Am i doing the right thing? & good news
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|Sun, 06-01-2003 - 2:14pm|
I have been MIA for awhile and for many reasons.
First is my REAL GOOD NEWS! Our credit card debt, which was $13,000 in January is now at about $11,100 -- so we are right around the corner from being in the $10,000 -- which I was hoping to be at this point. THEN, I should be sending another $700 (tuition reimbursements) to credit cards VERY soon. I have been taking $75 out of each paycheck (so $300 a month) and putting that right to a credit card!!!
Here is my confusion part.
DH and I want to be in a house next year. I was recruited into Mary Kay about 2 months ago. Yes, I have met WONDERFUL people and my recruiter is doing so well that she even paid off ALL her credit card debt in a few months through really working her Mary Kay. The thing is -- Mary Kay is her full time job. I can not have that kind of not knowing how much my next paycheck will be, so I am working full time, going to school, and doing Mary Kay.
This past month, May, my total sales were ~$600. I earn 50% of that. So $300. Out of the $300 they teach you to reinvest 60% and profit 40%. I did that. While I could have written myself a paycheck for $130, I only wrote it for $100. Then I sent that to a credit card. That is the point of me selling Mary Kay.
Somehow, after paying myself and placing my next wholesale order, I only have $43 in my business account. Which is fine I guess because I have about $70 in credit card transactions I have not transferred over yet. And I have 2 outstanding invoices totaling about $40.
Anyhow (sorry this is real long -- kind of need to explain each aspect).
So DH also is "self" employed on top of his job that he works 40 hours a week -- AND he is looking for a new job. I know it sucks because of the economy but there are special circumstances making his job very difficult. Well, he brings in about an extra $300 a month with this job. By tax time, we end up owing. Last year it was only $700 which is not too bad, but still owing. I am freaking out that Mary Kay is going to do the same. Everyone says there are tax advantages to owning your own business, but we have yet to see them. We don't own a house (that is what we are trying to do) and that is when we WOULD see the benefits.
Okay, got all that. Here we go with my "Am I doing the right thing?" question.
In one month (which was more hectic than any other month I will do in Mary Kay) I wrote myself a $100 paycheck. Only a $100 paycheck. Now I know that some will say, "That is $100 more than you had." Yes, not denying that. BUT, I am worried that if I am making only $100 a month, will I owe in taxes and will it end up costing me more than it's worth?
If I quit, I would feel bad because I am starting to build some clientele. BUT I have an AWESOME recruiter that would take great care of them. Otherwise I was thinking I could become personal use and every 3 months place my wholesale of $200 that is required, and then give my friends a 20% discount -- which still gives me a 30% profit -- but will that still screw me with taxes? Second, I know that DH really misses me when I am at these parties and I am not so sure I like being gone at them. Yes, if I only do like 3 or 4 a month, that is only like 2 hours each time, but I am so much of a homebody. After working all day I want to enjoy my night and then my weekend. And while it is neat and all to make the extra $$, I don't always feel great after a party.
There are pros and cons. The pros and the most obvious is $$. Then the women I meet, and then that I am developing the ability to ACTUALLY speak in front of groups. Cons -- I have an apt and the bags and product clutter my office, I don't know what will happen come tax time, I am gone at meetings every Monday and at parties 3-4 times a month, I am getting REALLY worn out.
Even though there are more cons, the ability to speak in front of groups is a big pro for me. BUT there are other ways to accomplish that.
Plain and simple. I want to pay off all my debts. I am wondering if I thought I saw a "quick fix" (which never exists) and jumped in. The neat thing is I regularly wear makeup now and care about skin care. I am trying to determine if it is best to, come January, just have DH and I BOTH quit doing the independent thing.
I know this is not ALL debt related, but boy do I need some encouragement and advice. I really don't want any negative feedback -- but would appreciate any thoughts. This support group is wonderful and I hope everyone else is doing well.