new to TMMO but on Step 3 need advise

**scipper83** · 03-06-2011, 02:57 PM

Luckily we started this at just the right time. just got our tax return and now have no debt but the house, but here is the dilemma. i am a firefighter and have alot of time for another full time job (which i MUST have bc my wife stays home) i am looking at starting a lawncare business and actually already have most of what i need but still need about $500-$700 to start. we have about $1500 in our emergency fund. with just my FF job we can cover everything but nothing extra to put in the EF. do i take some of the EF $$ to start the business so i can eventually have extra $$ or is there another way thats recommended?

**MaryCarney** · 03-06-2011, 03:45 PM

I sure would as long as you leave something in the BEF. Is the plan to sock all the profit into a FFEF?

**scipper83** · 03-07-2011, 05:56 PM

yes i would be putting most of it back in the FFEF. is this the way Dave Ramsey would do it or would he try to save for the lawncare $$ seperately?

**Greebo** · 03-08-2011, 05:53 AM

First of all, congratulations on getting to BS3!

Starting a lawncare business is a great idea, but it's NOT an emergency, so no, you do NOT use the EF money to start a lawn care business. You touch that money and Murphy is gonna show up and start breaking stuff around you like it was magic.

Ok that's superstitious but the point is - it's NOT an EF and what if you end up needing it right after you touch it? The EF is about reducing RISK not increasing it by using it for non emergencies.

Couple questions - if you have most of what you need already, what do you need $500-$700 for before you can start?

When you say there's nothing extra - are you sure? Are you doing your budget every month, on paper, so every dollar has a name and nothing is spent w/o both of you agreeing where that money is going ahead of time? If you had debt before, and now you don't, you *should* have more money each month - so how come you don't?

I think it's a great plan to cut lawns - but if you have most of the equipment then I'd suggest that you simply start local, and build up your business locally and start making money that way to fund what you need. It'll take a little longer but you won't be creating extra risk.

Good luck and way to go gung ho!

**scipper83** · 03-08-2011, 07:54 AM

the reason i need the 500-700 is for a trailer. i have to have it to get to the jobs.

the reason there is no money left is bc we just got our tax return and paid off all our debt except the house. we just so happened to start our TMMO at the right time

we have written out our budget and it is sqeezed as tight as it can be believe me. i guess it is one of those situations where i will have to spend money to make money but i dont have it to spend except our EF. so if i dont do that and i have sold everything but the kids for extra cash then what is my next step?

**Greebo** · 03-08-2011, 02:19 PM

That's still not clicking with me - are you saying that prior to getting your tax refund you were falling behind each month?

And if your tax refund is that big - one thing you should do next is to adjust your W4 so that the IRS isn't holding so much back from your paycheck - that will give you more take home pay and a smaller refund.

**scipper83** · 03-08-2011, 05:34 PM

yes before our tax return we were short for the month but with it we paid off my truck and 2 credit cards so now we have just enough (for most the categories anyways)

my w2 is adjusted correctly, we got alot back bc of a small business loss from last year and my wife stays home with our girl. i have sold the business recently.

**Greebo** · 03-08-2011, 10:27 PM

Ok - that explains it - and congratulations on making it to having the month be "in the black"

Well - you have a truck, but not a trailer. I'm guessing the money you need is to buy the trailer and make it all legal?

In the short term, when you have a lawn job, can you rent a trailer from UHaul or someone like that? It'll cut your profits but you will be able to get to the job (with more planning and effort, obviously), and you won't touch the emergency fund that way.

And how much equipment can you haul in just your truck? Maybe enough to do smaller jobs for now while you build up money for the trailer?

**Lindsey** · 03-09-2011, 04:43 AM

I'd say maybe stock shelves at Wal-Mart until you can get everything together. The pay a good wage if you work nights.

Do you already have a customer base for your lawncare? Are you going to be bonded and insured?