All you self-employed people out there, I’ve got a question. Do you know your costs per item profit? Do you know how valuable your employees are by billable hour? Do you keep tabs on whether or not a certain product or service is worth offering based on a percentage of profit?
I’m curious to find out. What is a good markup? 10%, 20%? How often do you raise rates?
We haven’t raised rates per hour in a long time. Even though our rent, utilities, and health ins has gone up.
I don’t know where to get the information on such statistics.
So last month I wrote about my interest in knocking down my mortgage in addition to other obligations. I aggressively decided to pay an additional $1000 per month (beyond my normal payments) and be accountable to this group. I’m pleased to say that I exceeded my goal.
My mortgage balance last month was $161,840.96 and it currently sits at $157,150.34, $3,759.18 of which was above and beyond principal. I will not always be able to make that much extra payments, but I had some serendipitous funds come in, so I threw them at the mortgage.
So, I’ve been saving for awhile now to take a special trip with my kids and sister. We’re doing an 11-day trip (that includes 2 travel days) to London, Paris, and Rome. I’ve budgeted enough money for food and miscellaneous expenses. If I’m frugal and underspend, I will have additional money for next month’s principal payments.
I’ve been on furlough for nearly two weeks, but it looks like they’re coming to an agreement this week, so when I come back from vacation, I should actually go back to work! I’ll miss one full paycheck, I believe, but I have that covered. Life is good.
When we bought the house, I expressed concern about that, but we were told that most people refinance before it is due. So, for the first 6 years or so, we paid our 255 a month. After six years, we still owed 32,000 so I got worried and did some checking. I realized that we’d have most of the balance left after the 15 years. Given that housing prices were going down, I was afraid that we would not be able to refinance. That was when we started adding extra from each week’s check. Now, in two years, we have paid off an additional 5 thousand. We still have 27 thousand to go, but we’ve paid off more in the last two years than we did in the first 6 years. From what I calculated, if we keep up our extra weekly payments, we should have no trouble having it paid off by 2020.
If I were not doing this, in 2020, whatever the balance was would be due. I’d have no idea whether they would perhaps give us another loan, but I’m pretty sure that if we did not have equity, they would not. It’s with Wells Fargo. Given that our house fell from 250 thousand down to 130 thousand about a year ago and now is inching slowly up (now it’s 145 thousand), I am not sure that we will have any equity by then. The total that we owe is 197 thousand.
We did halt the extra payments during the 6 weeks of one day a week furlough and will halt them until we know for sure that this government shutdown is not going to screw with our income.