Dave never said you couldn’t use any of your extra job income to pay the expenses for that job. If you drove to work to a second job and had to hire a babysitter, he would certainly expect you to pay cash for those expenses out of the extra earnings that income stream is producing. Same if you were using your car to deliver pizzas. He’d expect you to pay for gas, oil, tires and maintenance out of your extra earnings. In fact, it would be essential because I know his intent is not for your extra income to cost you more than you make.

50% going to business expenses for 6 months of an income increasing monthly isn’t bad at all. I own a small business and my net ordinary income isn’t anywhere near 50%. That’s a great NOI. And when your NOI increases from that, you’re doing extremely well. (NOI is net income after expenses, payroll and taxes but before business debt and owner’s equity withdrawals. If I understand how you’re doing things, you don’t have payroll for yourself. You’d just pay self-employment tax on NOI of 15.3%. And thank goodness expenses are deductible!)

My debt balance is still increasing because I can’t pay enough yet to overcome the interest charges. But I keep working on paying more. Once I can get more of the smaller debts off my snowball, the momentum will increase.

Nichele