full time for $200/month, I immediately jumped on it. If I still had a mortgage to pay off, I’m not sure I would have risked it. Who knows if we’re able to turn that $200/month into way more profit, but if it doesn’t work out, a whole year of hiring her was the equivalent risk of less than one mortgage payment! In those terms, it was totally worth the risk! Especially since growing our business is something we’re actively trying to do in 2019.

What Happens Now?

Full disclaimer: we may have another mortgage sometime in the future. This house is fabulous and we absolutely love it, but it really isn’t conducive to teenagers. There’s no place for teens to hang out without us more than 5 feet away. And even if we’re there, we can only fit like 2 other teens comfortably. Our housing future is entirely uncertain. It could go either way: stay here forever or buy a different house (I vacillate daily).

What we do know: we are going to enjoy no mortgage payments for awhile and take advantage of that time to increase our savings significantly. I don’t regret paying it off early at all. It still feels so good!

2018: Year in Review

January:

  • I am put in charge of the welfare program for our church congregation. This mainly means I help people with their finances and help get food to those that need it.
  • All the kids start swimming twice a week.
  • My company is acquired by a BIG company.
  • Amazon significantly cuts royalties for shirt sales.

February-March:

  • More swimming. Lui decides he forgets everything and can no longer even do a back float. We quit swimming at the end of March.
  • I try to figure out how to balance church stuff and working for this giant company. In these months, it meant working a lot more than usual.

April:

  • I am hired as an hourly employee instead of a contractor.
  • We try to catch up on loading shirts that “fell off” Amazon before our big trip. (If they don’t sell in 90 days, Amazon deletes them. Luckily, in June, they extended this to 180 days.) We don’t make any new designs.

May-June:

  • We get those kids through those last few weeks of school.
  • We go on a 28-day amazing vacation through the UK, Norway, and Iceland without family and think how great it would be to be able to do that every single year.
  • I get bronchitis on the flight home and spend two weeks in bed.

July:

August:

  • My sister and her family come to visit from Texas. We see tons of whales, hike a glacier, camp in a cabin, and have a great time.
  • Amazon opens UK and Germany shirt markets. We decide to try to actually sell shirts again. (Up to this point we’ve mostly been putting old designs back up and that’s about it.)
  • Kids start school (Lui preschool).

September:

  • I hire two graphic designers on a per-design basis to help with new shirt designs. It’s scary and way out of my comfort zone. Before finding two that work great, I have to tell someone it’s not going to work. Even scarier.
  • I attend a t-shirt selling conference in Seattle with a whole bunch of people that sell tens of thousands of shirts a year.

October:

  • The PFD helps us cut our mortgage in half.
  • We take an epic road trip as a family from Yellowstone to Minneapolis seeing many National parks.
  • I spend a few days at the new office of Big Company.
  • We hit shirts hard. Sales start coming for Q4.

November:

  • We keep designing, loading, and editing designs from our designers onto t-shirt.
  • I start experimenting with publishing books on Amazon.
  • I’m now friends with the people with the top selling shirts on Amazon for Thanksgiving.
  • I learn to only compete against myself because my journey is very different than theirs (and I ignored the side hustle for most of the year).
  • Sales keep coming, but with the royalty cut in January, income is lower than last year.
  • EARTHQUAKE

December:

  • With the earthquake and the holidays, most of our December is spent cleaning up and settling down.
  • We make our last extra mortgage payment on the house (paid it off yesterday!).
  • We gather data from our shirt sales and make plans for an epic 2020 (with 2019 as a building year).
  • I hire one of my designers to start full-time in February. Another scary move. It’s accidental, but her monthly fee seemed too good to not try.

2019 is set up to be an interesting year. No mortgage (more on that later). A full time designer. Balancing church and work and side hustle. It’s a good year to build. No massive trips planned (though I’m sure we’ll travel). In September, I’ll have all my kids in school full time. Seems like a year to take risks and see what’s possible. I’m excited!

Merch Challenge Q4 FINAL Update

As a reminder, we’re trying to pay off our mortgage and take our family on a 27-day Europe trip with just t-shirt sales in what we call the Great Banks Merch Challenge.

This update is the 2018 Q4 FINAL update:

The FINAL Merch Challenge Numbers

Final Trip Costs: Reminder that this was a 4-week, 27-night trip through NYC (2 nights), England and Wales (16 nights), Norway (5 nights) and Iceland (4 nights) for 5 humans! It was absolutely spectacular and the best use of money ever.

For a complete break-down of each of these categories, check out our Merch Challenge Q2 Update.

  • Flights: $2,035.48
  • Lodging: $2,859.50 
  • Transportation: $1,712.29
  • Stuff: $1,487.17 (The Gear + Souvenirs)
  • Experiences: $1,468.95
  • Food: $849.47

TOTAL SPENT: $10,412.86

Verdict: DONE! Paid for with our first 8 months of t-shirt sales. How amazing is that?!

Mortgage Costs: 

For Merch to cover the rest of our mortgage, we’re including any payments we make above our minimum monthly payments. So, these costs are the extra payments we made starting with the November mortgage payment:

  • $2,100 (November)
  • $1,700 (December)
  • $1,500 (January)
  • $0 (February)
  • $100 (March)
  • $0 (April)
  • $0 (May)
  • $0 (June)
  • $0 (July) – Man, the trip really stunted our mortgage payments! No regrets, but we better hit it hard in the fall!
  • $900 (August)
  • $400 (September)
  • $0 (October – we actually put $8000 extra toward it, but that was PFD money, so we’re not counting it as part of the challenge)
  • $1600 (November)
  • $2400 (December)

TOTAL EXTRA PUT TOWARD MORTGAGE: $10,700

Current Merch Earnings (earnings are 2 months behind as that’s when we get and report the money):

  • June: $7.07
  • July: $218.24
  • August: $810.78
  • September: $1,065.67
  • October: $3,352.58
  • November: $1,837.50
  • December: $2,627.96
  • January: $1,076.85
  • February: $695.83
  • March: $783.40
  • April: $852.67
  • May: $854.17
  • June: $474.21
  • July: $531.01
  • August: $440.94
  • September: $512.85
  • October: $1,575.31
  • November: $1,499.42
  • December: $1,945.40
  • TOTAL: $21,161.86

minus our trip costs of $10,412.86: $10,749

then we subtract our extra mortgage payments of $10,700 to get our

Merch Challenge Total: $49

Verdict: WE DID IT!!!!

We haven’t entirely paid off our mortgage yet, but in the next two weeks, with our regular mortgage payment, the mortgage will be gone. Can you believe that we managed to make all the remaining mortgage payments with JUST t-shirt sales?! AND take a month-long trip through Europe?! Squeaking by with $49 extra dollars!!!! My mind is BLOWN. It will definitely take me a long time to internalize all this! When I started this challenge I thought there was no possible way it could happen, but it would be fun to track anyway! AND LOOK AT AS BEING AMAZING!!!! I’m so excited to see what’s possible in 2019 with a paid off mortgage and the possibility of growing our side business and saving the money! Thanks for being along for the ride!

December 2018 Plan Update

December has come and gone and it was glorious. We ice skated, we went sledding, we built a luge track behind the house, and we ate so much delicious food. We’re good at hygge up here in Alaska. Candles. Heated blankets. Family time.

The Numbers:

Want to know how easy it is for us to write these every month? I literally just log into my Personal Capital and revel in all the numbers being in one place. Do you like checking numbers? Do you like graphics? Do you like playing with calculators like retirement calculators and how much your fees are costing you? Then, you should obviously use my affiliate link to Sign up here to help yours truly speed toward financial independence! (Also feel free to read my more in-depth review of Personal Capital.)

Our mortgage is now at $1,900! This is BIG NEWS. That means 2 things: 1) we have made our last EXTRA payment toward this mortgage EVER and 2) the house will be paid off with our regular mortgage payment next month.

Investments have fallen to $204,000. At least we managed to keep it above $200k for the year. And, not that we’re trying to time the market, but I don’t regret our extra mortgage payments this year one bit! 2019 is when we’ll be able to start upping our investments. We’re the best market timers ever. 🙂

2018 Financial Goals Update:

  • KILL THE MORTGAGE – $1,900 – Okay, we’ll be one month late, but we made ALL THE EXTRA payments in 2018 so this is a pretty big win anyway!
  • Merch Challenge Update (paying for our 27-night Europe trip and our extra mortgage payments with t-shirt sales) –  -$1896.40 – Earned (with just shirt sales online): $19,216.46, Spent: $10,412.86 (Europe Trip) + $10,700 extra mortgage payments. It doesn’t look good, but consider we’re done with all the “spending” and now just have the earnings left. So, after the December payments come in January, we’ll be doing a Q4 recap… the moment of truth. Think we’ll make it?
  • Max out Mr. T’s 401k – We got to $18,000 – I’m counting it because I never got around to changing it (and I don’t think he knows how). I’ll change it in January now that the limits rose again to $19,000/year.
  • Stretch Goal: Put $5500 into My Roth IRA – Nopety-nope.
  • Market-Based Goal: $250,000 in investments by the end of 2018 – Nopety nope.

Notable Expenses This Month: The Story Our Money Tells:

These are expenses that tell an interesting story. A peek into our lives through our pocketbook:

  • $16.85 – We were able to get the two books Florin wanted for Christmas at the cute local bookstore. Yay for supporting local!
  • $209.11 – My part of the health bill for some tests back in the summer when I had bronchitis. Finally came through. Finally had to pay it.
  • $20.49 – More of that above healthcare bill. This part from a lab. Healthcare is confusing.
  • $1.08 – Price of two sundaes at McDonald’s (after using the last of a gift card) to tell my girls about Santa. I told them about how magic is created and they’re part of Team Santa now. It ended up being really cute because they came home and helped Lui write his letter to Santa.

Financial Phrases:

These are things said by actual people that were either talking to me or near me enough that I could hear them:

  • “I have a secret shopping problem.”
  • “I think the pressure to buy his wife expensive gifts really motivated his career.”
  • “We finally got our retirement stuff set up and the company started doing profit sharing. It’s nice!”

November 2018 Plan Update

Well November was uneventful for the Banks family until the very last day when we were hit with a 7.0 earthquake. We have lots of quakes here, but that was by far the biggest one we’ve felt as the epicenter was pretty close and it wasn’t very deep. It was a solid minute of shaking both side to side and up and down. We had tons of stuff fall down in our house, but miraculously, nothing broke. We’re all safe. The kids are just headed back to school today after a week off for the district to clean up the schools. Now, 10 days later, we are still having nearly 1-2 aftershocks of 4-5 magnitude every day and hundreds that are less than that. This interesting video shows all the aftershocks we experienced just in the first 48 hours. Needless to say, we did not sleep well for a couple nights.

So, now that the kids are back in school and we’ve gotten cleaned up here at home, we’re finally getting back in to the swing of things around here. Thank you to those that reached out to make sure we were safe. It felt good to be checked on.

The Numbers:

Want to know how easy it is for us to write these every month? I literally just log into my Personal Capital and revel in all the numbers being in one place. Do you like checking numbers? Do you like graphics? Do you like playing with calculators like retirement calculators and how much your fees are costing you? Then, you should obviously use my affiliate link to Sign up here to help yours truly speed toward financial independence! (Also feel free to read my more in-depth review of Personal Capital.)

First the exciting news: our mortgage is now at $5,500! This amount is killing me. Like, shouldn’t I be able to just come up with that and pay it off immediately?! So. Close.

Keep in mind this was at the beginning of the month, but at that point, our investments totaled $221,700. With so much focus on paying off the mortgage and living my life, I’ve hardly been paying attention to this number at all. (If it falls below $200k, I’ll certainly notice though!)

2018 Financial Goals Update:

  • KILL THE MORTGAGE – $5,500 – We’re working our tails off to try to get this killed before the end of the year, but even if we fail this goal, we’ll be able to kill it in the first couple months of 2019, so I still feel okay about it. But, I haven’t given up total hope yet. It’s still possible! (okay, less possible, but a miracle could happen.)
  • Merch Challenge Update (paying for our 27-night Europe trip and our extra mortgage payments with t-shirt sales) –  -$996 – Earned (with just shirt sales online): $17,717.04, Spent: $10,412.86 (Europe Trip) + $8300 extra mortgage payments – Details can be found in the Merch Challenge Q3 Update with another one coming out in January.
  • Max out Mr. T’s 401k – Automatic – however, limits rose to $18,500/year which makes it messy if you get 24 paychecks a year. But, we’ll hit $18,000 anyway, so pretty close.
  • Stretch Goal: Put $5500 into My Roth IRA – Not yet.
  • Market-Based Goal: $250,000 in investments by the end of 2018 – Markets down. Not looking possible this year. Oh well.

Notable Expenses This Month: The Story Our Money Tells:

These are expenses that tell an interesting story. A peek into our lives through our pocketbook:

  • $32.50 – Tickets to Ralph Breaks the Internet with the family. We all enjoyed it!
  • $93.05 – Black Friday at Fred Meyer. I head there around 2pm and buy my half-price socks and underwear for the family for the year. And I bought myself some leggings.
  • $221 – Podiatrist payment for Mr. T.

Financial Phrases:

These are things said by actual people that were either talking to me or near me enough that I could hear them:

  • “Earthquake insurance is expensive and not even worth it because the deductible is like 10-20%.”
  • “The house basically fell off the foundation. We helped them clean up a little bit, but they don’t have earthquake insurance, so what do you say? ‘Good luck’?”

October 2018 Plan Update

Better late than never, amiright? This October 2018 plan update is a couple of weeks late, but that is because we decided to take another epic family trip. As if a month-long European adventure wasn’t enough, we also decided that we would pack in a good old fashioned American road trip. So, in mid-October we flew to Bozeman, MT and drove from Yellowstone to Minneapolis seeing: Yellowstone, Grand Teton, Black Hills, Devil’s Tower, Mt. Rushmore, Wind Cave, Badlands, and, of course, the corn palace. 🙂 We had a fabulous time, saw amazing things, had beautiful fall weather, and arrived home in time for the first real snow of the year.

The Numbers:

Want to know how easy it is for us to write these every month? I literally just log into my Personal Capital and revel in all the numbers being in one place. Do you like checking numbers? Do you like graphics? Do you like playing with calculators like retirement calculators and how much your fees are costing you? Then, you should obviously use my affiliate link to Sign up here to help yours truly speed toward financial independence! (Also feel free to read my more in-depth review of Personal Capital.)

First the exciting news: our mortgage is now at $8,000! It’s so close! Maybe not end-of-year close, but very, very close!

Now for the investments: Since starting this blog in June 2015, our net worth has only dropped 5 total months. October 2018 is one of those months. When your investments aren’t bonkers high, the downswings aren’t has dramatic. All in all, month over month, our investments are only down about $16,000. Our investments now total $212,800. Are we worried? Nope. Why not? This is precisely what we planned for. Markets go up. Markets go down. We’re in no need of the money anytime soon. We’re going to let it ride.

2018 Financial Goals Update:

  • KILL THE MORTGAGE – $8,000 – We’re working our tails off to try to get this killed before the end of the year, but even if we fail this goal, we’ll be able to kill it in the first couple months of 2019, so I still feel okay about it. But, I haven’t given up total hope yet. It’s still possible!
  • Merch Challenge Update (paying for our 27-night Europe trip and our extra mortgage payments with t-shirt sales) –  -$1,483.98 – Earned: $16,141.73, Spent: $17,112.86 (with “earned” meaning the money we’ve made from selling shirts on Amazon and “spent” meaning all of the costs for the trip as well as any extra payments toward our mortgage) – For the most up-to-date, detailed information, check out our Merch Challenge Q3 Update.
  • Max out Mr. T’s 401k – Automatic – however, limits rose to $18,500/year which makes it messy if you get 24 paychecks a year. But, we’ll hit $18,000 anyway, so pretty close.
  • Stretch Goal: Put $5500 into My Roth IRA – Not yet.
  • Market-Based Goal: $250,000 in investments by the end of 2018 – Markets down. Not looking possible this year. Oh well.

Notable Expenses This Month: The Story Our Money Tells:

These are expenses that tell an interesting story. A peek into our lives through our pocketbook:

  • $13.80 – I also headed to the office this month. My manager paid for my lunch, but I bought my coworkers some dessert to share.
  • $131.55 – Our annual IKEA shopping trip we do when we go out of town. New washcloths, a drying rack, couch pillows, etc.
  • $39.20 – Our annual Trader Joe’s run. Mostly pumpkin butter and truffle brownies. I’ll be honest.
  • $62 – Delicious Indian food in Minneapolis. So. Yum.
  • $41 – Roadtrip DQ dinner and blizzards.

Financial Phrases:

These are things said by actual people that were either talking to me or near me enough that I could hear them:

  • “I really want to be home with my kids but I can’t because we’ve got some pretty lofty financial goals right now.”
  • “When my kids go back to school, I probably start up a craft business again. It’s always in the back of my mind.”
  • “The drunk driver program seems unfair. If you have to call in at 8am every day and attend classes most evenings after work, what happens if you don’t have a job, a phone, or a car?”

Merch Challenge Q3 Update

As a reminder, we’re trying to pay off our mortgage and take our family on a 27-day Europe trip with just t-shirt sales in what we call the Great Banks Merch Challenge.

I’ll be providing quarterly updates. This one is 2018 Q3 update:

The Current Merch Challenge Numbers

Final Trip Costs: Reminder that this was a 4-week, 27-night trip through NYC (2 nights), England and Wales (16 nights), Norway (5 nights) and Iceland (4 nights) for 5 humans! It was absolutely spectacular and the best use of money ever.

For a complete break-down of each of these categories, check out our Merch Challenge Q2 Update.

  • Flights: $2,035.48
  • Lodging: $2,859.50 
  • Transportation: $1,712.29
  • Stuff: $1,487.17 (The Gear + Souvenirs)
  • Experiences: $1,468.95
  • Food: $849.47

TOTAL SPENT: $10,412.86

Verdict: DONE! Paid for with our first 8 months of t-shirt sales. How amazing is that?!

Mortgage Costs: 

For Merch to cover the rest of our mortgage, we’re including any payments we make above our minimum monthly payments. So, these costs are the extra payments we made starting with the November mortgage payment:

  • $2,100 (November)
  • $1,700 (December)
  • $1,500 (January)
  • $0 (February)
  • $100 (March)
  • $0 (April)
  • $0 (May)
  • $0 (June)
  • $0 (July) – Man, the trip really stunted our mortgage payments! No regrets, but we better hit it hard in the fall!
  • $900 (August)
  • $400 (September)
  • $0 (October – we actually put $8000 extra toward it, but that was PFD money, so we’re not counting it as part of the challenge)

TOTAL EXTRA PUT TOWARD MORTGAGE: $6,700

Current Merch Earnings (earnings are 2 months behind as that’s when we get and report the money):

  • June: $7.07
  • July: $218.24
  • August: $810.78
  • September: $1,065.67
  • October: $3,352.58
  • November: $1,837.50
  • December: $2,627.96
  • January: $1,076.85
  • February: $695.83
  • March: $783.40
  • April: $852.67
  • May: $854.17
  • June: $474.21
  • July: $531.01
  • August: $440.94
  • September: $512.85
  • TOTAL: $16,141.73

minus our trip costs of $10,412.86: $5,729.73

then we subtract our extra mortgage payments of $6,700 to get our

Merch Challenge Total: -$970.27

Verdict so far: Still possible, but looking unlikely.

I’m thrilled that the entire trip has been covered with just t-shirt sales! How exciting is that?!

Although Q4 will be a bigger hitter with income, it doesn’t look like we’ll be able to match last year’s Q4 sales numbers despite having nearly 10x the listings on Amazon that we did last year. There are several reasons for this. Since the beginning of the year, the competition has increased exponentially. The t-shirt selling business isn’t quite the gravy train it once was (though there’s still money to be had). Amazon has also decreased royalty payments per shirt and sellers are now on the hook for returns which get deducted from our totals.

Our mortgage is currently at $9,480, but with regular mortgage payments, we just need $6,300 extra to pay it off by the end of the year. That means, with our current challenge numbers of $-970.20, we need to earn a total of $7,270.27 by the end of the year to complete our challenge.

Again, it’s possible we hit some amazing trend by the end of the year and knock it out of the park, but based on current trends, it isn’t looking likely. BUT, I haven’t given up hope. And I’m already impressed on how much progress we’ve made on this crazy challenge!

Your Thoughts: Do you think we can do it?

September 2018 Plan Update

September 2018 Plan Update

So I’m actually late for a reason this time. You see, I waited until our PFD hit to pay our mortgage for September. We have a ten-day grace period before a late fee hits… just enough time to wait for the PFD and get the sucker down! More on that later.

Life is grand. Instead of attending FinCon this year, I attended a t-shirt sellers conference in Seattle. It was fantastic meeting other sellers and it turns out sales have been pretty flat for everyone this year. That’s good to hear that it isn’t just me. But the question is whether that will bet better or if the days of organic sales are over. 2019 may be brand-building for us. We shall see.

The Numbers:

Want to know how easy it is for us to write these every month? I literally just log into my Personal Capital and revel in all the numbers being in one place. Do you like checking numbers? Do you like graphics? Do you like playing with calculators like retirement calculators and how much your fees are costing you? Then, you should obviously use my affiliate link to Sign up here to help yours truly speed toward financial independence! (Also feel free to read my more in-depth review of Personal Capital.)

Our mortgage is now at $9,480 – This is BONKERS! We’re below 10K – PARTY PARTY PARTY PARTY. So dang exciting! Thanks to our PFD, we were able to get this below 10k.

The PFD is an oil kickback given to all Alaskans. In previous years, it was calculated based on a complicated algorithm of investment returns. In recent years, they’ve capped it. This year should have been nearly $3000 but was capped at $1600 per person. That means our family received $8000.

I may have thrown too much money at the mortgage this month, however, because I almost overdrew the account the next morning. Luckily, my paycheck hit at the exact same time and saved the day! I think finding balance is getting especially hard for me now that this is so close to being DEAD. I’ve turned us into a living paycheck-to-paycheck family. It’s not a great feeling. But look at that mortgage balance! It is relieving to know that this will be gone by the end of July 2019 if we pay not a penny extra. Maybe that means I can chill out about it and give up on the end of 2018 goal? Or maybe I’ll just have to be insane for another three months? Hard to say where I stand right now. 🙂  I did, however, save nearly $30 in overall interest by waiting to pay the September payment after the PFD hit! (spreadsheets to the rescue!).

Investments are now at $228,700. Still ticking up. It’s been especially interesting these past few years of market steam watching our Roth IRAs tick up even without added investments. I’m watching the power of the market! Someday, it will end. I realize. But overall, we trust the market to keep going up long-term and our plan is based entirely on that.

2018 Financial Goals Update:

  • KILL THE MORTGAGE – $9,480! Can you believe we’re under $10k! 4 digits, baby! I’m over the moon about this. I’m still not sure if we can kill it entirely by the end of the year… it’s starting to look less and less likely, but my fingers are still crossed tightly!
  • Merch Challenge Update (paying for our 27-night Europe trip and our extra mortgage payments with t-shirt sales) –  -$1,483.98 – Earned: $15,628.88, Spent: $17,112.86 (with “earned” meaning the money we’ve made from selling shirts on Amazon and “spent” meaning all of the costs for the trip as well as any extra payments toward our mortgage) – August was another below $500 month for shirt sales. This Q4 doesn’t look like it will be anything as great as last year’s even though we have nearly 10x the amount of products listed. A full Q3 update will be coming next week! Buckle up!
  • Max out Mr. T’s 401k – Automatic – however, limits rose to $18,500/year which makes it messy if you get 24 paychecks a year. We’ll probably make a contribution toward the end of the year to top it off.
  • Stretch Goal: Put $5500 into My Roth IRA – Not yet.
  • Market-Based Goal: $250,000 in investments by the end of 2018 – Not yet.

Notable Expenses This Month: The Story Our Money Tells:

These are expenses that tell an interesting story. A peek into our lives through our pocketbook:

  • $75 – Lui’s preschool.
  • $170 – A month of piano lessons for the girls.
  • $123.25 – Dental visit for girls – sealants are only partially covered by insurance.
  • $46 – School pictures for all 3 kids (we get the smallest possible package to send one to the grandparents).
  • $22.80 – Mr. T and I went to see AntMan for my birthday at the beginning of the month,
  • $36 – then we went out to lunch while the kids were in school.
  • $25 – Donorschoose donation to one of my kids’ classrooms.
  • $4.99 – The button on my jeans snapped as soon as I made it through security in Anchorage to head to my conference. I had to buy a sewing kit for the tiny safety pin to keep my pants up until I got to my hotel in Seattle. Talk about a story the money tells. 🙂

Financial Phrases:

These are things said by actual people that were either talking to me or near me enough that I could hear them:

  • “This expense might just be the straw that breaks the camel’s back for them.”
  • “We just bought a root canal for $100 at an auction, so I feel like we’re winning. My husband had to get two in the spring and we’re still paying those off.”
  • “I really don’t want to go back to being house poor.”
August 2018 Plan Update

August 2018 Plan Update

So I’m a few days behind, but I’ve gotten really good at living life these days, which is something I’m proud of. I’m currently balancing my part-time job and building our t-shirt business. Over the next few months, we’ll see how all that plays out. It will be an interesting ride when the buyers start coming!

August was an amazing month in the Banks house. It began with my sister’s family visiting from Texas and we were able to show them Alaska, which is one of my favorite things to do. We did all the usual Alaska things we enjoy: saw humpback whales from a boat, hiked on a glacier, went on a bike ride, and ate lots of yummy food (including several forms of salmon). And the month ended with the kids back in school and all of us figuring out schedules again, which is another form of joy. It’s been a fabulous summer, but it’s also always nice to get back into a routine.

The Numbers:

Want to know how easy it is for us to write these every month? I literally just log into my Personal Capital and revel in all the numbers being in one place. Do you like checking numbers? Do you like graphics? Do you like playing with calculators like retirement calculators and how much your fees are costing you? Then, you should obviously use my affiliate link to Sign up here to help yours truly speed toward financial independence! (Also feel free to read my more in-depth review of Personal Capital.)

Our mortgage is now at $18,400. Not much to add here this month. Just LOVE watching it drop. Can’t wait to celebrate getting it below $10,000!

Investments are now at $224,870. It’s been an amazing market run. It’s actually making me a bit nervous how high things have gotten. But I’m also loving how close we are to a quarter of a million dollars (and halfway to our original goal of $500k by 2022!)

2018 Financial Goals Update:

  • KILL THE MORTGAGE – $18,400! Oh my goodness. So excited about it dropping and dropping! The PFD is coming at the beginning of October, so by November, this should be almost half of what it is now!
  • Merch Challenge Update (paying for our 27-night Europe trip and our extra mortgage payments with t-shirt sales) –  -$1,924.92 – Earned: $15,187.94, Spent: $17,112.86 (with “earned” meaning the money we’ve made from selling shirts on Amazon and “spent” meaning all of the costs for the trip as well as any extra payments toward our mortgage) – Remember how I said June was our most depressing month of sales? Ha! July and August are worse. But, fingers crossed for September to be better. And a Merch Challenge Q3 Update is coming in a month! So get excited for detailed numbers!
  • Max out Mr. T’s 401k – Automatic – however, limits rose to $18,500/year which makes it messy if you get 24 paychecks a year. We’ll probably make a contribution toward the end of the year to top it off.
  • Stretch Goal: Put $5500 into My Roth IRA – Not yet.
  • Market-Based Goal: $250,000 in investments by the end of 2018 – Not yet.

Notable Expenses This Month: The Story Our Money Tells:

These are expenses that tell an interesting story. A peek into our lives through our pocketbook:

  • $120 – Breakfast for all of 10 of us with my sister’s family here.
  • $70 – The cost to hike the glacier with my family.
  • $10.08 – Frozen Yogurt to celebrate the first day of school.
  • $499 – The ticket for me to go to a t-shirt-selling conference in September! I’m very excited (but sad I’ll be missing FinCon this year).
  • $29.85 – 3 National Park Passports for my kids. Getting ready for the fall road trip!
  • $85 – My family admission to the the wildlife conservation center. We got to see the cute little baby bear climb a tree! (And got to see some idiot try to pet the bear through the fence. This is when I tell my kids: “Adults can be idiots too. Don’t be an idiot.”)

Financial Phrases:

These are things said by actual people that were either talking to me or near me enough that I could hear them:

  • “All of my money from my new job is going toward our mortgage!”
  • “Employees who are just trying to pay their mortgage put their heads down and don’t cause waves.”

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