July mortgage update: One month of self employment

Last month (June):
Balance: $77,928.74
Years left: 6.25
P =$899.71, I = $314.69, Escrow = 613.58

This month (July):
Balance: $76,350.80
Years left: 6.08333
P =$905.93, I = $308.47, Escrow = 613.58

One month’s prepayment savings: $2.66

This is probably the last big prepayment until DH brings in some money.

DH has been unemployed since June 3rd.

Week 1 was spent dealing with last minute paperwork with the old job, they needed stuff from him for their accreditation, he needed stuff from them for retirement.  We switched him over to my health insurance, and so on.  He also changed his mind about how to do the webhosting on his new webpage possibly 20 times.  He worked on his webpage.  Also during week 1 I was sick and DH did some ferrying of DC1 to visit relatives.  And he helped me out on a project.

During week 2, DH was sick.  After he got better, he did some networking to ask about local accountants, lawyers, and so on.  He changed his mind several times about whether or not to hire for each.  He also did a lot of yardwork and fixed our sprinkler system.

During week 3, he worked more on creating an LLC.  This involved a lot of reading websites for little details like, what address should we put on the form and are we willing for our home address to be public and so on.  He finally made it to one of the networking happy hours.  He also did some programming on his game and some mulching.  Dinners were good this week.

During week 4, he called the place that tells you if you’re likely to have a trademark infringement with names.  Then he decided on a name and mailed in his LLC paperwork.  He went to the other local networking group and enjoyed it tremendously.  He crossed off several more items off his “around the house” list.  The Bermuda grass is still winning, but many battles have been fought.  He programmed and blogged on his new professional webpage.  People have been talking to him about potential full-time jobs both here and on the coasts, though he’d rather do contracting, but we’ll see what happens.

So a relatively relaxed month.  Given that we normally don’t get paid in the summer and I’m getting summer money this year from grants, we probably won’t notice any monetary impact of the job-leaving for almost a full year.  And who knows, by that time there may be income.

I do worry a little bit about potential travel.  One of the guys DH networked with earlier this month is gone from his family every week for 5 days a week and only spends weekends at home.  We don’t want that.  Some travel, sure, but not all-the-time travel.  Might as well get a full-time 9-5 job in the city if that’s the kind of flexibility involved in contract work.

So a quiet update on month one of single-income and DH’s self-employment.  What I really want to talk about though is the relatives, and how they’re impacting our finances, but for that you’ll have to wait another week or so.

Any questions about DH’s self-employment?  Anything you’d like me to cover in the future regarding it?  Since it’s me and not him writing the blog, I can’t go all Retireby40 or Club Thrifty on the topic, but I can totes ask questions and stuff.

19 Responses to “July mortgage update: One month of self employment”

  1. Thomas Says:

    Seems like a relaxed month. I hate when one of us gets sick in the home it just usually mean someone else will be sick as well. The only question I have is exactly what is it that DH does for self employment? Traveling five days and only spending weekends at home is tough my uncle did that when he was driving trucks.

  2. NoTrustFund Says:

    Very relaxing month from the sounds of it, besides the sick part. It is so hard when parents of little kids get sick!

    I’d be interested in hearing what you found out about setting up the LLC and everything. Did you end up using your home address?

  3. Leigh Says:

    Sounds like a pretty quiet month! I haven’t had a month that quiet in a while now :) Yeah I’m not sure I could ever go into consulting. I don’t like traveling for work more than once or twice a year. I love that the amortization on your mortgage is now down to ~6 years remaining – that is so awesome.

    • nicoleandmaggie Says:

      It’s sad that we’re not going to be prepaying so much starting next month. But I’d rather have that additional $500/month to just not think about our recently increasing grocery bills.

      • Leigh Says:

        Definitely sad – that $500/month looks like it was making a nice difference still. Ah yes, grocery bills will probably increase a bit if your DH is home instead of at work! I’m assuming you’re putting it into slush, right? So if you end up with more slush than needed, it may go to the mortgage eventually. I love seeing it go down each month though, no matter how small the extra payment :(

      • nicoleandmaggie Says:

        The new extra payment will be something over 100.

        I don’t think DH being home is the cause of our increased grocery bills. I think it’s a combination of having a fourth family member, the third family member growing, and, to a large extent, me not eating much wheat.

  4. Mutant Supermodel Says:

    Sounds like things are off to an awesome start :) I miss you guys!

  5. becca Says:

    Sounds like he’s organized and productive! It’s nice how you note the different “contributions to a smoothly running household and a non-idle DH” without much distinction for whether it’s “housework” male-gendered “homemaking” (e.g. yardwork) or “potentially going to pay off financially” stuff. It doesn’t matter how much I intellectually know it should all “count”, or how anti-feminist it is to only value the paying stuff, I still have trouble seeing non-paying stuff as valuable. At least for myself. Which makes unemployment hard. Or self-employment. I was going to ask if you can really call it self-employment before you start bringing in money, and then I remember my uncle the dairy farmer. My aunt has a corporate job in nuclear waste disposal that pays pretty well, and I don’t think they even come out much ahead most years, such is the drain of the farm. And dairy farming is the least idle pursuit I’ve seen (residents work harder in bursts, but physicians get way more breaks over the course of the career). Granted, “farming” is a special subset of “employment” for reasons both historical and practical, but still.

    Anyway, kudos to your family!

    • nicoleandmaggie Says:

      We don’t think it’s anti-feminist to only value the paying stuff, actually. We just think that women shouldn’t be the only ones doing it (and there should be no stigma to outsourcing them, aka, converting it into paying stuff for someone, so long as folks can afford it). In terms of its value, there’s a market price for most services, and each person has to think about whether the service is worth getting done at all, worth doing oneself, or worth hiring out.

  6. Kellen Says:

    I’d be interested to hear about DH’s efforts to build a client-base as a consultant. I imagine he probably already has some useful contacts to start with, but to me the scariest part about striking out on my own would be the difficulty of connecting to enough clients.

    • nicoleandmaggie Says:

      Yeah. Right now he’s wondering when he should start tapping– before or after he gets approval for the LLC. Hopefully he’ll be successful! One benefit is that even if he’s not, we’re going to be ok for a while. I know a lot of folks only strike out on their own once their side income starts bringing in a lot, but in his former job, the university could have had the right to some of that side income depending on what he was doing.

  7. Holly@ClubThrifty Says:

    Sounds like he had a productive and relaxing month! I am playing sugar momma this month since Greg has a one month lapse in employment between his old job and his new job. I’m paying the bills. He’s going to paint the deck.

  8. Laura Vanderkam (@lvanderkam) Says:

    Anyone transitioning out of full time employment probably needs at least a month to adjust to the new rhythm of life. My first month away from the structure of work and school I spent a lot of time trying to figure out what to do with myself, feeling anxious, etc. Then I realized there were lots of things I wanted to do and it’s been great since.

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