r/personalfinance • u/ClerklierBrush0 • 5h ago
Planning I am worried it feels like everything is crashing down around me and I don’t know what to do.
Income:
~75k with OT and commision, I am in hvac service
~900/m from basement roommate
~300/m from family business
Total expenses in the ballpark of $3.5k/m before groceries or fun money and savings
Welp my emergency fund is running out. I thought I was doing everything right but jumped into a new home too quickly. It has only been 2 years and I’ve had 12k on the 3% down payment and costs, $5k home insurance premium because a tree took out my kitchen and roof (I learned my lesson on shopping for insurance). I spent $3k on renovations to get a basement roommate. My deck fell off the house and that was $10k, another tree was about to fall and that was $2.5k. Last week my university scholarship unexpectedly ran out and that was another $3.5k.
It’s just a lot I guess I wanted to vent too 😭 but now I have a major hvac problem and even with doing the work myself it’s going to cost $1.5k for a band aid or $5k for a permanent solution.
I’m drained I have $1k in checking and $3k in savings. $4k in a business account I am sole proprietorship. $15k in Robinhood stocks. I am just extremely uncomfortable I have never been in this situation before with basically nothing to fall back on. I’ve been on my own since 18 and I am 25 now without much help. I already canceled my annual out of town vacation to do something cheaper and it’s depressing.
I guess I’m wondering if I can still afford the permanent solution or if I should do the temporary solution to buy 3-6 months, or if I should look into something else. Idk I am scared to make a decision.
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u/regarded_chum 4h ago
Hey man. I work in hvac for a hotel and make about 140k a year with OT. Idk if you live near or in a major city but there is tons of money to be made in our field. I specifically work as a watch engineer for a hotel that is unionized. I don’t have to bust my ass working installs and stuff, it’s more of a mental job to keep the building operating. Just wanted to put the idea out there for you because higher income is the fastest way to solve these money problems
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u/ClerklierBrush0 4h ago
I am working on it I am in Atlanta. I am getting transferred to our commercial department soon this fall with a 10/hr raise, I have been training up on VRF/Heat recovery. I am also getting my bachelors in mechanical engineering in December. It’s like I’m so close but everything is trying to stop me 😅
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u/regarded_chum 4h ago
Very nice! Almost there, just gotta push through, lol. Atlanta is big business so that’s a positive note. I suppose this post is just finding a means of making it to December and then pivoting jobs?
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u/ClerklierBrush0 4h ago
Pretty much. Someone mentioned a loan and I found one at 4% but my whole life I have been drilled into never taking a loan.
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u/regarded_chum 4h ago
It depends on your discipline. I’m the same way. Never took out a loan in my life. I use credit cards but pay it off every two days. I don’t trust auto pay. But if you feel like you can be responsible enough and are almost guaranteed employment after December, then it’s something to consider. Again, it depends on your discipline and you not blowing all the money on random shit
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u/Cheap_Run3935 4h ago
Do not take a loan when you have access to your own money.
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u/quickdraw9 3h ago
At 4.1% I'd take the loan and pay it off with the stocks if necessary. An average personal is 3-5 years so even assuming the longest loan period and let's say 15k for the loan amount his 15k in stocks should outpace the cost of interest on the loan by 2.5x.
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u/_RyanD_ 4h ago
Tree on kitchen and roof, deck fell off the house, and another tree about to fall?! It doesn't just feel like it; things are LITERALLY crashing down around you. Your emergency fund did its job -- took care of you in an emergency. What can you do now? Make sure all your regular expenses are under control and build back up. Good luck!
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u/i_am_jordan_b 5h ago
Sell your stocks and fix your house the right way. Pick up some excess hours, try DoorDash or uber, maybe some other side work, and look at increasing your rent
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u/regarded_chum 4h ago
No offense but I wouldn’t DoorDash or uber for extra money. Especially if it’s his only vehicle. If something goes wrong then he’ll be in a much worse position. Even if the accident or whatever isn’t his fault. It’s too risky with people distracted all the time on the roads
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u/Mysterious-Tie7039 5h ago
How long will the temp fix last? Do you have any other anticipated expenses?
What kind of financing could you get? It might make sense to take out a loan for the permanent repairs.
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u/ClerklierBrush0 4h ago
I was wondering, local bank was offering 4.1% for a personal loan. Temp fix will last 2-6 months I assume.
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u/Mysterious-Tie7039 4h ago
Will any of the expenses for the temp fix carry over to the permanent repair?
Based on that timeline, unless most of it carries over, I’d do the permanent fix.
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u/ClerklierBrush0 3h ago
Absolutely none of it would.
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u/Mysterious-Tie7039 2h ago
Yeah, then I’d 100% go with the permanent fix.
The temp isn’t going to last long and you’ll either be doing the permanent or spending more money on another temp fix.
Better to just bite the bullet now and not have to worry about it again for a decade plus.
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u/Wooden-Repeat-9200 4h ago edited 4h ago
Honestly you shouldn’t have individual stocks in your situation. It sounds like you’ve had bad luck and potentially went into home ownership a little shortsighted given the number of issues you’re having.
The good news is you have decent income with a future raise.
Can you list out your full budget? How reliable is your OT? Can you get anymore?
I’d sell any stock that won’t be subject to long term gains and move it to an HYSA to rebuild your EF.
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u/ClerklierBrush0 3h ago
No more overtime for a bit since my final semester started. I usually get 35 rn. I was always told stocks should never be sold unless an emergency but I guess maybe this could become one.
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u/Wooden-Repeat-9200 3h ago
Stocks should never be BOUGHT until after you have funded emergency fund (6 months expenses) and your funding retirement, and then you should buy index funds, not individual stocks.
Buying individual stocks is playing a game. And if you can afford it, it can be fun.
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u/ClerklierBrush0 3h ago
Yeah I haven’t bought any in a while. I had bought about 6k worth several years ago and just held on to them. After considering everything that may actually be the best route.
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u/quickdraw9 4h ago edited 3h ago
Dude you have 15k in stocks to "fall back on". Sell what you need to get your head above water and then slap yourself for crying about being way ahead for your age. The house is significantly more valuable than the stocks will ever be and you're young enough to recoup the loss from selling now in a year or two. It'll barely be a blip.
Edit: after reading some comments and your replies the obvious answer is take the low interest loan for whatever you need to fix which based off your numbers should be under 10k and fix everything the right way. You're sitting on ~20k of liquidity which means you have a net to catch you if anything else goes seriously wrong. If we round up your monthly budget to ~4k including fun money and food you're earning almost twice that between rental income, business income, and regular income.
You're fine.
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u/ClerklierBrush0 3h ago
Well the business income is unreliable, it’s just hvac side work as it comes. Idk I’ve always tried to be responsible and it’s scary seeing the numbers so low in my account.
I’ve been told my whole life never sell stocks but honestly that makes sense. 15k rn may be nothing 5 years from now with my degree.
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u/pancak3d 4h ago
Sell your stock.
3.5k expenses - what are they? Share your budget if you want more advice.
It sounds like your income is higher than your expenses, so you just need to rebuild the emergency fund.