Restructuring personal finances for a recession

We tackle the uncomfortable topic of paying off debt, simplifying expenses, and balancing the in/out or at least making it more manageable.

mileposts podcast - episode 13 - restructuring personal finances for a recession

Right. What's up guys? It's another episode of the milepost podcast, episode 13. If I'm counting correctly, and I've been talking a little bit about  my March as it relates to personal finances and action plan related to. Kind of the,  the market, the economy going forward, covid-19 coronavirus and so forth.

[00:00:21] So I took some time to pause and kind of think, as opposed to just frantically spinning out of control. But once that thinking is done with, and for me, it's been, I would say, 45 days, a little bit of thinking combined with a action taking on personal finances as well as taxes and some other just logistical operational stuff.

[00:00:49] But, that 45 days is up and now it's time  to take some Swift action to. you know, to grow and to, to, try to build and pivot and take advantage of things. So, in a prior episode, I talked a little bit about how the wedding markets kind of disappeared. That's impacted a couple apps. The one downpayment.gift, obviously ourbridalfund, Drastically impact impacted, but the for sale by owner thing  will come into its own, I think as well as this reviewhomes.com.  So how do we keep the plates spinning on, dump him and gift, keep that going and moving in the right direction at the same time. We make some progress on the others.

[00:01:29] So. on the personal finance, I'll kind of keep this brief because it's, it's kind of boring, but we'd previously refinanced. So we're not in a position where we're kind of struggling to try to refinance. I haven't, you know, I was in the mortgage business for eight years, but from 2005 on, I never refinanced our personal mortgage.

[00:01:47]I'm a huge believer that every time someone refinances, they sort of kick the can down the road. They get further and further from actually paying off their home. Cause most people are attracted to a low monthly payment and not the interest rate. And I've talked, you know, would like to be able to make hundreds of thousands of dollars and you look at their mortgage few years later after they refinanced and they did nothing to prepay the mortgage.

[00:02:14] So I've worked hard to try to do that. Not as good recently, but in years past we did make some progress chipping away at it, and we were underwater for years. We bought nearly at the peak of the market in 2005 and the market kind of went sideways for a year and then started going down and it went way down and we were way upside down for years.

[00:02:38] So we couldn't refinance. So we never even really thought about it. But in the last few years, we could have refinanced sooner than we had. So, my bad, a lot of that was driven around kind of fears around credit or income because my income had dropped substantially since I left the mortgage business.

[00:02:53] But at the same time, Just not wanting to spend a ton of time on it. So decided at the end of the year, beginning of January, let's dust off this refinance thing and get it done. so we got it done in January, closed in early February.  got a slight price better based on the coronavirus bond market reaction towards the, Maybe end of January, early February, I'd have to look at the exact date that we got to. We repriced and floated down and  got a lower interest rate based on, the market and, which is kind of rare, but, obviously the rates went down a lot further in March and in April, and they went way up for awhile.

[00:03:37] We were looking super smart for refinancing, and then they went away back down again. But in, in any case, so we're like three and an eighth or something and a 15 year. and, the sad part is I, I took myself off the loan to qualify, but we kept it in the family trust. Did not pay off any debt or anything.

[00:03:58] He managed to get a loan without having to do an appraisal, which kind of blew my mind. And that's happening a lot now in the shelter, in place kind of world where they're doing automated appraisals, but, that got taken care of. So that was good. That was a huge win for our, my personal finances, our personal finances.

[00:04:21]and then in March and April. Really spent some time on a restructuring and paying off tons of debt. So I sold two chunks of private stock. I had one was a private sale for a now VC funded company, but it was a, you know, one of these kind of YC style SAFE notes and, from a few years ago. And they did successfully raise a seed round and, sold that stock to one of the venture investors privately.

[00:04:51] So that netted a chunk of money to put in the coffers for a rainy day and, or pay off debt. And then there was another private company stock, just smaller,  maybe a, maybe an eighth of the other amount that they sold last year. and, so got a little chunk back. So of three private investments I've made.

[00:05:14] One's gone out of business and lost a ton of money, and then the other two had done. Okay. So I'm looking at the small portfolio of private investments I have, and, going into this recessionary period, I'm not too excited about how the rest of them are fair. I'm hopeful on one of them I'm fearful on, Two or three of them were really not super confident about one of them on the edge. I'm not sure. Maybe one day we'll talk about that, but a trimmed the monthly expenses the best I could, and kinda restructured and refinance them. So if you haven't,  sat down and kind of restructured the monthly in and out. I think most people have started to do that. That was the first thing I did. going into this full bled panic was trying to figure out how to stop the bleeding and to pay off some debt and kind of make things really super manageable.

[00:06:11] So super happy about how that went out. And given that the stress that I was under in months prior, I can't believe that I didn't do this before, so it would have been a lot easier to get through early and mid March. So. Alright. That's it. Talk to you soon. Thanks for tuning in. and, stay tuned for more check-ins on mileposts.

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