When it Rains, it Pours — A Sad but Necessary Decision to Start the Year
The start of any new year — at least for us — starts with calculating the "results" of the old year, and projecting financial needs and likely outcomes for the new year.
I expect that's a pretty standard procedure for most self-employed people.
Wow... it Was THAT Bad?
I suppose it's no surprise to anyone that 2022 was pretty much "a year of losses," across the board. Investing broadly sucked. Crypto sucked. Being self-employed in sales-related fields sucked. Meanwhile, the cost of living is rising at the fastest rate in 40 years.
Sadly, with a $7,000+ property tax bill looming large at the end of March, Mrs. Denmarkguy and I made the depressing decision to power down our Hive accounts as a "backstop measure" because we have mixed feelings about our ability to raise the money from our work activities.
The original plan for 2022 included having about $5,000 of the needed payment saved up by December 31st, 2022... but the money we made during the year all had to go to just support increased costs of living colliding with declining income from both our businesses.
Of course, it's ironic to be doing this at a time when the value of crypto — naturally — is in the basement, rather than being the alternative solution to a rotting legacy economy.
For Now, Just a Backstop Measure
For the moment, the plan is to just power down and "save" the liquid Hive as a contingency measure that hopefully won't actually be needed... meaning we can power it back UP, once the tax bill has been paid, hopefully as a result of some kind of turnaround (or miracle!) in our personal business lives.
I realize that admitting to "powering down" is almost like invoking the Devil around here... and it saddens me to write these words.
On the other hand, I suppose we should be grateful to have Hive as a potential "Oh Shit Fund," rather than just facing inevitable tax foreclosure for non-payment of the taxes.
Thankfully, this is the last year we have to pay "full fare" property taxes as I turned 62 in 2022, and thereby we qualify for various "senior exemptions" that will reduce the tax burden to about $1,500 in future years.
The Insane "Housing Bubble" and Taxes
Of course, much of the trouble stems from the insanity of real estate prices that have been rising at 15-20% a year... and property taxes are based on "a percentage of each $1,000 of property values." Same goes for property insurance.
So even though — until last year — we were living in a world of very low inflation for many years, the effective cost of housing was rising at a rapid clip for many years.
If you consider it, $7,000 is almost like an additional monthly rent payment of $585.00! For something you already own and have paid for.
No wonder there's a segment of the population that keeps saying "taxation is theft!" But we can believe that to our heart's content... the reality is that if you don't pay The Man, they take your house.
Primarily putting this post here as a sort of "historical marker" in our lives, to have for future reference... "on this day, this DID happen!"
In the meantime, we'll keep pounding away at finding ways to get this to all work out!
Thanks for reading, and have a remainder of your week!
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Created at 2023-01-04 21:47 PDT
Well, why keep building on Hive if you cant sell some sometimes right? :D
I think its sad to see some people taking out everything all the time wheb they get the chance, but for someone like you, who have been building a portefoile here and posts regularly, I don't see it as a problem at all :D
It is exactly like that and its the wrong attitude for people to have. Genuine folks have ups and downs and I would hope that people here will applaud you for using your Hive and giving it a practical use case. Its not like you instantly sell everything you get like some folks do!
Seriously, don't give it a second thought and do what you have to do. This is the reality of life and Hive isn't some unicorn's utopia.
Best wishes to you and the missus, fella. It'll all be alright in the end :-)
Look at it this way: Facebook never gave us nest eggs, and makes a lot more demands of our attention and personal information to boot! Besides, having liquid hive on hand in a few months could be to your benefit if prices turn around in the mean time.
Yup, HIVE was supposed to pay for building work here, but oh well... I had powered down in anticipation last year of using it for that, but I never did, as the value was too low to bother. Sigh...
Greetings from us if as you say it is difficult with the infringement and how expensive everything is we have to manage to meet the payments and even more when we have to pay taxes or other daily expenses is good then we are prepared and for this we look for alternatives that can help us as is the case of writing on this page and how nice when we get something extra when we are older, but we continue making the effort as well as you do my regards.
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Wow, you get a senior discount on property taxes in your state? I never heard of such a thing.
I've drained my Hive investment a couple times to pay bills; I know the pain. I hope the price of Hive skyrockets in the next 13 weeks, and you will be able to sell a portion of your new liquid Hive, and power up the rest. ... Your headline made me think you might be quitting Hive; I'm definitely glad that's not the case!
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There is no point in earning if you don't feel like you can use it.
I haven't even been able to consider my 2023 finances yet, as our financial situation took a huge back seat in 2022, and I just haven't had the ability to really focus on finances yet.
With inflation, illness, high care needs, let's just say 2022 was extremely off the charts in terms of mid term spending and saving goals. I might have to get serious about a job this year, I've been kind of semi retired for about 10 years, but I wasn't planning on Joe's illness when we made those plans.
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